Interrogating Globalization
Development Paradigm - an idea of prescribed path to attain development through certain set of activities,
according to a defined vision (Bellu, 2011)
Globalization has been responsible remarkable changes in the 20th century. In understanding it as a subject, one
must example what kind of changes are created and the underlying processes behind these changes. Furthermore,
the pursuit of globalization operates on several assumptions that need to be evaluated. As a complex change, it
permeates people’s daily realities as well as lives of communities and countries. A deeper analysis is needed to
assess whether the process and impacts of globalization are consistent with development that is sustainable, just
and equitable for the people and the planet.
Economic Globalization, Cultural Globalization, and Political Globalization
Globalization is mainly conceptualized as intensified transference or exchange of things across existing boundaries
(Bartelson, 2000). However, globalization is primarily an economic process, the drive toward integration of
economies throughout the world. This is achieved through trading and financial flows across countries’ borders (IMF,
2000).
Globalization and its accompanying processes point to a paradigm about development (Pongsapich, 2003).
Globalization is built on the belief that development can be achieved through rapid economic growth, made possible
because of economic integration (Cavanagh, Mander & IFG, 2004). As a growth-oriented model of development, it
looks into GDP as indicator of success.
GDP- (gross domestic product) the total monetary or market value of all the finished goods and services produced
within a country's borders in a specific time period
Economic Globalization
Economic globalization is a complex global process of expanding the market economic system all throughout the
world. The market economy, the economy, the economic system gives freedom to entrepreneurs to control
productive process to pursue profit, is just one kind of economic system designed by human societies. It is a
corporate-driven process of enhanced transnational exchange of products services, technologies, and capital,
creating an increased interdependence of world economies (Shangquan, 2000).
Flows in the Age of Globalization
Important aspect of globalization include global trading, capital flows, and movement of people (IMF). 2000).
Trading
International trading, or the economic exchanges and deals between countries, is enabled by international fiscal
payments where private banks and the central banks of particular nations play important roles (Encyclopedia
Britannica, n.d.).
Global trading concerns important and exportation and exportation. The world saw an increase in world trade
from 1971 to 1999, and the biggest increase was seen in the export of manufactured goods. On the other hand,
export of primary commodities such as food and raw materials often produced by poor countries declined (IMF,
2000).
Capital Movement
There was an increase in the capital flows to poor countries during the 1990s (IMF, 2000). One manifestation of capital movement
is foreign investment. Foreign investment can be categorized as commercial loans, official flows, or foreign direct investment.
Commercial loans are money lent to foreign businesses or governments, while official flows refer to development aid or money
granted by rich countries to developing nations. Foreign direct investment refers to buying or putting up a firm in a foreign country
or contributing to the enhancement of an existing firm (Levin Institute, n.d.) Transnational corporations, businesses that operate in
more than one country, primarily undertake foreign direct investment.
Movement of People
People can migrate to other countries in search of better employment opportunities. In the Philippines, the number of Overseas
Filipino Workers during the period April to September 2018 was estimated at 2.3 million (Philippines Statistics Authority, April
2019).
Cultural Globalization and Political Globalization
Increased interdependence of economies in the world also combines with globalization of culture and politics.
Cultural Globalization
The current era of globalization, with its unprecedented acceleration and intensification in the global flow of capital, labour, and
information, is having a homogenizing influence on local culture. While this phenomenon promotes the integration of societies and
has provided millions of people with new opportunities, it may also bring with it a loss of uniqueness of local culture, which in turn
can lead in less of identity, exclusion and even conflict.” -UNESCO (n.d.)
The United Nations Educational, Scientific and Cultural Organization (UNESCO) is the agency of the United Nations contributing to
building peace through international cooperation in education, the sciences and culture.
Political Globalization
Political animals- Aristotle defines political animals as
those who live together for some common function
specifically, he writes that “animals that live politically are those that have any kind of activity in common, which is not true of all
gregarious animals. of this sort are: man, bee, wasp and crane” (Aristotle, 1955, 1.1.)
Political Globalization is the enlargement of the international political system and its establishments, where inter-regional dealings,
including trade, are manages (Modelski, Devezas and Thomson, 2007:59).
Conventional politics usually happens within national political spheres. In political globalization on the other hand, political
decision-making can transcend the boundaries of nations. When talking of managing economic and trading matters, security,
environment, and other transnational issues, some institutions come into play such as the World bank, International Monetary
Fund, United Nations, among others.
institutions and Actors Shaping Economic Globalization
The pursuit of fast-paced international economic transactions as well as movement of people and knowledge is driven by certain actors, in
engagement with many sectors. Globalization is not a random phenomenon. It is devised by humans, guided by several assumptions about
development.
International businesses called transnational corporations are important players in globalization.
What are BPO’s? (Business Process Outsourcing companies) What coffee did our parents drink before Starbucks? ASEAN- Association of
Southeast Asian Nations SAP-Structural ADjustment Policies
The Impacts of Globalization
Economic deregulation is met with disapproval from different groups such as
labor organizations, environmental groups, indigenous peoples, and even
consumer groups. Lessening government’s control over businesses led to
outcomes such as neglect of environment, low wages and unstable employment,
under servicing of consumers, and privatizing common resources.
World Bank, IMF, and Funds
Supporters of globalization carry several assumptions about it. Assumptions
need to be scrutinized against real-life conditions.
Proponents and guardians of globalization, such as the IMF, acknowledge
poverty and inequality existing alongside globalized economies. However,
globalization trend must not be halted, but must be continued by embracing
policy changes.
International production is conceived to increase jobs created across countries.
Poor countries need to catch up. But countries in the world are divided
according to its role and power in the global system. A country’s poverty or
development conditions are heavily influenced by its position in the world
system.
Globalization have Losers and Gainers
Increased trading may result to wider choices of consumer goods in the market. However,
international trading produces varying results. Restructuring of economy through fast-paced flux
of capital across different countries has impacts on places and social relations. These
restructuring in places and social relations can have disintegrating effects for the development of
communities (Katz, 2004). These kinds of global interactions produce uneven development.
Unequal playing field for local producers and foreign producers from developed countries lead to
losses for local producers.
The Effects of Global Trading Philippine Local Economy
Because of enhanced global trading, cheap important vegetables flood the local market. Local
consumers and businesses find it cheaper to buy imported agricultural products than locally
produced goods. Local producers are unable to compete with the modern and highly-supported
vegetable production from developed countries such as China, Australia, New Zealand, and the
Netherlands.
Advertised to the world as a remedy to all problems, globalization comes short. It has not raised
the poor from poverty. Instead, it has widened the gap between developed and developing
countries and between wealthy and the disenfranchised. It has hindered democracy and social
justice; it has damaged small communities and displayed farmers from their lands. Additionally, it
has sped up the largest environmental degradation known to mankind. The only groups of people
who truly benefited from globalization are the top officials of the world’s largest corporations and
the bureaucracies that sustain the (Cavanagh & Mander, 2004).
Alternatives to Economic Globalization
An important impact attributed to globalization is the nearly six-fold increase in the income
measured in per capita GDP (gross domestic product) for the richest 25% of the world population
in the 20th century. However, the poor populations did not experience this exponential economic
growth. Income inequality worsened (IMF, 2000).
