Contemporary World
1945 - end of World War 2 and the start of a contemporary world
Ancient period Medieval period Modern Contemporar
period y period
Curiosity/ Theology Age of Individualism
Inquisition enlightenme Multiculturali
nt sm
No specialization Monarchy/ Science Multi-
Theocracy corporation
Service sector
Globalization
Parliament – Group of people representing each nation
Epistemology – Theory of knowledge
Voltaire – wrote the novel Candide
Cold war (1980s) – US V.S USSR
- Espionage
During war – Innovations accelerated
- Research and development
- Logistics
- Meal, Ready to Eat (MRE) = Nutrient full food
Inventions during war
- Jet propulsion engine
- Electronic computer for deciphering (By Allan Turing)
- Radar Tech
- Telecommunications
Nature of globalization
Advancement of technologies
- Through technologies people from all around the world are
connected by just a few clicks on a cell phone or compute.
- Air travel cost is cheaper today, than years before.
Globalization in the Philippines thrived during the presidency of Fidel Ramos (1992-1998)
- Expanding international trades and investment.
Liberalized trade – Paved the way for multinational corporations (MNCs) and transnational
corporations (TNCs).
Globalization and its effects to the world politics
Globalization is the expansion and intensification of social relations, and consciousness across
the world time and world space by Manfred Steger (2014).
TNCs and MNCs – Influenced many state’s policies.
- Influence the aspect of how states have been governed.
- some have revenues bigger than the gross domestic product (GDP).
States formed into association to address together with their political economic and social issues.
The association of South East Asian nations (ASEAN)
- Established on August 8th 1967 (Bangkok)
- Original members Indonesia, Malaysia, Philippines, Singapore,
and Thailand.
The global economy
World economy
international exchange of goods and services
free movement of goods, capital, services, tech and info.
Globalization started after the end of Cold War 1980s
Economic globalization
Increasing interdependence of world economies
International Monetary Fund (IMF) – defined globalization as the historical process. Referred it
as the increasing integration of economies around the world.
Several interwoven dimensions
Trade of goods and services
globalization of financial and capital
globalization of tech and communication
globalization of production
Asian financial crisis 1997
Rising interest rate – Southeast Asian countries increased interest rates to attract foreign
investments.
Economic boom – The influx of investments led to a boom. Rising real estate values and
increase corporate and government spending, funded by heavy borrowing.
IMF – Consisting of 190 countries, collaborates to achieve several key goals: shaping global,
economic policies, fostering stability, promoting prosperity worldwide.
Import substitution
Industrial development – To replace import.
Job improvement – To move people from primary industries to manufacturing.
Financial capital – access to financial capital was crucial.
Asian Tigers – Build local industries, promoted exports.
Pegged – The practice of attaching or dying a currency’s exchange rate to another country’s
currency.
Neoliberal wave
Neoliberalism - The government can’t intervene in a community.
Laissec – Faire – French term translates to “leave alone”.
Washington consensus – Set off new liberal economic policies that emerged in 1980s.
The power of transnational corporation
1. International company
2. multinational company (focused on adapting their products and services)
3. Global company (present in many countries)
4. Transnational company (operates in multiple countries, combines element of both global
and multinational strategies)
Advent and impact of digitalization in instantaneous globalization.
3 fundamental innovations
Digitalization technology advancement
- Speed and accessibility
- Global reach
- cost effectiveness
- Global connectivity
Structural transformation of global commerce
Market globalism and integration
Manfred Steger
Ideology
A system of widely shared ideas, patterned beliefs guiding norms and values.
It distorts, legitimizes and integrates
Market globalism
Hegemonic system of ideas
Globalization is about the liberalization and global integrations of markets.
Globalization is inevitable and irreversible – Product of the ever increasing
innovativeness of humans.
Nobody is in charge of globalization.
Globalization benefits everyone in the long run.
-Innovation makes doing daily activities efficient.
-economic growth
-Access and improvement of social services.
Globalization furthers the spread of democracy in the world.
Globalization in relation to culture and communication
-Globalization changed people’s needs and desires and wants. Globalization is construed as
potent medium for cultural imperialism.
Confluence versus Divergence
Confluence – The merging of different elements. It signifies the integration of the world’s
economies, culture, and societies.
Divergence – Moving apart or becoming dissimilar. Increasing disparities or inequalities.
Factors to the process of development
Economic resources
Government policies and objectives
Available technology
External capital
International trade environment
Binary approach of development
Understand and address the root causes of poverty.
Deal with the immediate symptoms of poverty.
Multidimensional poverty index – Measures the degree of poverty issues.
Waves of globalization
Early wave – Driven by resource scarcity and expectation of mutual benefit.
Silk roads (16th century)- connected Asia, Europe, Middle East, and Africa.
Middle age – Trade expanded due to treaties.
Age of exploration(15 to 17th century) - 16 global history.
Expansion and stretching of social relations
Non-government organizations (NGOs) – Agent of expanding relationships. To alleviate the
lives of people especially in those in distress.
Social media – Recent Innovation to connect people.
Globalization and its effects on economic
-In Greece free trade.
Free Trade agreements (FTA) – Played a role towards regional integration.
Advancement of technology have led to the development of high frequency trading (HFT)
Global economic organizations
-International institutions established to promote Economic Cooperation, stability and
development worldwide.
Three major GEOs;
1. International Monetary Fund (stabilizing global financial system)
2. World Bank (provides financial assistance to developing countries)
3. World Trade Organization (deals with rules of trade between nations)
Keynesian liberal wave
Economic setbacks 1918 to 1938 during interwar years, such as the Great Depression in 1929
and 1930s.
International Monetary Fund (regulate their national monetary transactions, and promote global
economic prosperity and political stability.)
Great Depression (began in US 1929 and spread worldwide . Steep declines in industrial
production and prices. Mass unemployment, banking panic, homelessness, and poverty.
The international bank for reconstruction and development (World Bank ) – The Marshall Plan
to extend financial loans.
The Marshall Plan – US sponsored program, European recovery program.
The general agreement on tariffs and trade established 1947 – Crafting and policing multilateral
trade agreements. Became World Trade Organization in 1995.
Various Forms of Connectivity Brought about by Globalization
Globalization has brought about various types of connectivity that have been brought about by
Globalization. These various types could be:
1. Economic connectivity
2. Cultural Connectivity
3. Technological Connectivity
4. Social Connectivity
5. Political Connectivity
These types of connectivity underscore the interconnected nature of our world in the era of
globalization, shaping interactions, exchanges, and relationships on a global scale.
