Contemporary World (Unit 2)

• Globalization (1)

  has been responsible for remarkable changes in the 20th century
• Globalization (2)

  as a complex change, it permeates people's daily realities as well as the lives of communities and countries
• Globalization (3)

  a deeper analysis is needed to asses whether the process and impacts of globalization are consistent with development that is sustainable, just, and equitable for the people and the planet
• Economic Globalization, Cultural Globalization, Political Globalization (1)

  globalization is mainly conceptualized as intensified transferee or exchange of things across existing boundaries; However, globalization is primarily an economic process, the drive toward integration of economies throughout the world
• Economic Globalization, Cultural Globalization, Political Globalization (2)

  this archived through trading financial flows across countries borders
• Economic Globalization, Cultural Globalization, Political Globalization (3)

  globalization is built in the belief that development can be achieved through rapid economic growth, made possible because of economic integration
• Economic Globalization, Cultural Globalization, Political Globalization (4)

  as a growth-oriented model of development, it looks like into GDP as indicator of success
• Economic Globalization, Cultural Globalization, Political Globalization (5)

  economic globalization is a complex global process of expanding the market economic system all throughout the world; the market economy, the economic system that gives freedom to entrepreneurs to control productive process to pursue profit, is just one kind of economic system designed by human societies
• Economic Globalization, Cultural Globalization, Political Globalization (6)

  it is a corporate-driven process of enhanced transnational exchange of products, services, technologies, and capital, creating an increases interdependence of worlds economies
• Trading

  international trading, or the economic exchanges, and deals between countries, is enabled by international fiscal payments where private where private banks and the central banks of particular nations play important roles
• Capital movement

  one manifestation of capital movement is foreign investment
• Commercial loans


  are money lent to foreign businesses or governments, while official flowers refer to development aid or money granted by rich countries to developing nations
• Foreign direct investment


  refers to buying or putting up a firm a foreign country or contributing to the enhancement of an existing firm
• Transnational corporations


  businesses that operate in more than one country, primary undertake foreign direct investment
• Movement of people


  people can migrate to other countries in search of better employment opportunities
• Cultural Globalization and Political Globalization


  increased interdependence of economies in the world also combines with globalization of culture and politics
• Cultural Globalization


  refers to the increasing "contact between people and their cultures-their ideas, their values, their ways of life"
• Political Globalization (1)


  is the enlargement of the international political system and its establishments, where inter-regional dealings, including trade, are manage
• Political Globalization (2)


  conventional politics usually happens within national political spheres
• Political Globalization (3)

  in political globalization on the other hand, political decision-making can transcend the boundaries of nations; when talking of managing economic and trading matters, security, environment, and other transnational issues, some institutions come into play such as World Bank, International Monetary Fund, United Nations, among others
• Assumptions Behind Globalization (1)

  rapid economic growth will lead to development
• Assumptions Behind Globalization (2)

  trading will bring prosperity
• Assumptions Behind Globalization (3)

  poor countries will benefits from borrowed funds
• Assumptions Behind Globalization (4)

  poor countries need to catch up with rich countries by implementing economic policies toward economic integration
• Assumptions Behind Globalization (5)

  removal of tariffs, quota can ease global trading and will lead to economic integration toward prosperity
• Critiques to the Assumptions (1)

  economic growth is only aspect of development:

  social and economic justice and equity

  welfare, adequate provision of basic needs and services

  equitable distribution of opportunities, income, and wealth
• Critiques to the Assumptions (2)

  trading benefits some more than others
• Critiques to the Assumptions (3)

  borrowing of poor countries are coupled with conditions, which make countries compromise spending for social services and welfare
• Critiques to the Assumptions (4)

  it will be difficult for poor countries to catch up because they are caught in unequal exchanges and underdevelopment
• Critiques to the Assumptions (5)

  reduction of tariffs in the Philippines since the 1980s led to unfair competition of local industries with imports
• The Bottom Line (1)

  while all three organizations promote themselves as fostering positive developments, not everyone agrees with their self-assessments; the organizations do provide financial assistance to countries in need, but like just about every other known method of obtaining financial resources, the money comes with strings attached and the motives behind the initiatives are often in question
• The Bottom Line (2)

  for example, what these groups refer to as "promoting economic growth," their detractors view as a blueprint for destroying the local economy and despoiling the environment with globalization efforts that benefit only the rich; protests, including those in Davos, Switzerland, Washington, D.C., Cancun, Mexico, and other major cities are a regular feature at IMF, World Bank, and WTO events.20 Aside from the public protests, even some business leaders argue against the organizations