Understanding Globalization: An Interdisciplinary Approach - Prof. Dagohoy, Study notes of Contemporary History

Download Understanding Globalization: An Interdisciplinary Approach - Prof. Dagohoy and more Study notes Contemporary History in PDF only on Docsity! Introduction and Defining Globalization Interdisciplinary approach Avoid parochialism A limited or narrow outlook, especially focused on a local area  Filipinos increasingly interacting with the world -OFW 4,018 Filipinos per day in 2009, 6,092 in 2015 -Internet, cheaper travel, presence of MNCs Globalization: Inherently Interdisciplinary -combination of different perspective of different discipline “holistically”  See contemporary world through a broad lens  Allows us to examine various globalizing processes (cultural, social, economic processes)  Forces us to ask questions re. global citizenship (Global responsibilities as global citizens)  As opposed to popular/activist definition: Not “neoliberal globalization”/ “market globalism” What is Neoliberal Globalization? Neoliberal policies desire to create a framework for the economy that makes it possible to raise profits by minimizing costs of investment.  We need to transcend our disciplinary boundaries… Otherwise, we won’t talk (step out in our own boundaries) For a political scientist Political scientist: “Challenge to the nation state.” -Strength of regional blocks -Emergence of global political norms (need to comply with global standards) -Emergence of corporations -VISA>Zimbabwe – Walmart –Yahoo>Magnolia -Nike>Paraguay -Pepsi>Oman –Mcdonald’s >Latria For the economist… Increased free trade Free Market Capitalism - “Laissez faire: leave alone”- economic system that is opposed to any government intervention to business affairs. -“Natural order”- self-regulating Against: minimum wages, duties, trade restrictions and corporate taxes “export oriented, import dependent (plan for the Phil.)” Food insecurity (not able to feed its own country Free Trade- is a policy followed by some international market in which countries government do not restrict imports from or exports to other countries Global Economy Organization -World Bank -World trade organization –International Monetary Fund -World Economic Fund Regional Trade Blocs -Europian Union (a single market with a single currency) -European Free Trade Area -North America Free Trade Agreement (USA, Canada, Mexico) -Association of East Asian Nation For the scholar of culture and communication - “Global village”- presence of global community where distinct individual can gather together -Communications technology as “shrinking” our world -“Cultural imperialism”- believes that culture is dominant and standard culture “They are all correct” Working definition of globalization: Steger: “Globalization refers to the expansion and intensification of social relations and consciousness across world-time and worldspace” Attributes of Globalization 1. Various forms of connectivity 2. Expansion and stretching of social relations 3. Intensification and acceleration of social exchanges and activities 4. Occurs subjectively GROUP 1 The Globalization of Economic Relations Economic Globalization--the result of human innovation and technological progress. -movement of people (labor) and knowledge (technology). Four Interconnected Dimensions  - Goods and services  - financial and capital markets  - technology and communication  - Production Internationalization- - Extension of Economic Activities Economic Globalization- Integration between internationally dispersed activities. Economic Terms: Globalization  - Globalization is nothing but a process making the world economy an “organic system”  Globalization transforms the national economy into a global one.  Globalization is an effective manager of the national economy. 17th and 18th Century- - Monopolized Trade  First Multnational Corporations (1600)  The British and the Dutch East India Companies (1602) Convergence vs. Divergence- Globalization can indeed reduce poverty but it does not definitely benefit all nations. International Monetary System- regulate currency  -refers to the rules, customs, instruments, facilities, and organizations for effecting international payments.  -to facilitate cross-border transactions, especially trade and investments.  -reflects economic power and interests. UNILATERAL TRADE ORDER  • Mercantilist era was best, characterized, therefore, as a zero-sum game on the global level.  Mercantilism  - the economic theory that trade generates wealth and is stimulated by the accumulation of profitable balances. (should have higher export)  • Surge of international trade arrive only with European's industrial revolution  • Consequent repeal of British Corn Law in 1846  • Free trade agreement  Most Favored Principle “equal trading among all trading partners”  Protectionism  - Policy of protecting domestic industries against foreign competition.  • World War I was a dramatic blow of free trade.  • US Reciprocal Trade Agreements Act 1934 eventually put a stop to any further decline in international trade. GROUP 2 Why Can’t People Feed Themselves? DIVISION OF THE WORLD • The “Minority” nations -“taken off” through their agriculture and industrial revolution. • The “Majority” nations -remained primitive, traditional and undeveloped state. COLONIALISM • Destroyed the cultural patterns of production and exchange in “underdeveloped” countries. “UNDERDEVELOPED” • Instead of being an adjective, for Frances it becomes verb. (to “underdevelop”) • “Hunger crisis” could not be described in static and descriptive terms. Hunger and underdevelopment must always be thought as a process WHY HUNGER?  Degree of malnutrition  The levels of agricultural production  Country’s ecological endowment THE COLONIAL MIND- The colonizer viewed agriculture in the subjugated lands as primitive and backwards - A.J. Voelker- Agriculture is seen as for extracting of wealth. - John Stuart Mill- reasoned that colonies should not be thought as civilizations or countries at all but as “agricultural establishments”. Strategies in order for the people to plant cash crops  Use physical or economic force  Direct take-over of the land FORCED PEASANT PRODUCTION- as Walter Rodney recounts in “How Europe Underdeveloped Africa”, cash crops were often grown literally under threat of guns and whips Taxation was the preferred colonial techniques to force Africans to grow cash crops. Cash Crops – crop produced for its commercial value rather than for use by the grower. PLANTATIONS A second approach was direct takeover of the land either by the colonizing government or by private foreign interest Crown land- land owned by the British or royal family Uncultivated land- waste land SUPPRESSING PEASANT FARMING Peasants- It refers to the food producing sector or in short, farmers or labourers COLONIAL ADMINISTRATIONS THINKED VARIETY OF TACTICS  Undercutting self-provisioning agriculture  Making peasant the peasant be dependent on plantation wages WHY CAN’T PEOPLE FEED THEMSELVES?  Because of the changes of land  Impending history of colonialism GROUP 3 THE MODERN-WORLD SYSTEMS AS A CAPITALIST WORLD ECONOMY Production- act of making output for consumption Surplus value- sales revenue minus loss of material Polarization- division of two contrasting word WORLD ECONOMY- (Braudel's economie-monde) Is a large geographic zone within which there is a division of labor and hence significant internal exchange of basic or essential goods as well as flows of capital and labor CAPITALISM - endless accumulation of capital, it means that people and firms are accumulating capital in order to accumulate still more capital, a process that is continual and endless. CAPITALIST SYSTEM – 2 economic that has need to progress - Economic producers - The holder of political power “World economy plus capitalism = capitalist world-economy” MARKET- both a concrete local structure in which individuals or firms sell and buy goods, and a virtual institution across space where the same kind of exchange occurs. Capitalism cannot function without markets, and it is also true that capitalists regularly say that they favor free markets. Seller to monopoly = creates relatively wide margin between the costs of production and the sales price = higher rate profit QUASI-MONOPOLIES- self-liquidating. But they last long enough (say thirty years) to ensure considerable accumulation of capital by those who control the quasi-monopolies FIRMS- main actors in the market Axial division of labor of a capitalist world-economy Core-like products- the degree of profitability of the production processes. - controlled by quasi-monopolies. (onti nagpoproduce) Peripheral products- competitive products are in a weak position and quasi-monopolized products are in a strong position. (madalas nag eexport) Core-like products plus peripheral products= semi peripheral states Semi peripheral states-share characteristics of both core and peripheral countries (e.g. South Korea, Brazil and India) Kondratieff Cycle- Also known as long wave cycle More or less fifty to sixty years in length 2 phases: A phase (expansion), B phase (stagnation) Secular Trend- market activities which occur the long term -can be thought as a curve whose x-axis records time and y-axis measures a phenomenon 5 Kinds of Income in the Modern World-System 1. Wage Income- Payment (usually in money form) by persons outside the household for a work of a member of the household 2. Subsistence Activity- Producing goods for the purpose of providing goods for the family’s use and needs -largest part of household income 3. Petty Commodity- -product produced with in the confines of the household but sold for cash on a wider market. - Continues to widespread in the poorer zones of the world economy 4. Rent- can be drawn from some major capital investment, from locational advantage or capital ownership 5. Transfer Payments- income that comes to an individual by virtue of a defined obligation of someone else to provide the income