The Contemporary World

MODULE 1

TOPIC: The Competing Conception of Globalization

OBJECTIVES:
At the end of the lesson, you should be able to:
• Differentiate the competing definitions of globalization
• Provide examples for the different characteristics of globalization

GUIDE QUESTIONS (A guide question will serve as your basis in identifying the important
concepts in the module):

• How do some authors and specific organizations view globalization? What are
the similarities and differences of their perspectives?
• What are the evidences that can help us prove that the world has already
become more globalized?
• How do we characterize globalization?

For some people, they see globalization as a phenomenon. For others, it is a process
that involves series of moves and events to be able to manifest. There are also those
who believe that it is an age or an era that has a beginning and an end. If this is the
case, then we should ask the question, “Did we already reach the end of
globalization?”

In this introductory part of the course, you should be able to have a clear view of the
characteristics and definitions of globalization. This is a prerequisite for you to be able to
understand the more complex aspects of the phenomenon.

GLOBALIZATION AS DEFINED BY DIFFERENT AUTHORS AND ORGANIZATIONS:

“Globalization connotes the increasing interconnectedness and interdependence of

social, cultural and economic phenomena across national boundaries (Guibernau 2001
as cited in Crane, 2011). It is about the stretching of connections, relations and networks
between human communities, an increase in the intensity of these, and a general
speeding up of all these phenomena” (Crane, 2011).

“In contemporary popular discourse, globalization often functions as little more than a
synonym for one or more of the following phenomena: the pursuit of classical liberal (or
free market) policies in the world economy, the growing dominance of western (or
even American) forms of political, economic, and cultural life (“westernization” or
“Americanization”), the proliferation of new information technologies (the “Internet
Revolution”), as well as the notion that humanity stands at the threshold of realizing one
single unified community in which there is global integration” (Scheuerman, 2018).

Globalization is “the increasing interdependence of world economies as a result of the

growing scale of cross-border trade of commodities and services, the flow of
international capital and the wide and rapid spread of technologies. It reflects the
continuing expansion and mutual integration of market frontiers and the rapid growing
significance of information in all types of productive activities and marketization. “
(Committee for Development Policy)

Globalization can also be defined as “the increased interconnectedness and

interdependence of peoples and countries. It is generally understood to include two
inter-related element: the opening of international borders to increasingly fast flows of
goods, services, finance, people and ideas; and the changes in institutions and policies
at national and international levels that facilitate or promote such flows” (WHO)

To international economists, globalization occurs when markets of different countries

become more integrated and interconnected through economic transactions that
cross national borders. These transactions can be in real merchandise, various forms of
services, financial instruments, investments in local production facilities by multinational
firms, temporary and permanent labor migration, and technological information. [If you
reached this part, type the last word in this paragraph on the comment section of the
post.]

Economic globalization is a historical process, the result of human innovation and

technological progress. It refers to the increasing integration of economies around the
world, particularly through the movement of goods, services, and capital across
borders. The term began to be used more commonly in the 1980s, reflecting
technological advances that made it easier and quicker to complete international
transactions – both trade and financial flows (International Monetary Fund).

Here are some indicators that can illustrate how goods, capital and people, have
become more globalized according to the records provided by the IMF:

➢ The value of trade (goods and services) as a percentage of World GDP increased
from 42.1 percent in 1980 to 62.1 percent in 2007.
➢ Foreign direct investment increased from 6.5 percent of the world GDP in 1980 to
31.8 percent in 2006.
➢ The number of minutes spent on cross-border telephone calls, on a per-capita
basis, increased from 7.3 in 1991 to 28.8 in 2006.
➢ The number of foreign workers has increased from 78 million people (2.4% of the
world population) in 1965 to 191 million people (3.0% of the world population) in
2005.
Four distinct qualities or characteristics of globalization: (Excerpts from: Steger, M.B. [2003].
Globalization: A very short introduction. New York: Oxford University Press.)

Globalization as a phenomenon and a process can be characterized by the following:

a. involves the creation of new and the multiplication of existing social networks and
activities that increasingly overcome traditional political, economic, cultural, and
geographical boundaries

b. reflected in the expansion and the stretching of social relations, activities, and
interdependencies

c. involves the intensification and acceleration of social exchanges and activities

d. the creation, expansion, and intensification of social interconnections and

interdependencies do not occur merely on an objective, material level, but also the
subjective plane of human consciousness.

“Due to accelerating technology development, so much is happening so fast in every

part of the world. Life has become a passing blur. Yesterday's crisis has not been
resolved, but we can't think about it anymore because we've got to confront today's
crisis. It's an ad hoc world.”

“The information environment in which the individual lives has been radically altered.
Throughout history, the transmission of information, ideas and images took place slowly,
taking weeks, even months, to move around the world. Such a slow pace of
information travel gave people time to adjust psychologically to a new information
environment. Today, we zap information, ideas and images across the globe in
nanoseconds. People have no time to adjust, no time to assimilate the new information
and shape it into any coherent meaning. Taken together, the information technologies
are eroding the primacy of place, which, ultimately, may be one of the greatest
changes the human race has ever experienced. These are only two of the trends
shaping the coming decades. It's going to be a period of mounting complexity,
dislocation and uncertainty. At the same time we shall realize creative possibilities
beyond anything we've yet experienced.” -William Van Dusen Wishard

REFERENCES:

• Crane, D. (2011). Cultural Globalization. Sociopedia.isa

• Scheuerman, W. (2018). Globalization. In E. Zalta The Stanford Encyclopedia of
Philosophy.
• Steger, M.B. (2003). Globalization: A very short introduction. New York: Oxford
University Press.