CHAPTER 4: THE GLOBAL INTERSTATE SYSTEM 12.

12. Opening its industries, stock and bond markets to direct foreign ownership and
investment
THE GLOBAL INTERSTATE SYSTEM 13. Deregulating its economy to promote as much domestic competition as possible
14. Eliminating government corruption
Many facets of the lives we have right now are an offshoot of globalization. 15. Subsidies and kickbacks as much as possible
Example – System of Education (Kto12 Program) 16. Opening its banking and telecommunications systems to private ownership and
- Resistance – Many Filipinos go against it. We are afraid and against change, but we competition
want it or not change is bound to happen and it will definitely happen. (“The only 17. Allowing its citizens to choose from array of competing pension options and foreign-
thing in the world that is not changing, constant, is change.”) run pension and mutual funds

The Global Interstate System – global interstate system ECONOMIC AND POLITICAL INTEGRATION (Integration Processes)

ECONOMIC INTERDEPENDENCE Economic Integration

- It is a more informal, societal-driven process that removes trade and investment
- It is a relationship between countries in which each country is dependent on barriers.
another for necessary goods or services.
- It is occurring due to specialization of countries, as they are dependent on others in Political Integration
the purchase of products, which are not manufactured nationwide. - It is a more top-down, state-driven process of institutional creation at the regional
level.
THE ELECTRONIC HERD AND STRAITJACKET
REGIONAL AND ECONOMIC PARTNERSHIPS/INSTITUTIONS
Electronic Herd
- It is a global lending group. Association of Southeast Asian Nations (ASEAN)
- It is powerful because it has a lot of money that it is willing to lend to others. - Established on August 8, 1967 in Bangkok, Thailand
- Indonesia, Malaysia, Philippines, Singapore and Thailand
Golden Straitjacket - Brunei Darussalam (1984), Vietnam (1995), Laos and Myanmar (1997), Cambodia
- To get the herd’s money, you have to make yourself attractive to it. (1999)
- That means fulfilling a long list of economic requirements.
European Union (EU)
1. Making the private sector the primary engine of its economic growth - 1951
2. Maintaining a low rate of inflation and price stability - Belgium, Germany, France, Italy, Luxembourg, and Netherlands
3. Shrinking the size of its state bureaucracy - Now, 28 members
4. Maintaining as close to a balanced budget possible, if not a surplus
5. Eliminating and lowering tariffs on imported goods Asia-Pacific Economic Cooperation (APEC)
6. Removing restrictions on foreign investment - It was first broached by former prime minister of Australia, Bob Hawke.
7. Getting rid of quotas and domestic monopolies - It is the only international intergovernmental grouping in the world committed to
8. Increasing exports reducing barriers to trade and investment without requiring its members to enter
9. Privatizing state-owned industries and utilities into legally binding obligations.
10. Deregulating capital markets
11. Making its currency convertible
CHAPTER 5 Global Governance WORLD OF REGIONS
Global Governance – It is the sum of laws, norms, policies and institutions that define, constitute and mediate Chapter 6 – Global Divides: The North and the South
relations among citizens, society, markets and the state in the international arena. There is a need in global
governance when the state can no longer resolve the crises and problems internally without the mediation of The North-South Divide
international actors. - Also known as the “Rich-Poor Divide”
- It is an imaginary line separating more economically developed countries (MEDC), and less
UNITED NATIONS economically developed countries (LEDC).
- International organization founded in 1945 NORTH
- Made up of 193 member states - “Rich side”
- More economically developed countries (MEDC)
Main Organs of UN - Canada, USA, Greenland, Russia
1. General Assembly - At some point, was imperialists
2. Security Council MEDC
3. Economic and Social Council - Stable economy
4. Trusteeship Council - Better standard of living and quality of life
5. International Court of Justice How did the north gain the advantage?
6. UN Secretariat - Technological advancement in weaponry
- Advancement of medicine
Roles of United Nations SOUTH
1. Maintain International Peace and Security - “Poor side”
2. Protect Human Rights - Developing countries
3. Deliver Humanitarian Aid - Considered inferior to that of the North
4. Promote Sustainable Development - Somalia, Vietnam, Haiti, and India
5. Uphold International Law LEDC
- Unstable government
Governance Gaps – flaws in the global governance that are evident in the business and human rights situation - Poor economy
the world faces at present. Why is the South at such a disadvantage?
- Colonization; colony
Five Gaps in Global Governance
1. Knowledge Gaps NORTH SOUTH
2. Normative Gaps ¼ of the world population ¾ of the world’s people
3. Policy Gaps 4/5 of world’s income 1/5 of world’s income
4. Institutional Gaps Ave. life expectancy: more 70 years Ave. life expectancy: 50 years
5. Compliance Gaps Most people have enough to eat 1/5 or more suffer from hunger and
malnutrition
Most people is educated ½ of people have little chance of any
education
Over 90% of the world’s manufacturing Less than 10% of the world’s
industry manufacturing industry
About 96% of the world’s spending on 4% of the world’s research and
research and development development