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Contemporary world ge, Lecture notes of Contemporary History

About globalization and its flow to the capital investment

Typology: Lecture notes

2021/2022

Uploaded on 02/17/2023

jocelyn-mae-cabrera
jocelyn-mae-cabrera 🇵🇭

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Download Contemporary world ge and more Lecture notes Contemporary History in PDF only on Docsity! THE CONTEMPORARY WORLD Learning Module This Learning Module on The Contemporary World is the Sorsogon State College’s response to providing flexible learning contents and outcomes-based assessment to students. This module which integrates independent and collaborative tasks exposes learners to the contemporary world which encompasses the emergence of economic, political, social and cultural systems amid globalization. This module aims to develop among learners critical and analytical thinking skills as they reflect on their roles and responsibilities as global citizens. Introduction to Globalization The Structures of Globalization The Global Economy Market Integration The Global Interstate System Contemporary Global Governance A World of Regions The Global Divides: The North and the South Understanding Global Stratification A World of Ideas Media and Globalization The Globalization of Religion Global Population and Mobility Global City Global Demography Global Migration Towards a Sustainable World Sustainable Development Food Security Global Citizenship Global Citizenship LESSON 1: WHAT IS GLOBALIZATION? Different scholars have different viewpoints of what globalization is. Some would view globalization as a positive phenomenon, some would see its detrimental effects on society which cannot be separated from issues of global economic and cultural imperialism. OBJECTIVES: At the end of this lesson you are expected to: • describe the contemporary world. • craft one’s own working definition of globalization based on the different meanings of globalization • differentiate the meaning of globalization, globality and globalism from one another • be familiarized with the dimensions and characteristics of globalization PRE-READING ACTIVITY Before reading the text below, choose whether to create a poster/collage, compose and perform a song, or compose poem and deliver spoken poetry which depicts your concept of the world today. Writing a short paragraph of description of our present world is also an option. Document your choice and what you did. READING Giddens (1990) points out that globalization 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 and away. In a conference in 2000, Giddens explained, “globalization is not a single set of processes and does not lead into a single direction. It produces solidarities in some places and destroys them in others. It has quite different consequences on one side of the world from the other. In other words, it is a wholly contradictory process. It is not just about fragmentation. I see it more as a shake-out of institutions in which new forms of unity go along with new forms of unity go along with new forms of fragmentation.” Wallerstein (1998) believes that globalization is a reflection of the triumph of a capitalist world economy bonded by a global division of labour. Khor (1995) in discussing the world politics expressed that globalization has long been experienced by the Third World called colonization. For Mcgrew (1990) globalization is composed of multiple sameness and interconnectedness that go beyond nation states where individuals and organizations in one part of the world is affected by the activities, affairs, and convictions on another part of the globe. Holm and George (1998) described globalization as the intensification of economic, social and cultural relations across borders. Similarly, it is the processes by which the peoples of the world are incorporated into a single world society, global society (Albrow, 1990). Simply, Kanter (1995) said that it is a condition where the world is becoming a global shopping mall in which ideas and products are available everywhere at the same time. One of the most popular definitions of globalization is provided by Steger (2009) which defined globalization as a set of social processes that appear to transform our present social condition of weakening nationality into one globality. It is about the unprecedented compression of time and space as a result of political, economic and cultural change, as well as powerful technological innovations. Manfred further differentiated globalization, globality and globalism. While globalization is a process, globality signifies a future social condition characterized by thick economic, political and cultural interconnections and global flows that make currently existing political borders and economic barriers irrelevant. On the other hand, globalism means globalization as an ideology reflecting shared ideas, norms, values accepted as truth. He adds that there are three kinds of globalism namely: • Market globalism advocates promise a consumerist, neoliberal, free-market world. This ideology is held by many powerful individuals, who claim it transmits democracy and benefits everyone. However, it also reinforces inequality, and can be politically motivated. • Justice globalism envisages a global civil society with fairer relationships and environmental safeguards. They disagree with market globalists who view neoliberalism as the only way. • Religious globalism strives for a global religious community with superiority over secular structures. Steger (2009) further defines globalization as the expansion and intensification of social relations and consciousness across world-time and world space. He explained that globalization has several dimensions: Economic: ‘The economic dimension of globalization’ explores how the way people have undertaken economic production has changed. The global economic order emerged after World War II, when the Bretton Woods Conference laid the foundations for the IMF, World Bank, and WTO. In the 1980s neoliberalism liberalized financial transactions. However, this unstable growth led to the Great Financial Crash, where banks traded toxic assets without regulation. Transnational corporations rival nation-states in economic power, and THE STRUCTURES OF GLOBALIZATION LESSON 2: THE GLOBAL ECONOMY The Global economy alludes to different financial exercises among various nations with either negative or beneficial outcomes. The idea of a world economy is identified with regular day to day existence dependent on the interconnected idea of the different countries around the world. Exchange interrelations are noteworthy pointers of the worldwide economy. Thus, the growth of globalization of the world's economies to a great extent is dependent on the advancement of science and technology. Notwithstanding the drawbacks, globalization is still changing the world. Socially, it has encouraged the trading of thoughts and societies, adding to a world view wherein individuals are progressively open and lenient of each other. OBJECTIVES: At the end of this lesson you are expected to: 1. Define economic globalization; 2. Reflect on the various theories and perspectives explaining the practice of international trade; 3. Collect information about a foreign product being sold in the Philippines. HELPFUL POINTS Economic Globalization The International Monetary Fund (IMF) regards “economic globalization’ as a historical process representing the result of human innovation and technological progress. It is characterized by the increasing integration of economies around the world through the movement of goods, services, and capital across borders. These changes are the products of people, organizations, institutions, and technologies. As with all other processes of globalization, there is a qualitative and subjective element to this definition. According to the United Nations (as cited by Shangquan, 2000), economic globalization refers to the increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services, flow of international capital and wide and rapid spread of technologies. It reflects the continuing expansion and mutual integration of market frontiers, and is an irreversible trend for the economic development in the whole world at the turn of the millennium. International Trade The conclusion of World War ll signaled the beginning of trade facilitation around the globe. Economies set rules and guidelines for international trade which led to the formation of General Agreement on Tariffs and Trade (GATT). These trade rules were developed through series of rounds or meetings of member ‘economies. International Trade (IT) is the process and system when goods, commodities, services cross national economy, and boundaries in exchange for money or goods of another country (Balaam and Veseth, 2008). Global trade has grown dramatically since the post-cold war era as a result of increasing demand of goods and services of countries. This global norm is a reflection of growing practice of internationalizing and globalizing local products and services. Trade Theories There are two types of trade theories explaining international trade. • Descriptive Theory. It deals with the natural order and movement of trade. it describes the pattern of trade under the idea of laissez faire, a French term which means "leave alone". It refers to the notion that individuals are the best economic agents to solve the problems through invisible hand rather than the government ‘policies. Descriptive theory addresses the questions of which product to trade, how much product to offer and produce, and which country to trade in the absence of government restrictions. • Prescriptive Theory. This prescribes whether government, an important economic institution, should interfere and restrict with the movement of goods and services. This theory views government to have participation in deciding which countries to alter the amount, composition and direction of goods. The pressing question describing descriptive theory is “Should the government control trade?” Three Perspectives on International Trade • Economic Liberals David Ricardo and Adam Smith were known critics of late-eighteenth century on the abuses of mercantilism in England. Their liberal ideas and contribution in understanding global trade are still relevant until today. For Ricardo, his influential work Law of Comparative Advantage explains that free trade efficiency is attainable if two countries can produce more goods and trade products separately. The advantage of this theory in international trade is deriving from the principle of specialization and division of labor (Nau, 2009). Countries have different resources and talents; they are better in performing in that economic activity than other economic activities • Mercantilism An economic theory emerged from about 1500-1800. This period was the emerging eras of nations-states and the formation of more central governments. This system flourished due to the following reasons: ▪ Higher export than import. ▪ Export less high valued product and import less high valued product ▪ The benefits of colonial powers. • Structuralists The earliest wave of mercantilism was described as classical imperialism. The drive of European countries to explore and colonize underdeveloped countries originated from the aggressive mercantilist behavior of European economies. This idea was extended to the practice of modern capitalist-imperialist approach by countries and economies that have the immense resource through the use of hard power over developing and less developed countries. Lesson 3: MARKET INTEGRATION Much of globalization is anchored on the role global economy plays in the different nations. We often think of economy as something that covers a wide variety of financial aspects like employment, Gross Domestic Product (GDP) or the stability of stock markets. However, we must understand that the economy is composed of people. It is the social institution that organizes all productions, consumptions and trade of goods in the society. World economies have been brought closer together by globalization. These days, many occurrences of foreign affairs are conducted to cement trading relations between and among nations. Thus, this chapter will show the contributions of the different financial and economic institutions in the growth of the global economy. OBJECTIVES: At the end of this lesson you are expected to: 1. Discuss the role of International Financial Institutions; 2. Relate the importance of International Financial Institutions to the creation of a global economy; 3. Write an essay on how International Financial Institutions influence global economic activity. HELPFUL POINTS International Financial Institutions An international financial institution (IFI) is a financial institution that has been established (or chartered) by more than one country, and hence are subjects of international law. Its owners or shareholders are generally national governments, although other international institutions and other organizations occasionally figure as shareholders. The Bretton Woods System The major economies in the world had suffered because of World War I, the Great Depression in the 1930, and World War II. Because of the fear of the recurrence of lack of cooperati0n among nation-states, political instability, and economic turmoil (especially after the Second World War), reduction of barriers to trade and free flow of money among nations became the focus to restructure the world economy and ensure global financial stability (Ritzer, 2015). These consist the background for the establishment of the Bretton Woods system. In general, the Bretton Woods system has five key elements. First element is the expression of currency in terms of gold or gold value to establish a par value (Boughton, 2007). Another element is that “the official monetary authority in each country (a central bank or its equivalent) would agree to exchange its own currency for those of other countries at the established exchange rates, plus or minus a one-percent margin" (Boughton, 2007, pp. 106-107). The third element of the Bretton Woods system is the establishment of an overseer for these exchange rates; thus, the International Monetary Fund (IMF) was founded. The General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO) According to Feet (2003), global trade and finance was greatly affected by the Bretton Woods system. One of the systems born out of Bretton Woods was the General Agreement on Tariffs and Trade (GATT) that was established in 1947 [Goldstein et al., 2007). GATT was a forum for the meeting of representatives from 23 member countries. It focused on trade goods through multinational trade agreements conducted in many rounds of negotiation. However, “it was out of the Uruguay Round (1986-1993) that an agreement was reached to create the World Trade Organization (WTO)” (Ritzer, 2015). The WTO headquarters is located in Geneva, Switzerland with 152 member states as of 2008 (Trachtman, 2007). Unlike GATT, WTO is an independent multilateral organization that became responsible for trade in services, non-tarriff-related barriers to trade, and other broader areas of trade liberalization, an example cited by Ritzer (2015) was that of the “differences between nations in relation to regulations on items as manufactured goods or food. A given nation can be taken to task for such regulations if they are deemed to be an unfair restraint on the trade in such items”. The International Monetary Fund (IMF) and the World Bank IMF and the World Bank were founded after the World War II. Their establishment was mainly because of peace advocacy after the war. These institutions aimed to help the economic stability of the world. Both of them are basically banks, but instead of being started by individuals like regular banks, they were started by countries. Most of the world’s countries were members of the two institutions. But, of course, the richest countries were those who handled most of the financing and ultimately, those who had the greatest influence. IMF and the World Bank were designed to complement each other. The IMF’s main goal was to help countries which were in trouble at that time and who could not obtain money by any means. Perhaps, their economy collapsed or their currency was threatened. IMF, in this case, served as a lender or a last resort. The Organization for Economic Cooperation and Development (OECD), the Organization of Petroleum Exporting Countries (OPEC), and the European Union (EU) The most encompassing club of the richest countries in the world is the Organization for Economic Cooperation and Development (OECD) with 35 member states as of 2016, with Latvia as its latest member. It is highly influential, despite the group having little formal power. This emanates from the member countries’ resources and economic power. In 1960, the Organization of Petroleum Exporting Countries (OPEC) was originally comprised of Saudi Arabia, lraq, Kuwait, Iran, and Venezuela. They are still part of the major exporters of oil in the world today. OPEC was formed because member countries wanted to increase the price of oil, which in the past had a relatively low price and had failed in keeping up with inflation. Today, the United Arab Emirates, Algeria, Libya, Qatar, Nigeria, and Indonesia are also included as members. The European Union (EU) is made up of 28 member states. Most members in the Eurozone adopted the euro as basic currency but some Western European nations like the Great Britain, Sweden, and Denmark did not. Critics argue that the euro increased the prices in Eurozones and resulted in depressed economic growth rates, like in Greece, Spain, and Portugal. The policies of the European Central Bank are considered to be a significant contributor in these situations. North American Free Trade Agreement (NAFTA) The North American Free Trade Agreement (NAFTA) is a trade pact between the United States, Mexico, and Canada created on January 1, 1994 when Mexico joined the two other nations. It was first created in 1989 with only Canada and the United States as trading partners. NAFTA helps in developing and expanding world trade by broadening international cooperation. It also aims to increase Cooperation for improving working conditions in North America by reducing barriers to trade as it expands the markets of the three countries. ACTIVITY Go for a virtual Tour! Go to the web and accomplish these tasks: a. Choose an international economic organization (Asian Development Bank, European Investment Bank, etc.) or an international company (Honda, McDonalds, Kimberly Clark, etc.); b. Research the origin and history of the institution you have chosen; c. Identify the major country-leaders of this institution, and d. Then write an essay on how International Financial Institutions influence global economic activity. Mention the Philippines’ role in the interconnected global economic activities. • First, globalization is seen to impose a forced choice upon nation-states. Either they conform to the neo-liberal ideas and free-market principles of deregulation, privatization, and free trade or run the risk of being left behind in terms of development. Of course, nation-states, in this contemporary age, are forced to submit themselves to the demands of globally accepted free-market principles. • Second is the establishment of economic and political integrations. One good example is the European Union (EU) and the North America Free Trade Agreement (NAFTA). EU has a single currency and monetary system, parliament with legislative powers, with common citizens’ rights to live, work, vote and run for office. The statehood of the members is not dissolved, what has changed is only how the nation-states function, in terms of economy and politics, as part of a whole. • The third effect of globalization is the establishment of international laws and principles. This is observable in the establishment of the UN that operates as a forum for nation-states to air their differences and try to resolve them. • The fourth effect is the rise of transnational activism (TNA). Such happens when activist groups of nation-states connect with their counterparts in other states. For example, an advocacy-based organization in the Philippines may connect itself with and get support from other human rights groups in Europe to pressure the Philippine government to realign its stance and actions in upholding human rights. Institutions that Govern International Relations There are several international organizations that governments of countries around the world and individuals participate in. In order to facilitate connections among nation-states, intergovernmental organizations (IGOs) were established. Their aim is to foster strong economic, political, cultural, educational, and technical intergovernmental relationships. There are also nongovernmental organizations promoting social and economic growth. Let us look at them one by one. • Peace Treaties and Military Alliances: The UN and NATO Global politics entails relationship of countries and different governments and non- governmental organizations, The United Nations (UN) is one of the leading political organizations in the world where nation-states meet and deliberate. However, it remains as an independent actor in global politics. Generally, it functions in four areas: military issues, economic issues, environmental issues, and human protection. It is made up of close to 200 countries from around the world, 193 member states to be exact. (United Nations, 2011) • Global Economic Associations: The WTO and NAFTA The next group is an economic association-WTO which was created with the goal of increasing free trade. Countries, therefore, can buy and sell goods from one another without placing takes on imports or tariffs. In addition, tariffs are used to protect businesses and companies inside their country. Another famous economic organization is NAFTA. This is an economic treaty between the United States, Canada, and Mexico in which the three countries trade freely without taxing each other. NAFTA is not without critics either. Some American autoworkers protested against NAFTA as several car companies moved their factories to Mexico in search for cheaper labor. NAFTA, like WTO, represents the challenge in America of keeping manufacturing factories. • Association of Southeast Asian Nations (ASEAN) Established in 1967, now has 10 member states. Its aims are to accelerate economic growth, social progress and cultural development in the region; promote regional progression; advance peace and sustainability; promote active and beneficial cooperation and mutual assistance on matters of common interest in the economic, technical, cultural, administrative and scientific fields. • European Union (EU) An IGO with 28- state members was established in 1993. Its goals are to promote peace, its values, and well-being of its citizens; offer freedom, security and justice without internal borders; uphold sustainable development; combat social exclusion and discrimination; promote scientific and technological progress; enhance economic; social and territorial cohesion among member countries; respect cultural and linguistic diversity; and establish an economic and monetary union. • Non-Governmental Organizations (NGOs) Another example of an international organization that was developed out of war is the Red Cross (Red Crescent in Muslim countries). NGOs are not tied to any country. This allows them to operate freely throughout the world. They provide emergency relief such as food, water, and medical supplies for those whose homes or towns have been destroyed by disaster or war. They also monitor the treatment of prisoner of wars and go to conflicts to make sure that no war crimes are taking place. In fact, the Red Cross began as an organization to help those who were wounded during wars. ACTIVITY Write a position paper on the Philippines’ territorial and economic relations with China. After conducting extensive research on the topic, the position paper should be easy to write. Remember: A good position paper must include: • A brief introduction to the country and its history concerning the topic and committees; • How the topic affects the country; • The country's policies with respect to the issue and the country's justification for these policies; • Quotes from the country's leaders about the issue; • Statistics to back up the country's position on the issue; • Actions taken by the government with regard to the issue; • Conventions and resolutions that the country has signed or ratified; • UN actions that the country supported or opposed; and • What the country believes should be done to address the issue. REFERENCES Aldama, P. (2018). The Contemporary World. Rex Book Store, Inc. Brazalote, T., Leonardo, R. (2018) The Contemporary World. C & E Publishing, Inc., ©2019 Claudio, L., Abinales, P. (2018), The Contemporary World. C & E Publishing, Inc. Goldstein, J.L., Rivers United Nations. (2011). Basic facts about the United Nations. New York, USA: United Nations Department of Public Information. Retrieved from http://munkiconference.weebly.com/uploads/1/5/4/2/15422056/basic-facts-about-the- un.pdf on May 13, 2020 POST READING ACTIVITY Create a creative and colorful poster that depicts the participation of the Philippines in the global community. Then write at least five sentences to explain your poster. You may use a long-sized bond paper, a recycled paper or calendar for this activity. REFERENCES Brazalote, T., Leonardo, R. (2018) The Contemporary World Outcome Based Module. C & E Publishing, Inc., 2019 Weiss, T., Thakur, R. (2014) The United Nations Meets the Twenty-First Century: Confronting the Challenges of Global Governance. The SAGE Handbook of Globalization UN Logo: www.wikimedia.com Lesson 6: THE GLOBAL DIVIDES: THE NORTH AND SOUTH 1.Overview of the lesson The world has been divided in different ways. Because of historical factors, countries have been categorized as first world, second world and third world. In recent times, nation states have been identified either as the Global North or Global South. Most often they are defined based on their wealth and development. 2. Learning Outcomes Knowledge • Examine the term Global North and Global South • Identify examples of countries which are categorized as Global North and Global South Skills • Distinguish the characteristics of the Global North and Global South Attitude • React to the world order as divided into South and North 3. Pre-Assessment List 10 countries which belong to the Global North and Global South. 4. Activities or Tasks Make a Collage showing the differences between rich and poor countries. Submit your output in a pdf file. 5. Focus Points/Highlights Prior to the division of world as Global North and Global South, it was divided into three world country (Gorman, 2003): • The “First World” are countries which are aligned with the United States adhering to capitalism as their economic and political system. • The “Second World” are countries aligned with the now-defunct Soviet Union adhering to the principles of communism • The “Third World” of non-aligned (and generally poor) nations. People use the term “third world” to refer to poor nations in general, but many people are not certain of its origin. With the end of the cold war, the term second world was not used anymore. Cold War is the term used to describe the rivalry between the United States and the Soviet Union and their respective allies after World War II. The Cold war centered on major political and economic propaganda and not necessarily on recourse to weapons. It was George Owell, an English writer who first used this term in 1945 to refer to what he predicted would be a nuclear stalemate between “two or three monstrous super-states, each possessed of a weapon by which millions of people can be wiped out in a few seconds.” (Britannica Encyclopedia) The Global North are developed European, North American, Australian societies. It also includes South Africa and Israel (Odeh, 2010). Among the characteristics of countries belonging to the global north are: • established democracy • wealth • technological advancement • political stability • aging population • zero population growth • dominance of world trade and politics On the contrary, the global South are societies with agrarian economies like Africa, India, China, Latin America and others which do not have stable economy and politics compared to the global North. These countries experience turmoil, war, conflict, poverty, anarchy and tyranny (Odeh, 2010). The Global north is most often associated with first world countries where powerful countries like the Group of Eight (G8) –Germany, Canada, France, Italy, United Kingdom, Russia, Japan and the United States of America is located. On the other hand, third world countries are now termed as the Global South. The Brandt line as shown below was proposed by Willy Brandt in 1980. It is an imaginary line dividing the world into two regions based on their GDP per capita. Odeh, L.E. (2010). A Comparative Analysis of Global North and Global South Economies. https://www.academia.edu Royal Geographical Society. A 60 Second Guide to the Global North/South Divide. https://www.rgs.org/schools/teaching-resources/60-second-guide-to- global-north-south-divide Lesson 7: UNDERSTANDING GLOBAL STRATIFICATION 1. Overview of the lesson There are several perspectives that explains why global inequality and global stratification exists. Three theories-- are (1) Modernization Theory, (2) Dependency Theory and (3) World System Theory — offer different explanations why nations are either poor or rich. Each theory has different arguments in making us understand the unequal distribution of world’s resources. 2. Learning Outcomes Knowledge • Differentiate the meaning of global stratification and global inequality. • Analyze the main arguments of the theories of global stratification. Skill • Apply the theories of global stratification to the Philippine situation Attitude • Take a stand on the causes of social inequality in the Philippines 3. Pre-Assessment Complete the following statement: 1. The United States is rich because___________________________ 2. Japan is a developed country because________________________ 3. The Philippines is poor because_____________________________ 4. Hunger exists in Somalia, Africa because______________________ 5. Australia is a wealthy country because________________________ 6. Singapore is more developed than Thailand because_____________ 7. Many Filipinos wants to migrate in Canada because______________ 8. Luxembourg is the richest country in Europe because______________ 9. Bangladesh is challenged by poverty because___________________ 10. Haiti has a very low GDP because ____________________________ Include in the pre-assessment the answers of students to their previous homework on Global Divides 4. Activities or Tasks DISTRIBUTION OF THE EARTH’S WEALTH React to the figure below: 1. Interpret the pie graph by providing at 5 statements about it. 2. How do you feel about distribution of the earth’s wealth? 5. Focus Points/Highlights Countries around the world are hierarchically arranged based on their resources, status and power. These arrangement of nations on a global scale is called Global Stratification. Conversely, global inequality is the unequal distribution of resources, status and power. It is the result of stratification. There are several viewpoints why global stratification exists. Among the theories explaining global stratification are (1) Modernization Theory, (2) Dependency Theory and (3) World System Theory. Modernization theory The development of wealthy nations is attributed to the “correct” beliefs, values, and practices of its people. These cultural traits include a willingness to work hard, to abandon tradition in favor of new ways of thinking and doing things, and to adopt a future orientation rather than one focused on maintaining present conditions (Barkens, 2011). Such thought has been introduced by McClelland (1961) who believed that the value attached to and the motivation for achievement are important in understanding why societies have achieved development. For him child rearing practices and early socialization of individuals have impact on the cultural traits of a society. Barkens (2011) further explained that the theory has similarities with the culture of poverty theory which states that countries have remained poor because they have failed to develop attitudes, values beliefs which are essential to economic success since the beginning of industrialization in the 19th century to present times. Dependency Theory Dependency theory explains underdevelopment of poor nations in relation to their dependency on rich countries. Prebish (as cited by Ferrero, 2008) is an Argentine economist who observed that economic growth in the developed countries did not result in growth in the poorer country but led to serious economic problems of poor nations. The conditions of poor nations are attributed to the colonization of developed and rich countries which exploited the resources of these countries and used them for cheap labor. These “colonizers” after exploiting the resources will sell their products to their “colonized” countries. Further, rich and powerful countries compel their colonized nations to borrow enormous debt from them which are still being paid up to present times. The exploitation of wealthy nations hindered poor countries to develop on their own. World System Theory From the point of view of the world system theory, countries are divided into either core, semi-peripheral, and peripheral countries based on their position and relationship in Lesson 8: ASIAN REGIONALISM This lesson looks at the mechanism of unique integration of the world’s biggest land mass and population – the Asian region and how nation-states approach contemporary challenges. Learning Outcomes At the end of the lesson, you should be able to: 1. differentiate between regionalization and globalization: 2. identify the factors that lead to a greater integration of Asian regions; and 3. analyze how different Asian states confront the challenges of globalization, regionalization, and COVID-19. Learning Experiences and Self-Assessment Activities Preliminaries Trigger question: What problems do developing countries face today, and how can individuals contribute to solutions rather than awaiting the generosity of the state or other actors? Today we shall look closely at the unique integration mechanism of the Asian region and how nation-states therein approach the contemporary challenges and facets of world homogenization, division, and pandemic. The lesson will conclude on the level of reflective students’ personalization. Critical Reading Activity Direction: Find the key ideas and details in the following excerpts: Governments, associations, societies, and groups form regional organizations and/or networks as a way of coping with the challenges of globalization. Globalization has made people aware of the world in general, but it has also made Filipinos more cognizant of specific areas such as Southeast Asia. How, for instance, did the Philippines come to identify itself with the Southeast Asian region? Why is it part of a regional grouping known as the Association of Southeast Asian Nations (ASEAN)? While regionalism is often seen as a political and economic phenomenon, the term actually encompasses a broader area. It can be examined in relation to identities, ethics, religion, ecological sustainability, and health. Regionalism is also a process, and must be treated as an “emergent, socially constituted phenomenon.” It means that regions are not natural or given; rather, they are constructed and defined by policymakers, economic actors, and even social movements. Edward D. Mansfield and Helen V. Milner state that economic and political definitions of regions vary, but there are certain basic features that everyone can agree on. First, regions are “a group of countries located in the same geographically specified area” or are “an amalgamation of two regions [or] a combination of more than two regions” organized to regulate and “oversee flows and policy choices.” Second, the words regionalization and regionalism should not be interchanged, as the former refers to the “regional concentration of economic flows” while the latter is “a political process characterized by economic policy cooperation and coordination among countries.” Countries form regional associations for several reasons. One is for military defense. Countries also form regional organizations to pool their resources, get better returns for their exports, as well expand their leverage against trading partners. Moreover, there are countries that form regional blocks to protect their independence from the pressures of superpower politics. Finally, economic crisis compels countries to come together. Official regional associations now cover vast swaths of the world. The population of the countries that joined the Asia Pacific Economic Council (APEC) alone comprised 37 percent of the world’s population in 2007. These countries are also part of the “smaller” organizations that include the Association of Southeast Asian Nations, the Shanghai Cooperation Organization, the North American Free Trade Agreement, the Caribbean and Pacific Group of States, and the Union of South American Nations. Even “isolationist” North Korea is part of the Regional Forum, which discusses security issues in the region. (Lisandro E. Claudio and Patricio N. Abinales) Globalization and regionalization are the same for they refer to integration. Their difference lies on the scope. Globalization is worldwide while regionalization focuses on a specific geographical region. As a response to world homogenization and division, regionalism that comes in various forms of regional alternatives to globalization spawned within and among regions in Asia. Asian integration did not happen based on one historical event for there were different factors that led to this alliance. Asian regionalism is a new concept among the continental communities. New to cooperation and collaboration goals, it has the 50-year-old ASEAN group and the failed East Asia Economic Group (EAEG). The ASEAN community is comprised of three pillars – political security community, economic community, and socio-cultural community. ASEAN has also partnered with three EAST Asian countries – China, Japan, and South Korea. It is called the ASEAN + 3. Its goal is to address the 1997 Asian financial crisis and help each other cope with the crisis. In this context, ASEAN has concretized regionalism in the Asian region. There are some aspects that led to a greater Asian integration. First, integration has been market-driven. Within Asia, there are a variety of systems, institutions, procedures, social relations, and infrastructures that are put in place for countries to engage in exchange. Second, formal institutions such as the Asian Development Bank (ADB) were established. Conceived in the 1960a, ADB promotes social and economic development in Asia. Third, economic grants and overseas development assistance are made available by better Asian economies. For example, the Japanese International Cooperation Agency (JICA) aims to work on human security and quality growth. Fourth, production networks have expanded. Economies are mainly on comparative advantage through the regional division of labor. Fifth, cooperation among the ASEAN and East Asian countries ensued the ASEAN + 3 Financial Ministers’ Process that established two economic structures – the Chiang Mai Initiative and the Asian Bond Markets Initiative. The process aims to strengthen policy dialogue, coordination, and collaboration on common financial, monetary, and fiscal issues. (Tumoroh C. Brazalote, Ryan M. Leonardo, and Bernardino C. Ofalia) Further Reading More detailed explanations on the above points are found in: *Lesson 5 A World of Regions page 50 of The Contemporary World. C & E Publishing, Inc. Quezon City Philippines. Lisandro E. Claudio and Patricio N. Abinales. 2018. *Module 3 A World of Regions Section 2 page 79 Asian Regionalism The Contemporary World Outcome-Based Module. Tumoroh C. Brazalote, Ryan M. Leonardo, and Bernardino C. Ofalia. 2019. Post Reading Engaged Discussion: • Differentiate regionalization from globalization. • What are the factors that lead to a greater integration of Asian regions? Give examples for each. • How do Asian states confront the contemporary challenges of globalization, regionalization, and pandemic? Essay Writing: • Identify the strengths of the Philippines that may contribute to a sustainable ASEAN integration in meeting the COVID-19 challenge. Assignment: Metacognitive Reading and Report on COVID-19 (Optional): Read the article online and complete the personal statements that follow. Sustainability of ASEAN integration, competition policy, and the challenges of COVID- 19 Hassan Qaqaya, Journal of Antitrust Enforcement, Volume 8, Issue 2, July 2020, Pages 305–308, https://doi.org/10.1093/jaenfo/jnaa019 Published: 11 June 2020 1. The (3) three things that I significantly learned from the assigned reading are …
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