By Group 2

Introduction
The United Nations (UN) tried to address the different problems in
the world. Their efforts were guided by the eight Millennium
Development Goals, which they created in the 1990’s.

1. the 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; and
8. having a global partnership for development
 Introduction
In the Philippines, a person is officially living in the poverty if he
makes less than 100,534 pesos a year, around 275 pesos per day. This
is called the poverty line or poverty threshold.

Extreme poverty which, according to the UN (2015), is a condition

characterized by severe deprivation of basic human needs including
food, safe drinking water, sanitation facilities, health, shelter,
education, and information.

The UN defines extreme or absolutely poverty as living on less than

$1.25 a day.
 Introduction
So why is extreme poverty falling? The answer to this is really
complicated.

A set of factors like better access to education, humanitarian aid, and

the policies of international organizations like the UN have made a
difference. However, the greatest contributor is economic
globalization.

The world’s economies have become more interconnected and free

trade has driven the growth of many developing economies.
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 Economic Globalization & Global Trade
Economic globalization refers to the increasing interdependence of
world as a result of the growing scale of cross-border trade of
commodities and services, flow of international capital, and wide
rapid spread of technologies.

Two different types of economies:

1. Protectionism- a policy of systematic government intervention in foreign trade
with the objective of encouraging domestic production. It usually comes in the
form of quotas and tariffs.
2. Trade liberation or “free trade”- Is the removal or reduction of restriction or
barriers on the free exchange of goods between nations. These are policies
under which the government impose there is no taxes or tariff as well as duties
on imports or quotas to export.
 Economic Globalization and
Sustainable Development
Sustainable Development- is defined as development that
meets the needs of the present without compromising the
ability of future generations to meet their own needs. It also
refers to the development of our world today by using the
earth’s resources and the preservation of such sources for the
future.
The relationship between globalization and sustainability is
multi-dimensional—it involves economic, political, and
technological aspects.
The continuous production of the world’s natural resources,
such as water and fossil fuel allow humanity to discover and
innovate many things. We were able to utilize energy, discover
new technologies, and make advancements in transportation
and communication.
 Environmental Degradation
Is the disintegration of the earth or
deterioration of the environment through
consumption of assets, for example, air,
water and soil; the destruction of
environments and the eradication of
wildlife.

Industrial Revolution- is the period in

human history that made possible the
cycle of efficiency.
 Food Security
Global food security means
delivering sufficient food to
the entire world population.
The security of food also
means sustainability of
society such as population
growth, climate change,
water scarcity, agriculture.
 Economic Globalization, Poverty,
and Inequality
Economic and trade globalization is the result of companies
trying to outmaneuver their competitors.
This process creates winners and losers.
The winner includes corporations and their stockholders who
earn more profit. They also include consumers who get
products at a cheaper price.
The losers are high wageworkers who used to make those
shoes. Their jobs moved overseas.
Multiplier effect means an increase in one economic activity
can lead to an increase in other economic activities.
 Global Income Inequality
Globalization and inequality are closely related. We
can see how different nations are divided between the
North and the South, developed and less developed, and
the core and the periphery. These differences mainly
reflect one key aspect of inequality in the contemporary
world—global economic inequality.
There are two main types of economic inequality:
wealth inequality and income inequality.
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 the liabilities.
Income is the new earnings that are constantly being
added to the pile of a country’s wealth.
 The Third World and Global South
Western capitalist countries were labeled as the “First
World.” The Soviet Union and its allies were termed the
“Second World.” Everyone else was grouped into “Third
World.”
North-South, was created as Second World countries joined
either the First World or the Third World.
First World countries, such as the United States, Canada,
Western Europe, and developed parts of Asia are regarded as
the “Global North,”
“Global South” includes the Caribbean, Latin America,
South America, Africa and parts of Asia. These countries
were used to be called the Third World
 The Global City
Sassen (1991) 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.
World cities are categorized as such based on the
global reach of organizations found in them.
 Theories of Global Stratification
One of the two main explanations for global stratification is
the modernization theory. This theory frames global
stratification as a function of technological and cultural
differences between nations. It specifically pinpoints two
historical events that contributed to Western Europe
developing at a faster rate than much of the rest of the world.
1. Columbian Exchange- this refers to the spread of goods,
technology, education, and diseases between the
Americas and Europe after Christopher Columbus’s so-
called “discovery of the Americas.”
2. Industrial Revolution- this is when new technologies,
like steam power and mechanization, allowed countries
to replace human labor with machines and increase
productivity.
 Walt Rostow’s Four Stages of
Modernization
1. Traditional stage- refers to societies that are
structured around small, local communities with
production typically being done in family settings.
2. Take-off stage- people begin to use their individual
talents to produce things beyond the necessities.
3. Drive to technological maturity- begin to bear fruit
in the form of population growth, reductions in
absolute poverty levels, and more diverse job
opportunities.
4. High mass consumption- it is when your country is
big enough that production becomes more about
wants than needs.
 Dependency Theory and the Latin
American Experience
Dependency theory was initially developed by Hans Singer
and Raul Prebisch in the 1950s.
The two main sub-theories are the North American Nep-
Marxist approach and the Latin American structuralist
approach.
The term “core nations” and “peripheral nations” are at the
heart of dependency theory.
Peripheral nations are countries that are less developed and
receive an unequal distribution of the world’s wealth.
Core countries are more industrialized nations who receive
the majority of the world’s wealth.
 The Modern World-System
High-income nations as the “core” of the world
economy. This core is the manufacturing base of the
planet where resources funnel in to become the
technology and wealth enjoyed by the Western world
today.
Low-income countries are called the “periphery,”
whose natural resources and labor support the wealthier
countries, first as colonies and now by working for
multinational corporations under neocolonialism.
Middle-income countries, such as India or Brazil, are
considered the semi-periphery due to their closer ties to
the global economic core.
Thank You
for listening!