THE CONTEMPORARY WORLD In the Philippines, globalization found its way into the

heart of Philippine society during the presidency of

Chapter 1: Nature of Globalization
Fidel V. Ramos in 1992-1998
Globalization
Fidel V. Ramos – capitalist
- promotes advancement of transportation and
envisioned Filipinos to be self-reliant and globally
technology (which are key factors for
competitive by fostering ties with neighboring foreign
globalization where people and institutions are
economies, and by exploring other avenues for
given access to territories where they could
expanding international investments.
offer their services and compete with other
competitors with lesser government dismantled monopolies in the communications and
restrictions) transportation networks, privatized basic utilities
- the unprecedented compression of time and provider like water, and liberalized trade
space as a result of political, economic, and
In return, this paved way for cheaper travel and
cultural change, as well as powerful
affordable local and overseas communications that
technological innovations
enabled people relations across and beyond boundaries
- globalization can be seen in different lenses and
to thrive
point of views hence, globalization talks about
the increase of social relations and ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
consciousness across timelines and borders.
- increases global ‘inter-connectedness’, ‘the History of Globalization
expansions and intensification of social relations Silk roads (1st century BC-5th century AD, and 13th-
across world-time and world-space’, 14th centuries AD)
- ‘the compression of time and space’, ‘distant
proximities’, ‘a complex range of processes, People have been trading goods for almost as long as
driven by a mixture of political and economic they’ve been around. But as of the 1st century BC, a
influences’, and ‘the swift and relatively remarkable phenomenon occurred. For the first time in
unimpeded flow of capital, people, and ideas history, luxury products from China started to appear on
across national borders’ the other edge of the Eurasian continent – in Rome.
They got there after being hauled for thousands of miles
With the states' intention to boost productivity within along the Silk Road. Trade had stopped being a local or
the bounds of their territories, states often have the regional affair and started to become global.
tendency to liberalize trade which paves the way for
multinational corporations (MNCs-has facilities and That is not to say globalization had started in earnest.
other assets in at least one country other than its home But global trade links were established, and for those
country. They have centralized management system in involved, it was a goldmine. From purchase price to final
their home company ex. Procter & Gamble, Apple Inc., sales price, the multiple went in the dozens. The Silk
PepsiCo, Sony Corporation, Microsoft, Mars). and Road could prosper in part because two great empires
transnational corporations (TNCs- is a huge company dominated much of the route. If trade was interrupted,
that does business in several countries. They don’t have it was most often because of blockades by local enemies
subsidiary but just composed of many companies, of Rome or China. If the Silk Road eventually closed, as
there’s no mother company. Many TNCs are much it did after several centuries, the fall of the empires had
richer than entire countries in the less developed world everything to do with it. And when it reopened in Marco
ex. Nestlé, Yakult, Unilever) to become major players in Polo’s late medieval time, it was because the rise of a
most state's local economy. new hegemonic empire: The Mongols. It is a pattern
we’ll see throughout the history of trade: it thrives
• The availability of cheap labor, resources, and when nations protect it, it falls when they don’t.
favorable production conditions in the Third
World enhanced both the mobility and the
profitability of TNCs
The Silk Road was an ancient network of trade routes, European explorers taking to the sea and charting new
formally established during the Han Dynasty of China, water routes to replace over-land trade. 
which linked the regions of the ancient world in
Truly global trade kicked off in the Age of Discovery. It
commerce between 130 BCE-1453 CE. As the Silk Road
was in this era, from the end of the 15th century
was not a single thoroughfare from east to west, the
onwards, that European explorers connected East and
term 'Silk Routes’ has become increasingly favored by
West – and accidentally discovered the Americas. Aided
historians, though 'Silk Road’ is the more common and
by the discoveries of the so-called “Scientific
recognized name.
Revolution” in the fields of astronomy, mechanics,
From West to East these goods included:  physics and shipping, the Portuguese, Spanish and later
the Dutch and the English first “discovered”, then
- Horses
subjugated, and finally integrated new lands in their
- Saddles and Riding Tack
economies.
- The grapevine and grapes
- Dogs and other animals both exotic and Yet economists today still don’t truly regard this era as
domestic one of true globalization. Trade certainly started to
- Animal furs and skins become global, and it had even been the main reason
- Honey for starting the Age of Discovery. But the resulting
- Fruits global economy was still very much siloed and lopsided.
- Glassware The European empires set up global supply chains, but
- Woolen blankets, rugs, carpets mostly with those colonies they owned. Moreover, their
- Textiles (such as curtains) colonial model was chiefly one of exploitation, including
- Gold and Silver the shameful legacy of the slave trade. The empires
- Camels thus created both a mercantilist and a colonial
- Slaves economy, but not a truly globalized one.
- Weapons and armor
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

First era of globalization (19th century-1914)

From East to West the goods included:
Late 19th century started with the dominance of British
- Silk empire in the world economy
- Tea
integration of world economy, liberalization of
- Dyes
international trade and finance, mass production, mass
- Precious Stones
migration, opening of Suez canal
- China (plates, bowls, cups, vases)
- Porcelain  This started to change with the first wave of
- Spices (such as cinnamon and ginger) globalization, which roughly occurred over the century
- Bronze and gold artifacts ending in 1914. By the end of the 18th century, Great
- Medicine Britain had started to dominate the world both
- Perfumes geographically, through the establishment of the British
- Ivory Empire, and technologically, with innovations like the
- Rice steam engine, the industrial weaving machine and
- Paper more. It was the era of the First Industrial Revolution.
- Gunpowder
And, Keynes also noted, a similar situation was also true
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ in the world of investing. Those with the means in New
York, Paris, London or Berlin could also invest in
Age of Discovery (15th-18th centuries)
internationally active joint stock companies. One of
The closure of the Silk Road initiated the Age of those, the French Compagnie de Suez, constructed the
Discovery (1453-1660 CE) which would be defined by Suez Canal, connecting the Mediterranean with the
Indian Ocean and opened yet another artery of world
trade. Others built railways in India, or managed mines block itself and its satellite states from open contact
in African colonies. Foreign direct investment, too, was with the West and non-Soviet-controlled areas.
globalizing.
In the early decades after World War II, institutions like
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ the European Union, and other free trade vehicles
championed by the US were responsible for much of the
World War I
increase in international trade. In the Soviet Union,
In 1914, the outbreak of World War I brought an end to there was a similar increase in trade, albeit through
just about everything the burgeoning high society of the centralized planning rather than the free market. The
West had gotten so used to, including globalization. The effect was profound. 
ravage was complete. Millions of soldiers died in battle,
Then, when the wall dividing East and West fell in
millions of civilians died as collateral damage, war
Germany, and the Soviet Union collapsed, globalization
replaced trade, destruction replaced construction, and
became an all-conquering force. The newly created
countries closed their borders yet again.
World Trade Organization (WTO) encouraged nations all
Great depression (1929-1939) – end of the first era of over the world to enter into free-trade agreements,
globalization. and most of them did, including many newly
independent ones. In 2001, even China, which for the
In the years between the world wars, the financial better part of the 20th century had been a secluded,
markets, which were still connected in a global web, agrarian economy, became a member of the WTO, and
caused a further breakdown of the global economy and started to manufacture for the world. In this “new”
its links. The Great Depression in the US led to the end world, the US set the tone and led the way, but many
of the boom in South America, and a run on the banks others benefited in their slipstream.
in many other parts of the world. Another world war
followed in 1939-1945. By the end of World War II, ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
trade as a percentage of world GDP had fallen to 5% – a
a new technology from the Third Industrial Revolution,
level not seen in more than a hundred years.
the internet, connected people all over the world in an
even more direct way. The orders Keynes could place by
phone in 1914 could now be placed over the internet.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Instead of having them delivered in a few weeks, they
World War II would arrive at one’s doorstep in a few days. What was
more, the internet also allowed for a further global
1944 - 1972 from the end of World War 2 to the integration of value chains. You could do R&D in one
collapsed of the Bretton Woods agreement; Cold war country, sourcing in others, production in yet another,
(1940-1945) communism vs. capitalism and distribution all over the world.
The end of the World War II marked a new beginning ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
for the global economy. Under the leadership of a new
hegemon, the United States of America, and aided by That brings us to today, when a new wave of
the technologies of the Second Industrial Revolution, globalization is once again upon us. In a world
like the car and the plane, global trade started to rise increasingly dominated by two global powers, the US
once again. At first, this happened in two separate and China, the new frontier of globalization is the cyber
tracks, as the Iron Curtain divided the world into two world. The digital economy, in its infancy during the
spheres of influence. But as of 1989, when the Iron third wave of globalization, is now becoming a force to
Curtain fell, globalization became a truly global reckon with through e-commerce, digital services, 3D
phenomenon. printing. It is further enabled by artificial intelligence,
but threatened by cross-border hacking and
The Iron Curtain specifically refers to the imaginary line cyberattacks.
dividing Europe between Soviet influence and Western
influence, and symbolizes efforts by the Soviet Union to At the same time, a negative globalization is expanding
too, through the global effect of climate change.
Pollution in one part of the world leads to extreme a world economic system in which some countries
weather events in another. And the cutting of forests in benefit while others are exploited.
the few “green lungs” the world has left, like the
Amazon rainforest, has a further devastating effect on
not just the world’s biodiversity, but its capacity to cope This theory emphasizes the social structure of global
with hazardous greenhouse gas emissions. inequality.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ - Core: rich developed countries; dominate and
exploit peripheral countries for labor and raw
U.S. begun to replace Britain (before WW1): emergence
materials
of America in the international economy, early signs of
- Periphery: poor, dependent nations upon core
cultural exchanges evident in sports (the Olympic
countries for capital (money)
games), tourism, entertainment, science and medicine,
- Semi-periphery: semi-industrialized countries;
missionary works, significance of the opening of the
share characteristics for both
Suez and Panama Canals to international trades

1st-mechanization, steam, and water power

-We need to study the entire global economy as a world
2nd-mass production and electricity
system.
3rd-electronic and IT systems, automation
-We can't understand the fate of a single country
4th-cyber physical systems without understanding how it fits into the overall
system.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
-Countries aren't poor because of their own specific
CHAPTER 3: The Global Economy
history or internal characteristics
Major driving force of globalization is:
-It’s poor because of their position relative to others in
Economic Globalization the global capitalist system

• it is the result of human innovation and -Not just that the periphery is dependent on the core:
technological progress the latter's development is also conditioned on the
former
• refers to the increasing integration of
economies around the world, particularly
through the movement of goods, services, and
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
capital across borders
Actors That Facilitate Economic Globalization
• refers to the movement of people (labor) and
knowledge (technology) across international - Bretton Woods Conference/Agreement
borders (IMF, 2008) - World Trade Organization
- International Monetary Fund
Dimensions
- World Bank
1. Globalization of trade of goods and services
Towards the end of the Second World War, the Allied
2. Globalization of financial and capital markets powers came together in 1944 to plan a new economic
order for the post-war world which would avoid a
3. Globalization of technology and communication repeat of the disastrous policy mistakes of the 1920s
4. Globalization of production and 1930s, great depression.

Bretton Woods Conference/Agreement by John

Maynard Keynes and Harry Dexter White
The World Systems Theory, developed by sociologist
Immanuel Wallerstein, suggests there is
Macroeconomic stability-agreed to adopt the U.S. International Bank for Reconstruction and
dollar as an official reserve currency. Since then, other Development.
countries pegged their exchange rates to the dollar,
At the conference in Bretton Woods, New Hampshire,
which was convertible to gold at the time (fixed
44 Allied countries met under the intellectual leadership
exchange rate). Because the gold-backed dollar was
of Harry Dexter White (a senior US Treasury official)
relatively stable, it enabled other countries to stabilize
and John Maynard Keynes. The conference envisaged
their currencies. But US abandoned the gold-exchange
new rules of the game to prevent countries following
standard in 1971, the US decided no longer to uphold
the ‘beggar-thy-neighbour’ policies that had led to the
the dollar exchange at 1/35th of an ounce of gold and
Great Depression. It also established the International
so its currency was no longer fixed and shifted to
Monetary Fund (IMF) and World Bank, formerly known
floating exchange rate. A floating exchange rate is a
as International Bank for Reconstruction and
regime where the currency price of a nation is set by
Development (IBRD) as the key institutions to manage
the forex market based on supply and demand relative
this new world order.
to other currencies and the soundness of the central
bank position. This new structure was initially successful in allowing
the world to recover after the war. The IMF put in place
Import substitution industrialization (ISI) is a trade and
fixed exchange rates based around the dollar, and
economic policy which advocates replacing
provided finance to allow countries to make necessary
foreign imports with domestic production. ISI is based
adjustments to their balance of payments provided that
on the premise that a country should attempt to reduce
they followed sound domestic economic policies. The
its foreign dependency through the local production of
World Bank provided long-term loans to allow post-war
industrialized products. Availability of financial capital is
reconstruction, including in support of the Marshall
vital, adopted both import subs and export promotion
Plan. The World Bank shifted its focus from post-war
Governance reform-members of exchange rate policies; reconstruction in Europe (financed by borrowing from
avoid pursuing policies that are designed to either capital markets) to playing a key role in development. 
interfere with the adjustment process or gain an unfair
WTO, former General Agreement on Tariffs and Trade
competitive advantage over other members. Avoid
(GATT), crafting and policing multilateral trade
manipulating exchange rates or the international
agreements
monetary system (set of internationally agreed rules,
conventions and supporting institutions that
facilitate international trade, cross border investment
and generally the reallocation of capital between nation The rate is free-floating and therefore has brought more
states.) in order to prevent ineffective balance of stability to the currency and eradicated the black
payments adjustment or to gain an unfair competitive market which existed during the pegged system.
advantage. Eradicating corruption. -Adjusted to fluctuate in response to the volume of
-but failed to implement such policies. Offered dollars that enters our economy. If more dollar inflow
conditions such as adopting market oriented economic goes to our economy due to positive net exports, more
models and open up their economies to foreign foreign direct investments, increase OFW remittances,
competition and gradual opening of markets. Practice of and greater volume of tourist arrivals, then the currency
crony capitalism in developing countries. Devpt loans by will appreciate. Conversely, if net exports become
IMF pocketed by leaders. Lots of IMF and World bank negative, foreign direct investments remains poor, and
projects failed OFWs remittances declines, peso depreciate its value.

Assume a traveler from the US is heading to the

Philippines for a holiday. They need to buy some
- PH Commonwealth signed the two landmark Philippine pesos (PHP) for their trip. Since the exchange
documents of the Bretton Woods Conference: The rate is free-floating the rate will change by the day, and
Articles of Agreement on the International Monetary even by the minute.
Fund and the Articles of Agreement on the
Assume that the traveler checks the exchange rate and - Grounded under laissez-faire (Leh seh fare)
it is 52.27 USD/PHP. That means it costs 52.27 PHP to principle that market is the fundamental
buy one USD, or alternatively, you get 52.27 PHP for dominant decision maker
each USD. - more on freedom from the gov’t in terms of
taxation, freedom of tariffs and quotas,
regulations, flows of capital---the more
prosperity there will be, prosperity will trickle
down from elite to lower classes.
- free market competition

Asian Financial Crisis Washington Consensus

- also called the "Asian Contagion," was a -a set of free-market economic policies that supported
sequence of currency devaluations and other prominent financial institutions such as
events that began in the summer of 1997 and the International Monetary Fund, the World Bank, and
spread through many Asian markets. the U.S. Treasury.

- result of the government's decision to no longer

peg the local currency to the U.S. dollar (USD). A British economist named John Williamson (Pres of
Currency declines spread rapidly throughout World Bank) coined the term Washington Consensus in
East Asia, 1989, after the key players in Washington headed by
- causing stock market declines, reduced import Pres. Ronald Reagan of US and PM Marget Thatcher of
revenues, and government upheaval. England

-  Luckily, the Asian financial crisis was stemmed -policies unleashed the developing countries with large
somewhat due to financial intervention from unpaid debts from the 1970s and 80s.
the International Monetary Fund and the World
The ideas were intended to help developing countries
Bank. However, the market declines were also
that faced economic crises. In summary, The
felt in the United States, Europe, and Russia as
Washington Consensus recommended structural
the Asian economies slumped. As a result of the
reforms that increased the role of market forces in
crisis, many nations adopted protectionist
exchange for immediate financial help. Some examples
measures to ensure the stability of their
include free-floating exchange rates and free trade.
currencies. 
Critics have pointed out that the policies were unhelpful
- IMF, provided loans to stabilize the Asian
and imposed harsh conditions on the developing
economies—also known as “tiger economies”—
countries, others have defended the long-term positive
that were affected. Roughly $110 billion in
impact of these ideas.
short-term loans were advanced to Thailand,
Indonesia, and South Korea to help them Increasing criticism led to a change in approach that
stabilize their economies. In turn, they had to shifted the focus away from a view of development as
follow strict conditions including higher taxes simply economic growth and toward poverty reduction
and interest rates, and a drop in public and the need for participation by both developing-
spending.  country governments and civil society. That change of
direction came to be known as the post-Washington
Consensus.
Neoliberalism

- advocate the elimination of government-

All global companies are multinational. It is possible to
imposed restrictions on transnational
be a multinational company that is NOT global if the
movements of goods, capital and people
company does not sell to all countries.
Theoretically, any company that sells products on the
web could be considered a global company. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

For example, IKEA may not necessarily ship to every Chapter 3: Market Globalism and Integration
country in the world, but it would be considered a
Market Globalism
global company anyway.
• System of ideas that makes normative claims
International-exporter and importers, no investment
about a set of social processes called
outside home country
globalization
MNC-investments outside country, no coordinated
• ideology held by many powerful individuals,
product offerings in each country but has centralized
who claim it transmits democracy and benefits
management system. More focused on adapting
everyone
products and services to each individual local market
• Market globalization contains an ideological
Global-investments and present in many countries.
dimension filled with a range of norms, claims,
TNC-Has headquarter or none but gives decision beliefs, and narratives about the phenomenon
making, R&D and marketing powers to each individual itself. Ideology is a system of widely shared
foreign markets. ideas, patterned beliefs, guiding norms and
values, and ideals that are accepted as truths by
certain group of people”, especially one which
Power of TNCs forms the basis of economic or political theory
and policy
• stateless, as they answer to no one, and have
economies larger and more powerful than many • seeks to endow ‘globalization’ with free-market
of the countries that host them. norms and neoliberal meanings.

• make their own international trade policy, • However, it also reinforces inequality, and can
intervene in national policy, and use campaign be politically motivated
contributions to sway the votes of politicians

• prefer to do business in undemocratic countries

Globalism- ideology of globalization

Core Claims
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
1. Globalization is about the liberalization and global
Impact of global economy
integration of markets
Advantages
-driving idea behind globalization is free-market
- free trade capitalism
- cheap production
- ‘One role [of government] is to get out of the way
- economic growth
—to remove barriers to the free flow of goods,
- increased the standard of life
services, and capital’
- access to new and efficient market
- increased competition 2. Globalization is inevitable and irreversible

Disadvantages - advancement of science and technology

- harmful effects on small industries or business -no alternative

- global warming
-reality of a modern world
- underpayment of workers in developing
countries 3. Nobody is in charge of globalization
- encourages dependence on other countries
 -People are not in charge of -globalization; democracy and the free market. However, their
markets and technology are neoliberal argument hinges on a limited definition of
democracy that emphasizes formal procedures such as
-leading country?
voting at the expense of the direct participation of
-depended on the political power of USA broad majorities in political and economic decision-
making.
4. Globalization benefits everyone (. . . in the long run)

-President Bush asserted that, ‘Free trade and

free markets have proven their ability to lift 6. Globalization requires a global war on terror
whole societies out of poverty”
-war on terror to market globalization’s
Defending his view that the benefits of globalization discursive arsenal
must be defended at all costs,
-Terror as the dark side
-Globalization provides great opportunities for the
McDonaldization/Americanization
future, not only for our countries, but for all others too.
Its many positive aspects include an unprecedented Terror, poverty, refugees
expansion of investment and trade; the opening up to
Barnett argues that the Iraq War marks ‘the moment
international trade of the world’s most populous
when Washington takes real ownership of strategic
regions and opportunities for more developing
security in the age of globalization’. He breaks the globe
countries to improve their standards of living; the
down into three distinct regions.
increasingly rapid dissemination of information,
technological innovation, and the proliferation of skilled Characterized by ‘globalization thick with network
jobs. These characteristics of globalization have led to a connectivity, financial transactions, liberal media flows,
considerable expansion of wealth and prosperity in the and collective security’, yielding nations featuring stable
world. Hence we are convinced that the process of democratic governments, transparency, rising standards
globalization is a source of hope for the future of living, and more deaths by suicide than by murder
(North America, most of Europe, Australia, New
-However, poorer nations have the chance to be
Zealand, and a small part of Latin America). He called
exploited, effects are uneven
these regions of the world the ‘Functioning Core’ or
‘Core’. Conversely, areas where ‘globalization is thinning
or just plain absent’ constitute a region plagued by
5. Globalization furthers the spread of democracy in the
repressive political regimes, regulated markets, mass
world
murder, and widespread poverty and disease (the
-freedom, free markets, and democracy as one Caribbean Rim, virtually all of Africa, the Balkans, the
Caucasus, Central Asia, China, the Middle East, and
-discrediting traditionalism and socialism much of Southeast Asia). The breeding ground of ‘global
Exists a ‘clear correlation’ between a country’s level of terrorists’, Barnett refers to this region as the ‘Non-
economic development and successful democracy. Integrating Gap’, or ‘Gap’. Between these two regions,
While globalization and capital development do not one finds ‘seam states’ that ‘lie along the Gap’s bloody
automatically produce democracies, ‘the level of boundaries’ (Mexico, Brazil, South Africa, Morocco,
economic development resulting from globalization is Algeria, Greece, Turkey, Pakistan, Thailand, Malaysia,
conducive to the creation of complex civil societies with the Philippines, and Indonesia).
a powerful middle class. It is this class and societal Back then, terror was an expression of changing the
structure that facilitates democracy’. the globalization world. Today it is no different. Terror is the dark side of
process strengthens the existing affinity between globalization, where people, alliances and old
democracy and the free market. institutions are losing their base while longing for
Fukuyama and Clinton agree that the globalization orientation. In this interconnected world with fewer and
process strengthens the existing affinity between fewer points of reference, individuals are searching for
new identities in a new collective and destructive and cyberattacks can influence national security
radicalism. Extremists of all stripes are spinning their and politics. Whether there will be a repeat
own webs in search of enduring stability in this world of during US midterm elections, or the string of
networks. other polls around the world in 2018, remains
to be seen.
Clash of New Vs Old 

Americanization or Americanisation, is the influence

Terror Attacks
American culture and business has on other countries
outside the United States, including their media, - maute
cuisine, business practices, popular culture, technology - ISIL/ISIS
or political techniques. - 2002 bali bombings-202 died, 209 injured
- sept 11 attack-3000 deaths, 19 highjackers
- 2005 london bomb attacks-191 died, 2050
McDonaldization is a McWord developed by sociologist injured
George Ritzer in his 1993 book The McDonaldization of - france
Society. For Ritzer, "McDonaldization" is when a society - boston marathon
adopts the characteristics of a fast-food restaurant.
Ritzer identifies four main principles of
Financial Crash
McDonaldization: predictability, calculability, efficiency,
and control. These are all characteristics of McDonald's - debt levels in major economies are higher than
and other fast-food restaurants. in the pre-crisis period. As economic and
financial policy changes, unexpected
Principles
consequences can arise. Headline concerns
- Efficiency – optimum method for getting from rotate around: a collapse in asset prices; US-
one point to another triggered trade wars; radical changes in
- Calculability – emphasis on the quantitative monetary policy from new central bankers;
aspects of products sold and services offered fresh problems in the eurozone; oil price
- Predictability – assurance that products and fluctuations; and fallout from Britain’s
services will be the same over time and all impending exit from the EU.
locales
- Control – nonhuman technology comes to exert
Nuclear Stand-off
control over human workers and customer

- weapon of mass destruction (WMD)-nuclear,

radiological, chemical, biological, or any other
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
weapon that can kill and bring significant harm
Chapter 5: Global Governance to numerous humans or cause great damage to
human-made structures (e.g., buildings), natural
Global Risks in 2018 structures (e.g., mountains), or the biosphere.
Cyber Warfare

- State-sponsored cyberattacks and ransomware- Environmental Disaster

facilitated extortion will continue and likely
even increase in 2018, according to experts,
putting governments, corporations and private - yolanda
users at risk. - 2004 tsunami-230,000 died & missing
- -piracy and trans/cyber crimes - 2010 haiti-92k-230k deaths
- Alleged meddling in the 2016 US presidential - 2011 equake and trsunami-14k death, 5k
election exposed the extent to which hacking injured, 4k missing
 - As the US – which is the world’s second largest tranquility of peace. To achieve this state of universal
greenhouse gas emitter – had largely stayed well-being a single world government is necessary.”
away from any climate commitments before the
In “An Essay towards the Present and Future Peace of
Paris Agreement, Barack Obama’s decision to
Europe” (1693), William Penn made the case for a
bring it within the ambit of the deal was hailed
federal European state to keep the peace. This
by environmentalists. However, President
Donald Trump’s policy shift has wide-ranging state would govern relations between its member s wi
repercussions for the climate around the world. thin a common legal framework, including a
As per the Paris Agreement all countries will be supranational parliament.
required to work on climate change once the
deal comes into force in 2020 with an aim to Twenty years later the French cleric Charles Castel de
even out global warming well below 2°C above Saint Pierre (1658-1743) in his “Plan for the Perpetual
pre-industrial levels, and even less if possible Peace in Europe” called for the creation of a European
Confederation.

One o f the most important experiments in international

CALLS FOR A NEW WORLD ORDER cooperation came in late 18th c e n t u r y Ame r i c a . Al
e x a n d e r Hamilton had said: that “if men were
• No global/world government
angels, no government would be necessary,” that
Global governance – people must be brought under the “mild and salutary
coercion” of the law, if they are to
“the sum of laws, norms, policies and
institutions that define, constitute, and mediate avoid the “destructive coercion of the sword.”
trans-border relations between states, cultures,
Benjamin Franklin, America’s first ambassador to the
citizens, intergovernmental, and non-
French Court wrote in 1787, the following to a friend
governmental organizations and the market
back in France: “If the Constitution succeeds, I do not
– the wielders and the objects of the exercise of see why you might not form… a Federal U n i o n a n d
international public power.” One G r a n d Republick of all its different States and
Kingdoms by means of a like Convention.”
GLOBAL GOVERNANCE is not equal to GLOBAL
GOVERNMENT Immanuel Kant (1724-1804) said that the problem of
international order, was ‘the most difficult and the last
Governance controls globalization but
to be solved by the human race.’
GG-acts by itself and does not promote international
Kant’s proposal for this “peace by reasoned design” was
standards to all nations
a voluntary federation of nations within a framework of
National economies act as actors, directly affecting respect for agreed rules of conduct, and where citizens
global governance and indirectly relating themselves to would no longer wish to face the rigors and
the dynamics of globalization consequences of armed

conflicts. Kant’s “league of peace” would evolve into a

peaceful world order and “a perfect civil union of
Beginning with Dante Alighieri's De Monarchia at the mankind.”
beginning of the 14th century

- tradition of criticizing the existing empires and

then state system (at that time only European) What triggered WW1?
and replacing it with a universal government
- Archduke Franz Ferdinand of Austria was killed
De Monarchia, which was translated into English and - MANIA (Militarism, Alliances, Nationalism,
published in 1949 as On World Government. Dante Imperialism, Assassination)
wrote: “it is evident that mankind, too, is most free and
Treaty of Versailles
easy to carry on its work when it enjoys the quiet and
 • negotiated at the Paris Peace Conference of Cartoon criticizing U.S. lack of participation in the
1919 League of Nations- attempted to stay out of world
issues with a policy of isolationism (due to opposition
• included a covenant establishing the League of
from isolationists in Congress).
Nations, which convened its first council
meeting on January 16, 1920. • Speaking before the U.S. Congress on January 8,
1918, President Woodrow Wilson enumerated
• The Council of Four at the Paris Peace
the last of his Fourteen Points, which called for
Conference, including British Prime Minister
a “general association of nations…formed under
David Lloyd George, Italian Premier Vittorio
specific covenants for the purpose of affording
Orlando, French Premier Georges Clemenceau,
mutual guarantees of political independence
and US President Woodrow Wilson. President
and territorial integrity to great and small states
Woodrow Wilson of the United States of
alike.” 
America was one of its most powerful
advocates, and in December of 1918, he chaired • President Wilson’s intense lobbying efforts on
the Peace Conference in Paris. behalf of US membership in the League of
Nations met with firm opposition from
• The Council consisted of four permanent
isolationist members of Congress, particularly
members (Great Britain, France, Japan, and
Republican Senators William Borah and Henry
Italy) and four non-permanent members. At its
Cabot Lodge. They objected most vociferously
largest, the League of Nations was comprised of
to Article X of the League’s Covenant, which
58 member-states. The Soviet Union joined in
required all members of the League to assist
1934 but was expelled in 1939 for invading
any member threatened by external aggression.
Finland.
In effect, Article X would commit the United
• Established the League of Nations - “to develop States to defending any member of the League
cooperation among nations and to guarantee in the event of an attack. Isolationists in
them peace and security” Congress were opposed to any further US
involvement in international conflicts and
10/10/1920-20/10/1946 viewed Article X as a direct violation of US
• The League of Nations was an international sovereignty. As a result, the Senate refused to
organization, headquartered in Geneva, ratify the treaty, and the United States never
Switzerland, created after the First World War became a member of the League of Nations.
to provide a forum for resolving international • Some thought that the application of the
disputes. Though first proposed by principle of collective security would translate
President Woodrow Wilson as part of his quickly into war, not peace, negating the very
Fourteen Points plan for an equitable peace in purpose of the League. The burden of inter vent
Europe, the United States never became a ions might overwhelmingly fall on the United
member. States, Great Britain, France, and Japan,
Members were required something that would put the United States in
the role of world policeman or, worse, dictator,
• to respect the territorial integrity and and damage the “soul of democracy”.
sovereignty of all other nation-states
• In spite of these early successes, the League of
• to disavow the use or threat of military force as Nations did not manage to prevent neither the
a means of resolving international conflicts. invasion of Manchuria by Japan, nor the
• to peacefully resolve territorial disputes annexation of Ethiopia by Italy in 1936, nor that
between members and was in some cases of Austria by Hitler in 1938. The powerlessness
highly effective.  of the League of Nations to prevent further
world conflict, the alienation of part of its
 Member States and the generation of the war Hitler], Italian Fascism [Benito Mussolini],
itself, added to its demise from 1940. Japanese Imperialism [Benito Mussolini]) is just
a type of totalitarianism
• the League ultimately failed to prevent the
outbreak of the Second World War, and has - Totalitarianism is a form of government in
therefore been viewed by historians as a largely which rule of law and individual rights are
weak, ineffective, and essentially powerless subordinated to the organs of state. Totalitarian
organization. Not only did the League lack regimes seek to establish complete political,
effective enforcement mechanisms, but many social and cultural control, whereas
countries refused to join and were therefore dictatorships seek limited, typically political,
not bound to respect the rules and obligations control.
of membership.
- Fascism- ultranationalism characterized by
• it continued to operate until 1946, when it was dictatorial power, forcible suppression of
formally liquidated. By this time, the Allied opposition and strong control of society and of
powers had already begun to discuss the the economy
creation of a new successor organization, the
United Nations. The United Nations, which is
still in existence today, was based on many of Allied Powers – Great Britain, France, China, Soviet
the same principles as the League of Nations, Union, United States
but was designed specifically to avoid the
League’s major weaknesses. The UN boasts Axis Powers – German, Italy, Japan
much stronger enforcement mechanisms,
including its own peacekeeping forces, and the
membership of the UN is substantially larger After WW2, there was decolonization and a cold war.
than that of the League even at its peak.

• The significance of the League may well lie in Imperial powers were in ruins and could no longer
the fact that it was a first attempt to pool maintain the colonies
national sovereignties together to deal with the
problem of armed conflicts and aggression. It -war exposed the weaknesses of imperial powers
was a distinctive milestone, a tenuous first step
1st-NATO, North Atlantic Treaty Organization-
in a long process intended to strengthen and
intergovernmental military alliance between 29 North
improve the effectiveness of mechanisms of
American and European countries. The organization
international cooperation.
implements the North Atlantic Treaty that was signed
on 4 April 1949

What triggered WW2? 2nd-Communist Bloc: the Soviet Union (Union of Soviet
Socialist Republic), China, Cuba and friends.
- Treaty of Versailles
- Failure of the League of Nations 3rd- which are often developing nations — of Africa,
- Aggression of Japan Asia, and Latin America. They are in a “third” group of
- Aggression of Italy nations because they were allied neither with the
- Aggression of Germany United States nor with the former Soviet Union.
- Rise of Hitler & Nazis Because many countries in the Third World were
- Policy of Appeasement impoverished, the term came to be used to refer to the
poor world.
- From 1939 to 1945

- Totalitarianism- The state controls or has United Nations (1945-Present)

override authority over all aspects of economic
and civil life. Fascism (e.g., Nazism [Adolf
 • Created to preserve peace during the post- Nominated for the 1952 Nobel Peace Prize for his
World War I contribution in international cooperation, in
particular on questions on undeveloped areas, and
• embodiment of the international community of
as president for UN's 4th General Assembly
states, the focus of international expectations,
and the locus of a collective action as a symbol He strongly disagreed with a proposal made by
of an imagined community of strangers. the Soviet delegation headed by Andrei Vishinsky,
who challenged his credentials by insulting him with
• Took over the duties of the League of Nations
this quote: "You are just a little man from a little
• Grew larger because of decolonization country." In return, Romulo replied, "It is the duty
of the little Davids of this world to fling the pebbles
• It has made enormous positive contributions in of truth in the eyes of the blustering Goliaths and
maintaining international peace and security, force them to behave!", leaving Vishinsky with
promoting cooperation among states and nothing left to do but sit down.
international development.

• United Nations is not a nascent world

government, but it has and can continue to Economic and Social Council
contribute to improving global governance.
- principal body for coordination, policy review, policy
dialogue and recommendations on economic, social and
environmental issues, as well as implementation of
General Assembly internationally agreed development goals. 
-main deliberative, policymaking and representative -54 Members, elected by the General Assembly for
organ of the UN overlapping three-year terms. It is the United Nations’
-193 Member States of the UN are represented in central platform for reflection, debate, and innovative
the General Assembly, making it the only UN body thinking on sustainable development.
with universal representation General Assembly has set up a number of specialized
agencies such as the Food and Agriculture Organization
(FAO), the World Health Organization (WHO) and the
Security Council UN Educational, Scientific and Cultural Organization
-primary responsibility is the maintenance of (UNESCO), and programmes such as the UN
international peace and security.  Development Programme (UNDP), the UN Children’s
Fund (UNICEF) and the Office of the UN High
-has 15 members, including 5 permanent members: Commissioner for Refugees (UNHCR). The work of these
China, France, the Russian Federation, the United agencies and programmes is coordinated by ECOSOC
Kingdom, and the United States

-Carlos P Romulo served as President

Trusteeship Council
Carlos P. Romulo (1899-1985) was an author and
the foremost diplomat of the Philippines. He was -provide international supervision for 11 Trust
the only Filipino journalist to win the Pulitzer Prize Territories that had been placed under the
and the first Asian to serve as president of the UN administration of seven Member States, and ensure
General Assembly (1949).  Romulo received the that adequate steps were taken to prepare the
votes of the representatives of all 59 nations except Territories for self-government and independence.  
those of Russia and its satellite states which give 5
votes to the Czech Foreign Minister and the vote
from Yugoslavia being declared invalid. Secretariat

• Secretariat is made up of an international staff

working at UN Headquarters in New York, as
 well as UN offices in Geneva, Vienna, Nairobi
and other locations.

• headed by the Secretary-General, who is

appointed by the General Assembly

• António Guterres of Portugal, appointed by

the General Assembly on 13 October 2016