THE CONTEMPORARY WORLD

GLOBALIZATION

usually refers to the integration of the national markets to a wider global market signified by the increased free trade.

GLOBALIZATION (SCHOLARLY DESCRIPTION)

the expansion and intensification of social relations and consciousness across world-time and across world-space.

EXPANSION

refers to both the creation of new social networks and the multiplication of existing connections that cut across traditional political, economic, cultural and geographic boundaries.

INTENSIFICATION

refers to the expansion, stretching and acceleration of social media and international groups of NGOs

GLOBALIZATION by STEGER (relates the way people perceive time and space)

globalization processes do not occur merely at an objective, material level but they also involve the subjective plane of human consciousness.

Globalism

a widespread belief among powerful people that the global integration of economic markets is beneficial for everyone.

Scapes

globalization occur on multiple and intersecting dimensions of integration.

5 Scapes

- ethnoscape

- mediascape

- technoscape

- financescape

- ideoscape

Ethnoscape

refers to the global movement of people

Mediascape

flow of culture

Technoscape

refers to the circulation of mechanical goods and software.

Financescape

denotes the global circulation of money

Ideoscape

realm where political ideas move around.

International Monetary Fund (IMF) on Economic Globalization

a historical process representing the result of human innovation and technological progress.

UNCTAD

United Nations Conference on Trade and Development

Silk Road

- oldest known international trade route.

- spanned from middle east to europe

- most profitable product of this network was silk

- used regularly from 130 BCE when the Chinese Han dynasty opened trade to the west until 1453

- was international, not global because it had no ocean route that could reach the American continent

Galleon Trade (1571)

- connected Manila and Acapulco, Mexico

- the first time where Americas were directly connected to asian trading routes.

- economic globalization began on the country's shoes.

- part of the age of mercantilism

Mercantilism

a system of global trade with multiple restrictions

- from 16th to 18th cent, countries from europe competed with each other to sell more goods to boost their monetary reserves.

According to historians Dennis O. Flynn and Arturo Giraldez

the age of globalization began when all important populated continents began to exchange products.....

The Gold Standard

- a more open trade following the lead of UK, US and other European nations

- adopted at an international monetary conference in paris

- its goal was to create a common system that would allow for more efficient trade and prevent the isolation of the mercantilist era

- currency prices are based on the value of gold

- WW1 countries depleted their gold reserves to fund their armies, many abandoned the gold standard.

Great Depression

- worst and longest recession ever experienced by the Western World.

- was caused by the gold standard since it limited the amount of circulating money and reduced demand and consumption.

Barry Eichengreen

- Economic historian

- the recovery of the US began when the US government was able to free up money to spend on reviving the economy.

Fiat Currencies

- currencies that are not backed by precious metals and whose value is determined by their cost relative to other currencies.

- this system allows gov't to freely and actively manage their economies by increasing/decreasing the amount of money in circulation

The Bretton Woods System

- inaugurated in 1944 during the UN Monetary and Financial Conference

- influenced by British Economist John Maynard Keynes (economic crisis occur when a country does not have enough money)

Global Keynesianism

when economies slow down, gov't have to reinvigorate markets with infusion of capital

2 financial institutions in the Bretton Woods System

- International Bank for Reconstruction and Development (IBRD or World Bank)

- International Monetary Fund (IMF)

IBRD (World Bank)

responsible for funding postwar reconstruction projects

IMF (International Monetary Fund)

global lender of last resort to prevent individual countries from spiraling into credit crisis

GATT (General Agreement on Tariffs and Trade)

- 1947

- to reduce tariffs and other hindrances to free trade

1940-1970

- high point of global keynesianism

- gov't poured money in their economies

Early 1970

- prices of oil rose sharply as a result of OAPEC oil embargo

OAPEC

- Organization of Arab Petroleum Exporting Countries

- Arab member countries

1973-1974

stock market crashes as a result of stagflation

Stagnation

a decline in economic growth and employment

Inflation

increase in price

Friedrich Hayek and Milton Friedman

argued that gov't intervention in the economies distort the proper functioning of the market

Neoliberalism

- codified strategy of the US Treasury Dep't, World Bank, IMF, and WTO

- a new org founded in 1995 to continue the tariffs reduction under GATT the policies is called Washington Consensus

- its advocates are Pres. Ronal Reagan and British Prime Minister Margaret Thatcher

Washington Consensus

- dominated global policies from 1980's until early 2000

- minimal gov't spending to reduce gov't debt

- privatization of gov't controlled services

- pressured gov't to reduce tariffs and open up their economies

Shock Therapy

- defect of washington consensus

- gov't are not households

- privatization of all gov't industries does not free industries from corrupt bureaucrats and private individual but only individuals/group accumulated with wealth under the communist order had the money to purchase these industries.

Race to the bottom

refers to countries' lowering their labor standards, including the protection of workers' interest, to lure in foreign investors seeking high profit margins at the lowest cost possible.

International Economic Integration

a central tenet of globalization

MBS (mortgage backed securities)

combination of multiple mortgages that they assumed would pay a steady rate

TNCs (Transnational corporations)

concerned more with profits than with assisting the social programs of the gov't hosting them.

1. there are countries or states that are independent and govern themselves.

2. these country interacts with each other through diplomacy

3. there are international organizations that facilitate these interactions

4. international organizations also take on lives of their own

4 key attributes of world politics

nation-state

- country

- a relatively modern phenomenon in human history.

Christendom

the entire christian world

state

refers to a country and its government

1. it exercise authority over a specific population

2. governs a specific territory

3. has a structure of government that crafts various rules that people follow.

4. the state has sovereignty over its territory.

4 attributes of state

government

crafts various rules that people follow

Sovereignty

refers to internal and external authority.

Internal Sovereignty

no individuals or group can operate in a given national territory by ignoring the state.

External Sovereignty

a state's policies and procedures are independent of the interventions of other states.

57 billion usd

the amount of foreign direct investment flowing across the world in 1982

1.76 trillion usd

the amount of foreign direct investment flowing across the world in 2015

supercomputers

can execute million of stock purchases and sales between different cities in a matter of seconds through a process called high-frequency trading.

internationalization

- deepening of interactions between states.

- does not equal globalization but it is a major part of globalization.

not all states are nations and not all nations are states

2 non-interchangeable terms of nation-state

nation according to benedict anderson

an imagined community

Treaty of Westphalia

a set of agreement signed in 1648 to end the thirty years' war between the major continental powers of europe.

The Westphalian System

provided stability for the nations of Europe.

Liberty, Quality, Fraternity

Principles of the french revolution

Napoleon Bonaparte

believed in spreading the principles of the french revolution to the rest of europe and thus challenged the power of kings, nobility and religion in europe.

napoleonic war

from 1803-1815 with Napoleon and his army marching all over much of europe.

Napoleonic Code

forbade birth privileges, encouraged freedom and religion, and promoted meritocracy in government service.

Battle of Waterloo (1815)

Anglo and Prussian armies finally defeated Napoleon

Concert of Europe

alliance of great powers (uk, austria, russia, prussia) that sought to restore the world of monarchical, hereditary, and religious privileges of the time before the French Revolution and napoleonic War.

Concert of Europe

it was an alliance that sought to restore the sovereignty of states.

Klemens von Metternich

an Austrian diplomat who was the metternich system's main architect

Metternich System

under this system, the concert's power and authority lasted from 1815 to 1914, at the dawn of world war 1

Internationalism

desire for greater cooperation and unity among states and people.

liberal internationalism, socialist internationalism

principles of internationalism

Immanuel Kant

first major thinker of liberal internationalism

Immanuel Kant

- likened states in a global system to people living in a given territory.

- imagined a form of global government

International Law

would govern the inter-state relations.

Jeremy Bentham

advocated the creation of international law

Giuseppe Mazzini

the first thinker to reconcile nationalism with liberal internationalism.

Giuseppe Mazzini

was both an advocate of the unification of the various Italian-speaking mini-states and a major critic of the Metternich system.

Republican Government

without kings, queens, and hereditary succession.

Giuseppe Mazzini

he believed in a Republican Government and proposed a system of free nations that cooperated with each other to create an international system.

Giuseppe Mazzini

was a nationalist internationalist, who believes that free, unified nation-states should be the basis of global cooperation.

Woodrow Wilson

- Mazzini influenced his thinking

- he became one of the 20th century's most prominent internationalist.

- was awarded the nobel peace price in 1919

Principle of Self Determination

the belief that the world's nation had a right to a free and sovereign government.

ultra-nationalist

Axis Powers - Hitler's Germany, Mussolini's Italy, Hirohito's Japan

Allied Powers

US, UK, france, holland, and belgium

League of Nations

a venue for conciliation and arbitration to prevent another war.

Liberal Internationalism

Kant-it emphasized the need to form common international principles.

Mazzini- it enshrined the principles of cooperation and respect among nation-states.

Wilson- called for democracy and self-determination.

Karl Marx

Mazzini's biggest critic who was also an internationalist but did not believed in nationalism.

Capitalist class

refers to the owners of companies, factories and other means of production.

Ploretariat Class

those who did not own the means of production but instead work for the capitalist.

Karl Marx and his co-author Friedrich Engels

believed that in a socialist revolution seeking to overthrow the state and alter the economy, the ploretariat had no nation.

Socialist International

was a union of European socialist and labor parties established in paris in 1889.

Union of Soviet Socialist Republics

- more radical version of SI

Russian Revolution of 1917

Czar nicholas II was overthrown and replaced by a revolutionary government led by the Bolshevik Party and its leader Vladimir Lenin.

Communist International (Comintern) in 1919

served as the central body for directing Communist parties all over the world.

Joseph Stalin

- lenin's successor

- dissolved the comintern in 1943

- re-established the comintern as the Communist Information Bureau (Cominform)

1951

SI managed to re-established itself.

Vladimir Lenin

Leader of the Bolshevik