THE CONTEMPORARY WORLD

CHAPTER 1
Definition of Globalization
Accdg to:
- Giddens - defines as intensification of worldwide social relations.
- Interconnectedness of human beings in Technological changes, Modern Transportation, Communication Technology.
- Robertson – it is the compression of the world and the intensification of consciousness of the world as a whole”
- Harvey - is the compression of time and space and the annihilation of distance.
- Sunny Levin Institute - as process of interaction and integration among the people, companies, and governments of different
nations, process driven by international trade and investment and aided by information technology.
- Group of globalization scholars - they argue that internationalization and multinationalization are phases that precede
globalization because the latter heralds the end of the state system as the nucleus of human activities.
Existence of competing definitions of Globalization
 Historians - are determining whether globalization is really a modern phenomenon; while
 Economists look into the changing patterns of international trade and commerce as well as the unequal distribution of wealth; on
the other hand
 Political Scientists focuses on the impacts of the forces of globalization, such as the international NGOs, and international
organizations, on the state and vice versa.
GLOBALIZATION as a PROCESS
 Viewed as a multidimensional set of social processes that generate and increase “worldwide social interdependencies and
exchanges while at the same time fostering in people a growing awareness of deepening connections between the local and the
distant.
 Globalization is about the compression of time and space.
SIGNS OF GLOBALITY
 Thickening of social linkages between people from different parts of the world.
 Innovations in transportation and communication technologies, and creation of institutions of commerce.
GLOBALIZATION, as a CONDITION
 also referred to by scholars as GLOBALITY
 social condition characterized by:
o trans-planetary connectivity
 is the establishment of social links between people located at different places of our planet;
o supra-territoriality.
 is the social connections that transcend territorial geography.
 globalization as a social condition is characterized by thick economic, political, and cultural interconnections and global flows
GLOBALIZATION as an IDEOLOGY
 Globalization exists in people’s consciousness because it consists of a set of coherent and complementary ideas and beliefs about
the global order.
6 Core Claims of Globalization as an ideology:
1. Globalization is about the liberalization and global integration of markets.
2. Globalization is inevitable and irreversible.
3. Nobody is in charge of globalization.
4. Globalization benefits everyone in the long run. Free trade and free market, globalists believe, will bring wealth and prosperity to
everyone. Globalization furthers the spread of democracy in the world.
5. Globalization requires a global war on terror. i.e. 9-11 Attack.
THEORETICAL PARADIGMS ASSOCIATED WITH GLOBALIZATION

1. World Systems Paradigm

a. Immanuel Wallerstein–principal proponent
b. views globalization not as a recent phenomenon but as virtually synonymous with the birth and spread of WORLD
CAPITALISM
 The appropriate unit of analysis for macro-social inquiry in the modern world is neither class,nor state/society,or country,but the larger
historical system,in which these categories are
 located.
 This paradigm adheres to the idea that capitalism has created a global enterprise that swept the 19th century leading to the present
time.
 Globalization is not at all a new process but something that is just continuing and evolving.
 According to Wallerstein,there are three division of the world/key structure of the capitalist system and these are the following:
a) Core, powerful and developed centers examples are : Western Europe, North America and Japan

b) Periphery –forcibly subordinated to the core through colonialism or other means examples are : Latin America, Africa, Asia, Middle East
and Eastern Europe
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c) Semi-periphery- states and regions that were previously in the core and are moving down in this hierarchy or those that were previously in
the periphery and are moving up.

 Centrality and immanence of the inter-state system and inter state rivalry to the maintenance and reproduction of the world system.

 Does not see any transcendence of the nation state system or the centrality of nation states as the principal component units of a larger
global system.

2. Global Capitalism Paradigm

 Treat globalization as a novel stage in the evolving system of world capitalism --- CAPITALIST GLOBALIZATION.

 Focus on new global production and financial system, both are seen to have superseded earlier national forms of capitalism

 SKLAIR in his theory of the global system –which espoused the transnational practices (TNPs) as operational categories for the analysis
of transnational phenomena. His theory argues that the TCC has emerged as a new class that brings together several social groups who
see their own interests in an expanding global capitalist system: the executives of transnational corporations; globalizing bureaucrats,
politicians , and professionals and consumerist elites in the media and the commercial sector.

 ROBINSON (2003, 2004), have advanced a related theory of global capitalism involving three planks:

a) Transnational production

b) Transnational capitalists

c) Transnational state

to which he asserts that Globalization creates new forms of transnational class relations across borders and new forms of class cleavages
globally and within countries, regions, cities and local communities.

3. Network Society School of Thought

 Does not subscribe to the contention that capitalism fuels globalization.

 Technology and technological change are the underlying causes of the several processes that comprise globalization.

4. Space, Time and Globalization

 For Anthony Giddens, the conceptual essence of globalization is “time-space distanciation”. Intensification of worldwide social relations
which link distant localities in such a way that local happenings are shaped by events occurring many miles away and vice versa, -social
relations are lifted out from local contexts of interaction and restructured across time and space.

 For David Harvey, globalization represents a new burst of ‘time-space compression’ produced by the very dynamics of capitalist
development.

5. Transnationality and Transnationalism

 For Saski Sassen --- wrote THE GLOBAL CITY (1991), world cities; she viewed the world-class cities as sites of major production, finances
or coordinating of the world economy within an international division of labor, and more recent research on ‘globalizing cities’. Led by
New York, London, and Tokyo – transnationally mobile capital

 For Roland Robertson, GLOCALIZATION

Ideas about home, locality and community have been extensively spread around the world in recent years, so that the local has been
globalized. The stress upon the significance of the local or the communal can be viewed as one ingredient of the overall globalization
process.

6. Global Culture Paradigm

 Theorists emphasize the rapid growth of the mass media and resultant global cultural flows and images in recent decades, evoking the
image famously put forth by Marshall McLuhan of the global village.

 Cultural Theories of globalization, Focused on such phenomena as globalization and religion, nations and ethnicity, global consumerism,
global communications and the globalization of tourism.

 Ritzer (1993, 2002) coined the popularized term ‘McDonaldization’ to describe the sociocultural processes by which the principles of fast
food restaurant came too dominate more and more sectors of US and later world society.

GLOBALIZATION VS. INTERNATIONALIZATION

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✔ Globalization human activities that do not require reference to a state’s national borders. i.e. exchanges of romantic words in a social
media platform such as Facebook between a Filipina in the PHL and a German residing in his country fall within globalization that do not need
their respective government’s permission to do so; while

✔ Internationalization, activities by entities such as corporations, states, international organizations, private organizations, and even
individuals with reference to national borders and national governments.

Globalization as liberalization

Liberalization is commonly understood as the removal of barriers and restrictions imposed by national governments so as to create
an open and borderless world economy. In this sense, globalization is realized when national governments reduce or abolish regulatory
measures like trade barriers, foreign exchange restrictions, capital controls and visa requirements. (Scholte, 2008)

Problem with this, Scholte explains the study of globalization within the debate concerning the neoliberal macroeconomics policies:

 On one side of the debate are academics, business executives and policymakers that have supported neoliberal policies of liberalization,
privatization, deregulation, and fiscal restraint would in time bring prosperity, freedom, peace and democracy for all.

 On the other side, the critics in the so-called anti-globalization movement have opposed neoliberal policies, arguing that a laissez faire
world economy produces greater poverty, inequality, social conflict, cultural destruction, ecological damage and democratic deficits.

 In addition, misconception carries with it a political implication that neo-liberalism is the only available policy framework for a truly
global world.

 Finally, debates about the advantages and disadvantages of laissez faire economics have gone on for centuries without involving the
language of globalization.

Globalization as universalization and westernization

 Universalization denotes a process of spreading various objects, practices and experiences to the different parts of the planet. Hence,
there is globalization when things, values and practices have spread worldwide.

 This interpretation of globalization entails homogenization of culture, politics, economy and laws.

 As homogenization progresses, globalization destroys several indigenous cultures and practices.

 If western modernity spreads and destroys local cultures, this variant universalization is known as WESTERNIZATION, neo colonialism,
Americanization, or McDonaldization.

Issues arising from these misconceptions

✔ Universalization is not new feature of world history.

 Migration of human species that took place a million years ago is one great example of globalization in the ancient times.

 The continuous spread of the major religions like Christianity and Islam since their foundation constitutes another instance of
globalization which is not confined to contemporary period.

✔ As shown by the studies on oriental globalization Westernization is not the only path that can be taken by globalization.

CHAPTER 2

Chapter 2: The Global Economy

The World Bank - an International Financial Institution that provides financial and technical assistance to developing countries
for development programs.

- The World Bank is like a cooperative, where the 184 member countries are shareholders.

- Shareholders are represented by a Board of Governors, who are ultimate policy makers at the World Bank

- Its Headquarters can be found in Washington, DC and has more than 100 country offices.

- Was established on July 1, 1944, during the conference of the 44 countries in Bretton Woods.

- The current President of WB is Robert B. Zoellick.

- It has 185 country-members and has a staff of about 10,000 all over the world.
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- Unlike other financial institutions, WB does not operate for profit.

Two types of loans that the WB can offer:

a) Investment Loans: Support economic and social development projects

b) Development Policy Loans: Quick disbursing finance to support a country.

The World Bank’s two closely affiliated entities:

The International Bank of Reconstruction and Development (IBRD)

- Founded in 1944 at the Bretton Woods Conference to finance the reconstruction of countries affected by WWII.
- World’s Bank Central Institution and help with the developments of improvised nations.
- It has 181 member countries.
- Lends to countries with relatively high per capital incomes.

The International Development Association (IDA)

- Established in 1960
- Assist the poorest developing countries.
- Lends to countries with annual per capital incomes of about $800 or less.
- It’s loans are known as “credits”
- the world’s largest source of interest-free loans and grant assistance to the poorest countries

In addition to the IBRD and the IDA, three other institutions are closely associated with the World Bank:

The Internal Finance Corporation (IDFC)

- Established in 1956 to reduce poverty and improve people’s lives in an environmentally and socially responsible
manner
- It has 174 members
- Finances private sector investment, mobilizes capital in international financial markets, and advice to governments
and business
- Provides both loan and equity finance for business ventures in developing countries.

The Multilateral Investment Guarantee Agency (MIGA)

- Established in 1988
- Helps developing countries to attract foreign investment.
- Provides investment marketing services and legal advisory services to its 152 members

The International Centre for Settlement of Investment Disputes (ICSID)

- Established in 1966 to promote increased flow of international investment

- Provides facilities for the reconciliation of disputes between governments and foreign investors
- It has 131 members

Processes in World Bank:

- The World Bank is like a cooperative, where the 184 member countries are shareholders. The shareholders a are represented
by a Board of Governors, who are ultimate policy makers at the World Bank

- The governors are member countries minister if finance or ministers of development.

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- They meet once a year at the Annual of the Bards of Governors of the World Bank Group and the International Monetary Fund.

- Because the governors only meet annually, they delegate specific duties to 24 Executive Directors, who work on-site at the
bank.

- The other member countries are represented by 19 executive directors.

- The President is elected by the Board of the Governors for a five-year renewable term.

- The executive directors make the boards of directions of the world bank. They normally meet at least twice a week to oversee
the bank’s business including approval of loans & approve guarantees country

- The world bank operates day-to-day under the leadership and the direction of the president, management and senior staff,
and the vice presidents in charge of regions, sectors, and networks and function.

5 Largest Shareholders of World bank:

1. France- 4.30%

2. Germany- 4.49%

3. Japan- 7.87%

4. United Kingdom- 4.30%

5. United States- 16.39%

International Monetary Fund

- The first half of the 20th century was marked by two world wars that caused enormous physical and economic
destruction in Europe and a Great Depression that wrought economic devastation in both Europe and the United
States.
- an organization of 189 countries, working to foster global monetary cooperation, secure financial stability, facilitate
international trade, promote high employment and sustainable economic growth, and reduce poverty around the
world.

- headed by a board of governors, each of whom represents one of the organization’s approximately 180 member
states.

- Governors, who are usually their countries’ finance ministers or central banks directors, attend annual meetings on IMF
issues.

- The fund’s day-to-day operations are administered by an executive board, which consists of 24 executive directors who
meet at least three times a week.

- Eight directors represent individual countries (China,France,Germny, Japan, Russia, Saudi Arabiam UK, and the US),
and the other 16 represent the fund’s remaining members, grouped by world regions. Because it makes most decisions
by consensus, the executive board rarely conducts formal voting. The board is chaired by a managing director, who is
appointed by the board for a renewable five-year term and supervises the fund’s staff of about 2,700 employees from
more than 140 countries

Membership
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The original members of the Fund shall be those of the countries represented at the United Nations Monetary and Financial
Conference Bretton Woods Conference whose governments accept membership before December 31, 1945.

Purposes

The purposes of the International Monetary Fund are:

 To promote international monetary cooperation through a permanent institution which provides the machinery for
consultation and collaboration on international monetary problems.

 To facilitate the expansion and balanced growth of international trade, and to contribute thereby to the promotion and
maintenance of high levels of employment and real income and to the development of the productive resources of all members
as primary objectives of economic policy.

 To promote exchange stability, to maintain orderly exchange arrangements among members, and to avoid competitive
exchange depreciation.

 To assist in the establishment of a multilateral system of payments in respect of current transactions between members and
in the elimination of foreign exchange restrictions which hamper the growth of world trade.

 To give confidence to members by making the general resources of the Fund temporarily available to them under adequate
safeguards, thus providing them with opportunity to correct maladjustments in their balance of payments without resorting to
measures destructive of national or international prosperity.

 In accordance with the above, to shorten the duration and lessen the degree of disequilibrium in the international balances
of payments of members

- The Board of Governors, the highest decision-making body of the IMF, consists of one governor and one alternate governor
for each member country. The governor is appointed by the member country and is usually the minister of finance or the
governor of the central bank. All powers of the IMF are vested in the Board of Governors. The Board of Governors may
delegate to the Executive Board all except certain reserved powers. The Board of Governors normally meets once a year.

- The Executive Board (the Board) is responsible for conducting the day-to-day business of the IMF . It is composed of 24
Directors, who are elected by member countries or by groups of countries, and the Managing Director, who serves as its
Chairman. The Board usually meets several times each week. It carries out itswork largely on the basis of papers prepared by
IMF management and staff.

- It has Managing Director, who is the staff and Chairperson of the ExecutiveBoard. It is appointed by the Executive Boards for
renewable term of 5 years and is assisted by a First Deputy Managing Director and 3 Deputy Managing Directors.

IMF Function

Ensure the stability of the international monetary system. It does so in three ways:

1. Keeping track of the global economy and the economies of member countries,

2. Lending to Countries with balance of payments difficulties

3. Giving help to members

IMF Resources:

- Most resources for IMF loans are provided by member countries, primarily

through their payment of quotas.

- Each member country of the IMF is assigned a quota, based broadly on its

relative position in the world economy.

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Effects of Quota in terms of :

- Subscriptions. A member's quota subscription determines the maximum amount of financial resources the member is obliged
to provide to the IMF. A member must pay its subscription in full upon joining the IMF: up to 25 percent must be paid in SDRs or
foreign currencies acceptable to the IMF (such as the US dollar, the euro, the Chinese renminbi, the Japanese yen, or the British
pound sterling), while the rest is paid in the member's own currency.

- Voting power. The quota largely determines a member's voting power in IMF decisions. Each IMF member’s votes are
comprised of basic votes plus one additional vote for each SDR100,000 of quota. The 2008 reforms fixed the number of basic
votes at 5.502 percent of total votes. The current share of basic votes in total votes represents close to a tripling of their share
prior to the implementation of the 2008 reforms.

- Access to financing. The amount of financing a member can obtain from the IMF (its access limit) is based on its quota. For
example, under Stand-By and Extended Arrangements, a member can borrow up to 145 percent of its quota annually and 435
percent cumulatively.

IMF provides loans to help members rebuild:

1. International Reserves

2. Stabilize their Currencies

3. Continue Paying for Imports

4. Restore conditions for strong economic growth

5. While correcting underlying problems.

How IMF lends?

- When a country undergo such problems IMF staff team holds discussions with the government to assess the economic and
financial situation, and the size of the country’s overall financing needs, and agree on the appropriate policy response.

Special Drawing Rights (SDR)

- The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries’ official
reserves.

Transparency

- The IMF Giving Together campaign guides the IMF's humanitarian and community outreach efforts.

FACTS ABOUT IMF:

- IMF is still one of the world’s largest official holders of gold.

- The largest precautionary loans: Mexico, Colombia, Morocco
- The largest borrowers: Argentina, Ukraine, Greece, Egypt

CHAPTER 3
UNITED NATIONS
 The United Nations (UN) serves as the primary organization for international cooperation, peace and security.
 It was created in 1945 by the Allied Powers, the victors of the Second World War.

Primary Concern:
Collective military security through the facilitation of peaceful settlement of disputes among member-states or by commanding
allegiance of the entire UN membership; sanctions.

Primary Objective:
To ensure peace and order, the UN as an organization can be a conflict actor in itself or an instrument for action driven by the
interests of particular state.
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o Representatives of 50 countries convened at the United Nations Conference on International Organization, more commonly
known as the San Francisco Conference, to draw up the United Nations Charter.

Six Principal Organs

1) Economic and Social Council (ECOSOC)
Primary Objective:
To advance the economic, social and environmental dimensions of sustainable development.
Composed of 54 elected members by the General Assembly for overlapping three-year terms
The International Monetary Fund (IMF) and World Bank (WB) are specialized agencies and independent organizations that
are affiliated with the UN.

2) Trusteeship Council
- The main organ of the UN to provide international supervision of Trust Territories that are under the administration of
seven member-states, to ensure that adequate steps are being made to prepare the peoples of Trust Territories for
self-governance.

3) International Court of Justice (ICJ)

- It is the United Nation’s principal judicial organ. Its role is to settle legal disputes between states and to provide advisory
opinions on legal questions referred by the UN organs, and specialized agencies
4) Security Council (SC)

- It is the most potent organ with the power to make legally binding resolutions.

Composition:
Composed of 15 members
▪ Five Permanent Members (PM) or Permanent Five (P-5): China, France, Great Britain, Russia, and the United States
▪ Ten elected non-permanent members (NPM) elected by the General Assembly (GA) for overlapping two-year terms
- Ten non-permanent seats are divided among regions: -five states from African and Asian states
-one seat from the Eastern European States
-two states from Latin American states
-last two from Western European and other States

❖ Under Article 24 of UN Charter the Security Council is mandated to act on behalf of the entire UN body to fulfill its
primary responsibility for maintaining international peace and security.

Functions of Security Council:

o Investigate any situation that has the potential of creating international tensions
o Call for military action towards an aggressor or threat o Impose economic sanctions and other measures
o Determine the existence of a breach of peace and actions to be pursued

 The structural feature on the SC serves as a measure to protect states from possible threats to independence and to ensure
that the UN will not be used to serve the interest of particular states.
 The structural feature of the UN Charter- veto is a result of an international compromise allied powers of Second World War.
 The P-5 also act outside the UN Charter and undermine the interest of the larger UN Body. The over representation and power
concentration has resulted in demands to reform the structure of the SC, which dramatically serves and benefits of the
interests of the P-5.
 To maintain peace and order, the SC adopts a set of instruments such as sanctions, peacekeeping, and peace enforcement.
 UN peacekeepers are deployed to provide security to populations and political and peace building support to countries
transition from conflict to peace.

5) General Assembly (GA)

− It is the only organ with universal representation, with all 193 members states represented in the body.
− The GA decides on essential questions with a simple majority, while concerns related to peace and security, budgetary
matters, and new membership admissions require a two-thirds majority
− The GA meets for annual General Assembly Session and general debate participated by several heads of state. The body
elects a GA President and 21 Vice President every session for one-year term.
6) Secretariat
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- Secretary- General is the chief administrative of the UN Secretariat. In Article 97, the SC sends a recommendation to the
GA which will appoint the Secretary- General for two five-year terms at most.
- Antonio Guterres - the incumbent Secretary General of United Nations
 Article 99 mandates the Secretary-General to call for the attention of the members of the SC on threats to international
peace and security, or when the inability of SC members to be responsive or to take responsibility is present.
Reforming the United nations
- Reform has only been met once in 1963 when the UNGA voted for the expansion of the UNSC from 11-15 member-states
(UNGA Resolution of 1963).
- Reforms have long been raised to change the structure of the security Council to distribute the concentration of power
and to foster inclusive decision making for marginalized and excluded member-states.

CHAPTER 4

North- South divide can be related to an economic division between richer and poorer countries.

This explains the reason why it is considered to be more of a socio political and economic classification.
The Global North
- It is generally viewed to be more affluent and economically stable countries and generally includes the United States of
America, Canada, the member nations of the G8(Group of 8), the four permanent members of the UN Security
Council.
- This includes countries that lie below the equator namely Australia and New Zealand.
- We could find in the North the More Economically Developed Countries (MEDCs) in the world. Some countries which lay in
the North part of the divide are Canada, United States, Greenland, and Russia. They are considered the “richer” and
more stable countries.
Why are the countries in the North considered MEDC?

The countries are considered MEDC because of:

o Economic Stability
o Better standard of living and quality of life
o High life expectancy
o Free quality education
o Free universal healthcare

The Global South

- It includes most nations located in Africa, Latin America, and the developing parts of Asia with the exception of Japan.
- The area below the North-South Divide is known as the South/developing, or “Poor side.” These countries are known as
developing countries, meaning the GDP, HDI and general standard of living within these countries are considered
inferior to that of countries in the “North”. Some examples of these countries include Somalia, Vietnam, Haiti and
India.
Why are countries in the South considered LEDCs?

The countries in the south may be considered LEDCs because of: o Unstable government
o Poor economy
o Contain citizen who have a poor standard of living and quality of life o Low Gross Domestic Product (GDP)
o Low Human Development Index (HDI)
Why is the South at such a disadvantage?

Of the many possible reasons for the south’s woes, the one factor that stands out is colonization. When the countries that
are considered MEDC are listed down, it becomes apparent that the most of these countries were, at some point in history,
imperialists. From the 13th century, most countries that were powerful have stayed powerful, such as France and the
United Kingdom. And therefore, most countries that were inferior have stayed inferior. However, like any aspect in history,
there is always an exception, as the United States, a former British colony, has developed into the most powerful country
in the world. (Guttal, 2016).
It can be argued that the division goes beyond merely geographical since not all states found north of the equator
belong to the Global North and in the same manner, not all states that lie south of the equator form part of the Global
South
One attempt to produce an objective classification uses the UNDP’s Human Development Index to differentiate.
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In brief, the Global North consists of those 64 countries which have a high HDI (mot of which are located north of the
30th northern parallel), while the remaining 133 countries belong to the Global South

First, Second and Third Worlds

❖ First World
- Drawn upon political ideologies and alliances with the US and much of the Western world who preached for Democracy
and Capitalism.
❖ Second World
- The Communist bloc led by USSR (Union of Soviet Socialist Republic)/ Russia, China and other states who employed
Marxist principles.
❖ Third World
- Non-aligned states, the underdeveloped nations and states that have unstable political and economic conditions.
- Serves as “ready and willing markets”
- Coined by a French scholar Alfred Sauvy.
Flashpoints and Perspectives of the Divide

As underdeveloped countries become more visible, they are frequently referred to under the collective label the “Global
South”.

This designation offers as a synthesizing term and consider it ambiguous because it uses simple geographical criteria to
describe a complex social situation which distinguishes poor countries from the wealthiest.
Global South
- is normally used to mean countries that are faced with social, political and economic challenges.
- it should be added also that the term rids itself of the negative political and economic labeling that Third World had
before as it is generally seen to be more apolitical.

Three factors by Jean Grugel (1990) that direct the economic development of states within the Global South are:
– elite behavior within and between nation states
– integration and cooperation within geographic areas
– resulting position of states and regions within the global world market and related political economic hierarchy

BRICS
- acronym for an association of five major emerging national economies
- originally the first four were grouped as “BRIC”
- known for their significant influence on regional affairs and all are members of G20.

In effect, Global North-South is actually seen by many economist as a result of international free trade and unhindered
capital flows across countries which could definitely catapult development in the South.
Closing the divide has been a goal for many developmental initiatives.
United Nations has developed a program dedicated to narrowing the divide through its Millennium Development Goal
aimed at Sustainable development.

IMF, World Bank and other progressive Northern countries also provides loans and grants to the Global South countries
in order to attain development.
Just a Quick Recap!

✔ The Global North-South divide is a categorization of nation states based on factors like economic development, political
stability as well as living standards.
✔ This division was fashioned out of the Cold war era categorization of countries into the First, Second and Third World.
✔ The Global North-South divide is not simply based on geographical orientation for there are Asian countries that belong
to the Global North.
✔ The term South was branded out of the Brandt report in 1983.
✔ The perspective as well as countries that fall under such categorization is in a state of flux and is constantly changing.

CHAPTER 5
Regionalism
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- It is the manifestation or expression of a common sense of cultural identity and purpose combined with the creation
and implementation of institutions that express a particular identity and shape collective action within a
geographical region.

Asian Regionalism

- Since the Asia Pacific Economic Cooperation (APEC) forum began in 1989 as a regional institution for economic
cooperation, momentum for regionalism in Asia has gradually developed and led to institutionalized regional
progress.
- Asian regionalism moved forward steadily until the 1997 Asian financial crisis. Regional countries were hit hard by the
multiple follow-on crises. Affected economies felt panic and were not able to cope with serious challenges, and
they discovered that existing regional mechanisms were of little use in either protecting the region or helping it
recover.

- Asia’s economies are connected through trade, financial transactions, direct investment technology, labor and tourist
flows, and other economic relationships. The fact that there exist patterns of similarities are too great to escape
scrutiny.

THE IMPERATIVE FOR ASIAN REGIONALISM

Generate productivity gains, new ideas, and competition that boost economic growth and raise incomes across the world.
Contribute to the efficiency and stability of global financial markets by making Asian capital markets stronger and safer and
by maximizing the productive use of Asian savings.
Diversify sources of global demand, helping to stabilize the world economy and diminish the risks posed by global
imbalances and downturns in other major economies.
Provide leadership to help sustain open global trade and financial systems.
Create regional mechanisms to manage health, safety, and environmental issues better, and thus contribute to more
effective global solutions of these problems.

ASIAN REGIONAL ORGANIZATIONS

❖ ASEAN (Association of Southeast Asian Nations)

- established on August 8, 1967 in Bangkok, Thailand with the signing of the ASEAN Declaration (Bangkok Declaration)
- comprising ten (10) Southeast Asian
countries which seeks to promote intergovernmental cooperation and facilitates economic, political, security, military,
educational and socio-cultural integration amongst its members and other Asian countries, as well as with the rest of
the world.
- Founding Fathers of ASEAN: Indonesia, Malaysia, Philippines, Singapore and Thailand.
other countries joined ASEAN
- Brunei Darussalam (January 7, 1984)
- Viet Nam (July 28, 1995)
- Lao PDR and Myanmar (July 23, 1997)
- Cambodia (April 30, 1999)

AIMS AND PURPOSES

(as set out in the ASEAN Declaration)

▪ To accelerate economic growth, social progress and cultural development in the region through joint endeavors in the spirit
of equality and partnership in order to strengthen the foundation for a prosperous and peaceful community of
Southeast Asian Nations.

▪ To promote regional peace and stability through abiding respect for justice and the rule of law in the relationship among
countries of the region and adherence to the principles of the United Nations Charter.

▪ To promote active collaboration and mutual assistance on matters of common interest in the economic, social, cultural,
technical, scientific and administrative fields;
THE CONTEMPORARY WORLD

▪ To provide assistance to each other in the form of training and research facilities in the educational, professional, technical
and administrative spheres;

▪ To collaborate more effectively for the greater utilization of their agriculture and industries, the expansion of their trade,
including the study of the problems of international commodity trade, the improvement of their transportation and
communications facilities and the raising of the living standards of their peoples;

▪ To promote Southeast Asian studies; and

▪ To maintain close and beneficial cooperation with existing international and regional organizations with similar aims and
purposes, and explore all avenues for even closer cooperation among themselves.
FUNDAMENTAL PRINCIPLES

(as contained in the Treaty of Amity and Cooperation in Southeast Asia (TAC) of 1976)

▪ Mutual respect for the independence, sovereignty, equality, territorial integrity, and national identity of all nations;

▪ The right of every State to lead its national existence free from external interference, subversion or coercion;

▪ Non-interference in the internal affairs of one another; ▪ Settlement of differences or disputes by

peaceful manner; ▪ Renunciation of the threat or use of force; and

▪ Effective cooperation among themselves.

ASEAN COMMUNITY

▪ ASEAN Vision 2020, adopted by ASEAN Leaders on the 30th Anniversary of ASEAN, agreed on a shared vision of ASEAN as a
concert of Southeast Asian nations, outward looking, living in peace, stability and prosperity, bonded together in
partnership in dynamic development and in a community of caring societies.

▪ At the 9th ASEAN Summit in 2003, the ASEAN Leaders resolved that an ASEAN Community shall be established.

▪ At the 12th ASEAN Summit in January 2007, the Leaders affirmed their strong commitment to accelerate the establishment
of an ASEAN Community by 2015 and signed the Cebu Declaration on the Acceleration of the Establishment of an ASEAN
Community by 2015.

▪ The ASEAN Community is comprised of three pillars, namely the ASEAN Political-Security Community, ASEAN Economic
Community and ASEAN Socio-Cultural Community. Each pillar has its own Blueprint, and, together with the Initiative for
ASEAN Integration (IAI) Strategic Framework and IAI Work Plan Phase II (2009-2015), they form the Roadmap for an
ASEAN Community 2009-2015.

❖ APEC (Asia Pacific Economic Cooperation)

- a regional economic forum established in 1989 to leverage the growing interdependence of the Asia-Pacific.
- APEC’s 21 members: Australia, Brunei Darussalam, Canada, Chile, People’s Republic of China, Hong Kong, China,
Indonesia, Japan, Republic of Korea, Malaysia, Mexico, New Zealland, Papua New Guinea, Peru, The Philippines,
The Russian Federation, Singapore, Chinese Taipei, Thailand, United States of America, Viet Nam.

▪ Aims to create greater prosperity for the people of the region

▪ Ensures that goods, services, investment, and people move easily across borders.
▪ Works to help all residents of Asia-Pacific participate in the growing economy.
▪ Implements initiatives to increase energy efficiency and promote sustainable management of forest and marine resources.
▪ Members participate on the basis of open dialogue and respect for views of all participants.
▪ All members have an equal say and decision-making is reached by consensus.
▪ No binding commitments or treaty obligations
▪ Commitments are undertaken on a voluntary basis
▪ APEC’s structure is on both a “bottom-up” and “top-down” approach.
▪ Member economies jointly work towards the realization of free and open trade and investmenet in the Asia-Pacific by 2020
and the establishment of greater regional community to address the economic and social dimensions of development –
a commitment made by APEC Leaders in 1994 known as the Bogor Goals.
❖ EAS (East Asia Summit)
- A unique Leaders-led regional forum
held annually by, initially, 16 countries in the East Asian, Southeast Asian, and South Asian regions.
- Membership expanded to 18 countries including Russia and the USA
THE CONTEMPORARY WORLD

- Indonesia, Malaysia, Philippines, Singapore and Thailand, Brunei Darussalam, Viet Nam, Lao PDR, Myanmar,
Cambodia, Australia, China, India, Japan, New Zealand, Republic of Korea, Russian Federation, USA
- Established in 2005, EAS allows the principal players in the Asia-Pacific region to discuss issues of common interest
and concern, in an open and transparent manner, at the highest level.
- An initiative of ASEAN and is based on the premise of the centrality of ASEAN.
- The concept of East Asia Grouping was first promoted in 1991 by then Malaysian Prime Minister, Mahathir bin
Mohamad.
- The final report of the East Asian Study Group in 2002, established by the ASEAN+3 countries, recommended EAS
as an ASEAN led development limited to ASEAN+3 countries.
- The ASEAN Ministerial Meeting (AMM) held in Vientiane on July 26, 2005 welcomed the participation of ASEAN,
China, Japan, Republic of Korea, Australia, India, and New Zealand in the first EAS.
- USA and Russian Federation were formally included as members of the EAS at the 6 th EAS held in Bali, Indonesia on
November 19, 2011.
❖ APT (ASEAN Plus Three / ASEAN+3)
- Began in December 1997 and institutionalized in 1999 when the Leaders issued a Joint Statement on East Asia
Corporation at their third ASEAN+3 Summit in Manila.
- A forum that functions as a coordinator of co-operation between the ASEAN and the three East Asian nations of
China, South Korea, and Japan.
- Addresses mutual issues and concerns in energy, security, natural gas development, oil market studies, oil
stockpiling, and renewable energy.

ISSUES AND CONCERNS OF ASIAN REGIONALISM

❖ HEALTH AND SECURITY THREATS
- Makes the flow of people and goods more difficult and expensive.

❖ ENVIRONMENTAL DAMAGE
- Could result in radical changes in economic policies
❖ SOCIAL INSTABILITY
- Could generate tensions and uncertainty that overwhelm economic progress
❖ CRITICISMS/DISPUTES
- Forums have not moved beyond its confidence-building mode to a preventive diplomacy mode to solve disputes
between countries.
❖ FAILURE OF REGIONAL TRUST-BUILDING
- Supposed to have been brought about by regional groups, is reflected in the emergence of what seems to be a
significant arms race across the region.
❖ NO REGIONAL HUMANITARIAN AND DISASTER ASSISTANCE MECHANISM
- Transnational threats continue to be dealt with on a bilateral basis without significant multilateral action.
❖ HUMAN RIGHTS AND SOCIAL ISSUES
- Developing human rights promotion and protection mechanisms lacks any enforcement authority.
ASIAN REGIONALISM IN THE PHILIPPINES
The Philippines firmly believes in establishing close ties with its neighbors and pursue friendship, amity and cooperation as
embodied in its Constitution. We remain to be steadfast to the ideals and vision of One ASEAN and gives utmost importance to
the tenets of economic integration, the pursuit of peace in the region and socio-cultural cooperation
The Philippines remains to be an important founding member of ASEAN having hosted several summits recently