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Group 8 - Contemporary World (BSEE-1A)

This document discusses the effects of globalization on governments through four main challenges: traditional challenges from external intervention; challenges from national and identity movements that promote distinct cultural identities; pressures from global economics to conform to free market capitalism and practices like privatization and fiscal austerity; and challenges posed by large-scale global social movements that cross borders.

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George Rabanal
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451 views23 pages

Group 8 - Contemporary World (BSEE-1A)

This document discusses the effects of globalization on governments through four main challenges: traditional challenges from external intervention; challenges from national and identity movements that promote distinct cultural identities; pressures from global economics to conform to free market capitalism and practices like privatization and fiscal austerity; and challenges posed by large-scale global social movements that cross borders.

Uploaded by

George Rabanal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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EFFECTS OF GLOBALIZATION

TO GOVERNMENTS
- Traditional Challenges
- Challenges from National/ Identity
Movements
- Global Economics
- Global Social Movements
TRADITIONAL CHALLENGES

External Intervention can be generally be


described as invasion by other countries.

ex. Philippines being invaded by different


countries in the past centuries.
What will happen if there is an External
Intervention?
Political Intervention
Force Intervention
Economic Intervention
CHALLENGES FROM NATIONAL/
IDENTITY MOVEMENTS
A nation has cultural identity that a people
attached to, while a state is a definite entity due to
its specific boundaries. However, different people
with different identities can live in different states.

ex.
-Kurds that resides in other countries including Iraq, Iran, and Turkey.
-Catalans live primarily in Spain but can be found also in France.
Scottish Nationalism
is another example that challenges the traditional
notions of state sovereignty.

Scottish Nationalism promotes the idea that the Scottish


people form a cohesive nation and a national identity and
is closely linked to the caused of Scottish home rule and
Scottish Independence, the Ideology of Scottish National
Party, the party of forming the Scottish Government. It is
often described as a form of civic nationalism rather than
ethnic nationalism.
Another examples of National or
Identity Movements are the Al-Queda
and ISIS.

They are structured around the


fundamentalist version of Islam.
Al-Queda
A militant Sunni Islamist multi-national organization
founded in 1988 by Osama bin Laden, Abdullah Azzam,
and several other Arab volunteers during the Soviet
invasion of Afghanistan.

ISIS (Islamic State of Iraq and Syria)


The group has been designated a terrorist organization
by the United Nations and many individual countries. They
are widely known for it’s videos of beheadings and other
types of executions of both soldiers and civilians, including
journalists, and aid workers, and its destruction of cultural
heritage sites.
GLOBAL ECONOMICS

The Global Economy demands the state to


conform to the rules of free-market capitalism.
Government austerity comes from
developments of organizations that cooperate
across countries, such as WTO and regional
agreements, such as NAFTA, European Union
(EU), and the Association of Southeast Asian
Nation (ASEAN).
Neoliberal Economics
“Neoliberalism” was proposed by Colloque
Walter Lippman in 1938. It was described as “a
certain set of economics belief”.
The colloquium define the concept of
neoliberalism as involving “the priority of the
price mechanism, free enterprise, the system
of competition, and a strong and impartial
state”.
To be “neoliberal” meant advocating a
modern economic policy with state
intervention.
Neoliberal Economics
- Focuses on free trade and dismantling trade
barriers.
- Made sure that governments did not impose
restrictive regulations on corporate presence, as
well as on the free flow of capital and jobs.
- It requires a state to cooperate in the global
market through:
- Free Flow of Capital
- Privatization of Services; and
- Fiscal Austerity or Constraint
Neoliberal Economics

A. Free Flow of Capital

Refer to the movement of money for the


purpose of investment, trade, or business
production, including the flow of capital within
corporations in the form of investments capital,
capital spending on operations and research and
development.
A. Free Flow of Capital
Benefits:
1. Increased Aggregate Demand
2. Increased Productive Capacity
3. Technological Improvements
4. Surplus on the Financial Account of the
Balance of Payments
5. Lower Prices for Consumers
6. Finance Public Sector Debt
A. Free Flow of Capital
Disadvantage:
1. Potential Capital Outfows
2. Domestic Firms may lose out of the new
multinational firms.
3. Tax Avoidance
4. Distorted Asset Markets
5. Money Laundering
Neoliberal Economics

B. Privatization of Services
Also known as denationalization or
disinvestment. It is the process of transferring
property from public ownership to private
ownership and/or transferring the management of
service or activity from the government to the
private sector.
B. Privatization of Services
Types:
1. Complete Privatization
2. Privatization of Operations
3. Privatization through Contracts
4. Franchising
5. Open Competition
B. Privatization of Services
Examples:
1. Airport Operation
2. Data Processing
3. Vehicle Maintenance
4. Corrections
5. Water and Wastewater Utilities
6. Waste Collection and Disposal
B. Privatization of Services
Reason for Privatization:
1. Cost Reduction
2. Risk Transfer
3. A Source of Revenue
4. Desire for Higher Level of Service
5. Need for Greater Expertise
6. Flexibility
Neoliberal Economics

C. Fiscal Austerity or Constraint

A term in common use in the media at the moment. It


refers to decisions by a government to reduce the amount
of government borrowing over a period of years.

Why countries agree to austerity measures?


TO AVOID a sovereign debt crisis.
C. Fiscal Austerity or Constraint
The timing for austerity measures is everything.
It’s not good time when a country is struggling to
get out of the recession. Lowering government
spending and laying off workers will reduce
economic growth and increase unemployment.

The best time for austerity measures is when the


economy is in the expansion phase of the business
cycle. It will reassure investors in public debt that
the government is fiscally responsible.
GLOBAL SOCIAL MOVEMENTS

Movements of the people that are


spontaneous or that emerge through enormous
grassroots organizations. These social movements
are transnational movements which means they
occur across countries borders. Therefore, states
have less control over them.
GLOBAL SOCIAL MOVEMENTS

How does it form?


Many of them are based on the idea that the
current power conditions or relationships are not
fair.
GLOBAL SOCIAL MOVEMENTS

Types:
1. Alternative Social Movements
2. Reformative Social Movements
3. Redemptive Social Movements
4. Revolutionary Social Movements
GLOBAL SOCIAL MOVEMENTS

Examples:
1. Environmental Movement
2. Consensus on Women’s Right
3. Right of Personal Autonomy (homosexuality,
same-sex marriage, and gender equality)
4. Feminism
5. Labor Movement
6. Anti-Nuclear Movement

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