The Global Economy

 Eight Millennium Goals:

1. Eradication of extreme poverty and hunger
2. Achieving universal primary education
3. Promoting gender equality and women empowerment
4. Reducing child mortality
5. Improving maternal health
6. Combating diseases like HIV/AIDS and malaria
7. Ensuring environmental sustainability
8. Having a global partnership for development
 Poverty Line or poverty threshold- a person is officially living in poverty if he makes
less than 100,534 pesos a year, around 275 pesos a day
 Extreme Poverty- is a condition characterized by severe deprivation of basic human
needs including food, safe drinking water, sanitation facilities, health, shelter, education
and information
 Climate change is a threat to the improvements of global poverty
 Extreme poverty situation:
1. Disease due to lack of water
2. Income inequality
 Why extreme poverty falling?
1. Access to education
2. Humanitarian aid
3. Policies to international organizations like UN
 Economic Globalization- refers to the increasing interdependence of world economies
as a result of growing scale of cross-border trade of commodities and services, flow of
international capital, and wide and rapid spread of technology.(as cited in
Shangquan,2000)
 Two types of economies associated economic globalization:
1. Protectionism
2. Trade Liberalization or Free Trade
 Protectionism-a policy of systematic government intervention in foreign trade with the
objective of encouraging domestic production. This encouragement involves giving
preferential treatment to domestic producers and discriminating against foreign
competitors.(McAleese,2007)
 Trade Protectionism:
1. Tariffs
2. Quotas
 China, Japan, United States are being accused of practicing protectionism.(Ritzer,2015)
 Free Trade- removing or eliminating trade barriers in exchanging goods and services
between nations
 Free Trade Agreements- a treaty or an agreement between partner countries (NAFTA,
AFTA) to remove or eliminate trade barriers in exchanging goods and services, therefore
it makes move around the world more easily.
 Mobile phones- “single most transformative technology”- Jefferey Sachs
 International trade- created new opportunities for people to sell their products and labor
in global marketplace.
 Fair Trade- as defined by International Fair Trade association, concern for the social,
economic and environmental well-being of marginalized small producers
 Sustainable Development- the development of our world today by using the earth’s
resources and the preservation of such sources for the future.
 Efficiency- finding quickest possible way of producing large amount of a particular
product
 Environmentalists argue that environmental issues should be given priority over
economic issues. (Antonio,2007)
 Ecological Modernization Theory- sees globalization as a process that can both protect
and enhance the environment(Yearley,2007)
 Significant challenge implementing various solutions:
1. Carbon tax
2. Carbon neutrality
 Technological fixes such as Geoengineering(dealing to the solution of a global
warming)
 Global Food Security- delivering sufficient food to the entire world
 Food Security- sustainability of society such as population growth, climate change,
water scarcity and agriculture
 Climate Refugees- people who are migrate due to lack of water or due to flooding
 Persistent Organic pollutants(POPs)-has led to industrial pollution.(Dinham)
 Greenhouse gases, gases that trap sunlight and heat in the earth’s atmosphere,contribute
to Global warming
 Global warming causes of:
1. Melting of land-based and glacial ice with potentially catastrophic effects(revkin)
2. Possibility of substantial flooding
3. Reduction in the alkalinity of the oceans
4. Destruction of existing ecosystem
 Multiplier effect- increase in one economic activity can lead to an increase in other
economic activities
 Opponents of economic globalization called the outsourcing of jobs as exploitation and
oppression, a form of economic colonialism that puts profits before people.
 Some developing countries:
1. Have no minimum wages laws
2. Do not have regulations that provide safe working conditions or protect environment
3. Child labor are not always enforced
 Workers would not be horribly mistreated by:
1. Awareness e.g. List of goods which produces annual publication
2. Comes from those that support globalization
 Microcredit winning by a Bangladeshi professor namedMuhammad Yunus- He gave
a small loans, around $100, to low-income people in rural areas.it enables people to
participate in the economy can make their lives better
 Globalization and Inequality are closely related
 Nations are divided between:
1. North and the South
2. Developed and less developed
3. Core and the periphery
 Global Economic Inequality-reflects one key aspect of inequality in the contemporary
world
 2 main types of economic inequality:
1. Wealth inequality- speaks about distribution of assets. However, there is no widely
recognized, monetary measure that sums up these assets.(Economist)
2. Income Inequality- new earnings are being distributed; it values the flows of goods
and services, not a stock of assets(Economist)
 Wealth-refers to the net worth of a country. It takes into account all the assets of a
nation-may they be natural, physical and human-less liabilities. In other words, it is
the abundance of resources in a specific country.
 Income-is the new earnings that are constantly being added to the pile of a country’s
wealth.
 Gross Domestic Product- use to measure global economic inequality
 BrankoMilanovic-economist specializes in Global Inequality describes it as
ECONOMIC BIG BANG
 Economic Big bang – explosion of industry of modern technology
 Economic Gap- result of global inequality
 Forces responsible in today’s global income inequality:
1. Economic Globalization
2. International Trade
 Rich are becoming richer because of Global Capitalism
 Jobs are technological based- economist referred this as skilled-based technological
based
 Three distinct political and economic blocs(Tomlinson):
1. Western Capitalisttermed as First World-associated with rich and industrialized
countries
2. Soviet Union and its Allies labeled as Second World
3. Everyone else was group into Third World- associated with impoverished states,
more than 100 countries
 After the Cold war ended, the category of second world countries became null and void.
 Countries sort based on the specific level of productivity:
1. Gross Domestic Product(GDP)- which measures the total output of a country
2. Gross National Income(GNI) -which measures GDP per capita (World Bank)
 North-South, was created as Second World countries joined either the First World or
the Third World
 First World Countries-“Global North”:
1.United States
2.Canada
3. Western Europe
4. Developed parts of Asia
 Third World Countries-“Global South”
1. Caribbean
2. Latin America
3. South America
4. Africa
5. Parts of Asia
 The terns Global North and South point largely to the racial inequality, specifically
between the Black and the White
 These differences are shaped by migration and globalization
 Rural-urban differentiation has a significant relationship to globalization
 Rural places are exposed to Low prices and mass migration
 Sassen used the concept of global cities to describe the three urban centers of New
York, London, and Tokyo as economic centers that exert control over the world’s
political economy.
 2 Historical Events:
1. Columbian Exchange- First historical Event. This refers to the spread of goods,
technology, education, and diseases between the Americas and Europe after
Christopher Columbus’s so called “discovery of Americas
2. Industrial Revolution- Second historical event in the 18th and 19th century. This is
when technology, like steam power and mechanization, allowed countries to
replace human labor with machines and increase productivity.
 Europe became modernize because of idea of Max Weber, the Protestant Work Ethic
 Protestant reformation- primed Europe to take on a progress-oriented way of life in
which financial success was a sign of personal virtue

Ps: di pa to kumpleto. Ikaw nalang magdagdag :D