Topic Two:

1
Topic Two

• The Formation of the Global System

2
Themes

• The changing historical form of political
  globalization
• The growth of economic globalization
• The development of the transnational organizations

3
Questions

• What is a modern nation-state?
• What are the transnational political processes?
• What are the principles of economic
  globalization?
• What is the history of the development of the
  global organization
• What is the implication of studying the global
  system

4
Modern Nation-state and World Order

• Rise of the west the growth of a European
  worldview effective enough to lend to the
  economic domination of the globe.
• Since the Second World War the modern
  nation-state has become the principal type of
  political rule across the globe.

5
Modern Nation-state and World Order

• The modern nation-states had a particular form-
  liberal or representative democracy, bureaucratic
  administration and monopoly of legitimate means
  of violence.

6
Modern Nation-state and World Order

• In the arena of national politics, liberal
  democracy is featured by a cluster of rules and
  institutions
• governing by elected representatives
• the right to vote for all adults in elections
• the right to run for public office
• the right for each citizen to freedom of
  expression and association
• the accessible sources of information

7
Modern Nation-state and World Order

• Dynamics
• The enormous flows of people national boundaries
  generate the problem of migration, immigration
  and creation of different identities. e.g.
  Diaspora, refugees, exiles and nomads

8
Modern Nation-state and World Order

• liberal democracy became the dominant type of
  modern nation-state in 19th and 20th century.
• There are three waves of democratization
  marking out the reach of liberal democracy over
  time
• from the early 19th century to the mid-1920s
• from Second World War to the early 1960s
• from 1974 until now.

9
Modern Nation-state and World Order

• By 1995, nearly 75 of all countries had
  established and adopted formal guarantees of
  political and civil rights.
• modern nation-state system the development of
  liberal democracy was taken place within a
  bounded political space.
• States are institutions, nations are cross-class
  collectivities which share a sense of identity
  and collective political fate

10
The Emergence of Global Politics

• Today the global transformation of politics had
  greatly changed the nation-state system.
• A new kind of global order marked by new patterns
  of power, hierarchy and unevenness became
  dominant.

11
World Order and Military

• Today 1945-89 Cold War ideology
• --NATO (USA)
• --Warsaw (USSR)
• --Arab-Islamic (Middle East)
• 1989 collapse of Soviet Union
• --Rise of Japan
• --Rise of Pacific Rim (East Asian Countries)
• --Development of EU
• 2000 Industrialized Warfare
• --Four politico-economic Core North America,
  Europe, East Asia and Middle East

12
The Emergence of Global Politics

• Global politics is a term, using to capture
• the stretching of political relations across
  space and time, and the extension of political
  power and activity across the boundaries of
  modern nation-state.
• It challenges the traditional distinctions
  between domestic/international, inside/outside,
  territorial/non-territorial politics.

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The Emergence of Global Politics

• The state is confronted by a great number of
  intergovernmental organization (IGOs),
  international agencies and quasi-supranational
  institutions, like the European Union or World
  Bank.
• Transnational bodies, such as multinational
  corporations, transnational pressure groups,
  transnational professional association,
  international social movements also participate
  intensively in global politics.

14
The Emergence of Global Politics

• In the global arena, there emerged a polyarchic
  mixed actor system in which political authority
  and sources of political action are widely
  diffused.

15
The Emergence of Global Politics

• The concept of global governance
• refers not only to the formal state
  institutions and organizations, but also all
  organizations and pressure groups- from MNCs,
  transnational social movement to non-governmental
  organizations (NGOs) which pursue goals and
  objectives for transnational rule and authority.
  

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The Emergence of Global Politics

• The United Nations System, the World Trade
  Organization, World Health Organization,
  Greenpeace (the globalization actors) are the
  central components of global governance.

17
The Emergence of Global Politics

• Rapid expansion of transnational links and the
  demand for international governance to deal with
  collective policy problems.
• In 1997 G7 summit met in London to discuss the
  problem of unemployment.
• This a symbolic importance at the time in bring
  unemployment to the top of international
  political agenda.

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The Emergence of Global Politics

• This led to significant changes in the
  decision-making structure of world politics.
• New forms of multilateral and multinational
  politics have been established involving
  governments.
• In 1909 there were 37 IGOs and 176 INGOs, while
  in 1996 there are nearly 260 IGOs and 5472 INGOs.
  
• State thus appears not so much as a single actor
  on the world stage but as a multiplicity of
  actors in many different forums (refer to
  supplementary).

19
Global Social Movements

• The extension of the concept of human rights, the
  development of global civil society, the
  recognition of worldwide problems and social
  protest against governments or transnational
  corporations
• Spread of global social movements friends of
  Earth, the Greenpeace, Feminist movements and
  Peace Movement

20
In short

• Globalization of politics is transforming the
  traditional forms of sovereign statehood and
  reordering international political relations.
• But these transformative processes are neither
  historically inevitable nor by any means fully
  secure.
• As a result, the contemporary world order is best
  understood as a highly complex and contested
  process.

21
Economic Globalization

• After industrial Revolution, states were
  independent politically but interdependent
  economically.
• An integrated system based on international
  division of labor, like Taylors scientific
  management and Fords assembly line manufacturing
• Development of TNC (Transnational corporation),
  e.g. the use of credit card and rise of fast food
  
• Creation of weight-ness economy information
  trading

22
Economic Globalization

• There is a corresponding transnationalization of
  economies, civil societies and communities.
• This transnationalization is most conspicuous in
  relation to the globalization of finance and
  production and the development of MNCs.
• Eg. 1973, 239 national banks established the
  SWIFT (standard world interbank and financial
  transactions) by 1989 SWIFT had 1,000 members in
  51 states.

23
Economic Globalization

• Dual Effect involving of people as consumers and
  producers whilst excluding people from
  substantive participation in the global economy.
• The historical development of the spread of
  economic globalization.

24
Consumption and Economy

• The outcome of mass production is mass
  consumptionAmerican Dream.
• The direct advertising of products and the
  transmission of idealised images of consumer
  culture have been carried out through media.

25
Consumption and Economy

• The 20th Century witnessed the development of
  global communications and media networks,
  especially the electronic revolution and
  information-super highway and the cyberworld

26
Consumption and Economy

• The 20th Century Three principal ways of Economic
  Globalization
• The emergence of a global market discipline in
  contrast with a mere global market-place
• The economic activities are being
  re-conceptualized and reorganized
• real-time activities where distance and
  location are no longer relevant as a determinant
  of economic operations,
• material activities where there is still some
  friction of space that limits choice of
  location.
• Money itself has become a real-time resource.
  International mobility of finance is
  qualitatively different from the previous eras.

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A Global Market Discipline

• A market-place international division of labor
  and an international market exchange between
  different goods and services that are produced in
  different nations.
• This is a pattern of inter-product trade.
• (countries that specialized in the export of one
  type of product would exchange that product for
  other types that they did not produce themselves.)

28
A Global Market Discipline

• A market-place international division of labor
  and an international market exchange between
  different goods and services that are produced in
  different nations.
• This is a pattern of inter-product trade.
• (countries that specialized in the export of one
  type of product would exchange that product for
  other types that they did not produce themselves.)

29
A Global Market Discipline

• A global market discipline a pattern of
  intra-product trade.
• At first, multinational companies adopted simple
  integration strategies.
• They set up foreign affiliates producing the same
  standardized commodities.
• Next, multinational companies adopted complex
  integration strategies.

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A Global Market Discipline

• They turned their fragmented production systems
  into regionally or globally integrated production
  networks.
• In this way, multinational companies often farmed
  out different parts of the production process to
  different affiliates in different national
  locations
• Each subsidiary took part in the production
  process, but not one single affiliate produced
  the whole product from beginning to end.
• In the early 1970s intra-product or intra-firm
  trade was accounted for 20 of world trade, by
  the early 1990s that share was around one-third.

31
Flexible Accumulation Through Global Webs

• Relocation of factories and companies almost
  anywhere in the globe due to the decreasing cost
  of transporting standard products and
  communicating information.
• The fusion of computer technology with
  telecommunications makes this possible.
• Firms relocate an ever-widening range of
  operations and functions to wherever low cost of
  production.

32
Flexible Accumulation Through Global Webs

• Production capacity viewed as commodity,
  something that can be instantly bought and sold
  on the market.
• This is flexible accumulation through global
  webs. eg, Nike footwear company.

33
Global Financial Deepening

• The growth of the financial or "symbol" economy
  outpaced the growth of trade and investment.
• Total annual value of transactions in the world's
  financial markets is now twice the total value of
  world production.
• As Peter Drucker said, "90 or more of the
  transnational economy's financial transactions do
  not serve what economists would consider an
  economic function."

34
Global Financial Deepening

• Money is increasingly being made out of the
  circulation of money, regardless of traditional
  restrictions of space and time.
• The financial revolution since the 1980s has been
  characterized by financial deregulation on the
  one hand with information technology on the
  other.
• This led to a rapid increase in international
  mobility of capital.

35
Global Financial Deepening

• This mobility refers not only to the speed and
  freedom with which money can now move across
  frontiers.
• It refers to the way it is being disconnected
  from social relationships in which money and
  wealth were previously embedded.

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5 Ideological Claims of Globalism

• G is about liberalization and global integration
  of markets
• G is inevitable and irreversible
• No one is in charge of Globalization
• G benefits everyone
• G furthers the spread of democracy in the world

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To conclude Rethinking globalization

• There is no such thing as a global economy or a
  global society yet.
• On what direction the process of globalization
  will go, it really depends on whether and how we
  resist the process or go along with it.

• Globalization today drives cross-border economic
  integration to new levels of intensity.
• But globalization is a process, not an end-state
  affairs.