Interrogating
Globalization
Lesson 2
Lesson Objectives
1. Discuss economic globalization as a complex process
responsible for enormous global and local changes.
2. Explain economic globalization’s accompanying
cultural and political globalization;
3. Articulate the assumptions behind globalization; and
4. Critically evaluate the impacts of globalization
especially for poor countries.
Definition of
Term
Development
paradigms
- an idea of prescribed
path to attain
development through
certain set of activities,
according to a defined
vision.
Introduction
– Globalization has been
responsible for remarkable
changes in the 20th century. In
understanding it as a subject,
one must examine what kind of
changes are created and the
underlying processes behind
these changes.
Economic Globalization, Cultural
Globalization, and Political
Globalization
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)
Economic Globalization, Cultural
Globalization, and Political
Globalization
– Globalization and its accompanying processes
point to a paradigm about development
(Pongsapich, 2003)
– Globalization is built on belief that development
can be achieved through rapid economic growth,
made possible because of economic integration.
– As a growth-oriented model of development, it
looks into GDP as indicator of success.
CONTEMPLATE
– Competing Development
Paradigms.
A development paradigm
is an idea of prescribed path to
attain development through
certain set of activities,
according to a defined vision.
CONTEMPLATE
What are your thoughts
regarding two competing
paradigms of development-
development by building
business in the ancestral land
and development from the point
of view of Indigenous People?
The market economy, the economic
system that gives freedom to
entrepreneurs to control productive
process to pursue profit, is just one
kind of economic system designed by
human societies.
Flows in the Age
of Globalization
–Important aspects 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.).
Trading
– Global trading concerns
importation 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
Capital to foreign businesses or
governments, while official flows
Movement 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, 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 (PSA, April 2019).
Cultural
Globalization and
Political
Globalization
– Increased
interdependence of
economies in the
world also combines
with globalization of
culture and politics.
Cultural Globalization
– Refers to the increasing “contact between
people and their cultures- their ideas,
their values, their ways of life.
– This significant change is getting deeply
entrenched in contemporary societies.
– It is also linked to globalization of
lifestyles such as music, media, fashion,
food, as well as globalization of
knowledge, science, and technology.
Political
Globalization
– Is the enlargement
of the international
political system and
its establishments,
where inter-
regional dealings,
including trade, are
managed.
Political
Globalization
– 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.
Group Discuss the following with
Activity your group:
#2 • Describe young people’s lifestyle-
food, media, fashion, art, movies,
and music.
• Find your similarities in lifestyle.
Which among of these are
influenced by foreign culture?
• What or who influenced you to
adopt those kinds of lifestyle?
Assumptions Behind the Pursuit of
Globalization
Assumptions Behind the
Pursuit of Globalization
–As a paradigm of development,
globalization operates on certain
assumptions about a desirable economy
and development. However, these
assumptions must be tested in the real
world
Some critiques regarding the
unreliability of these assumptions:
Assumptions Behind Critiques to the
Globalization Assumptions
Rapid economic growth will lead to Economic growth is only one
development aspect of development, other
aspirations are;
Achieving both material needs
and broader social objectives;
Social and economic justice and
equality;
Self- reliance
Welfare, adequate provision of
basic services; and
Equitable distribution of
Some critiques regarding the unreliability of
these assumptions:
Assumptions Behind Critiques to the Assumptions
Globalization
Poor countries will benefit from Borrowing of poor countries are
borrowed funds. coupled with conditions, which make
countries compromise spending for
social services and welfare.
Poor countries need to catch up with It will be difficult for poor countries to
rich countries by implementing catch up because they are caught in
economic policies toward economic unequal exchanges and
integration. underdevelopment.
Underdevelopment cannot be
understood just by analyzing one
country but by examining it within the
historical and worldwide political-
Some critiques regarding the unreliability
of these assumptions:
Assumptions Behind Critiques to the
Globalization Assumptions
Removal of tariffs, quota can ease Reduction of tariffs in the
global trading and will lead to Philippines since the 1980s led to
economic integration toward unfair competition of local
prosperity. industries with imports. Reduction
of tariffs led to the death of
several domestic industries.
The loss of these local industries
also resulted in massive
unemployment.
Globalization is not a
Institution random phenomenon. It is
s and devised by humans, guided
Actors by several assumptions
about development.
Shaping
Economic International businesses
Globalizati called transnational
on corporations are important
players in globalization.
Communicate: Group
Tasks
– Form two groups. Research on Philippine BPOs and the
origin of Starbucks. Explain transnational corporations by
dramatizing the BPOs and the story of Starbucks.
Group 1: What are Business Process Outsourcing (BPO)
companies?
Group 2: What coffee did our parents drink before
Starbucks?
