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The Global Economy • The UN defines extreme or

absolute poverty as living on


• The United Nations (UN)
tried to address the different less than $1.25 a day.
problems in the world. • Nowadays, extreme
• Their efforts were guided by poverty is falling due to
the eight (8) Millenium many factors like better
Development Goals, which access to education,
they created in the 1990s. humanitarian aid, and the
• The UN tried to achieve policies of international
them by the year 2015. organizations like the UN
have made a difference.
• However, the greatest
contributor is economic
globalization.
I. Economic Globalization &
Global Trade
“Economic Globalization refers
to the increasing interdependence
• Extreme Poverty is a of world economies as a result of
condition characterized by the growing scale of cross-border
severe deprivation of basic trade of commodities and
human needs including food, services, flow of international
safe drinking water, capital, and wide and rapid spread
sanitation facilities, health, of technologies. It reflects the
shelter, education, and continuing expansion and mutual
information. (UN, 2015) integration of market frontiers, and
• In the Philippines, a person is an irreversible trend for the
is officially living in poverty if economic development in the
he makes less than 100,534 whole world at the turn of the
pesos a year, around 275 millenium.”
pesos a day. This is called
the poverty line/poverty Two (2) Different Types of
threshold. Economies
a. Protectionism
b. Trade Liberalization
• Protectionism means “a involves economic, political, and
policy of systematic technological aspects
government intervention • The continuous production
in foreign trade with the of natural resources allows
objective of encouraging humanity to discover and
domestic production. innovate many things. i.e.
This encouragement water, fossil fuel
involves giving • However, this development
preferential treatment to put our environment at a
domestic producers and disadvantage. i.e. climate
discriminating against change
foreign competitors.” A. Environmental Degradation
i.e. tariffs, quotas • Industrial Revolution -
• (Trade Liberalization) Free hastened economic
trade agreements and development, and made
technological advances in possible the cycle of
transportation and efficiency.
communication mean goods
and services move around • Efficiency - finding the
the world more easily than quickest possible way of
ever. producing large amounts of
• Fair Trade is defined as the a particular product
concern for the social,
economic, and • Efficiency - produce
environmental well-being of something without wasting
marginalized small materials, time or energy
producers.
• ↑ demand = ↑ efficiency
II. EG & Sustainable
Development • *this cycle harms the planet
in any ways i.e. carbon
• Sustainable Development -
emissions, marine bio &
the development of our
world today by using the coral reefs destruction,
earth's resources and the deforestation, pollution,
preservation of such sources climate change
for the future. • Neoliberals and
environmentalists debate on
-a global response/approach the impact of free trade on
to economic globalization, thus
the environment. (Harvey, Global Food Security - delivering
2005) sufficient food to the entire world
population.
- the sustainability of society such
Perspective Towards Globalization as population growth, climate
change, water scarcity, and
agriculture.
In INDIA...
• Agriculture - 18% economy's
output
• - 47%
workforce
Various efforts are underway tdeal • 2nd biggest producer of
with climate change. However, fruits & vegetables
strong resistance on the part of • 194 million - undernourished
the governments and corporations (15.2%)
counters these. • 1/3 malnourished children
lived here.
i.e. Kyoto Protocol, “Carbon Tax”,
“Carbon Neutrality”, alternatives to Challenges to FS:
fossil fuels • Environmental Protection
Previous experience in dealing (Deforestation, Farmlands,
with environmental issues Industrial Fishing)
indicates that a global view of the • Availability of Fresh Water
problem is required.
(Desertification, Water
A focus on specific regions Ecosystems, Virtual Water)
overlooks impacts in other • Pollution
regions. (Chemicals, Gases, Electronic
Instead of dealing with the causes Wastes)
of global warming, there is some
interest in “technological fixes” There are different models and
such as geoengineering. agenda pushed by different
organizations to address the issue
of global food security. One of it is
B.Food Security through sustainability.
The demand for food will be -UN through its SDGs, World
60% greater than it is today and Economic Forum through New
the challenge of food security Vision for Agriculture
requires the world to feed 9
billion people by 2050 (Breene,
2016).
i.e.investing to local businesses
will lead to more jobs and more
income.
Opponents of economic
globalization called the
outsourcing of jobs as exploitation
and oppression, a form of
economic colonialism that puts
profits before people.
III. EG, Poverty & Inequality they are concern on:

“The 1 to 2 billion poorest in the protectionist policies, foreign


world who don't have food for the workers, working environment,
day suffer from the worst disease, wage laws, child labor.
globalization deficiency. The way
In the absence of regulation, it is
globalization is occuring could be
still possible that workers would
much better, but the worst thing is
not be horribly mistreated.
not being part of it.”
Hans Rosling, Swedish statistician 1. Public awareness is growing
along with the pressure from the
Economic and trade globalization international community to take
is the result of companies trying to steps to protect workers.
outmaneuver their competitors.
The result is labor-intensive 2. The pro-globalization set argues
products produced in countries that as developing economies
with the lowest wages and the grow, there are more opportunities
weakest regulations. for workers, which leads to more
competition for labor and higher
Winners : Corporations, wages.
Stakeholders & Consumers
Economic globalization has helped
Losers: High Wageworkers millions of people get out of
extreme poverty but the challenge
Low Wage Foreign Workers:
of the future is to lift up the poor
winners or losers?
while at the same time keep the
Multiplier Effect : An increase in planet livable.
one economic activity can lead to i.e. microcredit implemented by
an increase in other economic Prof. Muhammad Yunus in 2006 at
activities. Bangladesh
“In my experience, poor people developing. Result is economic
are the world's greatest gap.
enterpreneurs. Every day they
e.g. (1820) UKGBNR & The
must innovate in order to survive.
Netherlands were only 3x richer
They remain poor because they
than India and China
do not have the opportunities to
turn their creativity into sustainable (today) 100:1 ratio
income.”
Although IR allowed a significant
Yunus, 2012 inequality in the past, economic
globalization and international
A. Global Income Inequality trade are the forces responsible in
Globalization and inequality are today's global income inequality.
closely related. There are 2 types Yet, many economists believe that
of economic inequality: theworld's poorest people gained
something from globalization
1. Wealth Inequality (distribution of
assets) Harvard economist Richard
Freeman (2011) noted, “The
2. Income Inequality (new triumph of globalization and
earnings are being distributed, it market capitalism has improved
values the flow of goods and living standards for billions while
services, not a stock of assets) concentrating billions among the
“While the bottom half collectively few” (as presented in OECD
own less than 1 percent of total Policy Forum, Paris, May 2).
wealth, the wealthiest top 10 Lastly, the access to technology
percent own 89 percent of all contributed to worldwide income
global assets” (Credit Suisse inequality. The result is a widening
Research Institute, 2016). gap between the rich and the poor
Current Global Wealth: around 3.5 as well as between high-skilled
trillion dollars and low-skilled workers.

Economic Big Bang (Branko B. Global City


Milanovic, 2011) : wherein the The rural-urban differentiation has
Industrial Revolution caused the a significant relationship to
differences among countries. globalization. Globalization has
Through this explosion of industry deeply altered North-South
and modern technology, some relations in agriculture.
nations become economically
developed while others were
i.e. (McMichael, 2007) rise of a. Columbian Exchange -
global agribusiness & factory spread of goods, technology,
farms education, and diseases between
Americas and europe after C.
(Schlosser, 2005)
Columbus' so-called “discovery of
commercial agriculture replaces
the Americas”
local provisioning, rural econs are
exposed to low prices and mass b. Industrial Revolution -
migration. 18th-19th century, introduction of
new technologies, increased
There are internal inequalities in
productivity.
global cities and as well as among
these cities. Moreover, all of these 2. Walt Rostow's Four Stages of
cities are considered important Modernization
nodes in a variety of global
networks (Castells, 2000). According to American
economist W. Rostow,
Although cities are major modernization in the West took
beneficiaries of globalization, place in four stages.
Bauman (2003) claimed that they
are also the most severely a. Traditional Stage. Refers to
affected by global problems. societies that are structured
Therefore, the city faces peculiar around small, local communities
political problems, wherein it is with production typically being
often fruitlessly seeking to deal done in family settings. i.e. feudal
locally with global problems and Europe, Chinese dynasties.
“local politics has become b. Take-off Stage. People begin to
hopelessly overloaded”. use their individual talents to
IV. Theories of Global produce things beyond
Stratification necessities.

1. Modernization Theory c. Drive to Technological Maturity.


Nations in this phase typically
It frames global stratification begin to push for social change
as a function of technological & along with economic change, like
cultural differences between implementing basic schooling for
nations. It specifically pinpoints everyone and developing more
two (2) historical events that democratic political systems.
contribute to Western Europe
developing at a faster rate than d. High Mass Consumption. It is
much of the rest of the world. when your country is big enough
that production becomes more
about wants than needs.
3. Dependency Theory & the
Latin American Experience
It focuses on how poor
countries have been wronged by
richer nations. Global stratification
starts with colonialism.
4. The Modern World-System
The history of colonialism
inspired American sociologist
Immanuel Wallerstein model of
what he called the capitalist world
economy.