The Contempora

ry World

Prof. Dionessa L. Bustamante

Brief Outline
01 Defining Globalization

Common Understanding About

02 Globalization

03 Eight Types of Globalization

04 Misconceptions about Globalization

05 The Global Economy

 Defining
Globalization
 It is the 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 (Giddens, 1990).

GLOBALIZATION Refers both to the compression of the world

and the intensification of consciousness of
the world as a whole… (Robertson, 1992).

Is the compression of time and space and

the annihilation of distance (Harvey, 1989).
 The existence of several definitions of
globalization clearly point out that there can
GLOBALIZATION be as many definitions as there are scholars
studying in it.
 The existence of several definitions of
globalization clearly point out that there can
GLOBALIZATION be as many definitions as there are scholars
studying in it.

The competing definitions of globalization

can be attributed to the diversity of
disciplines that have studied the
phenomenon.
 1960s

1970s
Globalization had gained wide interest in the 1990s.
Globalization Timeline
Globalization was
first used as a
term in the
academic circles.

1960s 1970s 1990s Present

But it had only

gained wide
interest during
90s.
 Common
Understanding
About
Globalization
 Globalization

Process Condition Ideology

Globalization as a
Process
It is 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 (Steger,
2005).
Globalization: Process
It denotes happening
over a stretch of time.

When did
globalization start?
 Globalization
as a process means connecting the past, the present, and
the future — as a sort of bridge between the past and the
future. The title and the composition of the present volume
reflect this idea. (Sheffield et.al., 2013)
 Globalization as a
Condition
Globalization is also referred to
by scholars as globality.

Globality is referred to as social

condition characterized by
trans-planetary connectivity and
supra-territoriality.
Globalization: Condition

Refers to how
Globalization
impact the
society.
 Globalization as an
Ideology
Globalization is also referred to
by scholars as globality.

Globality is referred to as social

condition characterized by
trans-planetary connectivity and
supra-territoriality.
Misconceptions about
Globalization

What Globalization is Not.

 Misconceptions about Globalization

Internationalization Liberalization Universalization Westernization

Globalization and Internationalization
Internationalization includes activities by
entities such as corporations, states,
interna-tional organizations, private
organizations, and even individuals with
reference to national borders and national
governments.

Globalization, on the other hand, includes a

gamut of human activities that do not require
reference to a state’s national borders.
 Globalization and 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.

Globalization, in this sense, is realized

when national governments “reduce or
abolish regulatory measures like trade
barriers, foreign exchange restrictions,
capital controls and visa requirements”.
Globalization and Universalization

Universalization denotes a process of

spreading various objects, practices, and
experiences to the different parts of the
planet.

Globalization, occurs when things, values,

practices have spread worldwide.
Globalization and Westernization

Westernization, sometimes referred to

Americanization or McDonaldization, is a
variant of Universalization.

Westernization, happens when Western

modernity spreads and destroys local
cultures.
The Global Economy

What is it all about?

 The Global Economy
Brief Definition:

It can be understood as a process of

absorbing national economies into an
interlinked and interdependent global
market economy.
Post World War II Economic System
The Bretton Woods Conference

Formally known as the United Nations Monetary and

Financial Conference.

Held on July 1944, in Bretton Woods, New Hampshire,

United States
Composed of delegates from 44 countries.

It agreed to create two international economic

organizations: IMF and World Bank.

These institutions were known keystone international

economic organizations (KEIOs).
The Bretton Woods Institutions
The International Monetary Fund
(IMF) Your Picture Here

Primary purpose:
To promote global monetary
cooperation and international financial
stability.
The International Monetary Fund
(IMF) Your Picture Here

Role:

To provide short-term loans to prevent

devaluation and retain the state’s fixed
exchange rate in instances of the
temporary balance of payment deficits.
The International Monetary Fund
(IMF) Your Picture Here

Changed Role:
It changed its role when the fixed-
exchange-rate system collapsed and
was replaced by floating exchange
rates in 1971.
It still had the role of providing liquidity
but has more focus on countries tied to
major currencies instead of countries
supplying them.
The International Bank for Reconstr
uction and the Development or Wor
ld Bank Your Picture Here

Primary Purpose:
It was created to grant long-term loans
for the economic development of less-
developed countries and the
reconstruction of war-torn countries in
Europe.
The International Bank for Reconstr
uction and the Development or Wor
ld Bank Your Picture Here

The World Bank today is

made up of two institutions:

1. International Bank for

Reconstruction and Development
(IBRD); and
2. International Development
Association (IDA)
The International Bank for Reconstr
uction and the Development or Wor
ld Bank Your Picture Here

Renewed Role of the World

Bank:
To reduce extreme poverty while
addressing the imperfections of
global capital markets continues to
be secondary importance.
General Agreement on Tariffs and T
rade (GATT)

While the GATT was effective in

liberalizing trade, it was unable to
address the expansion of trade in
services, investment and intellectual
property.

It was also incapable of providing a

strong and efficient system for
dispute settlement.
General Agreement on Tariffs and T
rade (GATT) Your Picture Here

Primary Purpose:

To avoid trade wars by raising

protectionist barriers as witnessed
during the interwar period.
World Trade Organization (WTO)
Your Picture Here

This is a much formal organization

which superseded the GATT in
1995 that manage to address the
unresolved issues by the latter.
International Monetary Syste
1% 45%
m
1. The Gold Standard
2. The “Gold Bullion Standard”
3. The Bretton Woods System/Dollar-
Gold standard

10%
1% 45%
Keynesianism and Neo-Liber
alism

10%
Keynesianism
By John Maynard
Keynes
Your Picture Here Your Picture Here

Keynesianism
By John Maynard
Keynes

Your Picture Here Your Picture Here

• Keynes sees
government spending
as s solution to revive
the economy by
bolstering aggregate
demand through
fiscal and monetary
policies.
Your Picture Here Your Picture Here

Keynesianism
By John Maynard
Keynes

Your Picture Here Your Picture Here

• Keynes sees
government spending
as s solution to revive
the economy by
bolstering aggregate
demand through
fiscal and monetary
policies.
 Keynesianism
The Keynes ‘ liberal interventioni
sm approach influenced states t
o invest in big governments and
shaped the post-war global econ
omic order that is grounded on t
he Keynesian compromise in pro
moting markets without undermi
ning the protection of the society
and the domestic market.
 Keynesianism
The Keynes ‘ liberal interventioni
sm approach influenced states t
o invest in big governments and
shaped the post-war global econ
omic order that is grounded on t
he Keynesian compromise in pro
moting markets without undermi
ning the protection of the society
and the domestic market. This paradigm was challenged
during the crisis of stagflation a
combination of rising
unemployment and inflation that
occurred in the 1970s.
Neo-liberalism
Grounded in the
ideas of Friedrich
Hayek and Milton
Friedman
Your Picture Here Your Picture Here

Neo-liberalism

Grounded in the ideas of

Friedrich Hayek and
Milton Friedman

Your Picture Here • The-neoliberal solution Your Picture Here

was to have an
unregulated market with
as little intervention as
possible.
 Sources
Book:
Coronacion, D., & Calilung, F. (2018). CONVERGENCE: A College
Textbook in Contemporary World. Mandaluyong City: Books Atbp. Pu
blishing Corp.

Video Sources:
The Global Economy. https://www.youtube.com/watch?v=3FNNpUWn7hQ
The Bretton Woods Monetary System. https://www.youtube.com/watch?v=RtFz9q26t5A
What’s the “Bretton Woods System”? https://www.youtube.com/watch?v=-6bVeDab6UA
What's the difference between the IMF and the World Bank? https://www.youtube.com/watch?v=lN3qrFA4jXc

Keynesian Economics https://www.youtube.com/watch?v=xKGtmzLP8gw

Three Minute Theory: What is Neoliberalism? https://www.youtube.com/watch?v=dzLv3rfnOVw