GENERAL EDUCATION 4: CONTEMPORARY WORLD

ART HISTORY
- The intensification of all the interactions (economic,
political, social) among the different actors in the
international system
GLOBALIZATION
- Globalization is a term used to describe how trade
and technology have made the world into a more
connected and interdependent place

DEVELOPMENT OF GLOBALIZATION
- Traders traveled vast distances in ancient times to buy commodities that were rare
and expensive for sale in their homelands

- The Industrial Revolution brought advances in transportation and communication in

the 19th century that eased trade across borders

- The critical steps in the path to globalization came with the North American Free
Trade Agreement (NAFTA), signed in 1993. One of NAFTA's many effects was to give
American auto manufacturers the incentive to relocate a portion of their
manufacturing to Mexico where they could save on the costs of labor

- The Bretton Wood Conference where GATT or the General Agreement on Tariff and
Trade was born

- Governments worldwide have integrated a free market economic system through

fiscal policies and trade agreements over the last 20 years. The core of most trade
agreements is the removal or reduction of tariffs

PROS AND CONS OF GLOBALIZATION

PROS CONS
- A larger market for goods and services - Concentrates wealth in richer countries
- Cheaper consumer prices - Some poorer countries can be left behind
- Outsourcing can benefit both domestic - Poorer countries can be exploited of their
firms and foreign labor labor and physical & intellectual
- Increased standard of living resources
- Cultures and the products consumed
around the world can become
homogenized

PERSPECTIVES IN GLOBALIZATION
HYPERGLOBALIST SKEPTICS TRANSFORMATIONALIST

- View globalization as - View globalization as - Middle-ground

purely economic Not 'Globalization' but - Globalization as
- Positive Effects of Americanization or Transformation of Human
Globalization Westernization lives
- Negative Sides of - Both Positive and
Globalization Negative Effects of
Globalization

WAYS TO ACHIEVE GLOBALIZATION

A. Liberalization of Trading Policies
B. Foreign Direct Investment
C. Privatization
D. Presence of Multinational Companies
E. Contractualization

GLOBAL ECONOMY
World War II
  War between War between the Allied Powers (USA,
Britain, France, and USSR) and the Axis Powers
(Germany, Italy, and Japan)
HISTORICAL BACKGROUND  Political (World Domination) and Economic
(Resources)
 Allied powers win in 1945
 Devastation after the war = Developmental problems
 The need for global cooperation for development
 Establishment of International Institutions due to the
intensified relationships among the different
members of the community (Globalization)

 1944 - Bretton Woods, New Hampshire; 44

delegates
 GOLD STANDARD based on US Dollars
 Adjustable - peg exchange rate system
 Created the International Bank of Reconstruction and
BRETTON WOOD Development (IBRD) - now known as the World Bank
CONFERENCE - and the International Monetary Fund (IMF)
 1947 - Attempt to create an International Trade
Organization (ITO)
 The US Congress vetoed the ITO. Alternatively, the
General Agreement on Tariffs and Trade (GATT)
was created. This would later become the World
Trade Organization (WTO)

 1971 – Abandonment of the Gold Standard dollars

PROBLEMS ENCOUNTERED into gold
AFTER THE BRETTON  Triffin Dilemma - international liquidity > US
WOOD CONFERENCE provides more dollars < risk in converting
 Vietnam War, Korean War, US Deficits, Oil Crisis

I. THE WORLD BANK

- 5 INSTITUTIONS UNDER THE WORLD BANK -

1. INTERNATIONAL BANK OF RECONSTRUCTION

AND DEVELOPMENT - loans for middle-income and
deserving low-income countries

2. INTERNATIONAL FINANCE CORPORATION (IFC) -

THE GLOBAL FINANCIAL loans for the private sector
INSTITUTION
3. INTERNATIONAL DEVELOPMENT ASSOCIATION
(IDA) - interest-free loans (credits) to poorest

4. MULTILATERAL INVESTMENT GUARANTEE

AGENCY (MIGA) - encourage foreign direct
investments

5. INTERNATIONAL CENTER FOR SETTLEMENT OF

INVESTMENT DISPUTES (ICSID) - conciliation and
arbitration of investment disputes

II. INTERNATIONAL MONETARY FUND

Functions:
- Foster global monetary cooperation
- Secure financial stability
- Facilitate international trade
 - Promote higher employment
- Reduce poverty

III. WORLD TRADE ORGANIZATION

- Formerly the General Agreement on Tariffs and
Trade (GATT)
- Became the WTO in 1995
- Facilitation of international trade is the main goal of
the WTO
- Rules-based system was established

Functions:
- Trade Negotiations
- Dispute Settlement
- Implementation and Monitoring
- Building Trade Capacity
- Basic Information

MEMBERSHIP: 164 members and 24 observers

DIRECTOR-GENERAL: Ngozi Okonjo-Iweala
HEADQUARTERS: Geneva, Switzerland

DEFINITION OF TERMS
- In October 1959, a Yale professor sat in front of
Congress' Joint Economic Committee and calmly
announced that the Bretton Woods system was
doomed

- The dollar could not survive as the world's reserve

currency without requiring the United States to run
ever-growing deficits. This dismal scientist was
Belgium-born Robert Triffin, and he was right
TRIFFIN DILEMA
- The Bretton Woods system collapsed in 1971, and
today the dollar's role as the reserve currency has
the United States running the largest current account
deficit in the world Concentrates wealth in richer
countries Some poorer countries can be left behind

- Poorer countries can be exploited of their labor and

physical & intellectual resources Cultures and the
products consumed around the world can become
homogenized

- A floating exchange rate is a regime where the

FLOATING CURRENCY currency price of a nation is set by the forex market
based on supply and demand relative to other
currencies. This is in contrast to a fixed exchange
rate, in which the government entirely or
predominantly determines the rate

- A floating exchange rate is market. one that is

determined by supply and demand on the open
market

- A floating exchange rate doesn't mean countries

don't try to intervene and manipulate their
currency's price, since governments and central
banks regularly attempt to keep their currency price
favorable for international trade
 - A fixed exchange is another currency model, and this
is where a currency is pegged or held at the same
value relative to another currency

- Floating exchange rates became more popular after

the failure of the gold standard and the Bretton
Woods agreement

- The term 'International liquidity' refers to the

supply of certain categories of financial assets or
claims which are created by all the different
INTERNATIONAL LIQUIDITY countries and international financial organizations in
the international community, as receptacles of
calculable ready purchasing power over all the
domestic currencies in vogue"

- Transfer of government services or assets to the

private sector. State-owned assets may be sold to
private owners, or statutory restrictions on
competition between privately and publicly owned
PRIVATIZATION enterprises may be lifted

- Services formerly provided by government may be

contracted out

- The objective is often implementation may affect

government revenue either positively or negatively

INTER-STATE SYSTEM

1. BIPOLARITY
- Two dominant powers in the world
- USA and USSR emerged as world powers after WWII
- Engaged in the COLD WAR

2. UNIPOLARITY
CONFIGURATION OF - A single world power exists (hegemon)
WORLD POWER - USA became the sole power after the disintegration
of USSR

3. MULTIPOLARITY
- There are multiple world powers
- Our situation today can be described as such
- Unlike before, power is measured by economic
prosperity

- Usually, these refers to treaties and agreements

among the different actors DR Not the same as
domestic laws

INTERNATIONAL LAW - Due to the sovereignty of state actors, they are

based upon CONSENT

- No assurance of COMPLIANCE especially from

powerful states

- Established after WWII in 1945 (San Francisco

Charter of 1945)

PREDECESSOR: League of Nations (after WWI in 1920)

 HEADQUARTERS: New York
MEMBERSHIP: 193 states
LEADERSHIP: António Guterres
MANDATE: to end international war and promote social
and economic development

- ORGANS OF UNITED NATIONS -

1. GENERAL ASSEMBLY (GA)

- Biggest
- Meeting of all member states
- Recommendatory function only
- Appointing the Secretary-General on the
recommendation of the Security Council
- Electing the non-permanent members of the Security
Council
- Approving the UN budget

2. SECURITY COUNCIL (SC)

- Composed of 5 permanent members: USA,
UNITED NATIONS RUSSIA, FRANCE, UK, CHINA
- 10 elected members: 2-year term
- Intervention arm (international security)
- Legitimate use of force

3. INTERNATIONAL COURT OF JUSTICE (ICJ)

- To decide legal disputes among states
- Recommend sanctions
- The seat of the Court is at the Peace Palace in The
Hague (Netherlands)
- The Court is composed of 15 judges, who are
elected for terms of office of nine years by the
United Nations General Assembly and the Security
Council
- It is assisted by a Registry, its administrative organ
- Its official languages are English and French

4. SECRETARIAT
- Composed of the Secretary-General (presides the
General Assembly meeting) and Staff
- Manages the general assembly
- Record keeper of the sessions
- The Secretariat is organized along departmental
lines, with each department or office having a
distinct area of action and responsibility
- Offices and departments coordinate with each other
to ensure cohesion in the UN's programme of work

5. TRUSTEESHIP COUNCIL
- Created to help the newly independent state after
they want to be fully functioning independent state
- Has members the same with the Security Council

- Served as the president of the fourth session of

UN General Assembly from 1949 to 1950—the
first Asian to hold the position
CARLOS P. ROMULO
- Served as president of the UN Security Council
four times, twice in 1957, 1980 and 1981
 ESTABLISHMENT: August 8, 1967 (Bangkok Declaration
or ASEAN Declaration)

FOUNDING MEMBERS: Indonesia, Malaysia, Singapore,

Thailand and Philippines

OTHER MEMBERS: Brunei Darussalam (January 4, 1984);

Viet Nam (July 28, 1995); Laos and Myanmar (July 23,
1997); Cambodia (April 30, 1999); Timor Leste (2023)

Objectives:
 To accelerate the economic growth, social progress
and cultural development in the region through joint
endeavors in the spirit of equality and partnership in
order to strengthen the foundation for a prosperous
and peaceful community of Southeast Asian Nations;

 To promote regional peace and stability through

abiding respect for justice and the rule of law in the
relationship among countries of the region and
ASEAN adherence to the principles of the United Nations
Charter;

 To promote active collaboration and mutual

assistance on matters of common interest in the
economic, social, cultural, technical, scientific and
administrative fields

 To provide assistance to each other in the form of

training and research facilities in the educational,
professional, technical and administrative spheres;

Principles:
 Mutual respect for the independence, sovereignty,
equality, territorial integrity, and national
 identity of all nations;
 The right of every State to lead its national existence
free from external interference, subversion or
coercion;
 Non-interference in the internal affairs of one
another;
 Settlement of differences or disputes by peaceful
manner;
 Renunciation of the threat or use of force; and
 DRC
 Effective cooperation among themselves

WORLD DIVISION
- The EAST and WEST Dichotomy was created
- Western countries are considered to be more
DIVISION AFTER THE COLD advanced as compared to Eastern counterparts
WAR - The West promoting their VALUES as UNIVERSAL; the
East trying to adapt these values OR trying to resist
(to find own identity)
 Samuel Huntington believed that the conflicts after
the Cold War are not IDEOLOGICAL but, CULTURAL

 More particularly, it will be based on RELIGIOUS

BELIEFS

 The September 11 attack on the World Trade Center

 gave this theory more credence

 Different Division of the World:

1. SINIC: the common culture of China and REVIEW in

Southeast Asia, includes Vietnam and Korea

2. JAPANESE: Japanese culture as distinctively

different from the rest of Asi

3. HINDU: identified as the core Indian civilization

4. ISLAMIC: Originating on the Arabian Peninsula,

spread across North Africa, Iberian Peninsula and
Central Asia. Arab, Turkic, Persian and Malay are
among the many distinct subdivisions within Islam

5. ORTHODOX: centered in Russia. Separate from

Western Christendom

CLASH OF CIVILIZATION 6. WESTERN: centered in Europe and North America

7. LATIN AMERICAN: Central and South American

countries with a past of a corporatist, authoritarian
culture, Majority of countries are of a Catholic
majority

8. AFRICA: while the continent lacks a sense of a pan-

African identity, Huntington claims that Africans are
also increasingly developing a sense of African
Identity

 Decline of the Western Power

1. The current Western decline is a very slow process
and is not an immediate threat to World powers
today

2. Decline of power does not occur in a straight line; it

may reverse, speed up, or pause

3. The power of a state is controlled and influenced by

the behavior and decisions of those holding power

 Clashes of Civilization
1. The West's ability to maintain military superiority
through the nonproliferation of emerging powers

2. The promotion of Western political values such as

human rights and democracy

3. The Restriction of non-Western immigrants and

refugees into Western societies

4. The West's ability to maintain military superiority

through the nonproliferation of emerging powers
5. The promotion of Western political values such as
human rights and democracy

6. The Restriction of non-Western immigrants and

refugees into Western societies
 - The world is divided by an imaginary line called the
Brandt Line

- Incidentally, most of the countries NORTH of this line

THE DIVISION USING are developed ones. Meanwhile, those SOUTH of this
BRANDT LINE line are developing ones

- There is a strong anti-globalization (homogenizing)

Global South ant from the

CHARACTERISTICS OF THE NORTH CHARACTERISTICS

GLOBAL NORTH GLOBAL SOUTH
- 1/4 of the world's people  3/4 of the world's people
 4/5 of world's income  1/5 of world's income
 Average life expectancy more than 70  Average life expectancy of 50 years
years  1/5 or more suffer from hunger and
 Most people have enough to eat malnutrition
 Most people are educated  1/2 of the people have little chance of any
 Over 90% of the world’s manufacturing education
industry  Less than 10% of the world's
 About 96% of the world's spending on manufacturing industry
research and development  4% of the world’s research and
 RICH COUNTRIES development
 POOR COUNTRIES

GLOBAL ISSUES
1. The Climate Crisis
2. Marine Ecosystem Deterioration
3. The Hunger Crisis and Water Scarcity
4. The Hunger Crisis and COVID 19
5. Health Issues
6. Gender Inequality

INTERNATIONAL ORGANIZATIONS
NATO (NORTH ATLANTIC TREATY ORGANIZATION)
NATURE DIRECTOR GENERAL MEMBERS
 NATO promotes democratic  Albania (2009)
values and enables  Belgium (1949)
members to consult and  Bulgaria (2004)
cooperate on defense and  Canada (1949)
security-related issues to  Croatia (2009)
solve problems, build trust  Czechia (1999)
and, in the long run, JENS STOLTENBERG  Denmark (1949)
prevent conflict  Estonia (2004)
 France (1949)
 NATO is committed to the  Germany (1955)
peaceful resolution of  Greece (1952)
disputes. If diplomatic  Hungary (1999)
efforts fail, military power to  Iceland (1949)
undertake crisis-  Italy (1949)
management operations  Latvia (2004)
 Lithuania (2004)
TERM LENGTH: 4 years,  Luxembourg (1949)
renewable  Montenegro (2017)
 Netherlands (1949)
FORMATION: March 24, 1952  North Macedonia (2020)
 Norway (1949)
FIRST HOLDER: Hastings  Poland (1999)
Ismay, 1st Baron Ismay  Portugal (1949)
 Romania (2004)
 Slovakia (2004)
  Slovenia (2004)
 Spain (1982)
 Turkiye (1952)
 The UK (1949)
 The US (1949)

APEC (ASIA PACIFIC ECONOMIC COOPERATION)

NATURE DIRECTOR GENERAL MEMBERS
 To support sustainable  Australia
economic growth and  Brunei
prosperity in the Asia-  Darussalam
Pacific region  Canada
 Chile
 United in our drive to build  People's Republic of China
a dynamic and harmonious  Hong Kong
Asia- Pacific community by  China
championing free and open  Indonesia
trade and investment,  Japan
promoting and accelerating  Republic of Korea
regional economic DR. REBECCA FATIMA  Malaysia
integration, encouraging STA. MARIA  Mexico
economic and technical  New Zealand
cooperation, enhancing  Papua New Guinea
human security, and  Peru
facilitating a favorable and  Philippines
sustainable business  Russian Federation
environment

 Our initiatives turn policy

goals into concrete results
and agreements into
tangible benefits

OPEC (ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES)

NATURE DIRECTOR GENERAL MEMBERS
 To coordinate and unify the FOUNDER MEMBERS:
petroleum policies of its  Republic of Iran
Member Countries and  Iraq
ensure the stabilization of  Kuwait
oil markets in order to  Saudi Arabia
secure an efficient,  Venezuela
economic and regular HE AL GHAIS
supply of petroleum to Later joined by:
consumers, a steady  Qatar (1961)
income to producers and a  Indonesia (1962)
fair return on capital for  Libya (1962)
those investing in the  The UAE (1967)
petroleum industry  Algeria (1969)
 Nigeria (1971)
 Ecuador (1973)
 Gabon (1975),
 Angola (2007)
 Equatorial Guinea (2017)
 Congo (2018)

NAFTA (NORTH AMERICAN FREE TRADE AGREEMENT)

NATURE DIRECTOR GENERAL MEMBERS
 NAFTA provides coverage to  Mexico
services except for aviation  Canada
transport, maritime, and  United States
basic telecommunications.
 The agreement also
provides intellectual
property rights protection in
a variety of areas including
patent, trademark, and
copyrighted material
SHRI STEEPHEN
 The government
procurement provisions of
the NAFTA apply not only to
goods but to contracts for
services and construction at
the federal level

 Additionally, U.S. investors

are guaranteed equal
treatment to domestic
investors in Mexico and
Canada

G 8 (THE GROUP OF EIGHT)

NATURE DIRECTOR GENERAL MEMBERS
 The G8 is a forum that  France
provides the opportunity for  Germany
its members to co- operate  Italy
in addressing global  The United Kingdom
challenges. The standards it  Japan
sets, commitments it makes  The United States
and steps it takes aim to GARY CARROLL  Canada
drive prosperity and  Russia
economic growth all over
the world

BIMP EAGA (BRUNEI DARUSSALAM–INDONESIA–MALAYSIA–PHILIPPINES EAST

ASEAN GROWTH AREA)
NATURE DIRECTOR GENERAL MEMBERS
- Brunei Darussalam,  Brunei Darussalam
Indonesia, Malaysia and the  Indonesia
Philippines created the East  Malaysia
ASEAN Growth Area to shift  Philippines
economic activities from DATO' AHMAD ZAMRI
resource extraction to BIN KHAIRUDDIN
higher levels of processing
and value- added
production, focusing on
industries that adopt clean
and green technologies
EU (EUROPIAN UNION)
NATURE DIRECTOR GENERAL MEMBERS
- The common principles and  Austria, Bulgaria
values that underlie life in European Parliament  Croatia
the EU: freedom, President:  Republic of Cyprus
democracy, equality and ROBERTA METSOLA  Czech Republic
the rule of law, promoting  Denmark
peace and stability European Council  Estonia
President: CHARLES  Finland
MICHEL  France
 Germany
European Commission  Greece
President:  Hungary
URSULA VON DER LEYEN  Ireland
  Italy
 Latvia
 Lithuania
 Luxembourg
 Malta
 Netherlands
 Poland
 Portugal
 Romania
 Slovakia
 Slovenia
 Spain
 Sweden

SUSTAINABLE DEVELOPMENT GOALS

1. Eliminate Poverty
2. Erase Hunger
3. Establish Good Health and Well-Being
4. Provide Quality Education
5. Enforce Gender Equality
6. Improve Clean Water and Sanitation
7. Grow Affordable and Clean Energy
8. Create Decent Work and Economic Growth
9. Increase Industry, Innovation, and Infrastructure
10. Reduce Inequality
11. Mobilize Sustainable Cities and Communities
12. Influence Responsible Consumption and Production
13. Organize Climate Action
14. Develop Life Below Water
15. Advance Life On Land
16. Guarantee Peace, Justice, and Strong Institutions
17. Build Partnerships for the Goals