Introduction to Globalization

Technological progress, particularly in mobile phones, airplanes, telephones, and the emergence of the internet has paved
the way for efficient transport and communication networks. These advancements have revolutionized the speed and ease
with people and countries exchange information and goods. For instance, mobile phones allow people to communicate
instantly across the globe, while airplanes facilitate swift travel between distant locations. Similarly, telephones connect
individuals and businesses over long distances, streamlining both personal and corporate communication. Moreover, the
rise of the internet has emerged as a global platform for communication, e-commerce, and the exchange of ideas on an
unprecedented scale.

Collectively, these technological innovations have fueled the process of globalization by creating interconnected network
that transcend geographical boundaries, enabling faster and smooth interactions among individuals, businesses, and
nations.

DEFINITIONS OF GLOBALIZATION
 Globalization is the increasing interaction of people, states, or countries, through the growth of the international flow
of money, ideas, and culture. Thus, globalization is primarily focused on economic process of integration that has
social and cultural aspects.
 It is the interconnected of people and business across the world that eventually led to global, cultural, political,
economic integration.
 Globalization comes from the word “globe” and means that the world is coming altogether across countries and
nations. It was in late 1970’s when the term globalization was coined.
 Globalization is a global movement towards integration of economy, finance, commerce, and communications.
 Globalization means opening local and nationalistic perspectives to a broader view of an interconnected and
interdependent world with free transfers of capital, goods, and services across national borders.
 It is the ability to move and communicate easily with others all over the world in order to conduct business
internationally.
 It is a complex term that can be used to define a process, marketing strategy, policy, or even an ideology.
 It is the free movement of goods, services, and people across the world in a seamless and integrated manner.
 It is the liberalization of countries of their impact protocols and welcome foreign investment into sectors that are
mainstays of the economy.
 It refers to countries acting like magnets attracting global capital by opening up their economies to multinational
corporations.
 It is a mega phenomenon that shapes the trends of today, its influence in the economic sphere is the most viable.

GLOBALIZATION AS DEFINED BY SCHOLARS

 “Globalization as process by which the people of the world are incorporated into a single world society.” – Martin
Albrow and Elizabeth King
 “Globalization as 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.” – Anthony Giddens (The
Consequence of Modernity)
 “Globalization as the compression of the world and the intensification of the consciousness of the world as a
whole.” – Prof. Roland Robeertson (Sociology), 1992, University of Aberdeen

CHARACTERISTICS OF GLOBALIZATION
 There is social mobility of movement of people regardless of reasons
 There is an intensification of interactions
 It’s an active process
 Borderless interactions
 Spread of ideas, knowledge, technology, culture, religion, etc.
INDICATORS OF GLOBALIZATION
 Interdependence of countries in different social aspects
 Advancement of science, technology, etc.
 Environmental issues across borders

THREE MAIN FACES OR ASPECTS OF GLOBALIZATION

1. ECONOMIC GLOBALIZATION: There is an interconnectedness of economies and trade of products and other
resources.
2. CULTURAL GLOBALIZATION: There is a transmission and sharing of values, ideas, culture and information
through media, technology, tourism, language, religion, cuisines, and education.
3. POLITICAL GLOBALIZATION: There is high degree of political cooperation and political relationship from one
state to another.

THEORIES TO GLOBALIZATION:

1. THE WORLD SYSTEMS THEORY (HYPERGLOBALISATIONISM)

This perspective sees globalization as an all-encompassing force that leads to the erosion of national borders and the
emergence of a truly global economy and culture. Meaning, hyperglobalists are the chiefs among the believers of
globalization. They see globalization as a legitimate process and a new age of in human history. This theory emphasizes
the dominance of global markets and the diminishing significance of individual nations. They also believe that the capitalist
world system is spread across the entire globe.

CAPITALISM is an economic system characterized by private ownership of the means of production (such as factories, and
businesses), markets, and the competition. In capitalism, individuals and businesses pursue profits and make economic
decisions based on supply and demand.

COMMUNISM is a political and economic ideology where the means of production are owned collectively by the community
or state. In a true communist society, there is no private ownership; and wealth resources are shared equally among all
members.

SOCIALISM is an economic and political system that falls between capitalism and communism. It features public or
collective ownership of some means of production, along with government intervention to address inequalities and provide
social services. Socialism aims to balance freedom with social equality.

World-Systems Theory as proposed by Immanuel Wallerstein in 1974, is a comprehensive framework for understanding
the global system as a whole with a particular focus on the dynamics of economic and political power. Wallerstein’s theory
offers a structural perspective on how the world operates economically and politically.

At the heart of the World-Systems Theory is the concept core-periphery model. Wallerstein divides the world into three
major zones:

 CORE NATIONS
This zone consists of economically developed regions with advanced technology, industrial production, and significant
wealth. Core nations dominate the global economic system with features like: a.) with a powerful central government; b.)
economically diversified and industrialized; c.) capital-intensive production of materials and goods rather than extracting raw
materials, and; d.) strong middle class and working-class. Core countries are the likes of United States of America (USA),
Canada, Japan, Australia, and most of Western Europe like Germany, Netherlands, United Kingdom, Belgium, France,
Luxembourg and Switzerland.

 PERIPHERY NATIONS
The periphery comprises less developed areas that often provide cheap labor and raw materials to the core nations. They
are economically dependent to the core nations with these features: a.) relatively weak government; b.) there is a high
percentage of poverty, and uneducated people; c.) greatly influenced by transnational corporations like Apple Inc., Coca-
Cola Co., Toyota Motor Corp., Microsoft Corp.; and d.) focuses only on one type of economic activity which is extracting raw
materials. Some of countries considered as a periphery country are Afghanistan, Dominican Republic, Colombia,
Venezuela, Egypt, Bolivia, Vietnam, Philippines, Democratic Republic of Congo, and rest of the countries in South America
and Africa.

 SEMI-PERIPHERY NATIONS
The semi-periphery is an intermediate zone that exhibits elements of both core and periphery characteristics. Semi-
peripheral nations may have growing industrial sectors but are still economically subordinate to core nations. These
societies are remained dependent, and to some extent underdeveloped, despite having achieved significant levels of
industrialization. Examples are the countries India, Brazil, Argentina, Mexico, South Korea, South Africa, Taiwan, and
China.

Wallerstein’s theory aligns with dependency theory, which suggests that underdeveloped nations are dependent on and
exploited by more advanced industrial nations. Dependency theory critiques the role of external powers in perpetuating
economic disparities.

2. THE REGIONAL BLOC THEORY (GLOBAL SKEPTICISM)

The Regional Bloc Theory, also known as Global Skepticism, is a concept in international relations and economics that
suggests a shift towards regionalism and away from global integration. This theory suggests that in an increasingly
interconnected world, countries may prioritize forming or strengthening regional blocs and agreements over engaging in
global trade agreements or alliances.

Regional blocs, also known as regional organizations or economic blocs, are associations or agreements of countries within
a specific region that collaborate on various economic, political, and security matters. Few notable examples of regional
blocs are:

 European Union (EU) – The EU is a political and economic union of 27 European countries that aim to promote
economic integration and cooperation among member of states. It has established a single market with
standardized laws and regulations, a customs union, and a common currency (Euro) in the Eurozone.
 North American Free Trade Agreement (NAFTA) – NAFTA was a trade agreement between Canada, Mexico,
and the United States, aimed at eliminating tariffs and other trade barriers to trade among three countries. It was
replaced by United States-Mexico-Canada Agreement (USMCA) in 2020, which modernized and updated certain
provision of NAFTA.
 Association of Southeast Asian Nations (ASEAN) – ASEAN is a regional intergovernmental organization
compromising ten (10) Southeast Asian countries. It aims to promote economic growth, social progress, and
cultural development in the region through cooperation and integration. ASEAN has established a free trade among
its member states.
 Mercosur – Mercosur is a regional trade bloc in South America, compromising Argentina, Brazil, Paraguay, and
Uruguay as full members, with Venezuela as a suspended member. It aims to promote free trade and the fluid
movement of goods, people, and currency, among its member countries.
 African Continental Free Trade Area (AfCFTA) – AfCTA is a trade agreement among 54 African Union member
states, making it the largest free trade area in terms of participating countries. It aims to create a single market for
goods and services, facilitate the movement of capital, and promote economic integration and development across
Africa.
 Gulf Cooperation Council (GCC) – The GCC is a regional intergovernmental political and economic union
consisting of Six Arab states in the Persian Gulf region: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the
United Arab Emirates. It aims to enhance economic cooperation and integration among its member states.
  Central American Integration System (SICA) – SICA is a regional organization of Central American states, aimed
at promoting regional integration and cooperation in various areas, including trade, economic development,
security, and environmental sustainability.
 South Asian Association for Regional Cooperation (SAARC) – SAARC is an organization of South Asian
nations, comprising eight (8) member states: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan,
and Sri Lanka. It aims to promote economic and regional integration, as well as social, cultural, and technical
cooperation among member states.

Global skepticism arises from various factors including concerns about loss of sovereignty, cultural preservation, economic
protection, and skepticism towards the benefits of globalization. Proponents of this theory argue that regional trade blocs
allow countries to retain more control over their economies, protect domestic industries, and address specific regional
challenges more effectively.

However, critics of Global Skepticism argue that excessive regionalism could lead to fragmentation of the global economy,
hinder overall economic growth, and potentially exacerbate geopolitical tensions. They advocate for a balanced approach
that combines regional cooperation with continued engagement in global trade and multilateral agreements.

3. THE THIRD WAY THEORY (TRANSFORMATIONALISM)

The Third Way Theory emerged during a period of increasing globalization, characterized by the growing
interconnectedness of economies, cultures, and societies around the world. Proponents of the Third Way, such as Tony
Blair and Bill Clinton, recognized the transformative impact of globalization on the traditional left-right political spectrum and
sought to adapt their ideologies to this changing global landscape.

In the context of globalization, the Third Way Theory advocates for a pragmatic approach to governance that acknowledges
the benefits and challenges posed by economic integration.

1. Market-oriented policies with social protections

The Third Way recognizes the importance of market-based economies in driving economic growth and innovation. However,
it also emphasizes the need for government intervention to mitigate the negative social consequences of globalization, such
as income inequality and job displacement. This may include policies like progressive taxation, investment in education and
healthcare, and social safety nets to support those adversely affected by global economic changes.

2. Global governance and regulation

Third Way leaders recognize the need for international cooperation and regulation to manage the effects of globalization.
They advocate for multilateral institutions and agreements to address issues such as trade imbalances, environmental
degradation, and human rights abuses. This approach seeks to harness the benefits of globalization while ensuring that
economic integration is fair and sustainable for all nations and peoples involved.

3. Promotion of inclusive growth

The Third Way Theory prioritizes inclusive economic growth that benefits all segments of society, including marginalized
and vulnerable populations. It recognizes that globalization can exacerbate existing inequalities within and between
countries and emphasizes the importance of policies that promote social inclusion, access to opportunities, and equitable
distribution of resources.

4. Balancing economic openness with national sovereignty

While supporting economic openness and free trade, the Third Way also emphasizes the importance of maintaining national
sovereignty and autonomy. It seeks to strike a balance between participating in the global economy and preserving
domestic control over key economic and social policies.
In summary, the Third Way Theory offers a nuanced approach to governance that seeks to reconcile the imperatives of
globalization with the goals of social justice, economic stability, and national sovereignty. It acknowledges the opportunities
and challenges posed by economic integration and advocates for policies that promote inclusive and sustainable
development in a globalized world.