Demerits of Globalization  Companies in foreign countries can now

compete for customers in the United States

Globalization also has its disadvantages or by leveraging their own country’s
demerits. Among these are: resources, lower costs of labor and
1. Several people lose their jobs when affordable distribution processes. In the
companies import cheap labor or same way, U.S. companies have the
materials or shift production abroad. opportunity to appeal to customers in the
2. Worker’s face pays cut demands from Philippines and other countries by
employers who often threatens to promoting their goods and services.
export jobs.  The development of business, industry and
3. Unregulated globalization can cause income levels in several large population
serious problems to poor and centers has also contributed to the
developing countries in terms of labor importance of globalization. China, India
force, wages, benefits, job termination, and Brazil are prominent examples of
and others thriving economies as of 2013.
4. High foreign stake on industries where  The concept of globalization has only
it is not necessarily needed could affect recently been widely accepted and adapted-
the economic growth of domestic words like global, globality, globalization,
enterprise. globalism as well as the concepts of global
5. Sovereignty of a country and company/ market, global ecology, global citizen, its
institution may be at stake. more truly unknown up to the very end of
the 20th century.
Importance of Studying Globalization
Competition
In today's contemporary world, it is important Even if you want to avoid the globalization
for students to understand and appreciate the movement, you often have no choice but to
study of globalization for the following reasons: compete. The influx of foreign competitors in
1. There is a greater demand in business and the U.S. limits the number of companies in
industry, health, engineering and technology to some industries that can succeed domestically.
have people who can work with people of other In the same way, if your competitors expand
nations and cultures. globally, you have to consider following suit.
Any money other companies make in foreign
markets, they can bring back to the United
The Importance of Globalization for States and invest it in promoting their brands,
Everyone products and services domestically.
 According to Neil Kokemuller, a writer,
globalization is the expansion of local DIVERSE POPULATION
economies and businesses into a broader The United States, and the world in general, has
international marketplace. become very diverse. The United States is home
 Globalization has become important for a to immigrants from many countries around the
number of reasons, including the overall world.
need for business to compete, according to
Kokemuller. The Theory of Comparative Advantage
 The Internet revolutionized the business This theory states that countries that are good
arena, created a whole new virtual at producing particular good are better off
marketplace that expands beyond physical exporting it to countries that are less efficient
and geographical boundaries. at producing that good.
 Philosophy underlying Globalization
What is undeniable is that GLOBALIZATION is
The concept of globalization has only recently here to stay hence it is better for the countries
been widely accepted and adapted- words like in the global economy to embrace the concept
global, globality, globalization, globalism as and live with it in this contemporary world.
well as the concepts of global market, global
ecology, global citizen, its more truly unknown Unit 2
up to the very end of the 20th century. Global Economy
Global economy is also referred to as world
Discussion of world issues used the derivations economy. This term refers to the international
of “international” rather than “global” relations exchange of goods and services that is
because of the recent popularized new concept expressed in monetary units of money. It may
of “globalization” has resulted in innumerable also mean as the free movement of goods,
contradicting definitions of the same. capital, services, technology, and information.
In some contexts, "global" or "International"
While, normatively speaking, some people economy is distinguished and measured
associate globalization with progress, separately from national economies while the
prosperity, and peace, some others consider it "world economy" is simply an aggregate of the
to be retrogression, disaster and decay. separate country's measurements.
World economy is exclusively limited to human
The common and indisputable characteristics economic activity and is typically judged in
of all its definitions is the view that monetary terms. Typical examples are illegal
globalization is “a process of economic, social, drugs and other black market goods which by
culture, and political activity, which transcends any standard are a part of the world economy,
nations-state boarders and then it pertains to but for which these is by definition no legal
the world as a whole.” it is within this context market of any kind.
that the multi-dimensionality of the Global economy or economic globalization is
globalization process comes to the force. concerned on the globalization of production,
Globalization is a complex and controversial finance, markets, technology, organizational
process of the building pf the world as a whole regimes, institutions, corporations, and labor.
due to the creation of global institutional While economic globalization has been
structures and global cultural forms like a free expanding since the emergence of trans-
market (economic unification of the world with national trade, it has grown at an increased rate
uniform patterns of production and due to an increase in communication and
consumption; democratic integration of the technological advances under the framework of
world based on common interest of General Agreement on Tariffs and Trade and
humankind, such as equality, human rights World Trade Organization, which made
protection, rule of law, peace and security, and countries gradually cut down trade barriers
moral integration of the world based on and open up their current accounts and capital
humanistic values- instead of national state accounts.
particularism.
Various ideological movements of resistance to MARKET INTEGRATION
globalization have been emerging in response  Proportional p Strong Integration
to globalization such as the violent and  Shows how markets are related to each
destructive mass demonstrations staged in other
various countries are a manifestation of
resistance.
  Occur when prices follow similar in Abidjan, Cote d'looire (but temporarily
patterns over time. Global Economy and located in Tunis.
market Integration.
The European Bank for Reconstruction and
INTERNATIONAL FINANCIAL INSTITUTIONS Development (EBRD) established in 19gt, when
 IFI is a financial institution that has communism was crumbling in central and
been established (or chartered) by more eastern Europe and these Countries needed
than one country, and hence is subject to support to nurture a new private sector in a
international law. democratic environment
 International financial institutions play
a major role in the social and economic Membership Compositions of IFIS
development of countries with 1. Only sovereign countries are admitted
emerging economies such as changing as member -owner
market positions. 2. Broad country membership to include
 Includes advising, funding, and assisting borrowing developing countries and
on development projects to: reduce developed donor countries
global poverty and improve living 3. Membership in regional development
conditions and standards. banks include countries ground the...
4. The world as members
The Five multilateral development banks
(MDB) Main objectives
1. World Bank Group
2. African Development Bank • IMF provides temporary financial assistance
3. Asian Development Bank •MDB's provide financing for development
4. Inter-American Development Bank through
5. European Bank for Reconstruction & - Long term loans
Development - Very long-term Wans (credits with maturities
of 30-40 years)
World Bank Group Founded in 1945 at the - Grant Financing by some MDB's
same international conference as IMF, the
World Bank at first was involved mainly in the The International Monetary Fund
reconstruction of countries devastated by  IMF was established by international
World War W II. treaty in 1945 as the central institution
of the international monetary system -
The Inter-American Development Bank (IDB) the system of currency trading and
was established as a development institution in exchange rates that enables business to
1959. which makes it the oldest of the regional take place between countries with
development banks. different currencies.
 IMF aims to prevent crises in the system
The Asian Development Bank (ADB) owned by by encouraging countries to adopt
its la5 members, 47 from the region and 18 sound economic policies and monitoring
from other parts of the globe their adherence to such policies.

The African Development Bank (AfDB) engage

in promoting the economic development and Market Integration
social progress of its shareholder countries in When prices among different location or
Africa. Established in 1944, with headquarters related goods follow the same patterns over a
long period of time, market integration exist. beginning in the latter part of the nineteenth
Similarly, when groups of prices often move century.
proportionally to each other and when this
relation is very clear among different markets it Global Corporation
is said that the markets are integrated. Hence, it While many use "global" in the same way as
could be concluded that market integration is international when it comes describing a
an indicator that explains how much different business, some analysts make distinctions
markets are related to each other. between how each operates. On a basic level, a
global corporation is one that operates in more
By the late nineteenth century, globalization, of than one country. Particularly in the United
which a principal feature was the mass States, the term can mean different things to
migration nineteenth century, globalization, of different contexts, with the characteristics of a
which a principal feature was the mass global corporation varying accordingly. (Craig
migration of Indians and Chinese to Southeast Berman, 2017)
Asia, gave rise to both an integrated Asian labor Business analysts and academics, such as the
market and a period of real wage convergence. groundbreaking Michael Porter at Harvard
Integration did not, however, extend beyond University, defined global businesses more
Asia to include core Industrial countries. Asian narrowly and distinguish them from other
and core areas, in contrast to globally operations overseas. He defined a global
integrated commodity markets, showed business as one that maintains a strong
divergent trends in unskilled real wages. headquarters in one country, but has
By the 1880s steamships had largely replaced investments in multiple foreign locations. Such
sailing vessels for transport within Asia as well investments may involve direct investments in
as to Western markets, and shipping fares had foreign assets, such as manufacturing facilities
begun to fall sharply. or sales offices. The headquarters generally is
Also, already underway was the mass migration its home country, though some moves to more
of Indian and Chinese workers, principally from favorable regulatory or taxation locations over
the labor-abundant areas of Madras in India time. Global corporations strive to create
and the provinces of Kwangtung (Guangdong) economies of scale by selling the same
and Fukien (Fujian) in Southeastern China, to products in multiple locations and limiting
land-abundant but labor-scarce parts of Asia. local customization.
Chief among the immigrant-receiving countries In the world of finance and investment, a global
were Burma, Malaya and Thailand (Siam) in corporation is one that has significant
Southeast Asia. Indian and Chinese labor investments and facilities in multiple countries
inflows to these countries constituted the bulk but lacks a dominant headquarters. Global
of two of three main late nineteenth- and early corporations are governed by the laws of the
twentieth-century global migration country where they are incorporated. A global
movements, the other being European business connects its talents, resources and
immigration to the New World. Immigration to opportunities across political boundaries.
Southeast Asia was almost entirely in response Because a global corporation is more invested
to its growing demand for workers which, in in its overseas locations, it can be more
turn, derived from rapidly expanding demand sensitive to local opportunities and also more
in core industrial countries for Southeast Asian vulnerable to threats. A company that does
exports. Studies by Latham and Neal (1983) business in Africa, for example, might find itself
and by Brandt (1985, 1989) established the dealing with the implication from a local Ebola
development of an integrated Asian rice market outbreak as well as its commercial operations.
In contrast, an international company is one basic unit of social analysis. Thus, we should
that has a headquarters, for example in the focus not on individual states, but on the
United States, but also does business overseas relations between their groupings (core, semi-
and might have a large presence in multiple periphery, and periphery).
areas. Such company would be governed by U.S.
regulations, assuming its headquarters remain Global Governance
in U.S., but may also have foreign subsidiaries This term global governance is sometimes
such as the Philippines which is governed by referred to as world governance. Global is a
local laws. movement towards political cooperation
among transnational actors, negotiating
Global Interstate System responses to problems that affect more than
World-systems are defined by the existence of a one state or region. Institutions of global
division of labor. The modern world-system has governance-the United Nations, the
a multi-state political structure (the interstate International Criminal Court, the World Bank,
system) and therefore its division of labor is etc. tend to have limited or demarcated power
international division of labor. In the modern to enforce compliance. The modern question of
world-system, the division of labor consists of world governance exists in the context of
three zones according to the prevalence of globalization and globalizing regimes of power:
profitable industries or activities: core, semi politically, economically and culturally. In
periphery, and periphery. Countries tend to fall response to the acceleration of worldwide
into one or another of these interdependent interdependence, both between human
zones core countries, semi-periphery countries societies and between humankind and the
and the periphery countries. Resources are biosphere, the term "global governance" may
redistributed from the underdeveloped, mean the process of designating laws, rules, or
typically raw materials-exporting, poor part of regulations intended for a global scale.
the world (the periphery) to developed,
industrialized core. Global governance is not a singular system.
World-systems, past world-systems and the There is no "world government" but the many
modern world-systems, have temporal different regimes of global governance do have
features. Cyclical rhythms represent the short- commonalities:
term fluctuation of economy, while secular While the contemporary system of global
trends mean deeper long run tendencies, such political relations is not integrated, the relation
as general economic growth or decline. The between the various regimes of global
term contradiction means a general governance is not insignificant, and the system
controversy in the system, usually concerning does have a common dominant organizational
some short term vs. long term trade-offs. For form. The dominant mode of organization
example, the problem of under consumption, today is bureaucratic rational-regularized and
wherein the drive-down of wages increases the codified. It is common to all modern regimes of
profit for the capitalists on the short-run, but political power and frames the transition from
considering the long run, the decreasing of classical sovereignty to what David Held
wages may have a crucially harmful effect by describes as the second regime of sovereignty-
reducing the demand for the product. The last liberal international sovereignty.
temporal feature is the crisis: a crisis occurs if a Effects of Globalization Governance
constellation of circumstances brings about the According to the disciplining hypothesis,
end of the system. globalization restrains governments by
The world-systems theory stresses that world- inducing increased budgetary pressure. As a
systems (and not nation states) should be the consequence, governments may attempt to
curtail the welfare state, which is often seen as for the risks of globalization
a drag on international competitiveness, by ("compensation hypothesis").
reducing especially their expenditures on
transfers and subsidies. This globalization-
induced welfare state retrenchment is R0LE OF UN TODAY AND FUTURE
potentially mitigated by citizens' preferences to
be compensated for the risks of globalization WHAT IS UNITED NATIONS?
("compensation hypothesis"). The United Nations (UN) is an
intergovernmental organization that aims to
UNDERSTANDING GLOBAL GOVERNANCE & maintain international peace and security,
THE EFFECT OF GLOBAL GOVERNANCE develop friendly relations among nations and
countries, achieve international cooperation,
Understanding Global Governance and serve as a centre for coordinating the
actions of member states. It is widely
• Global governance is sometimes referred recognized as the world's largest international
to as world governance. organization
• Global governance is a movement towards
political cooperation among transnational For the future, the UN has established what it
actors, negotiating responses to problems calls its Millennium Development Goals. Most
that affect more than one state or region. of its member states and various international
• Institutions of global governance—the organizations have all agreed to achieve these
United Nations, the International Criminal goals relating to reducing poverty, child
Court, the World Bank, etc.—tend to have mortality, fighting diseases and epidemics, and
limited or demarcated power to enforce developing a global partnership in terms of
compliance. international development by 2015.
• The modern question of world governance Some member states have achieved a number
exists in the context of globalization and of the agreement's goals while others have
globalizing regimes of power: politically, reached none. However, the UN has been
economically, and culturally. successful over the years and only the future
• In response to the acceleration of can tell how the true realization of these goals,
worldwide interdependence, both will play he out.
between human societies and between
humankind and the biosphere, the term The UN General Assembly
"global governance" may mean the process
of designating laws, rules, or regulations The UN General Assembly was established in
intended for a global scale. 1945 under the UN Charter, The General
• Global governance is not a singular Assembly occupies a central position as the
system. chief deliberative, policymaking and
• The dominant mode of organization today representative organ of the United Nations it
is bureaucratic rational-regularized and provides a unique forum for multilateral
codified discussion of the full spectrum of international
• According to the disciplining hypothesis, issues covered by the charter
globalization restrains governments by It also plays a significant role in the process of
inducing increased budgetary pressure. standard-setting and the codification of
• This globalization-induced welfare state international law. The Assembly meets in
retrenchment is potentially mitigated by regular session intensively from September to
citizens' preferences to be compensated December each year, and thereafter as required
 Membership in the United Nations

Today (2018), almost every fully recognized

Functions and Powers of the UN General
independent states are member states in the
Assembly
UN. As outlined in the UN Charter, to become a
According to the Charter of the United Nations,
member of the UN a state must accept peace
the General Assembly may:
and all obligations outlined in the Charter and
• Consider and make recommendations
willing to carry out any action to satisfy those
on the general principles of cooperation
obligations. The final decision on admission to
for maintaining international peace and
the UN is carried out by the General Assembly
security, including disarmament;
after recommendation by the
• Discuss any question relating to
international peace and security and,
except where a dispute or situation is
currently being discussed by the Internationalism Vs. Globalization
Security Council, make WHAT IS INTERNATIONALISM?
recommendations on it;
• Discuss, with the same exception, and Internationalization refers to the increasing
make recommendations on any question importance of trade, treaties, and international
within the scope of the Charter or relations. The nation remains the basic unit,
affecting the powers and functions of even as international interactions grow.
any organ of the United Nations; WHAT IS GLOBALIZATION?
• Initiate studies and make
recommendations to promote Globalization is the economic integration of
international political cooperation, the many national economies into a single global
development and codification of economy. Driven by free trade, free capital
international law, the realization of mobility, and migration. National boundaries
human rights and fundamental become less relevant in economic terms.
freedoms, and international KEY DIFFERENCE KEY DIFFERENCE
collaboration in the economic, social, ECONOMIC PERSPECTIVE ECONOMIC
humanitarian, cultural, educational and PERSPECTIVE
health fields:
• Make recommendations for the peaceful International trade follows comparative
settlement of any situation that might advantage (each country specializes in what it
impair friendly relations among nations; does best). Globalization shifts trade towards
• Receive and consider reports from the absolute advantage (cheapest and most
Security Council and other United efficient producer wins).
Nations organs; THE INTEGRATION CONCEPT
• Consider and approve the United
Nations budget and establish the Integration" means forming one whole.
financial assessments of member states; National economies dis-integrate to fit into the
• Elect the non-permanent members of global system. Example: Companies relocate
the Security Council and the members of production to cheaper labor markets, moving
other United Nations councils and away from their home countries.
organs and, on the recommendation of IMPACT ON LABOR AND CAPITAL
the Security Council, appoints the
Secretary-General. In the past (Internationalization)
  National capital and labor worked in the government but the many different
past (Internationalization): National government but the many different regimes of
capital and labor worked together global governance do have regimes of global
within a country's economy. together governance do have commonalities.
within a country's economy. commonalities.
 Countries competed internationally.
Countries competed internationally
Challenges of Global Governance in the 21st
Now (Globalization) Century

 Capital moves freely, seeking cheaper

Global Governance - refers to the systems,
labor and resources. labor and
institutions, agreements, and processes that
resources.
guides international cooperation and decision-
Internationalism strengthens relationships making on global issues. It involves
between nations while maintaining national governments, international organization (like
integrity. Globalization dissolves national UN), businesses, and civil society working
barriers, making economies part of a single together to address such as climate change,
global system. trade, security, and human rights.

Irina Bokova is Bulgarian politician and a

CONTEMPORARY GLOBAL GOVERNANCE former Director- General of UNESCO (2009-
2017)
WHAT IS GLOBAL GOVERNANCE?

Global governance or world governance is a Challenges in Global Governance

movement towards political cooperation  Fragmentation of the International
among transnational actors, aimed at community
negotiating responses to problems that affect  Mass displacement and migration
more than one state or region.  Attacks on cultural heritage
Solutions by Irina Bokova
KEY INSTITUTIONS IN GLOBAL
 Openness and Innovation- Education,
GOVERNANCE
Digital Literacy, and Cultural Awareness
1. United Nations (UN) – Maintains  Building Resilient Societies- Gender
international peace and security. Equality and Refugee’s Education
 Rethinking Peacebuilding- Early
2. International Criminal Court (ICC) –
intervention and soft power diplomacy
Prosecutes individuals for crimes against
humanity.

3. World Bank – Provides financial and Paul Collier is a professor of Economics and
technical assistance for development. Public Policy at the Blavatnik School of
Government and a Professional Fellow of St.
4. World Trade Organization (WTO) –
Anthony’s College.
Regulates international trade.

5. International Monetary Fund (IMF) – The Bottom Billion

Stabilizes economies and provides financial aid.  One billion people are struck in poor
economies that haven’t grown for 40
Global governance is not a singular Global
years.
governance is not a singular system. There is
 Helping them is both a moral duty and a
no "world system. There is no "world
smart choice for global stability.
  The U.S. successfully helped rebuild The Role of Citizens
Europe after WWII, showing that change
 Change is difficult because corrupt
is possible.
leaders resist reforms, so people must
stay informed and push for real
Collier identifies four key components that
solutions, not just policies that “look
helps rebuild EuropE after WWII:
good but don’t work.”
1. Aid - Marshall Plan provided financial
support.
2. Trade - Market liberalization enabled
economic growth. Relevance of the State Amidst
3. Security - U.S. military presence Globalization
ensured stability.
4. Governance - The U.S. promoted State is a recognized political legal entity with
institutions like UN, IMF, and OECD. sovereignty over a define geographical area and
population. It possesses a structured
Challenges of Commodity Wealth government that enforces law, maintains order,
 Some poor countries, especially in and engage in diplomatic and economic
Africa, are getting rich oil and relation with other states.
minerals.
 This wealth often leads to short-term Historical Perspectives on State Relevance
economic growth followed by crashes
 The problem isn’t economic- it’ political. John Herz (1957) predicted the state's
Good governance is the key. irrelevance due to its inability to defend against
 Countries with weak governments nuclear threats.
suffer from cycles of “boom and bust.”
Johan Galtung (1967) suggested the state
Political Problems in Developing Countries would disappear as people developed identities
beyond national boundaries.
 Many developing countries have only
basic democracy. The Economist (1995) countered that the state
 Have electorial competitions that remains relevant because it possesses
determine how politicians acquire fundamental authority and resources.
power but lack checks and balances that
restrain the use of power Globalization and the State
• The rise of globalization has fueled the
 Leaders make secret deals with foreign discussion, shifting it from political
companies that benefit economists to mainstream discourse.
themselves, not the people. • The term "globalization" saw a massive
Possible Solutions increase in academic discussions
between 1990-2009.
 Government should adopt Extractive Two main viewpoints exist:
Industries. Transparency Initiative, part  One group believes the state is
of which involves the so becoming irrelevant due to economic
called ‘verified auctions.’ forces beyond its control.
 This Extractive Industries Transparency  The other argues the state still plays a
Initiative can help ensures key role in shaping economic and
fairness. political outcomes.
 and popular culture, Katzenstein examines the
The True Measure of State Legitimacy changing regional dynamics of Europe and
Asia, which are linked to the United States
• The state's legitimacy is not determined through Germany and Japan.
by how well it manages globalization Regions, Katzenstein contends, are interacting
but by its ability to provide public closely with an American imperium that
goods. combines territorial and non-territorial
• Non-state actors (e.g., Hezbollah in powers. Katzenstein argues that globalization
Lebanon, Islamic charities in East and internationalization create open or porous
Africa) sometimes take over this role, regions. Regions may provide solution to the
but these are exceptions. contradictions between states and markets,
• Unless another entity can effectively security, nationalism, and cosmopolitanism.
provide public goods at a macro level, Embedded in the American imperium, regions
the state will remain essential. are now central to world politics.

Challenges Facing the State North-South Divide

• The rise of complex financial The North-South divide is broadly considered a
instruments has created a "shadow socio-economic and political divide. Generally,
world" beyond state control, definitions of the Global North include the
contributing to market instability. United States, Canada, Western, Europe, as well
• The value of derivatives transactions far as Australia and New Zealand. The Global South
exceeds global economic output, is made up of African, Latin America, and
increasing financial uncertainty. developing Asia including the Middle East. The
• The 2008 financial crisis, which wiped North is home to all the members of the G8 and
out $50 trillion in wealth (71% of the four of the five permanent members of the
previous year’s global GDP), showcased United Nations Security Council.
the state's struggle to regulate economic The North mostly covers the West and the First
forces. World, along with much of the Second World,
while the South largely corresponds with the
Third World. While the North may be defined
CHAPTER 3 as the richer, more developed region and the
A World of Regions South as the poorer, less developed region,
many more factors differentiate between the
two global areas. 95% of the North has enough
A World of Regions: Asia and Europe food and shelter. The Global South "lacks
in the American Imperium appropriate technology, it has no political
stability, the economies are disarticulated, and
Observing the dramatic shift in world politics their foreign exchange earnings depend on
since the end of the Cold War, Peter J. primary product exports." Nevertheless, the
Katzenstein argues that regions have become divide between the North and the South
critical to contemporary world politics. This increasingly corresponds less and less to reality
view is in stark contrast to those who focus on and is increasingly challenged.
the purportedly stubborn persistence of the In economic terms, the North-with one quarter
nation-state or the inevitable march of of the world population - controls four-fifths of
globalization. In detailed studies of technology the income earned anywhere in the world. 90%
and foreign investment, domestic and of the manufacturing industries are owned by
international security, and cultural diplomacy and located in the North. Inversely, the South
with three quarters of the world populations allies - Mongolia, Cuba, North Korea, and North
has access to one-fifth of the world income. As Vietnam (after 1975, Vietnam) - were thus
nations become economically developed, they counted as Third World in economic terms and
may become part of the "North", regardless of as Second World in political terms. China's Cold
geographical location; similarly, any nations War situation was even more ambiguous; a
that do not qualify for "developed" status are in non-industrialized country at the time, it
effect deemed to be part of the "South". ceased to be a Soviet ally in 1961, and by the
1980s was no longer an enemy of the United
Global South States. Yet it continued to be commonly
The Global South is a term that has been mapped as part of the Second World.
emerging in the transnational and postcolonial
studies to refer to what may also be called the How the "Third World" became the Global
"Third World" (ie., Africa, Latin America, and South": The Origins of the Third World
the developing countries in Asia), "developing
countries," "less developed countries," and "less As published in the International Encyclopedia
developed regions." It can also include poorer of the Social Sciences edited by A. Heelblod
"southern" regions of wealthy "northern" (2007), the world was largely divided into
countries. In general, it refers to those several empires in the 19th century, each
countries' "interconnected histories of empire possessed a 'civilized central and
colonialism, neo-imperialism, and differential peripheries that were more or less primitive or
economic and social change through which even "barbaric". When they did, most would
large inequalities in living standards, life have considered these peoples to be inferior in
expectancy, and access to resources are some way, by Virtue of being non-white, less
maintained.' educated, or even "primitive" demographer,
anthropologist, and economic historian who
Global South versus Third World compared it Third World" was coined in 1952
"There is no Third World; There is no global by Alfred Sauvy, a French with the Third Estate,
south" - Martin Lewis. IN the 1960s, '70s and a concept that emerged in the context of the
'80s, scholars divided the earth into three French Revolution. (First Estate refers to the
parts: The First World, the Second World, and clergy and the monarch, Second Estate to the
the Third World. The reigning "three worlds nobility, and Third Estate to the balance of the
theory," however, was conceptually incoherent, eighteenth-century
combining incommensurate geopolitical and French population as contrasted the poor
socio-economic features. The "First World" countries to the First World (the non-
encompassed all industrialized, democratic Communist, high-income, "developed
countries, which were assumed to be allied countries) and the Second not as wealthy as
with the United States in its struggle against those of First World, were then characterized
the Soviet Union. Yet, not all were: Finland and by greater order, higher incomes, and longer
Switzerland, among others, maintained strict life expectancies)
neutrality. The Second World" was anchored on
the industrialized, communist realm of the Global Conception Emerged from the
Soviet Union and its eastern European Experiences of Latin American Countries
satellites, yet it often included communist
states located elsewhere. The "Third World," Growth rate in some Latin American countries
was defined poor com simultaneously as the have surprised many, They have been
non-aligned world and as the global realm of continuously high for some years and promise
poverty and under-developed. poor Soviet to be so in the next period as well.
Latin American's contributions are especially remains predominantly nondiscriminatory and
visible and relevant such as regionalism, outward-oriented. Rather, Interdependence is
security management, and Latin America's deepening because Asia's economies have
relations with the outside world. grown large and prosperous enough to become
important to each other, and because their
Asian Regionalism patterns of production increasingly depend on
networks that span several Asian economies
Asian regionalism is the product of economic and involve wide ranging exchanges of parts
interaction, not political planning. As a result of and components among them.
successful, outward oriented growth strategies,
Asian economies have grown not only richer, Regionalism versus Globalization
but also closer together. In recent years, new
technological trends have further strengthened Regionalism is the process of dividing an area
ties among them, as have the rise of the PRC into smaller segments called regions. Example
and India and the region's growing weight in is the division of nation into states or
the global economy. But adversity also played a provinces. Business use regionalization as a
role. The 1997/98 financial crisis dealt a severe total in management.
setback to much of the region, highlighting On the other hand, globalization is the process
Asia's shared interests and common of international Integration arising from the
vulnerabilities and providing an impetus for interchange of world views, products, ideas,
regional cooperation. The challenge now facing and other aspects, such as technology, etc.
Asia's policy makers is simply put yet
incredibly complex: As to nature, globalization promotes the
integration of economics across state borders
In the early stages of Asia's economic takeoff, all around the world but regionalization is
regional integration proceeded slowly. East precisely the opposite because it is dividing an
Asian economies, in particular, focused on area into smaller segments.
exporting to developed country markets rather
than selling to each other. Initially, they As to market, globalization allows many
specialized in simple, labor-intensive companies to trade on international level so it
manufactures. As the more advanced among allows free market but in regionalized system,
them graduated to more sophisticated monopolies are likely to develop.
products, less developed economies filled the
gap that they left behind. The Japanese As to cultural and societal relations,
economist Akamatsu (1962) famously globalization accelerate to multiculturalism by
compared this pattern of development to flying free and inexpensive movement of people but,
geese. In this model, economies moved in regionalization does not support this.
formation not because they were directly
linked to each other, but because they followed
similar paths. Since these development paths
hinged on sequential-and sometimes
competing-ties to markets outside the region,
they did not initially yield strong economic
links within Asia itself.
Now, though, Asian economies are becoming
closely intertwined. This is not because the
region's development strategy has changed; it