IPS Class 9: Social Changes & Globalization

• The document appears to be study material for Social Sciences (IPS) class 9, related to social changes, globalization, and economic development.

Social Changes in Contemporary Era

• Social cultural change occurs in the social cultural elements of people's lives
• Societies are always changing as a natural phenomenon in a constant pursuit of a better life
• Main drivers of societal change: increasing population, evolving human needs, and new discoveries
• Factors that inhibit social change: lack of interaction with other societies, hindered development of science and technology, traditional attitudes, fear of cultural integration disruption, and ideological barriers

Forms of Change

• Revolution: a transformational change
• Evolution: a gradual change

Scope of Change

• Small: affects a limited area
• Large: affects a broad area

Planning of Change

• Planned: change is anticipated
• Unplanned: change is spontaneous

Direction of Development

• Progress: change leads to advancement
• Regression: change leads to decline

Factors Influencing Social Change

• Internal factors: population change (demography) and new discoveries

• External factors: conflicts within society, interaction with the natural environment, and interaction with other societies' cultures

• In globalization era, technology drives social and cultural changes

• It's key to reinforce the values of national cultural identity and selectively adopt changes aligned with societal norms, while being rational, tolerant, and participative

Modernization and Globalization

• Modernization is social change within a society
• Globalization is social change involving multiple countries
• It includes social, economic, and political shifts leading traditional societies towards becoming modern

Globalization Aspects

• The disappearance of boundaries between countries and economic, political, and cultural integration on a global scale
• Modernization can lead to globalization, which arises as modernization consequences
• This happens when both processes are interconnected and impacting each other

Impact of Globalization

• It increases connection in communities and progress

• It includes harmful environmental effects (pollution, deforestation, irresponsible mining), social disparities, economic inequalities, individualistic attitudes, consumerism, decreased employment due to technology, reliance on developed nations, cybercrime incidents, and technology dependence

• Separatist and radical movements can grow because of globalization

• "Modern" means up-to-date attitude, reliance on technology, individualism, job specialization, formal education emphasis, market economy, openness, social mobility, consumerism and gender equality

History and Function of Money

• Originally started with bartering developing into metal and paper currency
• Barter system: direct exchange of goods/services had limitations: needing to find someone who both wanted what one had and had what one wanted.
• The concept of money emerged around 3000 BC in ancient Egypt
• Precious metals were for coinage
• The Chinese invented paper money around the first century AD, Ts'ai Lun known as the inventor
• Paper money began circulating in Indonesia on October 3, 1945
• The first Indonesian currency (ORI) was produced in January 1946
• Perum Peruri produces both metal and paper currency
• Money serves as a medium of exchange, store of value, payment standard and wealth transfer

Types of Money

• Giral: funds in a bank account available on demand, paid by checks or transfers, making it different from cash transactions
• Real value: measured by the quantity of goods/services it can purchase involving supply and demand, impacting real value.
• Deflation: rising currency value due falling prices
• Inflation: falling currency value due rising prices

International Economics

• Global changes impacting financial and trade sectors
• Countries engage to boost growth via specialization and competitive advantage

International Trade

• Requires trade adjustments creating mutual benefits
• Requires an payment method used in international trade
• Can be currency, gold, valuable international documents e.g.($, £, €, ¥)

Functions of Foreign Exchange (Devisa)

• Paying for exported and imported goods, settling foreign debts, funding overseas ventures and national revenue source

Types of Foreign Exchange (Devisa)

• General: earnings from exports
• Credit: loans from foreign countries

Sources of Foreign Exchange (Devisa)

• Export of goods and services, international tourism, foreign investment, and donations from abroad
• The term "bank" originates from the Italian word "Banca" (bench), referring to bankers' tables

Role of Banks

• They help mobilize funds for national economic development to improve living standards
• Banks gather funds for savings, deposits, and current account transactions
• They provide loans for productive and consumptive endeavors and facilitate financial transactions

Bank Universal Functions

• It acts both as the "Bank Sirkulasi" (issuing currency) and "Bank Sentral" (central bank) with sole rights to issue currency
• Bank Indonesia implements government monetary policy
• Maintains the stability of the currency.
• It guides and implements government financial policies, and oversees banking system

Non-Bank Financial Institutions (LKBB)

• They are financial institutions operating outside banking sector offering services like financing, investment, insurance (BPR), and asset management
• They provide capital to businesses, facilitate trading, and create jobs
• Activities BPR offer like savings and lending
• BPR cannot engage in creating demand deposits, foreign exchange trades, or underwriting businesses

International Trade

• It happens when countries trade for profit, where differences in resources and consumer demands act as motivators

Factors of International Trade

• It requires the differences of natural resource, supply and demand human resources, trade agreements and climate
• Trade can benefit through specialization and efficiency by access new technology, increase competition, and growth

Order Baru/New Order

• The "New Order" started during President Soeharto's term marked by an anti-communist agenda
• It was trigged by the 30 September Movement (G-30-S/PKI) and student demonstrations
• Led to the issuance of Supersemar and Tap MPRS No. XXXIII/MPRS/1967

Fall of the Orde Baru/New Order

• Monetary crisis turned to full economic crisis with nepotism in government
• Student demands included disbanding Golkar, removing ABRI dual function, eliminating corruption, upholding the rule of law, respecting human rights
• Amien Rais was influential to this

Characteristics of leadership

• In the old order included reliance on Pancasila and the 1945 Constitution, the implementation of indoctrination

Areas of Asia

• Includes South Asia, East Asia and Central Asia
• West Asia, Southeast Asia and North Asia

Indonesian Economic Potential

• The geography, natural and human resources helps push country forward
• Is rich in plant, animal, and mining resources
• It includes population, location and raw materials that can drive economic growth
• Positioned at two continents benefits trading relationships

Strategies for Advancement:

• To increase investment, productivity, promotes inclusion and strengthen structure

• Reduce raw material importing

• Modern countries shows the income per citizen, high quality people

• It shows industrialization, tech, and high life standard

• It's measured by: health, education standards

• This happens when communities come together to make society better

• This involves the community in improving

Free Market

• Linked to liberalism which values freedom within parameters
• People like, Adam Smith, advocate for the concept
• Private ownership, labor divisions compete and benefit greatly through economics

Positive Aspects

• Market increases production, drives nation growth, improves technology and create better jobs

Negative Outcomes

• Disrupts interior trade, create reliance on other countries, reduces competitiveness and stifles economic growth.