Origin Globalisasi (out line)

ORIGIN OF GLOBALization tonny d effendi


Globalization in view!

l   It is to …

   – become global

   – become internationalized

l   What is it?

   – economic à system, industrialized etc

   – politic à ideology

   – social à poverty, human right etc

   – culture à trend of life, westernization etc

   – etc


l  The Conditions Today


we live in an era in which the greater part of social life is determined by global processes, in which national cultures, national economies and national borders are dissolving


Central of this condition is the notion of a rapid and recent process of economic globalization


l  The characteristic of global economy


   the world economy has been internationalized in its basic dynamic


   dominated by uncontrollable market forces


   TNC/MNC as the principal and major agents

l  Three fact of globalization problems :

   – the absence of a commonly accepted model of the new global economy and how it differs from previous states of the international economy

   – in the absence of a clear model againt which to measure trends, the tendency to casually cite examples of the internationalization of sectors and processes as if they were evidence of the growth of an economy dominated by autonomous global market forces

   – the lack of the historical depth, the tendency of portray current changes as unique and without precedent and firmly set to persist long into the future


l   Is Globalization as largely a myth?

   – the present highly internationalized economy is not unprecendented.

   – genuinely transnational companies appear to be relatively rare

   – capital mobility is not producing a massive shift of investment and employment from the advanced to the developing countries

   – as some of the extreme advocates of globalization recognize, the world economy is far from being genuinely ‘global’

   – these major economic powers, the G3, thus have the capacity, especially if they coordinate policy, to exert powerful governance pressure over financial markets and other economic tendencies



l  Globalization beyond the borders


   its cover the political spectrums from left to right


   its endorsed in different disciplines – economic, sociology, cultural studies and international politics


   its advanced both by theoritical innovators and traditionalist


l     How the myth of the globalization of economic activity became established as and when it did?

       The effect of the collapse of Bretton Woods system in the 1973 and 1979 OPEC Oil crises

       The efforts of financial institutions and manufactures to compensate for domestic uncertainty by seeking wider outlets for investments and additional markets

       The widespread bank lending to Third World

       The growth of Eurodollar market

       The increasing ratios of foreign trade to GDP in advanced countries.

       The public policy accelerations of internationalization of financial markets by abandonment of exchange controls and other market deregulations (ex:European Monetary System (EMS) in 1979)

       The promoting of foreign competition, especially from Japan

       The relatively rapid development of a number newly industrializing countries (NICs) in the Third World

       The shift from mass productions to more flexible production methods etc (technology information)

The main issues in Globalization of economy

l  How domestic or national economy faced globalization?

l  The opinion that the perceived loss of national control, the increased uncerntainty and unpredictability of economic relations, and rapid institutional shange were shock to minds conditioned to believe that poverty, unemployment and economic cycles could all be controlled or eliminated in a market economy based on the profit motive


Models of the international economy

l  Type 1 : an inter-national economy

l  Type 2 : a globalized economy


Type 1 : An inter-national economy

l  Basic : one in which the principal entities are national economies

l  Trade and investment produce growing interconnection between these still national economies

l  A process involves the increasing integration of more and more nations and economic actors into world market relationship

l  Analogy of “billiard ball” type

l  Example : the Gold Standard which operated at the height of the Pax Britanica

l  MNCs as a transformation of the large merchant trading companies of a past era

l  MNCs retain a clear national home base; they are subject to the national regulations of the home country, and by and large they are effectively policed by that country


Type 2 : A Globalized economy

l   Basic : a global system distict national economies are subsumed and rearticulated into the system by international processes and transactions

l   The global economy raises these nationally based interactions to a new power

l   As systemic interdependence grows, national level is permeated by and transformed by the international

l   The problems is how the public authorities from different countries construct policies that coordinate and integrated their regulatory effort in order to cope with the systematic interdependence between their economic actors


The consequences of globalized economy

l  Its governance is fundamentally problematic

   – socially decontextualized global market would be difficult to regulate

   – difficult to construct both effective and integrated pattern of national dan international public policy to cope with global market force

   – solution : the countries should build the major ragional trade blocs. Ex :EU and NAFTA


l   The transformations of MNCs into TNCs as a major power in international economy

   – TNCs without specific national identification and with an internationalized management

   – TNCs at least potentially willing to locate and relocate anywhere in the globe to obtain either the most secure or highest return

   – TNCs unlike MNCs, could no longer be controlled or even constrained by the policies of particular national states

   – TNCs would be the main manifestation of a trully globalized economy


l    The further decline in the political influences and economic bargaining power of organized labour.

    – globalized markets and TNCs would tend to be mirrored by an open world market in labour


l    The growth in fundamental multipolarity in the international political system

    – hegemonic national power would no longer be able to impose its own distinct regulatory objectives in either its own territories or elsewhere

    – TNCs would thus gain in relative power at the expense of national government and using global markets and media to and obtain legetimacy from consumers/citizens across national boundaries

    – national military power would become less effective

   – the use of military force would be increasingly tied to non economic issues, such as nationality


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