Report Globalization

8/9/2019 Report Globalization

1/111

A Report by:

KARINE TESSA B. DOMINGUEZ

MPA Student


2/111

Is a process of advancement and increasein interaction among the

worlds countries andpeople facilitated byprogressive technologicalchanges in locomotion,communication, politicaland military power,knowledge and skills, aswell as interfacing of cultural and value systems

and practices.


3/111

The historical origins of globalization are thesubject of on-going debate. Though somescholars situate the origins of globalization inthe modern era, others regard it as aphenomenon with a long history.

The most extreme proponent of a deep

historical origin for globalization was AndreGunder Frank, an economist.

Frank argued that a form of globalization hasbeen in existence since the rise of trade linksbetween Sumer and the Indus Valley

Civilization in the third millennium B.C. Criticsof this idea point out that it rests upon anoverly-broad definition of globalization.


4/111

History

Others have perceived an early form of globalization inthe trade links between the Roman Empire, theParthian empire, and the Han Dynasty.

The development of the Silk Road, which started inChina, reached the Parthian empire, and continuedtowards Rome.

The Islamic Golden Age when Muslim traders and

explorers established a sustained economy across theOld World resulting in a globalization of crops, trade,knowledge and technology.

3/30/2010 4


5/111

The advent of the Mongol Empire, thoughdestabilizing to the commercial centers of the MiddleEast and China, created a greater integration alongthe Silk Road which permitted travelers such as

Marco Polo to journey successfully (and profitably)from one end of Eurasia to the other. These pre-modern phases of global or hemispheric exchange aresometimes known as archaic globalization.

The 19th century is called "The First Era of Globalization." It was a period characterized by rapidgrowth in international trade and investmentbetween the European imperial powers, theircolonies, and, later, the United States.

3/30/2010 5

History


6/111

HISTORY

The "First Era of Globalization" later collapsedduring the gold standard crisis and Great Depressionin the late 1920s and early 1930s.

In early 2000 much of the industrialized worldentered into a deep recession. Some analysts saythe world is going through a period of de-globalization after years of increasing economic

integration. Up to 45% of global wealth had beendestroyed by the global financial crisis in little lessthan a year and a half.

3/30/2010 6


7/111

GLOBALIZATION AND PUBLIC ADMINISTRATION

Globalization is a phenomenon that seems to have comecreeping through mans history only to recently gainspeed and cover the entire world like in one sweep.

Some countries are taking it as a big problem, andtherefore missing the opportunities it is offering, whileothers have grabbed it as a movement offeringdevelopment potential and used it to advance theirgrowth and development and their self-interest, whetherit be national or personal.

3/30/2010 7


8/111

GLOBALI ATIONAND BLI ADMINI TRATION

While some are taking it as a dangerous process ofexploitation where rich countries and biginternational corporations are getting bigger andricher at the expense of the poor ones.

Others are seeing it as the final pin in the processof positive socio-politico-economic, mutuallybeneficial, global integration.

3/30/2010 8


9/111


Global forces are penetrating at all levels of government. A national or local policy in aparticular country has often global effects crossnational boundaries. Global pressures, in fact,have played a significant role in helping publicbureaucracies in the Western European andNorth American countries streamline theirpersonnel, budgets, and organizations by

privatizing, outsourcing, contracting out,deregulating, downsizing, or restructuringgovernment functions and services.

3/30/2010 9


10/111


11/111


Market forces and market model principles haveincreasingly made public administration more likebusiness. Like business administration, publicadministration has been increasingly focusing on

efficiency, effectiveness, productivity, performance,accountability, responsiveness, and flexibility byadopting techniques mainly used in corporations.

Globalization provides more freedom and discretion forthe low level of government due to the revolution of

information technology. To attract investment orpromote trade, local governments directly work withforeign governments and big corporations, and thuscreate more jobs and stimulate the local economy.

3/30/2010 11


12/111

GLOBALIZATION AND PUBLICADMINISTRATION

Thus, quality of services, level of customersatisfaction, and accountability and performanceof employees can be improved.

3/30/2010 12


13/111


14/111

y People Organizations

yAcademics and Research Institutions

y Society for International Developmenty Social Watch (Global network of NGOs meetings)

ACTIVE PLAYERS IN THE

PROCESS OF GLOBALIZATION


15/111


INTERNET according to Fred W. Riggs, is a powerfulmanifestation of globalization -- it both results fromand contributes to the modern dynamics that, bycircular causation, have accelerated the informationrevolution of our contemporary world system. Bycontrast, public administration is an ancientphenomenon but in the world today, it has vastlyexpanded its scope.

Globalization and public administration are entangled

in a complex pattern of interdependence that cannoteasily be untangled, but the Internet provides atransparent window through which to connect it withadministrative phenomena.

3/30/2010 15


16/111


17/111

POSITIVE Effects of globalization

3. Economic- realization of a global commonmarket, based on the freedom of exchange ofgoods and capital. The interconnectedness ofthese markets, however meant that an

economic collapse in any one given countrycould not be contained.

4. Political- some use "globalization" to meanthe creation of a world government which

regulates the relationships amonggovernments and guarantees the rightsarising from social and economicglobalization.

3/30/2010 17


18/111


5. Informational - increase in information flowsbetween geographically remote locations.Arguably this is a technological change withthe advent of fiber optic communications,satellites, and increased availability of

telephone and Internet.6. Language - the most popular language is

English.About 35% of the world's mail, telexes, and

cables are in English.Approximately 40% of the world's radio

programs are in English.About 50% of all Internet traffic uses English.

3/30/2010 18


19/111


20/111


9. Cultural- growth of cross-cultural contacts;advent of new categories of consciousness andidentities which embodies cultural diffusion, thedesire to increase one's standard of living and

enjoy foreign products and ideas, adopt newtechnology and practices, and participate in a"world culture.

10. Social- development of the system of non-governmental organizations as main agents ofglobal public policy, including humanitarian aidand developmental efforts.

3/30/2010 20


21/111


11. Technical

Development of a global telecommunicationsinfrastructure and greater transborder data flow,using such technologies as the Internet,communication satellites, submarine fiber opticcable, and wireless telephones

Increase in the number of standards applied globally;e.g. copyright laws, patents and world trade

agreements.

3/30/2010 21


22/111


23/111

Negative Effects of globalization

1. As cultures interact, some cultures are beingdiluted and/or destroyed at the expense of othersand negative values are being spread all over theworld with relative ease.

2. The world is now divided between the connected,who know and who have a monopoly on almosteverything, and the isolated, who do not knowand who practically have nothing.

3. Globalization has encouraged illicit (illegal) tradein drugs, prostitution, pornography, humansmuggling, dumping of dangerous waste anddepletion of the environment by unscrupulousentrepreneurs.

3/30/2010 23


24/111


4. Drain on the human capacity of the State.Globalization has facilitated the brain drain indeveloping countries, thus reducing further theirhuman capacity.

5. Globalization includes penetration of politicalideas and practices across borders. It includesinfusion of cultural and religious beliefs andpractices, resulting in weakening of somecultures.

6. It includes the domination by some super-powersthrough military coercive means and theimpositions that go with it.

3/30/2010 24


25/111


7. It involves internationalization of conflicts that wouldotherwise remain local. The state decision-makingand policy-making process itself, and therefore theinfluence and power of the State, has been globalizedand shared among the various world decision-makingbodies.

8. There are international courts, international humanrights organizations, international militaryconventions, international laws, rules and regulations

to which the State is subjected.9. There are international and regional trade

agreements, and powerful international lobby andpressure groups in various fields.

3/30/2010 25


26/111


10. There are universities and institutions of higherlearning with all their power to impart knowledge,skills and attitudes that shift behaviors of societiesand state leadership as well as followership.

11. Overstretched capacity to handle international and

computer-based crime. The government and itsforces of law and order were used to handletraditional crimes. However, with globalizationthere has been an increase in crimes (drugs,pornography, international corruption etc.) that hadbeen at lower magnitude. Progress in informationtechnology has facilitated the emergence andgrowth of computer-based crimes, especially fraud.For this the law and order forces have not been wellprepared.

3/30/2010 26


27/111


12. Making the task of poverty eradication moredifficult. As global actors pressurize governmentsto open up more and more to maximize foreigninvestment and capital inflows, and as big

multinationals and local enterprises utilize thisenvironment to cater for their interests, thegovernment is having less and less room to payattention to the abject poverty amongst its poor

people. Evidence that shows the widening gapbetween the poor and the rich both in countryand between countries is increasingly becomingabundant.

3/30/2010 27


28/111


13. Debt accumulation and the debt burden. Thephenomenal debt burden of developingcountries is well known. Most of the

accumulation of this debt over time was a resultof the incapacity of the borrowers to pay it back.The governments borrow in the name of povertyreduction, while their social spending that would

go towards alleviating poverty remains very low.

3/30/2010 28


29/111

Globalization and the state capacity of the

philippines

Administrative Capacity of the State

The state is tasked to promote the well being of its citizens byhaving a social infrastructure-the collection of laws,institutions, systems, and government policies that make upthe economic environment-that helps the country attain itspotential.

3/30/2010 29


30/111

Globalization and the state capacity

of the philippinesAdministrative Capacity of the State

In the Philippines, agencies and institutions have been

established to assist the government in helping the countryachieve its potential with regard to socioeconomicdevelopment and the delivery of basic services to the people,among others.

3/30/2010 30


31/111

Globalization and the state

capacity of the philippinesAdministrative Capacity of the State

The administrative capacity of the state to promotesocioeconomic development rests on the interplay and

dynamism of a network of agencies and institutions in thegovernment and the private sector to promote investmentsin capital projects and social programs, as well as thecapability, effectiveness and efficiency of agencies and

institution arrangements that transpire in the course andconduct of development-oriented activities.

3/30/2010 31


32/111

The effects of Globalization in the state capacity of

the philippines

Administrative Capacity

Information and Communication Technology

With the advent of computers and networks, thegovernment has embarked on a journey in making

government information available and mostgovernment services accessible through theinternet.

The earliest Internet service in the country can betraced back to the Department of Science and

Technologys network in 1994, which connected thecountrys eight major institutions of higher learningacross the country with the DOST to furtherresearch and development among academics andprofessional scientist in the government.

3/30/2010 32


33/111

The effects of Globalization in the state capacity of the

philippines



The DOST has been in the forefront oftechnology research and development, notlimited to information and computertechnologies, although the application of ICTshas become the one area where the

government is making real improvements in thedelivery of its services.

3/30/2010 33


34/111


the philippines



The Department of Education, in cooperationwith private institution, has embarked to

accelerate ICT literacy in public schools to keepup with other emerging economies and inpreparation for the imminent globalization.

The Philippines needs to improve its human

capital by providing adequate facilities andtraining to equip Filipinos with the standardinformation and communication technologyliteracy skills that are the main source ofcompetitive advantage in the knowledge age.

3/30/2010 34


35/111


the philippines



By encouraging high school students to develop

an interests in ICT through various education andskills programs, the country increases its chancesof establishing a large pool of quality informationtechnology (IT) professionals, which will be handy

once globalization reaches the country in full-force.

3/30/2010 35


36/111

The effect of Globalization in the state capacity of

the philippines



T

he NCC strengthens its support to the governmentIT sector through its active participation in thepassing of the E-Commerce Act, advocacy andbuilding of the knowledge-economy framework ofthe Philippines, and its continuing research of new

and emerging ICT technologies.

3/30/2010 36


37/111


the philippinesAdministrative Capacity

Information and CommunicationTechnology

Procurement is one area where thegovernment hopes to make a real impactusing ICTs. The GovernmentProcurement Act directs all governmenttransactions that pertain to procurement

of materials and services to becentralized through a major computernetwork infrastructure called theElectronic Procurement System (EPS),

3/30/2010 37


38/111

The effect of Globalization in the state capacity

of the philippinesAdministrative Capacity


which represents the Philippine Governments

first step towards electronic procurementpractices that will provide both governmentagencies and suppliers a more open,transparent and competitive environment for

the procurement of goods and services by theGovernment.

3/30/2010 38


39/111


the philippines



The Act is intended to help prevent graft andcorruption, improve operational efficiency,foster transparency, and encouragecompetition in the bidding process.

3/30/2010 39


40/111

The effects of Globalization in the state capacity

of the philippinesAdministrative Capacity

Human Resource Development

The Civil Service Commission (CSC) is responsible

for the recruitment, development, protection, andretention of a competent, professional, and highlymotivated government workforce that isresponsible to the needs of the various public thatinteract with the government.

The CSC is preparing the various agencies andinstitutions for the impending globalization byproviding them with quality and competentpersonnel with the necessary intellectual and socialcapital.

3/30/2010 40


41/111


of the philippines



In order to improve its information system and

decision-making, the CSC has issued a revisedPersonal Data Sheet form for use in allgovernment offices nationwide. The new formwill address the current demands for anintegrated human resource management

information system that can be used as a toolfor decisionmaking affecting careerdevelpoment and personnel actions in the civilservice.

3/30/2010 41


42/111




The Technical Education Skills and DevelopmentAuthority (TESDA), which the major objective is toprovide directions, policies, programs and standardstowards quality technical education and skilldevelopment to all sectors of society. As theleading partner in the development of the Filipinoworkforce with the world-class competence andpositive work values, TESDA assists the governmentin its mission to improve the level of technicalcompetence of the populace which is useful inmoderating the effects of globalization.

3/30/2010 42


43/111




TESDA plays a crucial role in helping displaced

workers, due to the negative impact of globalization on certain sectors, receive thenecessary training, learn skills and acquireknowledge that are important in the globaleconomy.

3/30/2010 43


44/111


the philippines

Legal and Judicial Capacity

The present Philippine legal and judicial systems couldenable the Philippines to benefit from globalization.

However, it must be remembered that the benefits ofglobalization, in terms of enhanced prospects fordevelopment, may not be reaped, and its ill wardedoff or at least delayed, even with all the proper legaland judicial measures in place, where there is no firm

political will.

3/30/2010 44


45/111


of the philippinesLegal and Judicial Capacity

The Ramos Administration, in 1992, laid thefoundation for plans and programs to open up thePhilippine market to competition and the

implementation of an economic reform agendathrough various legislative measures and executiveorders aimed at preparing for, coping with, andultimately benefiting from globalization.

In 1998, the Estrada Administration continued this

economic reform with the enactment of laws ongeneral banking, securities regulation, electroniccommerce, and safeguard measures against thepossible negative impact of globalization.

3/30/2010 45


46/111



From the first quarter of 2001 to the present, theArroyo Administration has seen to the

implementation of a five-pronged anti-povertystrategy and the promulgation of executive andadministrative orders designed to curb corruption,encourage transparency in governmenttransactions, stop money laundering, terrorism, and

make the Philippines an acceptable global partner.

3/30/2010 46


47/111



In the judicial and quasi-judicial sphere, new lawsrelating to the Court of Appeals, the Sandiganbayan,

and the National Labor Relations Commission havebeen enacted and new rules on criminal procedure,electronic evidence, search and seizure in civil actionfor infringement of intellectual property rights, havebeen promulgated.

Over the past 18 years, the Philippine governmenthas passed executive and legislative initiative to spurand protect economic development and to respondto globalizations challenges.

3/30/2010 47


48/111



Reforms were introduced throughdemonopolization of public utilities, privatizationof state enterprises, reduced state intervention inthe market, trade and investment liberalization,service industry deregulation, taxation reform,tariff reduction or elimination, monetary andfiscal reforms, anti-poverty and anti-corruption

measures, and improvement of peace and orderand administration of justice.

3/30/2010 48


49/111


the philippinesTransparency and Accountability in Trade and Investment

Activities

The National Economic Development Authority(NEDA), is the governments central planninginstitution. It conducts studies and formulation ofpolicy measures and other recommendations on thevarious aspects of development planning and policyformulation, coordination, evaluation and monitoring

of plan implementation.

3/30/2010 49


50/111


the philippinesTransparency and Accountability in Trade and Investment

Activities

The Department ofTrade and Industry (DTI) is the

governments primary coordinative, promotions, andfacilitative arm with regard to trade, industry, andinvestment activities. The DTI acts as the catalyst forintensified private sector activity to accelerate andsustain economic growth through a comprehensive

industrial growth strategy; a progressive and sociallyresponsible liberalization and deregulation program;and policies designed for the expansion anddiversification of both domestic and foreign trade.

3/30/2010 50


51/111


52/111


of the philippinesTransparency and Accountability in Trade and Investment

Activities

The Banko Sentral ng Pilipinas (BSP) main objective is

to formulate and implement policy in the areas ofmoney, banking and credit, with the primary purposeof maintaining stable prices conducive to balancedand sustainable economic growth in the country. Itseeks to promote and preserve monetary stability andthe covertibility of the national currency to othercurrencies.

3/30/2010 52


53/111


the philippines

Transparency and Accountability in Trade and

Investment Activities

The Department ofFinance (DOF) is the governmentslead agency in providing a solid foundation for thecountrys drive to become one of the most dynamiceconomies in the world-globally competitive and forwardlooking-by building a strong fiscal position.

3/30/2010 53


54/111


of the philippinesEnd Note:

The reports described the various laws,regulations, agencies, and institutions that define

the ability of the Philippine government topromote trade, investment, and growth.Administrative theory suggest that the states witheffective public administration systems and strong

institutions have the capacity to channelglobalization to their own advantage and tominimize its costs.

3/30/2010 54


55/111


56/111

GLOBALIZATION AND ITSDISCONTENTS

y P. Krugman has argued that the effective influence ofglobalization on the nation state is still negligible whencompared to national economic factors: major sectors ofthe economies of the leading industrial countries developwithout the underlying major impact of the worldeconomy.

y We have to register that the important phenomenon ofglobalization is taking place.

y There are important transnational (international and inter-

societal) and supra-national elements of a new publicorder, which remain however, beyond the traditionalborders of the state but not completely beyond the state assuch.


57/111


58/111

y It is necessary to remember this past epoch of economic history if one wants to do justice to recentevolutions of the globalized economy. This is all themore so because the first World War between the

major industrialized countries of the time and,moreover, the crisis of the world economy in the 1920sas well as the reactions it provoked from governmentsshould commend us not to consider it as a simple

confrontation of national (i.e., democratic) versustransnational (global, undemocratic).

GLOBALIZATION IN THE 1920s A LESSON WHICH HAS TO BELEARNED


59/111

y The proliferation of crises in the global financialeconomy is not a new phenomenon, either: the BlackMonday on Wall Street in 1929 and the breakdown ofthe Austrian bank in 1930 provoked worldwide crises.

And one should not forget that reactions of nationstates consisted of a re-nationalization of economicpolicies and a reduction of international co-operation.Instead, states focused on protectionist measures as

compensation for the destabilization of the worldeconomy.


60/111

y In comparison to the crisis of the late 1920s and early 1930s,the last major financial crisis, which began in 1997 inThailand and which, fuelled by panic reactions in manycountries, proliferated all over the world, turned out to berather harmless. This shows that international institutionsfor the control of , financial markets work this does notexclude that they need to be improved, but it demonstrates

that they can be improved. Thus it is not at the level of states but at transnational level that solutions have to befound. Fighters against globalization seem to be drivenmore by resentment than by reason. They differ from therather nationalistic militancy of their predecessors in the

1920s by their passive approach: they seem to project theirsearch for authenticity and identity within the nation state(which, on different occasions, is an object of fight itself)and on people of 3rdworld countries.


61/111

y Globalization is definitely characterized by itstransnational form i.e., it is based on exchange processeswhich more or less bypass both the state and the

traditional international character of the world economy inthe past. It is an important characteristic of theglobalization process that it produces more spontaneouslyself generating flexible ways of co-ordination and co-operation among states, even if they were established in theinterests of firms. But in the past, the public forms and

instruments including international treaties between stateswere much more important as institutions for themediation and the establishment of a legal basis for privatecontracts and transactions. The new forms of co-ordination are generated in a bottom-up, instead of a top-down, approach; they create self-stabilizing networks or

inter-relationships from which expectations which helporient participants to develop trust can emerge- a versionof trust in the community of the network itself, not just inthe personal reliability of the partners about which onecould collect personal experience.


62/111

THE EMERGENCE OF NETWORKS AND OF A NEWPARADIGM?

y Network-is crucial in the sense of referring to the rise of a newrelational rationality, as opposed to a traditional rule-baseduniversal rationality linked to the rise of the modern state andmodern law. Traditional forms of situational patterns of co-ordination had been linked to local parochial practices of co-operation; they had excluded foreigners whereas the new formsof relational heterarchical co-ordination are global: they allowfor stability under conditions of complexity and may establishtrust among strangers. This spontaneous generation of normshas occurred at all times, especially in the economic system, butit has been brought about much more slowly: economic practicehas produced, commercial habits, private standards, generalexperience, etc., which were always the necessary basis for theinterpretation and transformation of state-based domestic andinternational law.


63/111


64/111

y

The incompatability of globalization andenvironmental protection is equally doubtful.Environmental protection, as many environmentalistsconceive it, is inefficient and expensive, and thedecline in concern for the environment is at least

partly, due to the fact that it is ideology, and not arational taking economic constraints intoconsideration, that dominates the internationaldiscussion.


65/111

y The argumentation of the critics in the anti-globalizationmovement is also characterized by other contradictions, in

particular, by an illegitimate combination of normative andfactual views with regard to the relevance of democracy.

y First of all, the abstract potential of democraticgovernment is identified with the essence of the state,whereas the reality of anti-democratic government is

regarded as but one of the phenomena of globalization.Globalization in this view, undermines the immanentlydemocratic substance of the state. Most 3rd world countriesdo not have democratic governments, the reinforcement ofwhich might exercise a benevolent influence on the livingconditions of their populations. On the contrary , it is to beassumed that the opening of such states towards the worldeconomy might instead have a healthy influence on theirsocial structure because it may limit the destructiveexercise of public power.


66/111

THE LIMITS OFTHE NATION STATE IN

MANAGING CO

MPLEX PRO

BLEMSy It has to be recognized that globalization may havedetrimental effects because of the dynamic of changethat it imposes on countries which may not be wellprepared for it. However, one should not forget the

disastrous consequences, which have been producedby approaches to overcome the autonomy of theeconomic system.

y The overestimation of the phenomenon of globalization may also be due to the fact that the

causes of the growing importance of global networksof transnational inter-relationships which are to beseen in the rise of the knowledge economy have astrong internal effect, as well.


67/111

y Many disruptive evolutions that we have been able to observewould also have taken place within a closed economy. Thepotential of the nation state to impose rules on a dynamiceconomic system is even without a globalization process-ratherlimited. But this is mainly due to the process of devaluation ofpublic knowledge and the transformation of hierarchical inter-relationships in organizations, as well as the growing importance

of the future-oriented strategies of enterprises as opposed topath-dependent search processes.

y As a consequence, the traditional instruments of sovereign statepower lose their impact on the economic system. The publicinterest can no longer be formulated and put into practice bygeneral norms. Instead, it is increasingly important to use

public-private partnerships, the regulation of self-regulationand other indirect forms of stimulating the productive exerciseof state power in order to allow for an experimental, proactiveand open conception of private intervention.


68/111


69/111

y The concept of governance which might be criticized

for its vagueness, also comprises, and not by chance,private forms of management (corporate governance)

y The concept takes up the new permeability of the

state, which establish themselves beyond the morestructured relationships between the state and societyin the corporate state which has stable relationshipswith large/major representative organizations. The

new paradigm of openness of governmental decision-making procedures towards societal influences ismuch less structured than it used to be in the past.


70/111

y Globalization does not abolish the state, but transforms.y Globalization makes the state more permeable for the

observation and registration of the discontinuous effectsemerging in a world economy which can no longer be steeredby supposedly stable and continuous international treaties

which allow for stable exchange between otherwise separateeconomies.

y In the same vein, just as the state has to open towards new

patterns of networking within regional societies, it has also toobserve the evolution of patterns of relationships at global level.Both aspects correspond with one another: borders are nolonger defined by political geography. They become lessstable and less visible as the central instrument of stategovernment, unilateral decision based on territorial sovereignty,loses its importance. Political powers overlap in the same way as

societal networks of inter-relationships do. This evolution canneither be described as the abolition of all forms of public power,nor as a non-political reign of technology which finds itsinstitutionalization in the WTO, IMF, World Bank, etc., whichhave become emancipated from state-based public control.


71/111

THE PERMEABILITYOFTHE STATE UNDER POST-MODERN CONDITIONS OF UNCERTAINTYy There seems to be a parallel between public and private

forms of governance which might be developed in a fruitfulway by creating new forms of institutions. These newinstitutional forms are not primarily focused on rule-making and decision-making in the traditional sense ofliberal state activities a model which has already beentransformed by the welfare state and which might undergoa new wave of transformation which cannot be regarded asdestructive.

y This development towards a permeability of the publicinstitutions for societal influences has been recently

regarded by many authors as the end of the state as such.And again, one should bear in mind that the reactions tothis evolution had in the past devastating effects not onlyfor the world economy but also for the stability of statesand liberal societies.


72/111


73/111


74/111

y It is far from evident that the EU should have

sovereignty in the traditional sense. The multi-polarityof the EC without a clearly defined top level of hierarchy might be a much more adequate design forsuch a new institutional co-operative setting,especially if one bears in mind that the Member States

themselves have disaggregated their sovereignty touse a concept introduced by Ann-Marie Slaughter also within their uncontested competences by accepting private norm-making, public-private

partnerships, and regulated self-regulation (instead ofimposing state norms) to name but a few of thephenomena of the emerging network-like decenteredconceptions of the state.


75/111

THE OPEN STATEy It could be a challenge to develop a conception of the open

state which should be regarded as a political form in itsown right and not as deficient vis--vis either thetraditional nation state or a utopian world state.

y It is the fine-tuning and co-ordination of differentcomponents of national, transnational, international/intergovernmental and supra-national origin which is atissue. We should venture to design a new network-relatedmodel which links different public and private actorsbeyond and within the state in a productive way. Such amodel should not do away with the state but is should tryto learn from former transformations of the state and try todiscover a pattern of transformation, which might be

referred to also when thinking about the multi-polarnetwork of public governance.

y This idea is also at the basis of the hierarchy of publicinterest over private interests.


76/111

y The procedure of representation which is meant to

aggregate the public interest can no longer betrusted because of the increasing heterogeneity ofinterests, the necessity to introduce an element ofdesign and experimentation into public policy, andthe intransparence of a complex society.

y In this respect, the element of procedure which isalready at the basis of parliamentary deliberationmight be referred to and remodeled in the sense ofa more experimental design and search processintended to find best practices also by comparingpublic governance and its instruments in differentgovernmental regimes.


77/111

y This idea might draw on the concept of benchmarking,which is used in modern management processes and whichpresupposes that established practices and commonknowledge can no longer be trusted and have at least to besupplemented by explicit search processes. Private andpublic actors may take action to tackle problems alike andthere should be the possibility of creating procedures (bothpublic and private) in order to design strategies, observe andevaluate consequences, and compare them to results foundelsewhere. In this way, public actors might rearrange participation (e.g. in standard setting processes, imposeselective giving-reasons requirements, introduce publichearings) but they can no longer impose models of

behavioral steering once the new addressees of law orother public decisions are no longer persons but networks ofinter-relationships where concrete responsibilities can nolonger be defined.


78/111


79/111


80/111

y A new model of public governance for both national andtransnational levels could try and find a functional

equivalent to the institutions of liberal government and lawat a more abstract level.y This could imply a shift from substantive rules to

procedural meta-rules which would have their focus moreon the modeling of reality, the monitoring of theimplementation of norms, the evaluation of the

consequences of the implementation of a certain decision,etc.

y At transnational level, this could imply a principle ofcompetition of institutions. Public governance could thenconsist in both new approaches to, and management of,complexity which, from the outset, would have to bereflected by decision-making strategies, and should onlyallow for public strategies which reflect uncertainty in theirown design.


81/111

THE RISE OF A NEW RELATIONAL RATIONALITYVIS--VIS HIERARCHICAL INSTITUTIONSy The networks generate their own relational rationality based

on overlapping situations, and the creation of expectations andconstraints which do not follow traditional models based on aclear separation of general knowledge, experience and habits,but which have to refer to an element of design, of producingpossibilities and opening up new domains of options (high

technology)y As mentioned above, this does not lead to the delegation of

public power to private actors, the element of public responsibilityand accountability is not given up. However its contours cannotbe presupposed any longer; they have to be reconstructed both at

national and at international level.y It searches for a new multi-polar (not a multi-level) public order

which is not separate from private ordering (producing patternsof inter-relationships) and not just decisions which do not havefurther impact on the normative order as such.


82/111

FRONTIERS: NATIONAL ANDTRANSNATIONAL ORDER

BY: LAWRENCE M. FRIEDMAN


83/111

y Globalization it is said, is a process that undermines thehitherto established model of the nation state and the

welfare state in particulary Globalization refers to a change in scale and in size.

y When people talk about globalization, they are usuallythinking of processes and events and movements that spillover and cross national borders.

y The term also refers to movement, diffusion, expansion,from a local level and with local implications, to levels andimplications that are worldwide, or at least region-wide.

y When people talk about globalization they also seem toassume that what is happening is either inevitable or

unavoidable.y Globalization therefore means that no man, woman or

nation is an island. As a result of the process of diffusion,everything seems to be connected with everything else.


84/111

y Globalization, whatever else it may mean, is about

movement of images, goods and ideas across stateborders; and for that matter, across oceans and mountainbarriers as well.

y People have always been on the move, and ideas, images,religions, cultures and diseases have always travelled across

borders. Modern history, however, has been a process ofopening up of combining and recombining and makingthe world into one.

y The modern diffusion of people and concepts, is as we shallsee, a consequence of this opening up.

y

What makes modern diffusion possible is the miraculousadvance of technologies of movement and communication.These technologies are instruments or tools that makeglobalization possible.


85/111

y Globalization is about diffusion; but ideas andmovements can diffuse even if people do not go

anywhere at all.y Globalization is essentially a cultural phenomenon.

Culture however does not require travel; it can bebeamed directly into the human brain, so to speak.(thru radio, movies, and TV)

y TV in particular has had and still as an immensecultural inf luence. It transports scenes, images, ideasin short, great speed across great distances. Movie andradio have had a similar impact. The internet promisesto make an even greater difference in the future; it hasthe potential to connect everybody with everybody elsein the developed world.


86/111

What is it that gets shipped across

borders?y The first answer is Trade

y Globalization is economic; it is international business,international transactions, international buying and

selling and deal-making.y The second answer is human capital

y Human beings themselves have become global.

y Both of these trade and human capital are at the

core of globalization. But both in turn depend on therise of something truly primary and basic:globalization is aboutmessages: it is about ideas; it isabout culture.


87/111

y Television is one of the obvious carriers of the global

culture. It transmits its images all over the world,subtly and invisibly and it seems to have a devastatingeffect on all the rival cultures that it touches.

y In short there are no longer any real barriers to thediffusion of culture. The only real obstacle is language.

y Science and technology have transformed the world ineven more basic ways. They have revolutionized themaking and selling and transporting of goods, and thishas been in turn the engine for the creation of

enormous wealth in developed world.


88/111

GLOBALIZATION OF LAWy If there is a globalized world, if business and trade areglobalized, and if there is a globalized culture of

production and consumption, then it follows that theremust also be a globalized sector of law.

y In the modern world, or at least in the developed world,legal systems have increased in scale and scope in recent

decades. The legal order has become, more than ever,dense, ubiquitous and pervasive.

y Most lawyers remain firmly rooted in their own legal habitsand traditions, even if they work for transnationalcorporations. They deal mostly with the local problems andconcerns of these corporations, and they live in a world oflocal, domestic, legal culture.

y Of course there is an international legal sector; there arelawyers with international practices. One symptom is therise of the transnational law firm.


89/111


90/111

SUBSTANCE AND STYLEy What does the globalized sector of the legal order consist

of?

y There is to begin with, a body of hard law: treaties,

conventions, GATT and GATT-like arrangements, regionalpacts like NAFTA and Mercosur and the European Union.

y Some of these are truly international; others are confinedto some region of the world; but they all at any rate, are

intended to have impact across national borders.y Then there is the body of soft law: international customs,

practices and behaviours.


91/111

RISKS AND OPPORTUNITIESy Global problems are caused by global processes, even when

they seem totally local. (e.g. increasing birth rate in Kenya;ravenous appetite of the Chinese for endangered species)y The globalization of risk is an obvious problem for the

international order. It generates a demand for, and a needfor, actions that are as universal as possible.

y The whole world needs clean air and water and it wants therainforests and the steppes and the prairies and the coralreefs. Yet most of these habitats and resources are located,legally speaking, within national borders and a giant,invisible fence, called national sovereignty keepsforeigners out.

y

This suggests a need for hard law and enforceable law: butwhere would this come from, and how? The force of worldopinion sometimes makes a difference; but when vitalnational interests are at stake, countries feel free to ignorewhat outsiders think.


92/111

REFLECTIONS IN A MIRROR: GLOBAL LAW ATHOME

y Global law, in general, depends on the work of locallawyers, courts and judges. The great treaties andconventions would be merely words on paper if thiswere not the case, if they were not enforceable locally.

y

In broader sense, domestic law, even in mundane,local fields, reflects the influence, as it must, of aworld that every country is connected to every otherone. (e.g. child custody)

y There are treaties, conventions and legal tools to deal

with the issue; but there is no fully satisfying way toresolve the problems that come from the underlyingclash of cultures, or to prevent bias on the part of localcourts.


93/111

y Immigration is a good example of how theglobalization of wishes and desires sets forces inmotion that lead to dramatic changes in the behaviorof masses of people: and these changes in turn putenormous pressures on the legal and political systems.In response, one sees a kind of backlash, which takesthe form of barriers against the free flow of goods orpeople or ideas, or all of these.

y But free trade has consequences; and it makes winnersand losers. Most countries in the developed world feelthreatened by cheap imports and cheap labor of

immigrants.y Differing national product standards and rules on

advertising and marketing can become very effectivebarriers to Trade


94/111


95/111

y Each independent country is supposed to be free to

run its own show; and other countries are not allowedto meddle in internal affairs. Needless to say, thisright is frequently violated. Big powerful countriescan get away with a great deal of bullying andinterference. .

yWe also hear a lot of talk about the erosion of theconcept of nationality supposedly, this is replaced bya concept emphasizing that the state is accountable toall its residents on the basis of international human

rights law


96/111

y In the modern world, concepts of human rights show

real signs of convergence. No doubt, Western conceptsof freedom and rights are not neutral, timeless andinherent; and they found early and eloquentexpression in Western ethical and political philosophy.But these concepts are, in fact, not really Western.

Rather, they are modern.y Globalization is really an extension of the process of

modernization; and the spread of the idea of freespeech is just as much part of the process as the spread

of electricity or Coca-Cola.y The culture of human rights, if we analyze it carefully,

is really a culture of individualism.


97/111

y Modern politics in many countries, is preoccupied

with issues that at least seem focused on the group,rather than the individual. This seems to be true ofracial politics in countries as disparate as the US,Malaysia, Fiji or Guatemala.

y

Feminist movements, the gay rights movement, thevarious liberation or separatist movements of ethnicminorities: all these seem to be f lying a banner ofgroup identity, group empowerment, and the like, Butparadoxically, group identity and group

empowerment, when you dig beneath the surface, turnout to be aspects of individualism.


98/111

Is the Nation-State Withering Away?yAs we have seen, globalization erodes the meaning of

borders, at least to a degree; it also sets processes inmotion that lead countries to try to strengthen theirborders, in defense against some of the consequencesof globalization. The process is one of action andreaction.

y In the legal and economic senses, true sovereigntyseems impossible for most states. For most countriesand surely all small countries, economic independence

is not attainable. It is even a question whether thegiants can survive on their own in so interconnected aworld.


99/111

DE NATIONALIZED STATE AGENDAS ANDPRIVATIZED NORM-MAKING

By: Saskia Sassen


100/111


101/111

THE STATE AND GLOBALIZATIONy One of the roles of the state vis--vis economic

internationalization has been to negotiate theintersection of national law and the activities offoreign economic actors whether firms, markets or

supra-national organizations in its territory as well asthe activities of national economic actors overseas.This is not a new role but it is a transformed andexpanded one.

y In the case of the US, the government has passedlegislative measures, executive orders, court decisionsthat have enabled foreign firms to operate in the USand markets to become international.


102/111

yWe have, on the other hand the existence of an

enormously elaborate body of law developed in goodmeasure over the last hundred years which secures theexclusive territorial authority of national states to anextent not seen in earlier centuries, and, on the other,the considerable institutionalizing, especially in the

1990s, of the rights of non-national firms, thederegulation of cross-border transactions and thegrowing influence/power of some of the supra-national organizations.


103/111

y The accommodation of the interests of foreign firmsand investors under conditions where most of acountrys institutional domains have been constructedas national entails a negotiation. The mode of thisnegotiation in the current phase has tended in adirection that I describe as a de-nationalizing of

several highly specialized national institutionalcomponents.

y The consensus in the community of states to furtherglobalization is not merely a political decision: it

entails specific types of work by a large number ofdistinct institutions in each of these countries. In thissense, that consensus partly shapes the actual work ofstates rather than being just a decision.


104/111


105/111

y In this case the state can be seen as incorporating theglobal project of its own shrinking role in regulatingeconomic transactions. The state here can beconceived of as representing a technical administrativecapacity that cannot be replicated at this time by anyother institutional arrangement; furthermore, this is a

capacity backed by military power, with global powerin the case of some states. Seen from the perspective offirms operating transnationally, the objective is toensure the functions traditionally exercised by the

state in the national realm of the economy, notablyguaranteeing property rights and contracts.


106/111

DE-NATIONALIZED STATE AGENDASyWe generally use terms such as deregulation,

financial and trade liberalization and privatization, todescribe the changed authority of the state when itcomes to the economy. The problem with such terms is

that they only capture the withdrawal of the state fromregulating its economy. They do not register all theways in which the state participants in setting up thenew frameworks through which globalization isfurthered, nor do they capture the associated

transformations inside the state.


107/111

y Central banks are national institutions that addressnational matters. Yet over the last decade they have become

the institutional home within the national state ofmonetary policies that are necessary to further thedevelopment of a global capital market and indeed, moregenerally, a global economic system. The newconditionality of the global economic system therequirements that need to be met for a country to becomeintegrated into the global capital market contains as onekey element the autonomy of central banks. This facilitiesthe task of instituting a certain kind of monetary policy e.g.

one privileging low inf lation over job growth even when apresident may have preferred it the other way aroundparticularly at re-election time.


108/111

yWhen securing central bank autonomy certainlycleaned up a lot of corruption, it has also been thevehicle for one set of accommodations on the part ofthe national states to the requirements of the globalcapital market. A parallel analysis can be made ofministries of finance that have had to impose certain

kinds of fiscal policies as part of the newconditionalities of economic globalization.

yAt the level of theorization, it meanscapturing/conceptualizing a specific set of operations

that take place within national institutional settingsbut are geared to non-national or transnationalagendas where once they were geared to nationalagendas.


109/111


110/111


111/111

Documents

Report Globalization