CHAPTER 1- DEFINING GLOBALIZATION

 Second, to paraphrase the sociologist Cesare Poppi:

INTRODUCTION OF CHAPTER 1: Globalization is the debate and the debate is globalization. One
become part and parcel of the other.
Human beings have encountered many changes over the
last century especially in their social relationships and social  Third, globalization is a reality. It is changing as human society
structures. Of these changes, one can say that globalization is develops.
important change, if not the “most important” (Bauman 2003). The
reality and omnipresence of globalization make us see ourselves as  Overall, globalization is a concept that is not easy to define
part of what we refer to as the “global age” (Albrow, 1996). The because in reality, globalization has a shifting nature. It is
internet, for example allows a person from the Philippines to know complex, multifaceted, and can be influenced by the people
what is happening to the rest of the world simply by browsing who define it.
Google. The mass media allowed for further connections of people,
communities, and countries all over the globe. METAPHORS OF GLOBALIZATION

WHAT IS GLOBALIZATION? Solid

The literature on the definitions of globalization revealed that  The social relationships and objects remained where they were
definitions could be classified as either: created.
 Solidity also refers to barriers that prevent or make difficult the
1. Broad and inclusive movement of things.
 Solids can either be natural such as the landforms or man-made
Example – Ohmae in 1992 stated globalization means an onset of such as the Nine-Dash Line being used by the People’s Republic of
the borderless world. China in their claim to the West Philippine Sea.

2. Narrow and exclusive Liquid

Example – Robert Cox’s definition- the characteristics of the  as a state of matter, takes the shape of its container.
globalization trend include the internationalizing of production, the  liquids are not fixed. Liquidity,
new international division of labor, new migratory movements from  refers to the increasing ease of movement of people, things,
South to North, the new competitive environment that accelerates information, and places in the contemporary world.
these processes, and the internationalizing of the state… making  changes quickly and are in continuous fluctuation.
states into agencies of the globalizing world.  In global finance, for instance, changes in the stock market
are a matter of seconds.
 Ritzer (2015), “globalization is a trans planetary process or set of  their movement is difficult to stop. For example, the videos
processes involving increasing liquidity and the growing being uploaded on You tube or Facebook are hard to halt
multidirectional flows of people, objects, places, and information once they become viral.
as well as the structures they encounter and create that are
barriers to, or expedite those flows.” This definition could bring
either integration and/or fragmentation. Flows
 movement of people, things, places, and information brought
 …represents the triumph of a capitalist world economy tied by the growing “porosity” of global limitations (Ritzer, 2015).
together by a global division of labor (Immanuel Wallerstein)  foods introduced to us by foreign culture.
 poor illegal migrants flooding many parts of the world (Moses,
 …the compression of time and space. (David Harvey) 2006),
 the virtual flow of legal and illegal information such as blogs
 … is what we in the Third World have for several centuries called and child pornography, respectively and immigrants recreating
colonization. (Martin Khor) ethnic enclaves in host countries.
 Concrete examples are Filipino communities abroad and
 …the growing interdependence of national economies. (Gijsbert Chinese communities in the Philippines.
Van Liemt)
GLOBALIZATION THEORIES
 All those processes by which the peoples of the world are
incorporated into a single world society. (Martin Albrow, 1998) A. Homogeneity
 refers to the increasing sameness in the world as cultural
 The intensification of worldwide social relations which link distant inputs, economic factors, and political orientations of societies
localities in such a way that local happenings are shaped by expand to create common practices, same economies, and
events occurring many miles away and vice versa. (Anthony similar forms of government.
Giddens, 1990)
 often linked to cultural imperialism. This means, a given culture
How can we appreciate these definitions? influences other cultures. For example, the dominant religion
How can these help us understand globalization? in our country is Christianity which was brought to us by the
Spaniards. Another example is Americanization which was
 First, the perspective of the person who defines globalization defined by Richard Kuisel (1993-96) as “the import by non-
shapes its definition.
 Americans of products, images, technologies, practices and
behavior that are closely associated with America/Americans).  Rampage of the armies of Genghis Khan into Eastern Europe in
the 13th century
 In terms of economy, there is recognition of the spread of
neoliberalism, capitalism, and the market economy in the world  voyages of discovery Christopher Columbus's discovery of
(Antonio, 2007). Global economic crises are also products of America in 1492,
homogeneity in economic globalization. Joseph Stiglitz (2002),
for instance, blamed the International Monetary Fund (IMF) for  Vasco Da Gama in Cape of Good Hope in 1498
its “one-size-fits-all” approach which treats every country in the
world as the same. In the end, rich countries become  Ferdinand Magellan’s completed circumnavigation of the globe
advantageous in the world economy at the expense of poor in 1522.
countries, leading to increased inequality among nations.
 specific technological advances in transportation and
 The political realm also suffers homogenization if one takes into communication. Some examples include the first transatlantic
account the emerging similar models of governance in the telephone cable (1956), the first transatlantic TV broadcasts
world. Benjamin Barber (1995) said that “McWorld” is existing. (1962), the founding of the modern internet in 1988, and the
It means only one political orientation is growing in today’s terrorist attacks on the Twin Towers in New York (2001).
societies.
BROADER, MORE RECENT CHANGES
B. Heterogeneity
 pertains to the creation of various cultural practices, new  The emergence of the United States as the global power (Post-
economies and political groups because of interaction of World War II)
elements from different societies in the world.
 The emergence of multinational corporations (MNCs)
 refers to the lasting differences or of the hybrids or combinations
of cultures which can be produced through the different trans  The demise of the Soviet Union and the end of the Cold War
planetary processes.
 Through its dominant military and economic power after World
 heterogeneity in culture is associated with cultural hybridization. War II, the US was able to outrun Germany and Japan in terms
of industry. Both Axis powers and Allies fall behind
 A more specific concept is “glocalization” coined by Roland economically as compared to the new global power. Because
Robertson (1992). To him, as global forces interact with local of this, the US soon began to progress in different aspects like
factors or a specific geographic area, the” glocal’ is being in diplomacy, media, film (as in the Hollywood), and many
produced as in glocal markets in terms of economies. more.

 The same goes with political institutions. Barber (1995) also  Before MNCs came into being, their roots are from their
provided the alternate of countries of origin during the eighteenth to early nineteenth
“McWorld”- the “Jihad.” As Ritzer (2008) mentioned, it refers to centuries. The US, Germany, and Great Britain had in their
the political groups that are engaged in intensification of homeland great corporations which the world knows today.
nationalism and that lead to greater political heterogeneity
throughout the world  However, they did not remain there as far as their production
and market are concerned. for example, Ford and General
ORIGINS AND HISTORY OF GLOBALIZATION Motors originated in the US but in the twentieth century they
exported more automobiles and opened factories to other
A. Hardwired countries. This paved way for the so-called “free” world. China,
 According to Nayan Chanda (2007), it is our basic even though the government remains communist, is on its way
human need to make our lives better that made to becoming a major force in global capitalism (Fishman, 2006).
globalization possible Moreover, China is also globalizing in terms of other aspects
such as their hosting of the Olympics in 2008.
B. Epoch

 Ritzer (2015) cited Therborn’s (2000) six great epochs

which are also called ‘waves” and each has its own CHAPTER 2: THE INTERSTATE SYSTEM
origin. The following are the sequential occurrence:
The idea of a system requires the existence of units, among
1. Globalization of religion (4th-7th centuries) which interactions take place. (Buzan, 1993). In the interstate
2. European colonial conquests (late 15th century) system, the units are the states, and their interactions include war,
3. Intra-European wars (late 18th-early 19th centuries) diplomacy, and cooperation.
4. Heyday of European Imperialism (mid-19th century to 1918) The contemporary interstate system is founded on the principles of:
5. Post-World War II period 1. sovereignty
6. Post-Cold War period 2. territoriality
3. non-interference
C. Events The contemporary interstate system can be traced back to the Peace
of Westphalia which ended the thirty years war in Europe. The
 Roman conquest centuries before Christ continent before 1648 consisted of political units smaller than the
states. These political units include territories ruled by powerful As a social theory, constructivism is concerned with the relationship
feudal lords who did not necessarily owe allegiance to monarchs. At between units and structures.
the macro level, authority resided in the Holy Roman Empire. This
made the state not the locus of power. Constructivism emphasizes the role of ideas. The world is shaped
not just by material factors but also by ideational forces, that once
The current interstate system is a result of convergence of economic generated, shared and internalized, provide meanings of the
and political factors: wealth and coercion. These factors enabled material reality. Constructivists highlight the importance of norms
monarchs to wield powers enough to challenge the dominance of which are ideas that have an effect on the behavior of agents.
the Holy Roman Empire as well as the feudal Lords. With the money Norms may be regulative, prescriptive or constitutive. States do not
and army, monarchs gained exclusive control over the means to act on the basis of rational cost-benefit calculations alone but also
wage wars. They created huge bureaucracy, collected taxes on the basis of legitimacy of their actions.
particularly from mercantilists and traders in exchange for security
and protection. These strengthened monarchs’ economic and Marxism
political control. The thirty years war precipitated and ended with
the signing of the Treaty of Westphalia in 1648. This treaty Marxists, or those influenced by the ideas of Karl Marx, point to
recognizes the principle of sovereign statehood; hence, the capitalism and the relations arising from the capitalist mode of
emergence of Westphalian interstate system. production. In order to understand why states are poor, it is
necessary to examine the role they play in the world system. Marx
Theoretical Perspectives predicted that capitalism in advanced industrial states will be
overthrown and replaced by socialism and eventually communism.
There are theories that offer competing explanations and Marxist scholars identify one crucial factor for the perpetuation of
interpretations on the character of the interstate system and the capitalist system: hegemony. States with the preponderance of
nature of interstate relations. Theories on interstate conflicts power have an interest in shaping the world to its preferences.
often assume that states wage wars in pursuit of their national Indeed, using Marxist lens, the United States used hegemony to
interests and theories on peace assume that rules which aim of develop a capitalist world order after World War II through the
minimizing conflicts have an effect in regulating state behavior. institutions it put in place: World Bank, IMF and GATT. These
institutions are known to advocate government policies based on
Realism free trade, privatization and deregulation.

States calculate costs and benefits and they act only when the
benefits of a particular course of action outweigh its costs.

Realists emphasize the role of power. Power may be in the form of

military capabilities, strong economy, internal stability, and foreign
alliances. A bipolar system is more stable than multipolar system
because power calculations are easier (Mearsheimer, 1990). The
case of conflict-ridden multipolar system during World War 1 and
World War II illustrates this point.

Liberalism

What unifies liberalist theories is their optimism for long-term

peace. One striking feature of the contemporary world is the
absence of wars ever since World War II. Liberalists emphasize the
pacifying role of international organizations, economic
interdependence and democracy.

Liberalists insist that the security dilemma created by anarchy can be

managed. The world may lack a central authority, but there are
international regimes in its place. These regimes are governing
arrangements composed of principles, norms, rules and decision-
making procedures. They induce international cooperation by
increasing transparency among actors, reducing transaction costs
and providing norms of reciprocity and enforcement mechanisms.

Liberalists contend that a democratic system has inherent

mechanisms that keep leaders accountable in their decisions. These
mechanisms include the system of checks and balances where each
governmental branch is held in check by other branches. The
conduct of periodic elections likewise keeps leaders from pursuing
hostile policies.

Constructivism
 THEORIES IF INTERSTATE RELATIONS

Competing Theories Realism      Liberalism Constructivism Marxism

Capitalist motives
Democracy, free trade
Norms and ideas can reconstitute cause conflicts
States always compete and international
Central Argument state behavior, interests, identities, between core, semi-
for power organizations matter to
and preferences peripheral, and
state behavior
peripheral states
States are rational States are rational
Institutions, including anarchy are History is a class
Assumptions actors; international actors; international
socially constructed struggle
system is anarchic system is anarchic
Focus of Analysis States States Individuals World system
Kenneth Waltz, John Robert Keohane, Joseph Immanuel Wallerstein,
Theorists Alexander Wendt, Nicholas Onuf
Mearsheimer Nye Jr. Theotonio dos Santos

STATE, SOVEREIGNTY AND TERRITORY

In the second half of the 20th century, the concept of hard
State, sovereignty and territory are constructs that are central to the boundaries was challenged with states increasing nuclear
theories on the interstate system. vulnerabilities.

On the construct of state, states during the 17th century were Territorial control was important, but states also sought symbolic
largely absolutist in form. Sovereign monarchs possessed and territorial protection through missile defense systems. States in the
exercised exclusive powers in making laws, their execution and late 20th and early 21st century must grapple with growing patterns
adjudication. The extraordinary power of these monarchic states of economic interdependence.
made global empires possible. Empire states dominated the pattern
of interstate relations before World War I. The war produced the Non-State Actors
collapse of four powerful European Empires: Russian, German,
Austro-Hungarian and the Ottoman Empire. Europe lost its The actors of the contemporary world may be categorized into state
preeminent status after the war. and non-state actors. Non-state actors include international
organizations and multinational corporations (MNCs). International
Those empire states did not represent the nation or the people. The organizations may be intergovernmental or non-governmental.
absolutist, empire-states were replaced by liberal, nation-states in Intergovernmental organizations may be universal or limited in
the 19th and 20th century. Citizenship rights such as legal and terms of membership and purpose. The United Nations (UN) and its
political developed in response to the growing pattern of states. predecessor, the League of Nations (LN) are examples of universal
There was a rise in welfare-state to fight frequent economic membership and multipurpose organizations. Unlike the Concert of
recessions and unemployment. The pattern of regionalism took Europe whose membership was limited the great powers of Europe,
place after World War II. both organizations open their membership even to small states. The
League was primarily for promoting collective security, but the
On the construct of sovereignty, sovereignty before and after French United Nations includes economic, social and cultural cooperation in
Revolution is different. Before the revolution, monarchs claimed its goals, aside from promotion of international peace and security.
absolute authority. But the revolution introduced nationalism and
popular sovereignty which espouses that view that sovereignty Today, the United Nations is a complex system with 5 principal
resides in the people and government authority emanates from organs and several specialized agencies and programs. The
them. It was the legacy of Napoleon to modern Europe. This was European Union (EU) and the Association of Southeast Asian Nations
the reason they established the Concert of Europe. Their goal was (ASEAN) are also intergovernmental organization but only with
primarily to prevent any figure like Napoleon who would incite regional membership. Finally, the North Atlantic Treaty Organization
popular uprisings and cause Europe instability. (NATO) is another example of intergovernmental organization but its
membership is limited only among Western security partners and its
Sovereignty was tied to effective control over territorial space. purpose is primarily for security among its members.
States exercised sovereignty over their respective territorial
jurisdictions. This has changed in the mid-20th century. Today, with What makes non-state actors increasingly important is the role they
growing consensus for common humanity and concerns for perform, intergovernmental organizations for instance, help govern
internally displaced persons and refugees, sovereignty finds itself at a wide range of issue areas from nuclear proliferation to climate
odds with new norms, such as that of responsibility to protect. change. In some cases, they help set up governments in states
affected by wars and conflicts. The United Nations General
On the construct of territory, territories of states were strictly Assembly for instance, during the Korean War issued a resolution to
delineated. Toward the first half of the 2oth century, states protect peace and security of the region. States sent peacekeeping
were obsessed with control, possession and expansion of their troops in response to protect South Korea. The United Nations has
territories. repeatedly issued multilateral sanctions against North Korea for
continuing its nuclear weapons programs.

Aside from intergovernmental organizations, there are also non-

governmental organizations (NGOs). These organizations have
established their presence in different states, and are very active in  Soon it announced the Marshall Plan which extended huge
their campaigns. Some of the most prominent NGOs include Human financial assistance to Europe and supported the Bretton
Rights Watch and Transparency International. Woods System.
 The Bretton Woods System was the first fully negotiated
Finally, non-state actors include multinational corporations which international monetary system.
are firms that operate in many countries. To liberalists,  The previous classical gold standard was first introduced and
multinational companies have growing impact in the international adopted by the United Kingdom, and then subsequently by
system because they help transform the global economy. They other states.
promote interdependence by expanding trade and foreign direct  After that, the gold exchange standard was introduced but it
investment. The net worth of some multinational firms is bigger was not fully negotiated either.
than the economy of some states. More people rely on these firms  There was “no agreement on purpose” (Ruggie, 1982), in the
for jobs. In some authoritarian states, firms are thought to have sense that even if states expressed desires for an international
influenced government decisions to liberalize and democratize monetary system, it was not realized because protectionist
because of the economic leverage multinational companies have. economic policies were still being practiced by many states.
 The primary dilemma facing states before the Bretton Woods
CHAPTER 3: GLOBAL ECONOMY System was:
1. between the desire for domestic autonomy in economic
Postwar Economic Institutions policies and
Year 2. the desire stability of the international monetary system.
Institution Headquarters Functions Beggar-thy-neighbor policies or engaging in competitive
Established
currency devaluations to improve one’s trade position are
Foster global
among the state interventionist policies.
monetary
The Bretton Wood System has two primary goals:
cooperation;
Secure financial
1. a system in which governments would have a considerable
stability;
leeway to pursue economic objectives;
Facilitate
Washington, 2. a monetary order that would be based on fixed exchange rate
IMF 1944 international trade;
DC to prevent currency manipulation.
promote high
employment and
sustainable economic * The key to the system was the US economy and its dollar.
growth; reduce The US pledged to keep its dollar convertible to gold at $35 per
poverty around the ounce.
world
Provide financial and
How did the Bretton Woods system work?
technical assistance
Washington,
World Bank 1944 to developing
DC 1. a system should provide liquidity to finance international
countries around the
transactions;
world
Liquidity refers to the amount of assets, such as money, that
Promote
can be available to finance trade.
international trade
2. It should specify adjustment mechanisms, or the methods to
by reducing or
GATT 1948 Geneva resolve balance of payment disequilibria.
eliminating trade
Balance of payment refers to all payments between a country
barriers such as
and its trading partners.
tariffs or quotas
3. The system should provide confidence among states.
World Trade
Liberalize trade;
Organization 1995 Geneva
settle trade disputes  The General Agreement on Tariffs and Trade (GATT) which took
(WTO) effect in 1948 was the only international instrument governing
the conduct of world trade, endured for nearly fifty years until
it was replaced by the World Trade Organization (WTO) in 1995.
 It was not until the 1950s when these three institutions began
to function (Woods, 2008). Two types of economies associated with economic globalization:
 The reason was the geopolitical rivalry between the United 1. Protectionism
States and the Soviet Union. 2. Trade liberalization
 The goal then of the US, the architect of the postwar global
economy, was to contain the Soviets. Protectionism:
 Containment means that the US with its allies sought to encircle
and isolate the adherents of communism from international  “a policy of systematic government intervention in foreign
affairs. trade with the objective of encouraging domestic production.
 But fearing the impending spread of communism within and  This encouragement involves giving preferential treatment to
outside of Europe, the US flexed its political and economic domestic producers and discrimination against foreign
muscle and took an active role in helping its allies in Europe and competitors.” (McAleese, 2007)
in directly managing the global economy.  Trade protectionism usually comes in the form of quotas and
tariffs.
 Tariffs are required fees on imports or exports Group of Five, composed of the US, UK, France, West Germany
and Japan.
Trade Liberalism:  The US also declared that it was imposing higher import
duties.
 Free trade agreements and technological advances in  This is to improve US trade position by restricting inflow of
transportation and communication means goods and services imports to the US and to lessen the outflow of dollars from the
move around the world more easily than ever. US economy.
Fair Trade:  In the trade system, the GATT had been successful in facilitating
world trade in the postwar years.
 Globalization made some countries, especially the developing  Significant tariff cuts had been achieved, eliminating barriers to
ones, to gain more in global economy at the expense of other trade.
nations.  The GATT boosted world trade by 8 percent a year during the
 There are various ways however the country can make trade 1950s and 1960s.
easier with other countries while lessening the inequities in the  That was faster than world economic growth.
global world.  But later, as economies struggled with stagflation, new forms of
 one of them is the “fair trade” trade barriers were imposed, such as subsidies, voluntary
 Fair trade is the concern for the social, economic, and export restraints and imposition of standards and regulations.
environmental well-being of marginalized small producers.  This new protectionism has most often taken the form of
(International Fair-Trade Association) antidumping and countervailing duties.
 it aims for a more moral and equitable global economic system  This rise of new protectionism was a violation of the GATT
 it is concerned with protection of workers and producers, principles.
establishment of more just prices, engagement in  The GATT failed to address some of its shortcomings.
environmentally sound practices and sustainable production,  Among them is that major industries, such as agriculture and
creation of relationship between producers in the South and textile, were not included in the GATT guidelines and many
consumers in the North, and promotion of safe working states have been protecting these industries.
environment.  Another is the inability of the GATT to speedily settle disputes
among its members.
US AND GLOBAL ECONOMY DECLINE  Because of these, during the 1970s, a group of developing
nations launched a campaign to establish a New International
 Starting the 1960s, the US economy slowed down. Economic Order (NIEO) that sought to protect the interests of
 The escalating war in Vietnam, and the heavy government the developing nations.
spending on public education and urban development had  The group advocated for better representation in international
weakened US fiscal position. economic institutions, a fair-trading system, and regulation of
 As inflation hit the economy, the competitiveness of US goods foreign investments.
and services in the global economy declined.
 The confidence in the US dollar had likewise fallen. ERA OF STRUCTURAL ADJUSTMENT PROGRAMS
 Other states were fast catching up. In Europe, member-states
of European Economic Community (EEC) had greatly benefitted  In the 1960s and 1970s, the US and European policies facilitated
from the intensification of regional economic integration. growth in foreign direct investments and global capital markets.
 This resulted in less reliance on the US, not only in the aspect of  Financial flows found their way to governments in developing
economy but also of security. countries that were offered loans.
 In Asia, the success of developmental states in Japan, South  The Philippines was among these countries of destination.
Korea, and Taiwan in promoting export-oriented  1979, the US Federal Reserve raised the interest rates.
industrialization posed a serious challenge for US trade  Its purpose was to reduce inflation by contracting economic
position. activity in the US.
 In the 1970s, the global economy also slowed down.  The rise in US interest rates was a wake -up call to both
 The primary cause was the first Oil Crisis in 1973. borrowers and creditors, many of whom were US-based banks,
 The crisis began when the Arab member-states of the who suddenly realized that many of the loans could not be
Organization of Petroleum Exporting Countries (OPEC) imposed repaid.
an embargo after the US and its allies decided to supply arms to  The IMF ensured that indebted countries undertook structural
Israel during the Yom Kippur War. adjustment measures.
 The oil crisis plunged the world economy into stagflation, a  These measures include reducing government spending , tax
phenomenon in which lack of economic growth is accompanied reform, trade liberalization, liberalization of inflows of foreign
by high prices. direct investment, privatization, and deregulation.
 In the monetary system, this series of events led the US to  These neo-liberal policies, later to be labeled collectively as the
announce in 1971 that it will suspend the convertibility of dollar Washington Consensus, aimed to minimize the role of the state
into gold. in the economy.
 The Bretton Woods System broke down, and the role of the IMF
collapsed. END OF COLD WAR
 The major currencies floated, and states began to discuss
monetary issues among themselves in groups.  Both the IMF and the World Bank became deeply involved in
 Such was the case when the US dollar was devalued under the making sure these states undergo structural adjustment
1985 Plaza Accord, an agreement between the members of the reforms.
 They had used aid conditionality to promote good governance  Economic globalization has help millions of people get out of
among members. extreme poverty but the challenge of the future is to lift up the
 But the 1997 East Asian Crisis, which started in Thailand and poor while at the same time keep the planet livable.
spread across East Asia, showed that the IMF might have gone  One of the best ways to help those in extreme poverty is to
too far in imposing conditionality. enable then to participate in the economy.
 The crisis was followed by the 2008 Global Recession and
recently the Eurozone crisis. MULTINATIONAL CORPORATIONS
 The measures required among European countries where the
Eurozone crisis erupted include cutbacks on government  The presence of multinational corporations (MNCs) is a striking
spending and raising of taxes. T feature of contemporary economic globalization.
 The US in 2008 Global Recession promoted an interventionist  Others refer to them as transnational corporations (TNCs)
role ensuring massive stimulus package and bail-outs on which connotes operations in more than one country.
affected firms.  Firms take advantage of economies of scale, a situation where
 In 1995, when the WTO began operations, it opened a new firms incur falling average costs with increase in the volume of
forum within which a broad range of international issues would production.
be negotiated, including not just traditional trade issues on  With open markets, firms can produce and sell goods or
tariff and non-tariff barriers, but also intellectual property services in multiple locations.
rights, trade related investment measures, and food safety  They are directly engaged in investments, either through
standards. foreign direct investment which is entry into a business
 Like the GATT, the primary goal of the WTO is to promote free enterprise in one country by an entity based in another
trade. country, or through portfolio investment which is a passive
investment on securities (as stocks and bonds) in a host
What is the difference between the GATT and the WTO? country.
 The reasons for foreign corporate investments include market-
 The GATT rules applied to trade only in merchandise goods or seeking, resource-seeking, strategic asset-seeking and efficiency
goods that were then exported mainly by the developed states. –seeking. Given their size and resources, corporations possess
The GATT rules for poor countries were mostly the same for and do exert their political influence such as by political
rich countries. donations and lobbying
 While GATT was a multilateral instrument, by the 1980s many
new agreements of selected nature had been added.
 The WTO dispute settlement is faster, more automatic, and
thus much less susceptible to blockages compared to the old CHAPTER 4: GLOBAL SECURITY
GATT system. Primary Concerns:

ECONOMIC GLOBALIZATION, POVERTY AND INEQUALITY 1. Interstate security- how state could protect themselves from
threats of other state; lessen if not prevent occurrence of war
 “the 1 to 2 billion poorest in the world who don’t have food for
the day suffer from the worst disease, globalization deficiency. Some emphasized developing military capabilities and putting
 The way globalization is occurring could be much better, but up credible defense while others encouraged building and
the worst thing is not being part of it. strengthening of institutions that could induce cooperation
 Economic and trade globalization is the result of companies among states.
trying to maneuver their competitors.
 This process creates winners and losers. After World War II, the state became captive to the interests of
 The winners include corporation and their stockholders who dominant clans, warlords, and/or ethnic groups. This situation
earn more profit. had caused violent struggles.
 They also include consumers who get products at a cheaper
price. It is true that for most part of the Cold War period, there were
 The losers are high wage workers who used to make those no wars between major powers, however, domestic armed
shoes. Their jobs moved overseas. conflicts and civil wars were on the rise.

Multiplier Effect – an increase in one economic activity can 2. intrastate security- internal to the state; addressing state
lead to an increase in other economic activities. weaknesses and failures, political and ethnic grievances and
 Opponents of economic globalization called outsourcing of jobs demands for minority rights and freedoms
as exploitation and oppression 3. human security- individuals (global warming, influx of refugees,
 A form of economic colonialism that puts profit before people. internally displaced persons, epidemics)
 The root of many arguments against economic globalization is
that companies do not have to follow the same rules they do in Realist and Liberal Perspectives
develop countries.
 In the absence of regulations, it is still possible that workers It has been argued that the difficulty of attaining interstate security
would not horribly mistreated has two underlying principal causes:
1. Public awareness – the first step to improvement
2. Support globalization First, system lacks a central authority that can regulate the conduct
of states, and second, states are seen as functionally similar units.
This condition is called anarchy which is a self-help system creating a
security dilemma. States build up arms, including ballistic missiles
and nuclear weapons to boost their security, even if others might In states with clashing ethnic groups, conflicts have become
find this threatening to their security. communalized. In some cases, these conflicts resulted in mass
killings and displacement of civilians. The claims for a moral duty of
During World War I, when states perceived offensive advantage, humanitarian intervention stem from the basic proposition that all
they unconditionally mobilized against the enemies (Van Evera, individuals are entitled to a minimum level of protection from harm
1984). The chain-ganging behavior of allies dictated the logic and by virtue of their common humanity.
necessitated the outbreak of the war.
Human Security
During World War II, however, when states perceived defensive
advantage, states had turned to their allies to balance an It was the United Nations Development Program’s (UNDP) 1994
expansionist state. This buck-passing behavior only contributed to Human Development Report that made human security a common
the outbreak of another war (Christensen and Snyder, 1990). currency in the contemporary world. Human security means “that
people can exercise these choices safely and freely and that they can
A near-war crisis called the Cuban Missile Crisis, happened at the be relatively confident that the opportunities they have today are
height of the Cold War but has not resulted into a war. Nuclear not totally lost tomorrow.” In its broader sense, human security is
weapons pack tremendous explosive power capable of wiping out distinguished by its three characteristics:
populations and territories, as was shown in the Nagasaki and
Hiroshima bombings. The principle of mutually assured destruction 1. its focus on the individual/people as the object or subject of
shaped the strategic paradigm of states. security;
2. its multidimensional nature, not just economic, but also
Kenneth Waltz and Scott Sagan (1995) have an engaging debate on political, social and environmental;
the implications of nuclear weapons proliferation and the dangers of 3. its universal or global scope, applying to states and societies of
a nuclear-armed world. According to Waltz, more may be better the North as well as the South. The report defined the scope of
while Sagan opposed that more may be worse. human security to include seven areas (Acharya,2008), namely:

While the distribution of power matters to international security,

some argue that there are other important factors that affect 1. Economic
security as well. They emphasize the role of economic
interdependence, democratic form of government and international Includes insured basic income and employment, and access to such
institutions. social safety net

Symmetric and Asymmetric Security 2. Health

A full understanding of the concept of security requires one to not Access to safe water, living in a safe environment, access to health
only examine the threats posed by other states but also consider the services, access to safe and affordable family planning and basic
threats emanating from non-state forces (asymmetric threats). support during pregnancy and delivery, prevention of HIV/AIDS and
Addressing them is a big challenge like threats on terrorism, illicit other diseases and to have basic knowledge to live a healthy life
trade, and even climate change.
3. Personal
Today, the measures to combat terrorism are extended to crucial
areas like trade and finance, international and domestic law Protecting people from physical violence, whether from the state or
enforcement, state’s institutional capability building, as well as external states, from violent individuals or sub-state factors, from
intelligence and secret services. domestic abuse, and from predatory adults

Illicit trade is a transnational organized crime. Many commodities 4. Political

are being traded in the black markets today, including people and
human organs, endangered species, drugs, weapons, counterfeit Concerned with protection of human rights and well-being of all
goods and laundered money. people; includes protection against people from state repression
such as freedom of press, freedom of speech, and freedom of voting
Climate change is another problem. In the late 1980s, the
Intergovernmental Panel on Climate Change (IPCC) released a report 5. Food
predicting that the consequences of expected increases in
temperatures would be catastrophic. At the start of the of the 21st Includes access to basic nutrition and food supply
century, unusual weather patterns, storm events, and the melting of
polar ice sheets have added a dimension of public concern to the 6. Environmental
fears expressed by the scientific community (Vogler, 2008). Al Gore
(2006) pointed out that” making mistakes in our dealings with Prevention of water and air pollution, prevention from
nature can have bigger consequences now because our technology deforestation, irrigated land conservation, prevention of natural
is bigger than the human scale.” Along with other environmental hazards such as droughts, floods, cyclones, earthquakes, etc
problems, the thickening of the ozone layer by greenhouse gases are
related to the unsustainable global patterns of natural resource 7. Community
extraction, production, distribution, consumption and disposal that
altogether put so much pressure on the environment. Covers conservation of traditional cultures, languages and
commonly held values; also includes abolishment of ethnic
discrimination, prevention of ethnic conflicts, and protection of
indigenous people.
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