MODULE

Understanding Globalization
1 Designing Globalization

Lesson Objectives:
At the end of this lesson you should be able to:
1. identify the extent of globalization
2. define globalization
3. differentiate the competing conceptions of globalization; and
4. identify the underlying philosophies of the varying definitions of globalization

Definition of Terms

▪ Globalization is a process of expanding various sociocultural and socio-ecological processes from

national to international and transcultural level (Al-Rodhan, 2006).
▪ Global Connected Index (GCI) is a measurement of flows and interconnections of a country to other
global players through exchanges in trade, capital, people, and information (Altman, et al., 2018).

INTRODUCTION

Globalization has been a critical discourse in the international development policy arena. There is an
increasing number of books written about globalization since the end of the 1980s (See Figure 1 below from
Google Books Ngram Viewer, search using the keyword: globalization). There are numerous definitions of
globalization, and one definition tends to focus on the economic side of globalization.
Nevertheless, it is a highly contested concept (Stiglitz and Pike, 2004) People commonly debate about the
economic aspect of globalization, but it is only one aspect of the globalization agenda. Some authors argue the
hegemony and power imbalance that comes with globalization. While other authors highlight its positive impact
on trade, commerce, and information flow.

Figure 1. Trends on the books written about globalization. (Source: Google Books Ngram Viewer)

In this section, we will unpack the concept of globalization by looking the current state of globalization,
assessing the different views and definitions globalization and understanding the sociocultural and socioeconomic
changes that come with it.

EXTENT OF GLOBALIZATION
How connected are we with the world? We start with an activity that asks "How are you connected with the
world?" Most of us might answer that we have family, friends, or relatives living in other countries. Modern
technologies and cheaper air travel made possible this connection and flow of people and information. But how
do we measure global connectivity?

CONTEMPLATE. “How are you connected with the world?”

Think of how you are connected with the other parts of the world. following questions could guide you in
your thinking: Do you have any family, friends, or relatives living in other countries? do you communicate with
them? Have you been to other countries (for leisure, work, or studies, among others)?
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 Example 1:
I am the second child in the family, and we live in Laguna, south of Manila. My eldest sister and her family
moved to Canada and now have two kids who know how to speak English, French and Filipino. My oldest
brother works in Singapore as a chef in one of its five-star hotels. My younger sister moved to New Zealand
and have invested in a small dairy farm in the South Island of New Zealand where her family enjoys the natural
wonders of the Kiwi landscape. They usually visit the Philippines once in every three years. Our parents
would usually visit them once in a year to check on their grandchildren as well.
Aside from family, I have friends from Australia and the United States whom I have met in some exchange
study program I attended through scholarships from our school and a civic organization. We commonly stay
in touch through Facebook or Instagram.

Template:
I have a Twitter account, and I follow some personalities. Do you feel you are connected with other
countries in the globe? Why or Why not?
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What are the aspects in your life do you identify as connected with other citizens of the world? (family,
friendship, consumption, studies and readings, etc.)
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How do you feel about being connected to disconnected with other people in the world? Why?
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One of the recent indicators of global connections is the Global Connectedness Index (GCI)—a measurement
of flowS and interconnections of a country to other global players through exchanges in trade, capital, people,
and information (Aitman et al., 2018).

Based on the Global Connectedness Index 2018 report (Altman et al., 2018), the world's level of
connectedness in terms of international trade, capital, information, and people is at its peak in 2017. The report
indicates that the Netherlands is the world's most globally connected country, while Europe is the most highly
globally connected continent. Also, economies in Southeast Asia like Cambodia. Malaysia, Singapore, and
Vietnam have exceeded expectations for global connectivity, particularly in trade flow. However, based on this
report, only 20 percent of the global economic output of the countries is exported from the home countries and
only 3 percent of people are living outside the countries they were born in. This shows that the material and social
flows are more within and between countries rather than on a global level (Altman et al., 2018).

CREATE & COLLABORATE. Defining Globalization

Form groups. Collect old magazines or newspapers and cut out pictures or headlines (or you may use
the internet) which you think reflect your ideas and experience of globalization. Create a collage by pasting it
on a short bond paper or laying it out using any software that you are comfortable using. Answer the questions
below and send it through our LMS.

1. Write down your group’s definition of globalization (you may search for definitions and create your
own based on your interpretation).
2. Based on the definitions shared by the different groups, what are the common characteristics of
globalization?
3. What do the group’s definition highlight in globalization (i.e., economic aspect, cultural aspect, etc.?)

LECTURE: What is Globalization?

There are numerous definitions of globalization in the development literature. You may refer to articles like
that Mir, et al. (2014) for a literature review on the globalization discourse. Some definitions focus on the world’s
interconnectivity in terms of processes, events, and decisions (Albrow & O’Bryne, 2017; Friedman, 2006). While
others focused more on economic and financial integration (Rodrik, 2008; Cline, 2010). Other authors criticized
the singular focus on the economic aspect of globalization, and they contend that globalization’s impact
transcends to the social fabric of communities (Cerny, 1995; Jones and Kierzkowski, 2004; and Bairoch & Kozul-
Wright, 2005). Also, Pieterse (2019) highlights the cultural processes involved in the process of globalization.
 A word cloud of the different definitions found in the literature was generated. Keywords in these definitions
include "movement," "integration" "free trade" "capital," and "world" (Figure 2). Other keywords include
"economies" "culture," "products," "process," and "ideas." The definitions stated above and the figure shows the
different dimensions of globalization. Hebron and Stack (2016) noted that most of the definitions of globalization
focus on the economic and trade dimensions of the concept. However, one needs to look at the sociopolitical and
sociocultural aspects of globalization (Steger, 2003; Hebron and Stack, 2016; Vadlamannati, 2015).

Figure 2. World cloud of definitions of Globalization

Globalization is seen as the process that focuses on the movement of trade capital, and ideas. These
definitions emphasize "what is being moved or traded across borders?" and "how it could integrate diverse
economic processes, cultures and worldviews?" One critical characteristic of these flows of goods, services, and
information is the integration of different markets and culture. In these definitions, the breaking down of territorial
boundaries is eminent. However, some authors argue against just the focus on the linear and spatial dimensions
of globalization. These authors distinguish globalization from deterritorialization and westernization. Scholte
(2005) argues that globalization is not just about going beyond territorial boundaries, but is also about changes
in the temporal connections of people. For instance, news from other parts of the world could be readily accessible
in real-time through mainstream as well as online media. Elden (2005) contends that globalization is not merely
about westernization. Naval voyages and early trade have not been always from the West. An example is the
China and Philippines connections, which could be dated back as far as the Neolithic period and grew in the 10th
century AD (Fox, 1967).

Socioeconomic Changes in Globalization

Scholte (2005) identifies macro-structural changes in a globalized society such as product and services
integration through commodity value chains, emerging institutional arrangements, pluralistic identity, and growth
of supra-territorial relations. Also, he identifies four key shifts in society:
▪ growth of trans- and supra-territorial connectivity
▪ the shift from capitalism to hyper-capitalism focused on production
▪ a move from nationalism toward identifying pluralism and hybridity
▪ from rationalism toward knowledge reflexivity

Factors Driving Globalization

Different sources and factors drove globalization. One of the factors that drive globalization is the reduction
of trade barriers. In 1947, richer countries banded together to reduce taxes on imports or tariffs under the General
Agreement on Tariffs and Trade (GATT), which was later transformed to the World Trade Organization (WTO) in
1994 (Koopman & Hancock, 2019). Husain (2011) also identified modern technology developments as a key
driver of globalization that facilitated faster communication and access to data or information. This further
promoted the development of an information society (Castells, 2000).

Views about Globalization

If you look at how globalization is defined in the literature and based on your activity above, there are
diverging views about globalization (Stiglitz and Pike, 2004). Some authors highlight the positive economic
impacts of globalization such as on the level of employment and balance of trade (Kriesler and Neville, 2016). On
the other hand, some highlight the negative impacts of globalization, specifically the inequity among countries
and between the rich and the poor.
Vandemoortele (2002), for instance, argues that though globalization and exponential growth, theoretically,
could reduce poverty, it does not benefit nations, Sub-Saharan Africa, where almost half of the world's extremely
poor population lives (living below US$1.90/day), has been especially marginalized globalization (World Bank,
2019). Nevertheless, Beck (2018) contends the multidimensionality of globalization. These include the economic,
political, cultural ecological dimensions (Steger, 2017: Beck, 2018). Note that these dimensions will be extensively
discussed in the next section.
 COLLABORATE & COMMUNICATE
Form groups. Discuss the advantages and benefits of globalization, and the disadvantages and negative
impacts of globalization. Note the main points of the pros and cons of globalization discussed and use a graphic
organizer to present your answer.

SUMMARY

In this lesson, we first identified the extent of globalization. Several indexes measure the extent of
globalization, one of which is the Global Connectedness Index (GCI). This index measures the flow of trade,
capital, information, and people across countries. Based on the 2018 Global Competitiveness Report (Altman et
al., 2018), the level of connectedness is lesser compared to what is perceived by the public. This report also
shows that most of the globally connected countries are developed countries based in Europe, but countries from
Southeast Asia have exceeded expectations for global connectivity.
Second, we discussed the diverse, often disparate, and mostly contested definition of globalization. The
disparate conceptualization of globalization is based on the dimensions highlighted. There are different focuses
on globalization such as economic, financial or industrial, political, information, and cultural, These differences in
definition also extend to the globalization debate. One views globalization as a positive driver of economic growth,
while the other spectrum highlights the criticism against cultural integration disregarding the diversity and
uniqueness of each culture.
Third, we also identified some factors that drove globalization. These include enabling policy environment
that lessens restrictions and flows in trades and goods, infrastructure investments such as on modernization of
transportation systems, and modern telecommunications.

ASSESSMENT
Prepare a 1,000-word essay on how you view globalization-"My Perspectives on Globalization." The essay
should highlight how you define globalization, what are its contributions to social and economic development, and
what are the limitations of globalization as it is currently implemented. You should back up your main arguments
with references. (Format: short bond paper, 1 inch all sides, single space, Calibri 11. Include your name and
section on the upper left corner of your paper.)