The Formation

1
Topic 2

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

5
Modern Nation-state and World Order (Cont)

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

6
Modern Nation-state and World Order (Cont)

• 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.

• 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

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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.
  

8
World Order and Military

• 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

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The Emergence of Global Politics (Cont)

• 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.

10
The Emergence of Global Politics (Cont)

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

11
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.
• the United Nations System, the World Trade
  Organization, World Health Organization,
  Greenpeace (the globalization actors) are the
  central components of global governance.

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• 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.

13
Responses to the ideology of globalization

• Far from the end of ideology
• Religious fundamentalism (911 trategeries)
• Extreme Right (Market fundamentalist)
• Extreme Left (Marxism)
• Others globalization from below and beyond

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• 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).

15
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

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Conclusion

• 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.

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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

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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.
• 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 (see supplement)
  

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

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• 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 re-organized
  
• a) real-time activities where distance
  and location are no longer relevant as a
  determinant of economic operations,
  
• b) material activities where there is
  still some friction of space that limits choice
  of location.
  
• 3. 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.)

22
A Global Market Discipline(Cont)

• 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(Cont)

• 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.
  

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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.
  
• 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.
  

25
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."

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Global Financial Deepening (Cont)

• 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.
  

27
Global Financial Deepening (Cont)

• 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

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

• 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.