Understanding the Contemporary World

Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
College of Social Science and Development
DEPARTMENT OF SOCIOLOGY & ANTHROPOLOGY
INSTRUCTIONAL MATERIAL FOR
GEED 10043 Contemporary World
Compiled by : Contact Information:
Aguinaldo, Mieca mmaguinaldo@pup.edu.ph
Cabalatungan, Simon cabalatungansimonf@gmail.com
Lazaro, Angelica angelicatatlongharilazaro@gmail.com
Nabong, Guillen gmnabong@pup.edu.ph
Santero, Gil Mari santerogilmari@gmail.com
Tena, Mejedin mejedin.tena@gmail.com

The Contemporary World
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ABOUT YOU
Student Name: ________________________
Student Number: ______________________
Course and Section: ___________________
Email Address: ________________________
Contact Number: _______________________
Address: ______________________________
2 by 2 Picture

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COURSE SYLLABUS
WEEKS TOPIC RESOURCES/ READINGS ASSESSMENT
Week 1 Understanding the
Contemporary World
• Mills, C.W. (1967) The Promise.
In the Sociological Imagination.
New York. Anchor Books
• Claudio, L.E., and Abinales,
P.N. (2018) Lesson 1. In the
Contemporary World. Quezon
City: C and E Publication
• Claudio, L.E., and Abinales,
P.N. (2018) Lesson 2. In the
Contemporary World. Quezon
City: C and E Publication
• Hardin, Garrett (1986). “The
Tragedy of the Commons”
Science, New Series Vol. 162
Pp 1243-1248
• Benczes, Istvan Chapter 9
(2014), in the SAGE Handbook
of Globalization
• De Leon, Hector S. (2011)
Textbook on the Philippine
Constitution Rex Printing
Company Inc.
Assessment 1
Understanding the
Contemporary
World
Week 2-
4
Understanding Global
Inequalities
• Colonialism &
Neocolonialism
• Theories on
Global Inequality
• Logan, Amanda L. (2016) “
Why Can’t People Feed
Themselves”: Archaeology
Alternative Archive of Food
Security in Banda , Ghana.
American Anthropologist. Vol.
118 No. 3
• Lappe, Frances Moore &
Collins, Joseph (o.n) Why
Can’t People Feed
Themselves? Article 33
• Claudio, Lisandro E. (2014) “
Locating the Global South” The
Sage Handbook of
Globalization
• Wallerstein, Immanuel (2006) “
The Modern World System as a
Capitalist World- Economy. The
World System Theory Pp 20-29
• Namkoong, Young (1999) “
Dependency Theory: Concepts,
Classifications and Criticism”
Assessment 2
Understanding
Global Inequalities

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International Area Review Vol
2. No 1.
Week 3-
5
Structures of
Globalization
• The
Globalization of
World
Economies
• Global Politics
and
Contemporary
Global
Governance
• Claudio, L. E., & Abinales, P. N.
2018. The Contemporary world.
South Triangle, Q.C.: C & E
Publishing, Inc.
• Quintos P. June 2020. Policy
Paper: The Philippines’ COVID-
19 Response: Symptoms of
Deeper Malaise in the
Philippine Health Systems.
University of the Philippines
National College of Public
Administration and Governance
Term Paper 1 :
The Globalization
of World
Economies
Assessment 3:
Global Politics and
Contemporary
Global
Governance
Week 6-
8
The World of Regions Term Paper 2:
The World of
Regions
Week 9-
11
Contemporary Forms
of Connectivity
• Religion and
Globalization
• Media and
Globalization
• Atkinson et.al. 2015. The
Sociology Book: Big Ideas
Explained.DK publishing 345
Hudson Street, New York.
• Pew Research Center, April 5,
2017, “The Changing Global
Religious Landscape”.
• Lule, Jack .2014. “Globalization
and Media: Creating the Global
Village” Sage Handbook on
Globalization
Assessment 5:
Media and
Globalization
Week
12-14
Global Demography
• Global City
• Demography
and Migration
• Aoki, H. 2008. Globalization
and the Street Homeless in
Metro Manila. Philippine
Studies, Vol. 56, No. 1, Blair &
Robertson. Ateneo De Manila
University.
Term Paper 3:
The Global City
Assessment 6:
Demography and
Migration
INTRODUCTION:
Why do we study the contemporary world? We all study history and it makes us believe
that the events in the past have something to do with the present, then we should also study the
present which is relevant to us. With this, the concept or process of globalization is being brought
up. For Manfred Steger, globalization refers to “the expansion and intensification of social
relations and consciousness across world-time and world-space”. It forms various kinds of
connectivity, not just only in terms of economic activity. When we say expansion, it is the formation

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of various connections in social, political, economic, cultural, and technological. As for
intensification, it refers to acceleration or maintaining these affiliations globally. With these
processes of intensification and expansion that globalization allows, globalism emerged that
explains the belief that the integration of economic markets is beneficial for everyone in global
connections. If people criticize globalization, they are, more often than not, criticizing the indication
of globalism and not globalization as globalization is not only focused on economic
affiliation. More so, Globalization is widely recognized to remake the traditional social structures
that transform the reality of people in every corner of the world.
ABOUT THE SUBJECT:
This course introduces students to the contemporary world by examining the multifaceted
phenomenon of globalization. Using the interdisciplinary approach, the subject examines the
social, economic, political, and technological context of the contemporary world and the
increasing awareness and interconnected relationship of people from different places in the
world. Moreover, the course provides an overview of the contemporary problems faced by the
globalizing world and the different discourses on development and governance. Beyond this
course’s description, the instructional materials to be discussed in the class desire to enrich the
student’s understanding of the world by which they act as agents of change.
COURSE DESCRIPTION
This will be a completely online course that will be delivered to you by the instructor once
the class schedule is finalized. Course content, including lecture PowerPoints, readings, videos,
quizzes, and instructions for term paper requirements will be sent to the class via google drive.
Also, lecture presentations will be conducted via video sessions through google meet where the
instructor will virtually meet with you to discuss the week’s lecture. All course requirements must
be completed during the semester. All discussions, term papers, quizzes, exams and other
requirements the instructor finds necessary to accomplish must be completed by the due dates
shown on the subject syllabus.
COURSE OUTCOMES
The subject is to provide an educational experience for students to understand the world by
examining social, economic, political, processes that shape it. By completing the course
students should be able to:
1. Understand the different social issues that presently exist in the contemporary world
2. Understand and apply the theories discussed in class to make sense of social issues.
3. Examine the general social problems faced by urban and rural settlers alike in the
contemporary world and critically provide solutions through research.
4. Demonstrate their skills in conducting social research through the methodologies
discussed in class
GRADE PERCENTAGE BREAKDOWN:
Subject Assessment
70%
Term Paper
30%

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TOTAL
100
COURSE RULES:
1.MISSED REQUIREMENTS: If a student misses any class activities such as quizzes, recitations,
and group activities, the faculty-in-charge will not provide any make-up class activities. If the
reason for the absence of the student is excusable, the faculty-in-charge will grade him or her
according to her current standing on the activity he or she missed. On the other hand, if the
absence is not excusable, then said student will receive a grade of zero (0) for the missed activity.
2.SUBMISSION OF REQUIREMENTS: Submission of papers and other requirements will only
be allowed during the class session unless otherwise provided for by the faculty-in-charge.
Outputs of students who have failed to adhere to the format given by the faculty-in-charge will
suffer grade deductions.
3.PLAGIARISM AND ACADEMIC DISHONESTY: The faculty-in-charge will require her students
to submit home works and other outputs from time to time. She need not remind you to always
cite your sources in APA (6th edition). Your failure to do so will tantamount to a grade of zero (0)
for the said output. Students who willfully engage in acts of academic dishonesty shall be given a
grade of zero or F on the academic exercise concerned.
4. CONTACT SCHEDULE: The faculty-in-charge strictly implements a schedule on
approaching her in this new mode of learning. For any clarification and concerns, send a
message through email provided by the faculty-in-charge only every Saturday to avoid influx
and unread emails, you will receive a response the next day. Do not forget to state your name,
section, and concern clearly on your email.
OUTPUT FORMAT:
Since this will be an online course that will be delivered to you, the instructor will divide the
following output formats into two for two kinds of students – Offline and Online Students.
What is an Online Student?
The online students are those who have access to the internet and can participate in online
video lectures. Online students will receive a google drive containing the readings, PowerPoint,
and other instructional materials to be used throughout the semester. The instructor will send a
soft copy of this module- Understanding the Contemporary World Module, as well as the
google drive link to the class at the start of the semester. If you are one of these students you
must use this file to answer each self-test and term paper output. These student modules will then
be compiled by a designated student in one google drive folder and sent to the instructor via email
by the end of the term. All the Course Assessments must be passed to the instructor by the end
of the semester. Online students must use this word document to answer each assessment, will
serve as their main work book.
Format for Self-Tests and Term Papers:
● Arial 11
● Single spaced
● Justified

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What is an Offline Student?
Offline students are those who do not have the means to participate in online lectures. If
you are one of these students a printed version of this module- The Contemporary World
Module, will be delivered to you. For offline students, this course will imitate the practice of
homeschooling where students will be graded based on their outputs by the end of the term.
Offline students could put their answers in a short bond paper to be attached with this module, to
be sent back to the instructor by the end of the semester.
Format for Self-Test and Term Papers:
Students could answer the self-tests and term papers in the blank spaces provided per
section. Additional bond papers could be used by the students to answer each self- test and
term paper as long as it remains true to the format.
Contents
LESSON 1: UNDERSTANDING THE CONTEMPORARY WORLD ........................................... 9
UNIT 1: Defining Globalization ............................................................................................... 9
Sociological Imagination......................................................................................................... 9
The Approach to this Course: Interdisciplinary......................................................................11
Defining Globalization............................................................................................................11
Nation-State, Nations, and Nationalism .................................................................................13
UNIT 2: Understanding Global Inequalities............................................................................17
The History of Colonialism.....................................................................................................18
The Consequence of Colonialism..........................................................................................19
Neoliberal Globalization.........................................................................................................19
Theories on Global Inequality ................................................................................................24
LESSON 2: STRUCTURES OF GLOBALIZATION ...................................................................32
UNIT 1: The Globalization of World Economies....................................................................32
What is economic globalization?............................................................................................32
Early historical traces of exchange up to present...................................................................33
Economic Crisis into Social Crisis (Atkinson et.al 2015) ......................................................35
UNIT 2: Global Politics & Contemporary Global Governance ................................................36
Politics’ Premise....................................................................................................................37
The International State System..............................................................................................37
Internationalism.....................................................................................................................38
The Global Governance ........................................................................................................39
The United Nations................................................................................................................39
LESSON 3: THE WORLD OF REGIONS..................................................................................47

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The Global North and South..................................................................................................47
Defining Regionalism.............................................................................................................47
What are Regions?................................................................................................................48
Why form Regions?...............................................................................................................48
What is a Non-State Regionalism?........................................................................................49
What are contemporary challenges to regionalism? ..............................................................49
LESSON 4 CONTEMPORARY FORMS OF CONNECTIVITY ..................................................50
Unit 1: Religion and Globalization..........................................................................................50
What is Religion ....................................................................................................................51
Connection between religion and economic structures..........................................................51
Religion and Globalism..........................................................................................................52
Realities in Religion...............................................................................................................52
Religion and Globalization.....................................................................................................53
The Global Religious Change Landscape..............................................................................53
UNIT 2: Media and Globalization...........................................................................................54
Media’s role in glocalization...................................................................................................56
How media affect societies?..................................................................................................56
LESSON 5: GLOBAL DEMOGRAPHY......................................................................................57
UNIT 1: Global City................................................................................................................57
Global cities are strategic for new types of operations ...........................................................58
Different Societies appropriate the materials of modernity differently.....................................59
Global Issues, Local Perspectives (Atkinson et.al 2015) p.146..............................................61
Globalization and the Street Homeless in Metro Manila.........................................................61
UNIT 2: Demography and Migration ......................................................................................64
Global Demography...............................................................................................................65
Overpopulation......................................................................................................................66
Population Growth and Food Security ...................................................................................67
What is Migration...................................................................................................................67
References ...............................................................................................................................70

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LESSON 1: UNDERSTANDING THE CONTEMPORARY WORLD
UNIT 1: Defining Globalization
Learning Objectives:
By the end of this unit students must be able to:
1. Understand and apply the sociological imagination
2. Understand the Interdisciplinary Approach
3. Demonstrate critical thinking in comprehending contemporary event in light of the
globalizing economic, social, political and cultural processes.
Sections of the Unit:
1. The Sociological Imagination
2. Defining Globalization
3. Nation-State, Nation, Nationalism
Sociological Imagination
Source(s): Mills, C.W. 1967. “The Promise. In the Sociological Imagination”. New York. Anchor Books
Why should we care? Why
is it important to know the different
global processes that influence
our society? Because, as C Wright
Mills argues, we must understand
our problems in light of the greater
context of social structures. By
doing this, we can cure the
parochial outlook to one's
immediate community. A person
who only looks at his community's
problems without looking at the
wider context of society is
parochial. Also, one who looks at
his country's problems without
analyzing the larger global context
is close-minded. This course aims
to stretch the limits of your imagination. To get under the hood and examine the intricate
mechanisms of the different global structures working hand in hand to maintain social equilibrium.
As mentioned before, one of the purposes of this course is to broaden your imagination to
understand the relationship between different structures of the contemporary world that produce
our social realities. It is then critical for us to understand what I mean by using the word
imagination to achieve this level of understanding. Before further discussing its implication, I
would like to invite you to first read C Wright Mills' (1916-1962) first chapter in his book,
"sociological imagination."

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As C Wright Mills (1916-1962) discussed, sociological imagination is the ability to see the
social patterns that influence individuals, families, groups, and organizations. It is the individual’s
awareness of the relationship between the individual and the wider society, both today and in the
past. By exercising it, we make connections to the root cause of structures and move away from
seeing things through our own personal lens. Through it we will be able to understand and explain
how some of our problems are caused by underlying structural obstacles caused by certain social
issues. As C Wright Mills explains (1916-1962), neither the life of an individual nor the history of
a society can be understood without understanding both,” For example, when a single person
is without employment in a nation whose population is close to a hundred million, the problems in
employment remains a personal problem. Possibly, the person just doesn’t have the desire to put
himself to work. If, however, thousands are without jobs in a nation of a hundred million people,
then there may be a larger barrier that must be addressed. It may be the issue of job mismatched
where many students graduate with credible degrees but remain jobless due to the inadequacy
of finding the jobs that fit their particular skills within the country. My point in this matter is that
when people share a common problem, a common experience of difficulty there may be an
underlying social issue that must be addressed. Since these issues are outside of the personal
sphere of an individual it calls into action a collective to address it by its roots. When personal
problems are collectively shared it may be the expression of larger social issues that must be
addressed.
Let us try to illustrate this by mapping out the cause of certain personal problems
experienced by students daily to its structural cause.
Given the provisions from the Polytechnic
University of the Philippines’ student manual, illness
excused by a medical certificate as well as absences
authorized in writing by the University, are the only
grounds for excusing tardiness or absence. Given
the urban circumstances of massive traffic and
frequent public transport malfunctions, increasing

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student’s travel time, it may be appropriate to interpret student tardiness beyond the student’s
conduct and inspect its social cause. Just as we may refer to the graph, student tardiness may
usually be caused by either traffic or public transportation malfunctions. Let us for a minute, try
and trace the web of influence that transcends the student’s personal sphere. Let us then ask,
why is traffic in Metro Manila so congested? One of its sources would likely be the state of the
urban population in the city. Why are there so many people living in Metro Manila? Well, we could
trace three social roots: First, it may be because of the Filipino Families’ lack of basic knowledge
in family planning. One that we could also link to the opposing views of the church and long-
standing Christian values embedded into Filipino families’ traditions and social norms. Because
of the inadequacy of knowledge in this subject, a surge in the population may be expected. More
so, there is also the issue of migration, not from country to country but from rural to urban. Many
Filipinos flock into urban centers with the prospect of finding a sustainable job to match their
standard of living. Why are they migrating? One probable cause is the unbalanced discourse on
development. As traditional livelihoods found in rural areas continue to become unsustainable
and harder some Filipinos decide to settle inside cities to find jobs. Why so? As technology
advanced people are finding new innovative ways to work and get paid. These kinds of jobs are
usually found in urban centers. This may also be attributed to the in flock of Transnational
Companies who enter the country to provide people with jobs through either services or
manufacturing processes conducted in infrastructures that are usually located within the city. This
exercise merely demonstrates the networked system of relations that exist within the
contemporary world. For a true scholar of society to understand it , he must broaden his horizon
to trace the interlocked webs of relations and understand how his personal problems are also
consequences of larger social issues.
The Approach to this Course: Interdisciplinary
Source(s): Claudio, L. E., & Abinales, P. N. (2018) The Contemporary world. South Triangle, Q.C.C & E
Publishing, Inc.
Our study of Globalization and the
Contemporary World must be inherently
interdisciplinary. Using the illustration, we
notice that the conclusions of different
experts are different from each other all
though they are studying the same thing.
Why do you think they differ in conclusions?
Because of their parochial perspective, they
do not consider each part as a member of a
larger whole. With an interdisciplinary
approach, we could paint an accurate picture
of the various globalizing processes. Our
study of the process of globalization must
then be inherently interdisciplinary so that we will be able to accurately understand the social,
economic, political, and cultural processes that shape its structures. We will be able to see the
whole elephant as it is and conclude a more accurate diagnosis of current events and the world
in general.
Defining Globalization
Let us first clarify what it is not. As opposed to popular/ activist definition globalization is
not neoliberal globalization or market globalism. Market Globalism or Neoliberal Globalization
specifically conceptualize how neoliberal policies desire to create an international framework for

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economies to raise profit by minimizing the cost of investment. Globalization on the other hand,
according to Steger, refers to the expansion and intensification of social relations and
consciousness across world time and world space. Fulcher and Scott (2007) on the other hand,
defined Globalization as a complex of interrelated processes, which have in common the idea
that relationships and organizations have increasingly spread across the world. Globalization is a
process that has destroyed distance in the sense that its processes are no longer limited to
geographic boundaries. Moreover, with the intensified social relations that have linked people
across the globe, men have a greater awareness of the events that are continually happening in
the world.
Attributes of Globalization
Publishing, Inc.
1. Various Form of Connectivity
- These are forms of connections that may be economic, political, or cultural. For
example, the Philippines and Vietnam as both members of the ASEAN ( Association
of Southeast Asian Nations) engaging with trade with each other may be considered
as an economic form of connectivity. On the other hand, the friendship or courtship of
Ed and Rose forged within the platforms of social media sites may also be a form of
connectivity that transcend world space and time.
2. Expansion and Stretching of Social Relations
- An example of this is the expanding function of NGO ( non-government organization)
in protecting the rights and dignity of Overseas Filipino Workers abroad ( OFWs).
Migrante International, for instance, is a non-government organization based on the
Philippines that seeks to form a global alliance because of its mission to safeguard the
rights and wellbeing of Filipinos who are working abroad.
3. Intensification and Acceleration of Social Exchanges and Activities
- As we have already stated, the intensification of social relations and consciousness
across world time and world space is one of the key components of globalization. The
stated intensification of social relations is largely attributed to the advanced
technologies that are invented to improve human communication. For example, in the
past, it would take two to three days before a message may be received by another
person in the next city due to the slow-paced transportation of mail. With the discovery
of Facebook and many social media sites, communication is instant and easily
accessible from our fingertips. This is an example of how globalization has restructured
our concept of time and space. Usually, due to the slow-paced mailing system, the
further the receiver of the message is the longer it would take to communicate its
content. However, with the invention of the World Wide Web and various social media
platforms, our messages could reach other people, no matter the distance in mere
seconds. Another example would be the screening of live television. No matter where
you are in the world, you could all share the same experience of watching a Pacquiao
fight through our televisions and computers. This is how globalization reshaped our
concept of time and space. We seemingly are liberated more from its constraints.
4. Occurs Subjectively
- Lastly, Globalization occurs subjectively in the sense that we are more conscious of
the world we are living in. We live in a network where we could trace the various forms

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of social connectivity that shape our perception of the world and at the same time
influence our actions within it. For example, we now think about the world; we voice
out our opinions and our position in social issues that do not necessarily involve us.
We are affected by campaigns such as the #BlackLivesMatters that happened in the
United States to end police brutality against African Americans. We grieve and pray
for the Australians who lost their homes in the forest fires that torched their houses.
We do our part to alleviate climate change because we become more conscious that
there are also problems without passports that demand our collective actions.
Nation-State, Nations, and Nationalism
Publishing, Inc. & Dannug, Roman D.(2005) Politics and Governance C&E Publishing, Inc. & De Leon,
Hector S. (2011) Textbook on the Philippine Constitution Manila: Rex Book Store
With the intensified social relations reaching across the globe, it is expected that there has
been an increasing rate of interdependence between nations from different parts of the world. Let
us first define the Nation-State. It is considered as a political unit that has:
1. A National Citizen (People)
2. A National Territory (Land)
3. A National Administration (Government)
The State
The State is considered to be the main political actor inside the global political and economic
arena. It is based on the objective realities that define a country. Meaning, it is measurable and
quantifiable in the sense that the citizens are numbered, its territories have bounds and the
national government is recognized and defined by the constitution of the land. Moreover, the State
is considered as a community of persons more or less numerous, permanently occupying definite
portion of territory, having a government of their own to which the great body of inhabitants render
obedience, and enjoying freedom from external control.
Elements of the State
a. People- this refers to the inhabitants living within the state. Without people there
can be no functionaries to govern and no subjects to be governed. There is no
requirement as to the number of people that should compose a state. Ideally, it
should be neither too small nor too large: small enough to be well-governed and
large enough to be self-sufficing.
b. Territory- it includes not only the fixed portion of land over which the jurisdiction
of the state extends ( territorial domain), but also the rivers and lakes therein, a
certain area of the sea which abuts upon its coasts ( fluvial and maritime domain)
and the air space above the land and the waters( aerial domain). Thus, the domain
of the state may be described as terrestrial, fluvial, maritime and aerial.
c. Government- Usually used to refer person/s who has the function of political
control/ administration. It is the agency that carries the will of the state.
▪ Constitution- a body of rules and principles in accordance with which the
power of sovereignty is regularly exercised.
• Nature and Purpose/ Function of Constitution
1. Serve as the supreme or fundamental law

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2. Establishes basic framework and underlying principles of
government.
d. Sovereignty- Supreme power of the state to command or enforce obedience. The
term may be defined as the supreme power of the state to command and enforce
obedience to its will from people within its jurisdiction and corollary, to have
freedom from foreign control. It has, therefore, two manifestations:
i. Internal- the power of the state to rule within its territory
ii. External- the freedom of the state to carry out its activities without
subjection to or control by other states. External sovereignty is usually
referred to as independence.
Origin of the States
Source(s): Dannug, Roman D.(2005) Politics and Governance C&E Publishing, Inc & De Leon, Hector
S. (2011) Textbook on the Philippine Constitution Manila: Rex Book Store & Laskar, Manzoor Elahi (2013)
Summary of Social Contract Theory by Hobbes, Locke and Rousseau SSRN Electronic Journal.
There are several theories concerning the origin of states, among which are:
1. Divine Right Theory - It is ordained by God to govern the people references to the
law which Moses receive at Mount Sinai.
Laws are from God; the tablet of our hearts bear His signature and our conscience
bears witness of it (Romans 2:14-15).We know that God has set natural laws as moral
laws- rights that come from God, written into the human conscience (Romans 1:19;
Romans 2:12;14-15; 27). Natural Laws are considered as general principles inherent to
Human Nature. It is what God has written in our hearts as the universal standard for
recognizing good and bad (Romans 2:14-15). Positive Law, on the other hand, are the
rights granted by the State. It is the cornerstone for our notion of social justice; which
artificially materializes the provision of natural laws and creates regulations for civil life. In

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other words, positive laws as laws created by men merely recognize the natural laws
predisposed by God. We notice how both are recognized in the United States’ Declaration
of Independence:
We hold these truths to be self-evident, that all men are created equal, that
they are endowed by their Creator with certain unalienable Rights, that among
these are Life, Liberty and the pursuit of Happiness. — That to secure these rights,
Governments are instituted among Men, deriving their just powers from the
consent of the governed, — That whenever any Form of Government becomes
destructive of these ends, it is the Right of the People to alter or to abolish it, and
to institute new Government, laying its foundation on such principles and
organizing its powers in such form, as to them shall seem most likely to affect their
Safety and Happiness.
As expressed, there are unalienable rights that are appointed to men as God’s
creation, among which is - Life, Liberty and the Pursuit of Happiness. The US government,
having been instituted by men, must then uphold these rights. With this in mind, natural
laws are the foundation of our government. Laws are then framed by the state to restrain
sin and promote righteousness. The very purpose of the Constitution is to uphold and
recognize these natural laws by obstructing the government. The Constitution not only
recognizes people’s natural rights, endowed by God but also recognizes that men are free
to exercise these rights. It is through the laws that our inherent , God given rights are
recognized. As Attorney Patrick Henry also interpreted, “The Constitution is not an
instrument for the government to restrain the people, it is an instrument for the people to
restrain the government...- lest it comes to dominate our lives and interests.” This is what
happens in governance, the government pass laws and remove certain liberties in the
name of the “greater good” according to the pronouncement of natural laws and uphold “
social justice,” as long as it is not unconstitutional and a violation of “unalienable rights”
outlined by the Constitution. Furthermore, based on the provision of human rights,
recognizing both the written and unwritten nature of legal and moral entitlement, citizens
are protected through the constitution from the government. It is these rights that limit the
state's use of its power against the citizens ( Wahiu 2011; Sarmiento 2014).
2. Necessity or Force Theory – It maintains that states must have been created through
force, by some great warriors who impose their will upon the weak
3. Social Contract Theory (Laskar 2013) - It asserts that the early states must have been
formed by deliberate and voluntary compact among the people to form a society and
organize government for their common good. This theory justifies the fight of the people
to revolt against a bad ruler. It is not known exactly which of the above theories is the
correct one. History, however, has shown that the elements of all the theories have played
an important part in the formation and development of the state. This theory is largely
credited to Hobbes, Locke and Rousseau. The concept of social contract is found in man’s
essential need to for regulation from an independent body or institution. It comes from two
kinds of agreement.
a. Pactum Unionis - people sought protection of their lives and property. With this
in mind, people under pursued a life of peace, respecting each other’s life and
property.

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b. Pactum Subjectionis- refers to people united together to obey a common
authority in which, in exchange for protection they have to surrender a part of their
freedom to an authority. The authority must guarantee to protect their life and
property. To escape their state of Nature, without a proper authority they must all
agree to live together under the provision of a common law and create for
themselves a system of enforcement. This is the social contract and the laws that
constitute it. The source of regulation is ultimately from the people and for the
people.
According to Thomas Hobbes, men lived in the state of nature where men were poor,
nasty and savage. To establish order, man puts into place his innate desire for security
and order. Man, voluntarily surrenders some rights and freedoms to an authority, signing
a contract of obedience in exchange for protection and preservation. This is the evident
relationship of monarchs to their subjects. Subjects had no right against the absolute
authority of the land. They merely obeyed in all situations. Hobbes asserts that man
without subjection to a common power of rights and freedom will inevitably be at war.
Locke and Rousseau, on the contrary set forth the idea that the state exist to preserve
and protect the natural rights of men endowed by the creator. When the governing
authority fail in this matter, the people have the right to withdraw their support and rebel.
More so, Hobbes viewed the State as absolutely just. All of society mirror the will of the
authority of the ruler. Locke on the other hand, emphasized that the role of the state is to
ensure that justice is done to the people. While Rousseau viewed the State as the
protector of the people’s liberty.
The Nation
On the other hand, the concept of nation is based on the idea that a political unit corresponds
to nations. It is somewhat subjectively defined through the people’s sense of collective or
communal identity. It is what Max Weber considers as a “community of sentiment” with a specific
sentiment of solidarity in the face of other groups. Whereas, Benedict Anderson considers it an
“Imagined Community.” He considers it as such because this sense of community is not
necessarily defined by the objective provision of the law or the constitution.
Confronting Discourses
To ask what came first, the idea of a nation or the structures of a State, is like asking what
came first, the chicken or the egg. Giddens (1985) argued that a nation did not exist until the
state had constructed a national administration that stretched over its territory. To illustrate, we
can put Giddens explanation to the metaphor of a Body and Spirit- the Body signifying the
objective and physical structures of the state and the Spirit as the unseen essence of a nation as
a “community of sentiment.” For Giddens then, the objective vessel of the State (measurable,
quantifiable) is first constructed for the people to build a communal sense of shared sentiments,
stretched over the State’s territory. As Giddens (1985) argued it was the state’s unification of its
citizens that created the nation. On the other hand, the ideals of a nationalist movements run
contrary to the sequenced relationship explained by Giddens. The Ideals of a Nationalist
Movements typically seek to create new states on the basis of a presumed national identity (a
community of sentiments). Nationalist Movements argue that the objective structures of a State
is born out of the struggle of a community with a common national identity. They struggle to claim
that a nation has the right to self-government through its own independence.
__________________________________________________________________________

17
ASSESSMENT 1
Instruction: In this section of the module, your general knowledge and understanding of
the subject so far will be tested. Please answer the following questions in a 150-word
essay. Please answer each question using the following format- Arial 11, single-spaced.
For those who will receive a printed version of this module please answer the following in a
short bond paper. Indicate the Self Test #_ and write your name ( Last Name, First Name ,
M.I) and your Course and Section .
1. What is Globalization and How does it occur subjectively?
2. Why should we use the interdisciplinary approach in studying Globalization?
3. Why do we need to exercise our sociological imagination to make sense of the
contemporary world?
4. Explain the difference between the State and The Nation.
___________________________________________________________________________
UNIT 2: Understanding Global Inequalities
Introduction:
What is global inequality and why does it exist? This section of the course desires to
answer this question in light of the contemporary theories and studies that will be discussed in
class. Specifically, it will examine the source of global inequalities and their effects. The theories
that will be discussed in class will give the students a clear understanding of the structures of
global inequalities and their social, economic, and political consequences.
___________________________________________________________________________
1. Understand and apply theories on examining world inequalities
2. Examine contemporary problems in light of the theories discussed in class
3. Demonstrate critical thinking in comprehending contemporary realities in light of global
economic relationships.
Sections of the Unit:
1. The History of Colonialism
2. The Consequence of Colonialism
3. Theories on Global Inequalities
___________________________________________________________________________

18
The History of Colonialism
Source(s): Lappe, Frances Moore & Collins, Joseph (o.n) Why Can’t People Feed Themselves? Article
33 & Logan, Amanda L. (2016) “Why Can’t People Feed Themselves”: Archaeology Alternative Archive of
Food Security in Banda, Ghana. American Anthropologist. Vol. 118 No. 3
According to Francis Moore Lappe and Joseph Collins, the world is only divided into two:
Minority of Nations and Majority of Nations. The Minority of Nations represents the countries that
prioritize agricultural and industrial revolution. Whereas, the majority of nations are the countries
that remain primitive and underdeveloped. This expresses the conditions of global inequality in
the contemporary world. Francis Moore Lappe and Joseph Collin desire to understand why some
nations are not able to feed themselves. They traced its cause to the history of colonialism.
Colonialism according to Moore and Collins destroyed the already and initially built cultural
patterns of production and change. For them, hunger and underdevelopment must always be
thought of as a process. The reason why so many countries remain to be in poverty and
underdeveloped is its history of colonialism. Lappe and Collins further express the reasons why
colonialism destroyed the initial built cultural pattern of production.
1. Colonial Mind
This is the mentality of the colonizers who colonize other people to be their subjects.
The colonizers see agriculture in the subjugated lands as primitive and backward.
Because of this, their process of colonization is not only justified but they see it as a
necessary process. John Stuart Mill, an English economist, philosopher, and
colonizer-apologist argued that, “ Colonies should not be thought of as civilizations or
countries, but as agricultural establishments whose sole purpose is to supply the larger
community to which it belongs.”
2. Forced Peasant Production
As Walter Rodney recounts in his book, "How Europe Underdeveloped Africa," cash
crops were often grown literally under the threat of guns and whips. The communities
that were colonized by neighboring countries were forced to plant cash crops instead
of food crops. The initial practice of planting food crops was for the sole purpose of
feeding the community; whereas, due to the desire of the colonizing nation to gain
profit through the peasant’s production of crops, they were forced to plant cash crops.
This are the crops that are planted for its market value. They are planted not on the
basis of its ability to feed the populace but rather its price in the global market. Because
of this change the people were no longer dependent to their own practice of
production. More so, the colonial government ensured to continue this peasant
production of cash crops in two ways:
i. Taxation- This was the most preferred colonial technique to
force Africans to grow cash crops. The colonial administration
simply put taxes on cattle land, houses and even to the people
themselves.
ii. Marketing Board- this emerged in the 1930s in Africa. It was
defined as an organization set up by the government to regulate the
buying and selling of a certain commodity such as coffee, cotton
and cocoa. Within a special area. These marketing boards of Africa

19
were only the institutionalized rendition of what is the essence of
colonialism, which is the extraction of wealth.
3. Plantation- The second approach was direct takeover of the land either by the
colonizing government or by private foreign interests. Some farmers were forced
to work in plantations fields through either enslavement or economic coercion.
4. Suppressing Peasant Farmers - The colonial government formulated a policy of
keeping the price of imported food low through removal of tariffs and subsidies.
Peasants were told that they do not need to grow their own food, for they can
always buy it cheaply through imported goods. However, the cheap food imports
In conclusion, Francis Moore Lappe and Collins answered, why people can’t feed
themselves? It is as they expressed the result of a history of colonialism that has destroyed
the initial pattern of production. Colonialism Forced peasants to replace food crops with cash
crops that were expropriated at very low rates. More so the colonial government, took over
the best agricultural land for export crop plantations and then forced the most able-bodied
workers to leave the village fields to work as slaves or for very low wages on plantations.
Policies that were also implemented encouraged a dependence on imported food; and
blocked native peasant cash crop. Cash produced by settlers or foreign firm.
The Consequence of Colonialism
Colonialism as expressed to be a practice of domination, which involves the subjugation
of one people to another remains in contemporary forms as many scholars would argue. It is
usually called as Neocolonialism. Neocolonialism is an indirect form of control through
economic or cultural dependence. This is expressed in the continued control of former
colonies through ruling native elites compliant with neocolonial powers, populations that are
exploited for their labor and resources in order to feed an insatiable appetite. Neocolonialism
is defined as the continuing active control exercised by the past colonizer government to
control the affairs of the newly independent state. It perpetuates a system where great powers
(usually the past colonizer countries) maintain their exploitative relationship with past colonies.
This covert and indirect form of control creates a system of dependency. The metropolitan
centers in seeking to be even more developed by “underdeveloping” the peripheries through
trade exploitation. The peripheral countries (usually bearing the mark of colonial history) is
extremely vulnerable to fluctuations in price and demand. The products they market have a
higher ratio of competition. It is because many other neighboring countries produce the same
products. According to Harold Nyikal in his article- “Neocolonialism in Africa: The Economic
Crisis in Africa and the Propagation of The Status Quo By the World Bank /IMF and WTO,”
Neocolonialism is colonialism in its modern dress. Western countries masked under the
pretext of economic support for Africa, directly enforced or institutionalized in the World Bank,
the International Monetary Fund ( IMF) and the World Trade Organization ( WTO) . The
policies that are implemented in Africa because of the loan conditionalities with this institutions
chained it to western economies to continue to be dependent upon them. Their discourse on
development prevents self-help programs and perpetuate the continuing relationship of
dependence.
Neoliberal Globalization
Neoliberal globalization is the main driving system that continue systems of exploitation.
It is generally marked by three essential characteristics:

20
1. Economic Liberalization- it is characterized by the flooding of the local market with
imported goods that destroy the local industries and livelihood of the populace.
Because of this, poverty and unemployment increase because locally produced goods
suffer from the unfair competition brought about by the cheaper imports from the global
market. The consequence of economic liberalization may be expressed in the state of
Food Insecurity in the Philippines. Under the WTO Agreement on Agriculture (AOA)
the Philippines is required to allow the progressive importation of rice ( 1% of domestic
consumption in 1995, 2% in 2000 and 4% by 2004). More so, the unregulated market
cause the transnational corporations and richer foreign nations to control the local
market, forcing local production and local entrepreneurs out of the market.
2. Deregulation – the price of the products sold in the local markets of the peripheral
states are no longer regulated by the government. Many commodities and products
consumed by local consumers are privatized.
3. Privatization- This is the core of IMF/WB’s structural adjustment policies. Trade
liberalization and market deregulation also lead to the privatization of public utility. This
eliminates public subsidies on social services and public sector corporations.
Privatization of state-owned water utilities was one of the conditions for loan in the
1995-1997 structural adjustment of IMF. Metropolitan Waterworks and Sewerage
System was privatized.
4. Labor Export- More so, the exportation of labor force becomes the government’s
strategy to pay debt ad regulate unemployment. In 2000, Philippines become one of
the most top labor exporter. This had also led to the feminization of migrant labor,
since majority of Filipino women comprise majority of the export labor
5. International Division of Labor – Under the old international division of labor,
underdeveloped areas were incorporated into the world economy principally as
suppliers of mineral and agricultural commodities. As developing economies are
merged into the world economy, more production takes place in these economies.
The Unholy Trinity
Sources(s): Cavanagh, John & Manderm Jerry (2003) “World Bank, IMF turned poor Third World nations
into loan addicts” A Critique of Corporate Globalization (Part III). & Peet, Richard (2003) Unholy Trinity,
The IMF , World Bank and WTO London & New York: Zed Books
The World Trade Organization (WTO), World Bank (WB) and IMF (International Monetary
Fund) are usually considered as the unholy trinity. WTO and WB were institutionalized in Bretton
Woods NH in July 1944. It was set up to regulate and govern the contemporary global economy.
IMF was established to promote international monetary cooperation and provide policy advice
and capacity development support to help countries build and maintain strong economies. IMF
provide loans (short and medium term) funded by the pool of quota contributions from its members
to countries that need it. Whereas, the World Bank for a time was called IBRD(International Bank
for Reconstruction and Development) was established to help stimulate economic activity within
poor countries. It was established in the aftermath of World War II to help finance the
reconstruction of European nations. In the modern age, The World Bank promotes long-term
economic development and poverty reduction by providing technical and financial support to help

21
in countries reform and development projects – such as building schools, health centers, providing
water and electricity, fighting disease, etc. To an unsuspecting eye, these intentions are good
intentions to help developing countries get up on their own feet and compete with other nations
in the global market. The problem however, lies on the loan conditionalities and structural-
adjustment programs imposed on low- and intermediate-income countries by these institutions.
According to Cavanagh and Mander (2003) structural adjustment requires governments to do the
following:
a. Cut government spending on education, healthcare, the environment, and price
subsidies for basic necessities such as food, grains and cooking oil
b. Devalue the national currency and increase exports by accelerating the plunder of
natural resources, reducing real wages and subsidizing export oriented foreign
investment
c. Liberalize (open) financial markets to attract speculative short-term portfolio
investment that create enormous financial instability and foreign liabilities while
serving little, if any, useful purpose
d. Eliminate tariffs and other controls on imports, thereby increasing the import of
consumer goods purchased with borrowed foreign exchange, undermining local
industry and agricultural producers unable to compete with cheap import,
Increasing the strain on foreign exchange accounts, and deepening external
indebtedness.
With these loan conditionalities and structural adjustment programs Countries suffer from
trade liberalization and the increasing privatization of public utility. By Liberalizing the financial
market and eliminating the tariff the country’s local producers suffer because of the global
competition.
Globalization, Liberalization and Protectionism: The Global Framework Affecting Rural
Producers in Developing Countries
Source(s): Khor, Martin (2007) Globalization, Liberalization, and Protectionism: The Global Framework
Affecting Rural Producers in Developing Countries. Malaysia: Third World Network
Globalization according to Khor (2007) is often taken to mean a process that is
synonymous with liberalization, or the opening up of the local and national markets to the global
market. However, the economic globalization process is much more nuanced than this simple or
automatic linkage between globalization and liberalization; for example, the internationalization
of intellectual property rights (IPR) systems through the WTO has led to increased
monopolization, especially by transnational corporations, that are better able to charge higher
prices for their products then if they there were greater competition. Also, the high subsidization
of and high tariffs on agricultural products constitute the continuation of high protection of the
agricultural sector in the rich countries. in many developing countries, the process of liberalization
and trade, investment, and finance has been taking place at significant rate and scope. This
process has promoted by the loan conditionalities of the international finance institutions, the rules
of the world trade organization, and unilateral policy measures.
Thus, the policies associated with the globalization process are a strange combination of
liberalization and protectionism (the theory or practice of shielding a country's domestic industries
from foreign competition by taxing imports). The strangeness is perhaps accentuated by the fact
that in some important instances developing countries are asked to undertake more intensive
liberalization, whilst the developed countries are proposing to retain or even increased protection
is policies. it is strange because normally it is accepted that the poorer and weaker countries

22
should be given more time and flexibility to liberalize as they have to prepare and be ready to face
competition from the bigger and stronger and surprises of the developing world; and that the
already developed countries should liberalize more and faster as they have already reached a
high level of development and can compete. perhaps the most important aspect of globalization
is the globalization of policymaking. policies and decisions on a range of issues that for once
under the sole or main purview of national governments are now made through international
agencies or under their influence. many developing countries are policymakers in the sense that
they had little "say" in the making of the rules or policies of some of the powerful international
agencies, particularly the International Monetary Fund, the World Bank and the World Trade
Organization, and they have to implement the policies at national level which have been laid out
through these agencies. Ocean, as its decisions are made on a one country one vote system and
as the developing countries are better organized to represent their interests there. However, in
recent years the influence of the united nation over economic and social matters has declined
significantly and the mandate and influence of the IFI ( International Finance Institution) and the
WTO have expanded this shift of power to institutions that are dominated by the developed
countries has meant the reduction of the influence of the developing countries in decision-making
over economic and social issues at the international level
There have been increasing concerns that the policy is adopted at or by some the major
international agencies have not been appropriate or effective in meeting the development needs
of developing countries. in the area of trade and trade-related rules, the concerns of particularly
centered on the disappointment of developing countries that have not benefited much in terms of
trade or income from the implementation of world trade organizations rules and some of them
have suffered cause and losses. they are also concerned that the implementation of the trade-
related aspects of intellectual property rights or TRIPS Agreement in the world trade organization
may arrow the rights of farmers and holders of traditional knowledge. there are also concerns that
alone conditionalities of the IFI have caused many developing countries to liberalize their import
successively and to rapidly, especially as the high subsidies and protection continued to dominate
in the developing countries. for many developing countries, the potential benefits of meeting
export opportunities have not been realized, whilst the risk of import liberalization have become
very real and a half already adversely affected rural livelihood and national incomes.
The Global Agriculture Policy Framework
Source(s): Khor, Martin (2007) Globalization, Liberalization, and Protectionism: The Global Framework
Affecting Rural Producers in Developing Countries. Malaysia: Third World Network
Many developing countries that at one stage or another suffered a debt default situation
came under the purview of the world bank and IMF, which were agreeable to arranging death
rescheduling and new credit on condition the countries agreed to implement conditions, now
commonly known as structural adjustment policies. The policies normally include the following
approaches and measures as they pertain to the rural sectors: the withdrawal of the state from
economic activities, the closure or downgrading of state marketing boards, privatization, reduction
or removal of subsidies, elimination of import control such as quantitative restrictions, reduction
of import tariffs, free orientation towards exports, and investment liberalization and deregulation,
or the opening up of assets to for rent ownership. The structural adjustment policies have had a
major impact on agricultural policies in developing countries. In particular, the removal of
subsidies and protection from imports has made the rural producers more vulnerable to the direct
effects and vagaries of the global markets, as the interventionist measures and capacity of the
state were withdrawn. In many countries, rural producers are facing intense competition from
imports that are cheaper than their own produce. the effects of loan conditionalities began to be

23
felt in the 1980s and 1990s for most of the affected countries. The WTO made a later entry, as it
is published in 1995. at first, to developing, country governments were hopeful that they would
benefit from the new rules in agriculture, as the incorporation of agriculture into the system of the
WTO would presumably lead to the dismantling of protection in the developed countries.
agriculture is one area where the developing countries are widely believed to have a comparative
advantage, and thus they expected to benefit from expanded exports to the rich markets.
However, they were sorely disappointed, as the expected benefits have not accrued, due
to the continued protectionism in the North. This maintenance of protectionist measures was
allowed within the framework of the Agreement on Agriculture (AoA) On the other hand, the
developing countries had, under the AoA, also committed to play strict limits on their domestic
subsidies, to give quantitative restrictions placed on imports, and to reduce their boundaries.
these commitments made it even more difficult for them to promote and protect the interest of
their rural producers.
The global economic framework on agriculture shaped to a large extent by the loan
conditionalities of the IFS and the rules of the WTO has resulted in a situation where the
developed countries are able to continue with an even expanding domestic subsidies and to
continue with a significant level of export subsidies, as well as high tariffs on their sensitive
agricultural products, while the developing countries are constrained ( by the WTO rules, by loan
conditionalities and by budget constraints) from increasing their farm subsidies, and have strong
pressure( through loan conditionalities) to maintain low applied tariff rates and even reduce these,
as well as to significantly reduce their bound tariffs( through existing WTO rules and new proposed
rules).
The imbalances in the global framework have handicapped to developing countries, which
already have week starting points due to their lack of financial and technical resources and their
low level of development. The unilateral policies taken under structural adjustment have been
reinforced or complemented by multilateral commitments that the countries are obliged to
implement under the world trade organization rules. This combination of policies initiated under
loan conditionality and then reinforce under multilateral rules as bound the developing countries
in a web of commitment and policy constraints and measures and they find it difficult within this
context to maneuver or to be able to choose between policy options that are suitable for their
agricultural development. More so, many developing countries that had faced a debt default
situation has come under the influence of loan conditionalities of the IFI ( IMF and WB). The
'structural adjustment' programs and policies include measures that affect rural producers directly.
These include the liberalization of imports, the dismantling of state marketing boards and state
procurement systems, and the reduction or elimination of subsidies. These policies resulted in
the rural communities of many of these countries facing greater vulnerability.
Effect of Inequality to the Rural Population
Source(s): Ibon Facts and Figures (2014) Worsening Peasant Situation. Vol. 37, No.18
Worsening Exploitation
The exploitative landlord-tenant relationship with crop sharing systems such as 50-50, 1/3-
2/3, ¼-3/4 of the gross harvest in favor of the landlord remain widespread. Farmers get only 21%
of the value of their fross harvest in Southern Tagalog and Only 19% in Eastern Visayas.
Farmworkers also continue to receive low wages ranging from Php35 to Php200 per day. In
Hacienda Luisita, sacadas (farmworker) earn only an average of Php 35 to Php 80 per day. IN

24
Eastern Visayas, farmworkers earn an average of 18,000 a year or only Php 49 per day. In
Cagayan Valley, farm workers are paid only Php40-Php70 per day in cassava and sugarcane
plantations. All these are way below the so-called minimum wages set by the Regional Wage
Boards. In Eastern Visayas, rice farmers’ incomes average Php 23.50 per day. In Southern
Tagalog copra famers are left with nothing and driven deeper to debt. For fishermen working in
fish cages and fish farms, they earn only Php100 to Php150 for 20 hours of work.
Labor flexibilization is enforced in the plantations through the systems of gang labor and
contractualization. Under these systems, regular farmworkers have been displaced and the
hacienderos deal only with contractors or labor gang foreman. Prices of farm inputs, from seeds
to fertilizers and agri-chemicals, increase every year. Fertilizer prices are now at Php 2,000 per
bag from Php436 per bag in 2001. Other agrichemicals such as pesticides cost between PHp800
to Php1,600 per bag. On the other hand, rent for farm tools is also exorbitant. For example, the
rent for a tractor is Php6,000 per hectare; the rent for thresher is 1/10 of the threshed palay.
Peasant Struggles
Despite the continuing hardship and repression, Filipino farmers are undaunted. For
centuries, they have suffered the same forms of exploitative relation and repression. The
struggles against Spanish and American colonization were largely pushed by agrarian demands
and peasant revolts where hundreds of thousands of peasants fought and perished. Even after
the country gained nominal independence from the US, peasant struggles have continued
precisely because of the same feudal and semi-feudal condition has persisted.
Land Occupation
Farmers and farmworkers also wage successful land occupation campaigns across the
country. The network of advocates from the church and non-government organizations (NGOs)
including lawyers and international organizations provide support to such campaigns. In the
Visayas area members of the San Roque Farmers Association (SRFA) in Bgy. Bonbon,
Aloguinsan, Cebu stood up for their rights over the 168-hectare corn lands claimed by the
Gantuangco family and other vested interests. They made their claim stronger the disputed lands
by cultivating the lands for organic farming and strengthening their organization. In Bohol, the
Trinidad Talibon Integrated Farmers Association (TTIFA) successfully occupied and cultivated
1,900 hectares of idle lands which were once a cattle farm issued to Marcos crony Danding
Cojuangco and partners. The farmers have occupied and cultivated the land since the 1980s and
struggle to have their organization and members reorganized by the DAR and be issued
certificates of land ownership awards (CLOAs). They asserted their rights for support services
such as paved roads and water supply including farm implements from the DA and the LGU. To
date, even as they are threatened with land-use conversion to oil palm plantation promoted by
the DA, the TTIFA members remain steadfast in their struggle to assert their right to decide what
to plant and how to appropriate their produce. They have their rice mill, trade their rice, and set
their price independent from big rice traders in Bohol
Theories on Global Inequality
World System Theory
Source(s): Wallerstein, Immanuel (2006) “ The Modern World System as a Capitalist World- Economy.
The World System Theory Pp 20-29 & Internet Modern History Sourcebook (o.n) Summary of Wallerstein
on World System Theory Modern History Sourcebook

25
Immanuel Wallerstein in his book, The Modern World System: Capitalist Agriculture and the
Origins of the European World Economy in the Sixteenth Century, developed a theoretical
framework to understand the historical changes involved in the rise of the modern world. The
modern world system of capitalism emerged after the crisis of the feudal system. Wallerstein in
developing this theory explained how Western Europe rose to supremacy between 1450 and
1670. As Wallerstein argued, before the 16th
century Western Europe was dominated by the
feudal system. A system of relation between those who “have” and “have not”— the landlords
who own the land and the peasants who do not own the land but work within it for wages.
Wallerstein argued that Europe moved towards a capitalist world economy to ensure the
continuing economic growth of the nation. This however, meant the expansion of geographical
size in controlling the process of production across different states. The new world economy was
not forged through imperial system of government which used political force (usually showing
brute colonial control) to direct the flow of economic goods from the periphery to the center. The
modern world economy did not rely on political force or colonial systems of exploitation but rather
through economic coercion. Immanuel Wallerstein argues that nations co-exist in a world
economy- a large geographic zone where there is a division of labor, exchange of basic goods
and constant flow of capital and labor. In this kind of world structure capitalism strives. Capitalism
as Wallerstein simply defines is an economic system based on the private ownership of the means
of production and their operation for profit. Characteristics central to capitalism include private
property, capital accumulation, wage labor, voluntary exchange, a price system, and competitive
markets. The World-Economy and a Capitalist System coexist because of the international
division of labor. A capitalist system cannot exist within any framework except that of a world-
economy.
Wallerstein as he defined the world-system as the necessary condition for capitalism to thrive-
the linkage of sate’s economically through the international division of labor. Wallerstein (1974)
said that a world-system is a "multicultural territorial division of labor in which the production and
exchange of basic goods and raw materials is necessary for the everyday life of its inhabitants."
This international division of labor can be illustrated through these categories:

26
Core Countries
Countries that are classified under the
category of core- exploit other countries for labor
and raw materials. They benefit most from the
capitalist world economy. They are referred to
as the “haves”. These countries have industries,
government, social elites, financial power and
systems of education. For the period under
discussion, Wallerstein argued that much of
northwestern Europe (England, France and
Holland) developed as the first core region.
Politically, these states developed strong central governments, extensive bureaucracies and
large mercenary armies. This permitted the bourgeoisie or the local capitalist to extend his
international commerce to extract capital surpluses from other countries through trade. They
are at the forefront of technological progress and have significant influence on less developed
non-core nations
Semi-Periphery
Between the two extremes the semi-peripheries are the countries that attempt to improve
their relative position in the world economic system. They often serve as buffers between the
core regions and the peripheries. Economically, these countries fail to predominate in
international trade and do not benefit as much from a capitalist world economy as the core
countries. They are countries that are exploited by the core but are also able to exploit other
peripheral countries.
Periphery
These countries are considered to be those who “have not” By contrast, the periphery
countries possess mining, forestry, agriculture, less power, poor systems of education and
low wages that are incapable of sustaining affluent lifestyles. These areas lacked strong
central governments or were usually controlled by other states. They export raw materials to
the core, and relied on coercive labor practices. These countries usually have a colonial
history that have damaged the structures of their local economy. In our context for example,
America is the core state and the Philippines is the peripheral state. We export raw materials
(i.e. electronic parts) to America, which they, in turn, process into a product because they are
the ones who have capital (i.e. cellphones). Then sell it back to us. The core countries
dominate and exploit the peripheral countries for labor and raw materials. The peripheral
countries are dependent on core countries for capital. Moreover, it is usually characterized by
high percentages of uneducated people who can mainly provide cheap unskilled labor to the
core nations. There is also a high level of social inequality, together with a relatively weak
government which is unable to control country’s economic activity and the extensive influence
of the core countries.
Capitalism as a World System
Source(s): Wallerstein, Immanuel (2006) “ The Modern World System as a Capitalist World- Economy.
The World System Theory Pp 20-29
& Internet Modern History Sourcebook (o.n) Summary of Wallerstein on World System Theory Modern
History Sourcebook & Vela, Carlos Martinez A. (2001) World System Theory ESD. 83

27
Within Immanuel Wallerstein’s work the theme of inequality marks the gap between the Third
World and the West. Only a transformation of the world-system itself, dealing with the structures
of the international division of labor can inequality truly be resolved. According to Wallerstein
Capitalism de-territorialized meaningful state boundaries. As he argued, “the techniques of
modern capitalism and the technology of modern science, the two being somewhat linked as we
know, enabled this world-economy to thrive, produce and expand without the emergence of a
unified political structure.” Wallerstein also mentioned in his book- The Modern World System:
Capitalist Agriculture and the Origins of the European World Economy in the Sixteenth Century,
how capitalism continue to thrive in the modern world economy. He used the Kondratieff Cycle
developed by Nikolai Kondratiev as a reference. In the 1930s the Soviet Union asked Nikolai
Kondratieff a mathematician, to create a model that would prove that capitalism would fall and
communism would endure. However, Kondratiev’s work proved to be contrary to the ideals of the
Soviet Union. In his study of economic history, he reached the conclusion that economics was
better explained by technology than class struggle. Kondratiev observed that technology did not
evolve linearly but rather it leaps every 50 to 60 years.
Cycle Period Description
1st
Cycle 1770-1820 Initial mechanization
2nd
Cycle 1820-1870 Steam power, railroads and telegraphs
3rd
Cycle 1870-1930 Electricity, internal combustion and heavy engineering
4th
Cycle 1930-1980 Mass production, Fordism and nuclear energy
5th
Cycle 1980-2030 Telecommunications and informatics
6th
Cycle 2030-2080 Robotics, alternative energies, and Human Enhancement
Technologies
Karl Marx predicted that capitalism was crisis prone and that it would soon fall apart. But
Kondratieff found that capitalism reinvented itself with each crisis. As the saying goes, “ desperate
times call for desperate measures” Crisis give rise to new solutions( investment in technology
and new business models). These periods of crisis and struggle, lasting generally between 12-
15 years, eventually creates a new form of capitalism.
Crisis Sub-phases of Kondratieff Cycles
Cycle Period Description

28
Pre-cycles 1770-1820 Seven years’ War (1756-63)
1st
Cycle 1820-1870 Napoleonic Wars
2nd
Cycle 1870-1930 Crimean War, Triple Alliance War, American Civil War, Unification
of both Germany and Italy
3rd
Cycle 1930-1980 World War I and inter-war period
4th
Cycle 1980-2030 Vietnam War, Space Race, Cold War, Arab-Israeli Wars
(1967,1973)
5th
Cycle 2030-2080 ??
The 1939-1945 period was one of intensive technological development and economic growth, in
the face of massive destruction. The post-war period gave us strong and fast expansion with a
new public “business model” of the Welfare State. As the K wave propose it is in times of
desperation that people are investing in new technologies and thinking out of the box, trying new
things and accepting the previously unacceptable. This is when a set of new technologies that
have bene too risky to develop becomes more feasible due to the increased tolerance of risk.
How Business Models Adapt
When technology changes, capitalism adapts. Business models evolve for companies to
continue to gain profit. As technology and the economy co-evolved new business models are
created. Models like retail business, public companies, franchises, manufacturing, joint ventures,
Private-Public Partnership, etc. have been developed to cope with the increasing complexity of
the modern world. To simplify, Kondratiev argued, every technological revolution gives capitalism
the opportunity to reinvent itself. For example, we have recently seen the invention of new extra-
national currencies such as bitcoin and commercial transactions are focused on reducing
bureaucratic barriers between the provider of service and monetization, like Pay Pal.
Understanding the consumersis important in developing new dynamic business models. The
users may change over time which is why businesses must remain flexible. We could use the
manufacture of drones as an example. It was initially created for military used; however, after
some tie, it is also used as a tor or in agriculture to dust crops with insecticide.
The Kondratieff Cycle or K Wave as some would call it is a long duration economic cycle
of capital goods expansion that plays at over a period of about 50 years and underlies the usual
boom-bust cycles characteristics of a capitalist economy. It may be divided into four phases.

29
Spring- A time of new innovation sparks production and growth. People start investing into new
technologies and think outside the box to try and find new things previously unacceptable. This is
when a set of new technologies that had been too risky to develop becomes more feasible.
Summer- increase in the general affluence level leads to changing attitudes toward work that
result in a deceleration of economic growth.
Autumn- Stagnating economic conditions give rise to a deflationary growth spiral that gives rise
to isolationist policies, further curtailing growth prospects.
Winter- Economy in the throes of a debilitating depression that tear the social fabrics of society.
This is when the dwindling number of the “haves” and the expanding number of the “have-nots”
increases dramatically.
The first resulted from the invention of the steam engine and ran from 1780 to 1830.The
second cycle arose because of the steel industry and the spread of railroads, and ran from 1830
to 1880.The third cycle resulted from electrification and innovation in the chemical industry, and
ran from 1880 to 1930.The fourth cycle was fueled by autos and petrochemicals, and lasted from
1930 to 1970.The fifth cycle was based on information technology and began in 1970 and ran
through the present, though some economists believe we are at the start of a sixth wave that will
be driven by biotechnology and healthcare.
Stages of Growth
The development of the modern world economy according to Wallerstein lasted centuries.
During this time, different regions changed their positions within the system. Wallerstein
divided the emergence of the capitalist world economy into four stages.

30
Stage 1 & 2
Wallerstein believed that this emerged between 1450-1670m, when the Hapsburg Empire
failed to convert the emerging world economy to a world empire. Since it cannot be politically
united under the same system of empire what emerged was the modern world system
sustained by the international division of labor among states- existing interdependently.
Bureaucratization was the process that aided the limited but growing power of the king.
Because of the state’s power to collect taxes the king increased the state power to borrow
money and thereby further expand the state bureaucracy. Homogenization also helped the
process of solidifying the modern world economy. To underline the state involvement in the
new capitalist system they encouraged the rise of indigenous capitalist groups. Minorities
were expelled from the core states. Spain and France were expelled with the rise of absolute
monarchy. Next, the Expansion of the militia (military force that is raised from the civil
population), to support the centralized monarchy through military resources. More so, it would
prevent the state from invasion. Next, Diversification was also important to improve the
economic activities of the state to maximize its profits and strengthen the position of the local
bourgeoisie. According to Wallerstein, by 1640 northwestern European states secured their
position as core states in the emerging economy. Spain and Northern Italy was displaced;
declining to the category of semi-periphery.
Stage 3 & 4
Industrial rather than agricultural capitalism represented this era. With the shifting
emphasis on industrial production. European state participated in exploration for the
exploitation of new markets across the globe. The competitive world system emerged such
as the Indian Ocean system. Asia and Africa entered the system in the 19th
Century as
peripheral zones. During this phase, the core region shifted to a combination of agricultural
and industrial interest to purely industrial concern.
Through this theory, Wallerstein attempts to explain why modernization had such wide-
ranging and different effects on the world. He showed how political and economic conditions
after the breakdown of feudalism transformed northwestern Europe. With his theory in mind,
we could see how the geographic expansion of the capitalist world economy altered the
political system and labor condition wherever it was able to penetrate. In hindsight the world
system analysis gives us a narrative of world historical development from the 16th
century to
the present, with boundaries, structures, member groups, rules of legitimation and coherence.
Dependency Theory
The dependency theory explains the economic
development of states. The theory was developed in the 1950s.
to explain how both the development and the
underdevelopment of countries are related in the international
system. It in itself is a mixture of various theories that also
include Wallerstein’s world system theory. This theory simply
answers why there are countries that are poor and some rich.
Economically, it argues that neoliberal policies continue the
system of dependence that chain developing countries’
economic status to the developed countries. This is why
developing countries remain poor. They fit in the mold of the
economic hierarchy of the world economy. The core countries,

31
1st
world countries perpetuate their dominance through resource bondage. Where instead of the
practice of self-help- where developing countries produce goods and resources for themselves,
they are economically coerced through the neoliberal policies and loan conditionalities
established by the World Bank, World Trade Organization and the International Monetary Fund.
These countries continue to be dependent to the core countries since synonymously the core
countries need the infinite supply of raw material sand cheap labor that these peripheral countries
provide to maintain their economic status.
According to Romanuik (2017) there are three main characteristics of the dependency
theory worth taking note of. First, the international system seen as the sum of two set of states-
the dominant and the dependent. Secondly, the dependency theory holds that external forces are
critical in terms of economic activity of dependent states. Lastly, the relationship of the two is
based on historical patterns and dynamics. The years that followed the end of the Second World
War in 1945 and the swift and extensive process of decolonization could be traced as the roots
of state’s dependency. After the Second World War the United States and the Soviet Union acted
as the new leaders of the new world (a world where there are more independent states liberated
from their past masters). Both acted to lead the world into a new although with opposing ideals in
mind. Neocolonialism was the dominating and expanding ideology of the United States and
Socialism for the Soviet Union. Many countries did not follow the international framework of the
United States, rather they pursued the influence of the Soviet Union’s socialist model. The
economic system established by the neocolonial ideology of the United States explain the
continuing structure of relationship between past colonies to their past colonizers. Peripheral
countries become dominated by the foreign interest that originates from core countries. Although
underdevelopment can be overcome, for it to be accomplished, countries need to be disconnected
from the dominance of the core countries and the system or structure that their interest and
policies produce.
ASSESSMENT 2
Instruction: In this section of the module, your general knowledge and understanding
of the subject so far will be tested. Please answer the following questions in a 150-
word essay. Please answer each question using the following format- Arial 11,
single-spaced. For those who will receive a printed version of this module please
answer the following in a short bond paper. Indicate the Self-Test #_ and write your
name ( Last Name, First Name , M.I) and your Course and Section .
· Write a short paper (1,000 words min) that addresses the contemporary condition
of the Philippines by applying both the dependency theory and the world system
theory. By doing so, students must apply the theories discussed in this module to
shed light on the present circumstance of the country’s economy. Students are
advised to use newspaper articles to try and make sense of the Philippine’s
position in the world economy.

32
LESSON 2: STRUCTURES OF GLOBALIZATION
UNIT 1: The Globalization of World Economies
Introduction:
We learn that politics, culture, and economy are interconnected. This chapter will focus on
the economic area of globalization and how it came to be. This section will not only focus on the
the global history but apply the theories on the present situation, specifically with the global
pandemic we are experiencing. The discussion will provide how important the economy is. At the
same time the discussion will also focus on the matter of macro (global market) perspective and
micro perspective (community /individuals). The discussion will give the students a clear
understanding of the structure of the global economy and its consequences.
1. Define economic globalization
2. Identify the actors that facilitate economic globalization
3. narrate the short history of global market integration in the twentieth century
4. Demonstrate critical thinking in comprehending contemporary realities in light of global
economic relationships.
5. And articulate stance on global economic integration
Sections of the Unit :
1. What is economic globalization?
2. Early historical traces of exchange up to present
3. Economic Globalization today
4. Economic Crisis into Social Crisis
What is economic globalization?
According to Held et. Al (1999), globalization may be
thought of initially as the widening, deepening, and speeding up
of worldwide interconnectedness in all aspects of contemporary
social life. Globalization is best thought of as a multidimensional
phenomenon. It refers to the increasing integration of economies
around the world, particularly through the movement of goods,
services, capital and even people (labor) & knowledge
(technology) across borders.
In this discussion’s context these are the important terms
and concepts:
Internationalization- Extension of economic Activities.
Economic Globalization - Integration between dispersed activities. As defined by Szentes, ‘in

33
economic terms globalization is nothing but a process making the world economy an organic
system by extending transnational economic processes and economic relations to more and
more countries and by deepening the economic interdependencies among them. Nation State is
still a relevant factor on globalization.
Globalization- Globalization is nothing but a process making the world economy an “organic
system”Globalization transforms the national economy into a global one.Globalization is an
effective manager of the national economy.
The International Monetary Fund (IMF) regards “economic globalization” as a historical
process representing the result of human innovation and technological progress (Claudio and
Abinales 2018). It is characterized by increasing integration of economies around the world
through movement and exchange of goods, services and capital. (Claudio and Abinales 2018).
Much like globalization, the definition of integration along with other consequences of it is
qualitative and subjective. Are the increase in Growth Domestic Product (GDP) and Foreign Direct
Investment (FDI) are good indicators of the increasing integration?
According to the United Nations Conference on Trade and development (UNCTAD), the
amount of FDIs flowing across the world was 57 billion US dollars in 1982, by 2015 that number
was 1.76 trillion dollars (Claudio and Abinales 2018). These dramatic increases in global trade
happened in the span of just a few decades.
Considering the increased speed in exchange and frequency of trading due to
technological advancements, the world is quickly evolving. From songs Compact Disks to MP3
format that you can download online. Physical exchange was gradually replaced or supplemented
by online virtual access. On the other hand, there is a cultural lag between not only nations but
also in the communities that belong to it. Internet connection is now considered as an essential
commodity especially now that everything that we do is now anchored to the world wide web. In
these trying times of the COVID-19 pandemic, access to the internet and personal priorities were
the problems of a poor student. The discrepancies between the rich and poor are still significant.
This chapter assesses economic globalization and examines who benefits and who is left out.
Early historical traces of exchange up to present
Gills and Thompson (2006) suggests that globalization
processes have been ongoing since Homo sapiens began migrating
from the African continent ultimately to populate the rest of the
world. International Trading Systems is not new, the oldest known
international trade was the Silk Road – a network of pathways in the
ancient world that spanned from China to what is now the Middle
East and to Europe. Traders used the Silk Road from 130 BCE when
the Chinese Han Dynasty opened the trade to the West up until
1453 BCE when the Ottoman Empire closed it.
However, the Silk Road was not considered “global”
because it had no ocean routes that could reach the American
continent. According to historians Dennis O. Flynn and Arturo
Giraldez, “all important populated continents began to exchange
products continuously – both with each other directly and indirectly
via other continents – and in values sufficient to generate crucial impacts on all trading partners.”
Flynn and Giraldez, trace this back to 1571 when the galleon trade was established, that
connected Manila in Acapulco. This was the first time that the Americas were connected to Asian
trading routes.

34
Important concept: International Monetary System (IMS)-Rules, customs, instruments, facilities,
and organizations for affecting international payments (Salvatore, 2007).Reflects economic power
and interests.
Galleon trade was part of the age of mercantilism. Mercantilism was thus also a part of
the global trade but with multiple restrictions. A more open trade system emerged in 1867, when
the United States and other European nations adopted the gold standard at an international
monetary conference in Paris. Mainly, the goal is to establish a common system that would allow
more efficient trade. The countries established a common basis for currency prices and a fixed
exchange rate system – all based on the value of gold.
The gold standard, despite being the simpler trade, is a very restrictive system, as it
compelled countries to back their currencies with fixed gold reserves. During World War I, many
countries were forced to abandon the gold standard, when they depleted their gold reserves.
Since European countries had low gold reserves, they adopted floating currencies that were no
longer redeemable in gold.
Returning to a pure standard became more
difficult as the Great Depression came in the 1920s and
extended until up to the 1930s. This depression was the
worst and longest recession ever experienced by the
Western world. Some economists argued that this was
largely caused by the gold standard, since it limited the
amount of circulating money and therefore, reduced
demand and consumption.
Economic historian Barry Eichengreen argues
that the recovery of the United States began when they
abandoned the gold standard and the US government
was able to free up money to spend on reviving their
economy. At the height of World War II, other
industrialized countries, other industrialized countries
followed suit.
Though more indirect versions of the gold standard were used until the 1970s, the world
never returned to the gold standard of the early 20th
century. Now, the world operates using what
is called the fiat currencies – currencies whose value is determined by their cost relative to other
currencies. This system allows governments to freely and actively manage their economies by
increasing or decreasing the amount of money as they see fit.
Economic Globalization Today
Exports make national economies grow. In the past, the countries who benefited most
from the free trade were the advanced nations that were producing and selling industrial and
agricultural goods. The United States, Japan, and the member-countries of the European Union
were responsible for 65 percent of global exports, while developing countries only accounted for
29 percent. More countries opened up their economies to take advantage of the increased free

35
trade, which results in higher percentages accumulated by the developing countries. The trade
liberalization has altered the dynamics of the global economy.
In the recent decades, economic globalization has spiked in global growth rates, partly as
a result of the increased exports. According to the IMF, the global per capita GDP rose over five-
fold in the second half of the 20th
century.Yet, economic globalization remains an uneven process,
with some countries, corporations, and even individuals are benefitting a lot more than others.
Economic Crisis into Social Crisis
Source(s): Atkinson et.al. 2015. The Sociology Book: Big Ideas Explained.DK publishing 345 Hudson
Street, New York.
Karl Marx reiterated that capitalist societies are more
prone to economic crises and that this will worsen over time,
which will lead to workers’ revolution. But why is it that when a
society falls in a crisis, a different change in the political climate
often follows?
This question was posed by Jurgen Habermas in the
early 1970s. Habermas was intrigued by the relationship
between capitalism and crises.
He also suggests that traditional Marxist theories of crisis
tendencies are not applicable to some Western late-capitalist
societies. The reason is because these societies have become
more democratic and have changed significantly because
welfare-state policies, such as free healthcare provision. Also,
collective identities have fragmented and there is increased
individualization, and fewer class-based conflicts.
Although the economic cycles of prosperity and recession
continue, policy measures by nation-states have enabled them
to avert major crises. Unlike earlier capitalist societies, under
state-regulated late-capitalism, the primary site of crisis and
conflict has shifted to the cultural and political spheres. The
crisis of modern Western society is, according to Habermas,
one of legitimation. Legitimacy has become the focal concern
because the state, as manager of the “free market” economy,
has simultaneously to solve economic problems, ensure
democracy, and please the voters. If the public feels
government policies are unfair, it withdraws its support for the
government. The state therefore has the difficult task of
balancing the pursuit for capital with maintaining mass
support. In other words, state policies must favor business and
property owners while appearing to represent the interests of

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