GE-319 Midterm Reviewer PDF

CONTEMPORARY ARTS Criticism: Concerns about Eurocentrism and MODULE 1 - INTRODUCTION TO GLOBALIZATION intellectual apartheid (Hobson,...

CONTEMPORARY ARTS Criticism: Concerns about Eurocentrism and MODULE 1 - INTRODUCTION TO GLOBALIZATION intellectual apartheid (Hobson, 2004). Lesson 1 Using modern capitalism from the 1500s as a starting point may overlook Globalization earlier forms of capitalism (Nederveen - Giddens explains the term as the Pieterse, 2012). “intensification of worldwide social relations which link distant localities in such a way that Globalization as a condition local happening is shaped by events stirring - Also known as globality many miles away and vice versa” - Scholte's Definition (2008): Globality refers - the interconnectedness of every to a social condition marked by: human-person brought about by technological Trans-planetary connectivity: changes. Establishing social links between - Robertson, “refers both to the compression of people across different locations on the world and the intensification of Earth. consciousness of the world as a whole…” Supra-territoriality: Social connections that transcend Globalization as a process, condition, and geographical boundaries. ideology - Planet as a social space: Rather than - Steger (2005) explains that globalization has viewing the planet as a collection of been commonly understood either as a geographic units, it is seen as a shared arena process, a condition, or an ideology. for social life. - Global flows: Globalization involves thick Globalization as a process economic, political, and cultural connections - a multidimensional set of social processes that that make political borders and economic generate and increase “worldwide social barriers less relevant (Steger, 2008). interdependencies and exchanges while at the same time fostering in people a growing Globalization as an ideology awareness of deepening connections between - Described as a political belief system that the local and the distant” influences people's perceptions of the global order. Different perspectives: - Steger (2005): Follows Michael Freeden's argument that globalization exists in people’s International relations, political science, minds because it consists of coherent and media studies, and economics: Trace complementary ideas about the global system. globalization to the 1970s, focusing on global - Globalization as a political belief: It benefits value chains and advanced communication. certain social classes. Neoliberal globalization: Associated with the - Six Core Claims: Globalization as an ideology period from 1980-2000. is defined by six main claims, though these are Sociology: Links globalization to modernity, not detailed in the provided text. beginning with the Renaissance, Enlightenment, and French Revolution, extending through Industrialization in the late Lesson 2: Globalization and its Impact on Political 1700s-1800s. and Economic world Political economy/Marxist perspective: Traces globalization back to the 1500s, 1. World Systems Paradigm (Immanuel aligning with Marx's view that "the conquest of Wallerstein) the world market" marked the start of modern - Globalization is seen not as a recent capitalism. phenomenon but as part of the birth and spread of world capitalism. - Key historical moments of globalization: - Unit of analysis: Wallerstein emphasizes Political economists highlight the 1500s and analyzing the larger historical system (world 1800s as critical points for the birth of modern capitalism) rather than individual classes, capitalism. states, or countries. - Capitalist global enterprise: Capitalism has - Manuel Castells’ Key Works: In "The Rise of created a global system that began in the 19th the Network Society" (1996, 1997, 1998), century and continues today. Castells emphasizes a technological - Globalization as ongoing: Advocates of this approach to globalization. paradigm argue that globalization is not new - The New Economy: but an evolving process. 1. Informational: Knowledge-based. - World-system structure: 2. Global: Production organized on a - Core: Developed, powerful regions global scale. (Western Europe, North America, 3. Networked: Productivity generated Japan). through global networks of interaction. - Periphery: Regions subordinated by - Network Society Definition (Castells, 2004): colonialism, including Latin America, A society where social structures are formed Africa, Asia, Middle East, and Eastern by networks powered by ICTs (information Europe. and communication technologies). - Semi-periphery: States that were - Distinction of Network Society: Historically, once in the periphery and are moving social networks have always existed, but ICTs up in the system. create and sustain far-reaching networks, - Inter-state system: The rivalry and leading to new types of social relationships. relationships between nation-states are central - Three Key Processes (Castells’ Analysis): to maintaining and reproducing the 1. Economic restructuring: Enabled the world-system. rise of open market paradigms. - Nation-state system: The paradigm holds 2. Weakening nation-states and that the nation-state remains the core unit of increasing social inclusion/exclusion. the global system, rejecting ideas of its 3. Cultural movements: Supported a transcendence. human-capabilities centered paradigm, focused on human rights. 2. Global Capitalism Paradigm - Values like individual autonomy and - Views globalization as a new stage in the freedom helped shape open communication evolution of world capitalism with distinct networks, which became essential features compared to earlier periods. infrastructure for global business and - New global production and financial systems economic restructuring (Castells, 2004). have replaced earlier national forms of capitalism. 4. Space, Time and Globalization - Beyond the Nation-State System: Unlike - Anthony Giddens' Concept of Time-Space world-system theories, this paradigm Distanciation: Globalization involves the emphasizes processes that go beyond the intensification of worldwide social relations, nation-state and inter-state system. restructuring interactions across time and - Sklair’s Global System Theory: space. It's about both macro-systemic - Transnational Capitalist Class changes and everyday life transformations. (TCC): A new class has emerged, - Globalization as a Social, Cultural, and including executives of transnational Political Force: Giddens argues that corporations, globalizing politicians, globalization isn't just economic but bureaucrats, professionals, and fundamentally impacts social, cultural, and consumerist elites. political aspects of life. - Robinson’s Global Capitalism Theory: - Information Revolution as the Driving - Three key elements: transnational Force: Instant communication reshapes daily production, transnational life and restructures institutions, creating capitalists, and a transnational complex and sometimes contradictory global state. processes. - Globalization creates new class - Globalization's Impact: relations across borders, different - Pulls away from nation-states, from traditional national class limiting national control over economic structures and international alliances. and trade policies. - Pushes down to local economies, 3. Network Society School of Thought strengthening local identities and - suggests that technology and technological governance. change, not capitalism, drive globalization.  - Squeezes sideways, forming new aligns with UNESCO's stance that cultural cultural, economic, and political traits are not tied to race. regions that cross national borders. - Mass Media and Cultural Flows: - Saskia Sassen’s Global City Theory: Global Emphasizes the role of global media and cities are emerging as hubs for specialized cultural exchanges in shaping modern global services and mobile capital, forming a new culture, with the idea of a 'global village' spatial order under globalization. introduced by Marshall McLuhan. - Roland Robertson’s Concept of - Cultural Theories of Globalization: Focus on Glocalization: The term "glocalization" blurs the impact of globalization on religion, nations, the line between local and global, emphasizing ethnicity, consumerism, communication, and that local cultures adapt and process global tourism. influences according to their own needs. This - McDonaldization: Coined by Ritzer to challenges the idea of cultural homogeneity describe how the fast-food model of efficiency under globalization, as local cultures retain and standardization has influenced various their uniqueness while engaging with global sectors globally, symbolizing the rationalization forces. of society, but leading to issues like alienation and health risks. 5. Transnationality and Transnationalism - Transnationalism: Refers to a broad concept Misconceptions about globalization covering transformative processes and - Scholte (2008) critiques various analyses of practices happening simultaneously at local globalization for failing to generate new and global levels. These processes include insights or understanding about the economic, political, social, and cultural ties phenomenon. linking people, communities, and institutions - He defines globalization by highlighting across national borders. misconceptions and clarifying what it does not - Transnational Processes and Practices: encompass. These refer to the multiple, interconnected interactions across borders, including a. Globalization as internationalization economic, political, and cultural links. - Internationalization: Involves activities that - Novel Character of Transnational Links: refer to national borders and governments, Scholars note that transnational ties, carried out by corporations, states, especially among recent immigrants, are more international organizations, private intense today due to easier and cheaper travel organizations, and individuals. and communication. - Globalization: Encompasses a wide range of - Impact of Local and National Contexts: The human activities that transcend national influence of these transnational ties is shaped borders, such as personal interactions on by the specific local and national contexts in social media platforms like Facebook, which which they occur. do not require government permission. - Robinson’s View: Social structures are - Globalization is enabled by advances in becoming transnationalized, requiring a shift in transportation and communication how we study and understand these global technologies, which facilitate the rapid changes. exchange of information, ideas, and goods - Key Areas in Transnational Studies: Topics across borders. include economic globalization, - Globalization is transforming higher education transnationalization of states and classes, institutions, leading to a consumerist mentality political processes, culture, and integration where education is viewed as a commodity in through organizations like NAFTA and the EU. an open market. - Broader Implications: Transnational - Economic globalization is turning knowledge perspectives help explain various global into a commodity, with its value dependent on social, economic, and political issues, such as its ease of creation, storage, transfer, and social movements, governance, terrorism, and utility in producing goods and services. organized crime. - Globalization in academia includes various components such as institutions, academic 6. Global Culture Paradigm fields, scholars, and students, each playing a - Refers to the idea that a group of humans different role in the globalization process. identify with each other based on cultural, - Internationalization emphasizes the intentional linguistic, religious, and behavioral traits, often actions of individuals and institutions in distinct from biological or racial traits. This seeking benefits across national borders.  - Knight (1999) defines internationalization as - However, it had no significant impact the integration of transnational elements into on poverty reduction due to insufficient post-secondary education, focusing on targeting of anti-poverty programs. attracting international students and deploying - programs globally. - Structural Adjustment Programs: - Internationalization has evolved to encompass - IMF-imposed rapid tariff cuts before three major areas: new domestic tax systems were 1. Movement of scholars and students established exacerbated poverty for training and research. issues. 2. Convergence in curricular content - The World Bank/IMF programs often across institutions. viewed poverty as a residual issue, 3. Structural arrangements for limiting their effectiveness. cross-border cooperation and - Debate on Neoliberal Policies: technical assistance. - Scholte critiques the focus on neoliberal macroeconomic policies in B. Globalization as liberalization globalization studies. - Globalization is often equated with - Supporters of neoliberalism argue it liberalization, which involves removing barriers brings prosperity and democracy, imposed by national governments to create an while critics claim it leads to poverty, open economy. inequality, and ecological damage. - Scholte (2008) argues that globalization - Political Implications: occurs when governments reduce or abolish - The misconception suggests regulatory measures (e.g., trade barriers, neoliberalism is the only framework for foreign exchange restrictions). a truly global economy. - Impact of Trade on Employment in the - Ongoing debates about laissez-faire Philippines: economics historically lack the context - Globalization is viewed as a pathway of globalization. to economic development but raises concerns about poverty and the living C. Globalization as universalization and standards of the poor. westernization - The Philippines attempted to integrate - Terms like "universalization" and its economy into the global market "Westernization" often intersect in social through trade and investment sciences and humanities. liberalization, following World Bank - Scholars differentiate between globalization as and IMF frameworks. a process and efforts to globalize as a project. - Trade Openness and Economic Growth: - Focal Point: Identity: - Cross-country studies indicate a - The concept of "identity" serves as a positive association between trade central focus for both globalization openness and economic growth. processes and projects. - Recent findings suggest mixed results, - Both perspectives acknowledge that with controversies about identity has undergone significant liberalization's constructive effects on changes, though they interpret its growth. evolution differently. - Foreign Investment and Trade - Scholarly Perspectives: Performance: - Thinkers such as Giddens, - The Philippines improved its ability to Wallerstein, and Sklair view expanding attract foreign investment through communication and information various incentives. access as modern developments. - Despite trade liberalization, economic - In contrast, Robertson, Waters, and stabilization was often short-lived due Held argue that these trends trace to reform slippages and tax back to pre-modern times. concessions. - Universalization involves the dissemination of - Economic Growth and Poverty: various objects, practices, and experiences - Liberalization contributed to higher per globally. capita GDP growth, reduced income - Globalization encompasses the worldwide inequality, and lower unemployment. spread of things, values, and practices, often leading to cultural, political, economic, and legal homogenization.  - As globalization advances, it can lead to the Globalization leads to convergence in erosion of indigenous cultures and practices. developed economies but widens the gap - The spread of Western modernity, resulting in between developed and less-developed the destruction of local cultures, is termed countries. Westernization, neo-colonialism, Trade and Specialization: Americanization, or McDonaldization. ○ Countries trade because they lack the - Misconceptions Highlighted by Scholte resources or capacity to meet all of (2008): their needs. - Universalization is not a new ○ Countries develop and exploit scarce phenomenon; historical examples resources, producing a surplus for include human migration and the trade. spread of major religions like ○ Goods are imported for various Christianity and Islam. reasons: cost, quality, availability, or - Westernization is not the sole pathway lack of local alternatives. of globalization, with evidence of ○ Division of labor: breaking down oriental globalization illustrating production tasks to different workers alternative trajectories. or countries. - Historical Context of Westernization: ○ Specialization: countries focus on - The concept of Westernization, coined producing a small range of goods by American sociologist Daniel Lerner, where they have a production has unfolded despite global advantage, increasing efficiency and opposition, exemplified by the Cold productivity. War’s end as a product of ○ Mass production and specialization Westernization. allow countries to export surpluses - The term "Americanization" often and import what they lack. emerges in discussions about A. Principle of absolute advantage globalization, leading to anti-American - Country A can produce 6 sacks of potatoes or sentiments in some regions. 4 pieces of clothes per worker per day. - Country B can produce 3 sacks of potatoes or 12 pieces of clothes per worker per day. MODULE 2: THE STRUCTURES OF - Country A has an absolute advantage in GLOBALIZATION producing potatoes, while Country B has an absolute advantage in producing clothes. Lesson 1: The Global Economy - In conclusion, the principle of absolute advantage demonstrates how countries can Global Economy benefit from specialization and trade. By - Szentes (2003), describes economic focusing on the production of goods in which globalization as a process creating an "organic they have a relative efficiency, countries can system" in the world economy. increase overall output and improve their - Transnational economic processes and access to a wider range of commodities. As relations are extended to more countries. shown in the case of Country A and Country - Deepening economic interdependencies B, specialization allows both countries to between countries. double their production of potatoes and - Benczes (2014), Emphasizes the need to clothes respectively. When they trade based interpret world economic trends within the on their absolute advantages, both nations are context of an integrated global economy. able to consume more than they would without - States are no longer the sole focus of analysis. trade. This leads to greater economic - Non-state actors such as international efficiency, increased consumer choices, and organizations, NGOs, and multinational or mutual gains from trade, highlighting the transnational corporations play crucial roles in importance of open markets and international international economic processes. cooperation. The global economy reduces the influence of - governments over economic processes B. Principle of comparative advantage (Shively, 2012). - David Ricardo's theory of comparative States’ sovereignty and ability to control advantage: Even when one country has an economic policy are diminishing due to absolute advantage in producing all goods, globalization. trade can still be beneficial if countries  specialize in producing goods they can The disadvantages of trade produce most efficiently relative to others. - Example of Country C and D: Country C has Despite the benefits, trade can also bring some an absolute advantage in both rice and shoes disadvantages, including: but a comparative advantage in rice (lower opportunity cost). Country D has a - Over-specialization: Trade can lead to job comparative advantage in shoes (lower losses if global demand declines or if goods opportunity cost). are produced more cheaply abroad, causing - Opportunity cost: Country C gives up 2 sacks structural unemployment. of rice to produce one pair of shoes, while - Stunted growth for new industries: Country D only gives up ½ sack of rice to Emerging or infant industries may struggle to produce one pair of shoes. This makes compete with established foreign firms, Country D more efficient in shoe production. hindering their development. - Specialization and trade: Country C will - Impact on local producers: Cheaper imports specialize in rice, and Country D will specialize can harm domestic producers, leading to the in shoes. Both countries will benefit from trade decline of local markets and a reduction in the by exchanging their specialized products, diversity of economic output. increasing overall production and consumption. The Pattern of International Trade - Gains from trade: With specialization, - Theories by Smith, Ricardo, and Country C produces 120 sacks of rice (vs. 96 Heckscher–Ohlin explain patterns of without trade), and Country D produces 40 international trade, with examples like Ghana pairs of shoes (vs. 24 without trade). Both exporting cocoa and Saudi Arabia exporting countries benefit from increased availability of oil. goods, with expanded production and - Ricardo’s comparative advantage focuses consumption possibilities. on labor productivity differences to explain - Result: The law of comparative advantage trade patterns, while Heckscher–Ohlin drives trade, leading to price equalization of emphasizes variations in the factors of goods between countries, assuming no production (land, labor, capital). barriers or transportation costs. - Product life-cycle theory (Vernon) suggests new products are initially exported by their The advantages of trade country of innovation but later produced and exported by other countries. International trade brings a number of valuable - New trade theory (Krugman) argues that benefits to a country, including: first-mover firms in industries with limited global market capacity, such as commercial - Exploitation of comparative advantage: aircraft, build competitive advantages that are Countries specialize in producing goods they hard to overcome. are most efficient at with the lowest opportunity - Porter’s national competitive advantage cost. theory stresses factors like domestic demand - Economies of scale: Specialization for and rivalry in explaining a nation's success in domestic and export markets allows higher specific industries. production volumes, reducing costs. - Increased competition: Trade lowers global Evidence for the Link between Trade and Growth prices, benefiting consumers with increased - Economic studies indicate a strong link purchasing power and consumer surplus. between trade openness and economic - Reduction of monopolies: Domestic growth, aligning with the theory of comparative monopolies face competition from more advantage. efficient foreign firms. - Sachs and Warner analyzed over 100 - Improved quality and innovation: countries (1970-1990) and found that: Competition drives innovation, design - Open economies among developing improvements, and the transfer of technology countries grew at 4.49% per year, between countries. while closed economies grew at - Increased employment: Trade boosts 0.69%. employment in export sectors and stimulates - Open developed economies grew at job creation throughout the economy through 2.29%, while closed ones grew at the multiplier effect. 0.74%.  - An updated study by Wacziarg and Welch - Involves restricting trade to protect (1950-1998) found that countries liberalizing domestic industries and jobs. trade experienced average annual growth rate - Aims to safeguard critical industries increases of 1.5-2.0% compared to (e.g., food production, steel-making) pre-liberalization. for national security and stability. - A survey of 61 studies (1967-2009) confirmed - May involve limiting imports from significant positive effects of trade on output countries with lower labor or and growth. environmental standards to prevent - Frankel and Romer found that a 1 unfair competition. percentage point increase in a country’s - While some trade restrictions are viewed as trade-to-GDP ratio raises income per person necessary, many economists caution against by at least 0.5%; a 10% increase in trade excessive restrictions. importance leads to a 5% rise in average - Protectionist measures can lead to higher income levels. prices and reduced availability of goods, - Although there may be short-term adjustment potentially harming consumers and overall costs with free trade, the long-term benefits economic welfare. include greater economic growth and - Striking a balance between free trade and improved living standards. protectionism is crucial; while some protection may benefit specific sectors, it can also lead to Trading with Many Commodities among Many broader economic inefficiencies. Countries - The previous discussion on international trade Arguments for Free Trade focused on a two-country, two-commodity model, which oversimplifies real-world trade There are several key arguments in favor of free trade: dynamics. - In reality, countries like the Philippines trade Economic Growth: with multiple partners and export various goods, not limited to just one commodity. Increases the overall size of the economy by - The principles of comparative advantage still allowing goods and services to be produced apply in a many-goods, many-countries more efficiently. scenario; countries rank commodities based Encourages production where resources, on their comparative advantages. infrastructure, and skills are best suited, - Trade occurs when countries export goods for leading to increased productivity and which they hold a comparative advantage, potentially higher wages. influenced by international demand conditions. Consumer Benefits: - In multilateral trade (involving multiple countries), countries continue to export Reduces prices by eliminating tariffs and commodities where they do not hold increasing competition. comparative advantage, regardless of the Enhances the quality and variety of goods origin of imports. available to consumers; for instance, products - While countries benefit from trade, challenges like tropical fruits would be unavailable without such as labor displacement due to industry trade. shutdowns require policy responses; trade theory alone does not address these issues. Reduction of Red Tape: - Overall, trade is deemed preferable to no trade, and policymakers should implement Decreasing non-tariff barriers simplifies safety nets to maximize gains from trade. regulations, lowering compliance costs for companies trading across multiple countries. Trade: Free Trade Vs Protectionism Overview Results in cheaper goods and services due to - Free Trade: reduced trading costs. - Advocates for minimal restrictions on the movement of goods and services Avoidance of Trade Wars: between countries. - Based on the belief that increased Free trade prevents destructive trade wars that trade enhances overall wealth and can raise costs and create uncertainty. economic growth. Protectionist policies often favor large - Protectionism: businesses with more resources to influence  regulations, potentially harming smaller - Convened delegates from 44 countries competitors. in Bretton Woods, New Hampshire, USA. Arguments for Protectionism - Creation of Key Institutions: - Established the International While free trade increases the size of the economy as Monetary Fund (IMF) and the World a whole, it isn’t always good for everyone: Bank (International Bank for Reconstruction and Development) Preservation of Traditional Industries: as part of the Bretton Woods Institutions. Protectionism can help slow the decline of - Introduced the General Agreement traditional domestic industries facing on Tariffs and Trade (GATT) in 1947, international competition, such as shipbuilding serving as the primary global trade and steel production in the UK. organization. By shielding these sectors, protectionist - Purpose of the Postwar Framework: measures can preserve jobs and provide time - Designed to address issues from the for adaptation. interwar period, including trade protectionism and exchange controls. Support for New Industries: - Aimed to prevent economic conditions that contributed to the Great New industries, particularly those with high Depression and World War II. start-up costs, may struggle to compete - Role of Bretton Woods Institutions: without government support in the form of - Recognized as Keystone tariffs or subsidies. International Economic Once these industries become competitive, Organizations (KIEOs) due to their protectionist barriers can be gradually central roles in trade, development, removed. and monetary relations. Safeguarding Strategic Industries: - Functions and roles of these institutions have evolved in the Protectionism can protect critical industries contemporary period. such as energy, water, steel, armaments, and food to ensure national security and International Monetary Fund (IMF) self-sufficiency. - Promotes global monetary cooperation and For example, ensuring food security can be international financial stability. vital in case of global trade disruptions. - Established in 1945 to monitor pegged or fixed exchange rates linked to gold and the U.S. Concerns Over Standards: dollar. - Created to prevent trade wars from There are worries that free trade deals might competitive currency devaluations during the lead to the acceptance of imports that do not interwar period. meet domestic standards, potentially - Addresses balance-of-payments deficits by compromising quality. providing short-term loans to stabilize Free trade agreements could pressure currencies. countries to lower their standards for worker - Transitioned from supporting fixed exchange rights or environmental protections to compete rates to operating in a floating exchange rate with firms in countries with less stringent system after 1971. regulations. - Continues to provide liquidity but focuses more on major currencies rather than those of all Lesson 2: Market Integration member states. The Post-World War II Economic System and the - Operational Structure: Role of International Financial Institutions - Based on quotas that determine each member state's financial contribution - Bretton Woods Conference (July 1944): and voting power. - Formally known as the United Nations - Dominated by Western countries, Monetary and Financial Conference. leading to criticism for marginalizing the Global South and emerging economies.  - Reform Process (Post-Global Financial - Critics argue the World Bank's impact on Crisis 2007-2009): economic growth outcomes is questionable. - Aimed at expanding resources for - Easterly (2005) found that loan recipients financial crisis management and faced macroeconomic distortions without increasing the quota and voting power evidence of improved per capita growth from of emerging economies. structural adjustment lending. - 2010 reform included: - Programs have been accused of worsening - Doubling of IMF quotas and poverty and underdevelopment in recipient shifting of quota shares to countries. enhance representation of - Negative Outcomes: under-represented countries. - Structural adjustment programs have - Protection of quota and voting had adverse effects, particularly on shares for the poorest children in Sub-Saharan Africa member states. (Shandra et al., 2011). - Outcomes and Limitations: - Research indicates that these - Reform negotiations represented a programs undermine child and trade-off between financial maternal health and reduce access to contributions and governance power, healthcare, affecting income and food particularly among the BRIC countries availability (Thomson, Kentikelenis, & (Brazil, Russia, India, and China). Stubbs, 2013). - Although IMF resources tripled, concerns remain about its ability to General Agreement on Tariffs and Trade (GATT) manage crises involving larger and the World Trade Organization (WTO) economies. - Purpose of GATT: - The status quo of power relations - Established to prevent trade wars by persists, with the U.S. maintaining avoiding the imposition of protectionist veto power through its voting shares, barriers seen during the interwar while BRIC countries do not have the period. same collective influence. - Created informally after the Bretton Woods Conference due to the U.S. International Bank for Reconstruction and refusal to sign the Havana Charter, Development (World Bank) which aimed to establish an - Established to provide long-term loans for International Trade Organization (ITO). economic development in less developed - GATT Characteristics: countries and to aid in the reconstruction of - Participating countries were referred to war-torn European countries. as "contracting parties" instead of - Comprises two main institutions: formal members, reflecting its - International Bank for provisional treaty nature (Cohn, 2011). Reconstruction and Development - While GATT successfully liberalized (IBRD): Provides loans and credits. trade, it could not address: - International Development - The expansion of trade in Association (IDA): Grants credits and services. loans to low-income countries. - Issues related to investment - Part of the larger World Bank Group, which and intellectual property. includes: - The need for a strong and - International Finance Corporation effective dispute settlement (IFC) mechanism. - Multilateral Investment Guarantee - GATT was superseded by the more formal Agency (MIGA) World Trade Organization (WTO) in 1995. - International Centre for Settlement of - The WTO was designed to tackle the Investment Disputes shortcomings of GATT, providing a more - Aims to reduce extreme poverty while comprehensive framework for international addressing global capital market trade. imperfections, though this focus has been - The establishment of the global economic secondary. order was significantly influenced by Western - Influences policy changes in recipient developed countries, while less developed countries through its legitimacy, credibility, and economies (the South) were marginalized. commitment to poverty reduction.  - The Soviet Union also refused to participate, economic growth rates, particularly in leading to attempts to create alternative Greece, Spain, and Portugal. economic frameworks and institutions. - The European Central Bank's policies - By the end of the twentieth century, both the are viewed as significant factors in South and the Soviet Union gradually these economic challenges. integrated into the liberal economic order. North American Free Trade Agreement (NAFTA) - NAFTA is a trade pact between the United States, Mexico, and Canada, effective from January 1, 1994. - Initially established in 1989 between Canada and the United States, Mexico joined later. - The agreement aims to develop and expand world trade by enhancing international cooperation and improving working conditions in North America. - NAFTA has led to the transfer of manufacturing jobs from developed nations (Canada and the U.S.) to less developed nations (Mexico) to reduce production costs. - In Mexico, producer prices dropped, resulting in approximately two million farmers leaving their farms and rising consumer food prices, Organization for Economic Cooperation and leading 20 million Mexicans (about 25% of the Development (OECD), Organization of Petroleum population) to experience "food poverty." Exporting Countries (OPEC), and European Union - The U.S. GDP has benefited modestly, gaining (EU) approximately $127 billion annually due to - OECD: trade growth, but job losses and wage - Comprises 35 member states as of stagnation have also been attributed to 2016, with Latvia being the most increased competition from Mexican firms, recent member. forcing many U.S. companies to relocate to - Recognized as the most influential Mexico. club of the richest countries globally. - Impact on Canada: - Despite having little formal power, it - Approximately 76% of Canadian wields significant influence due to the exports are directed to the United economic resources and power of its States, with a quarter of Canadian member countries. jobs relying on this trade relationship. - OPEC: - Changes or termination of NAFTA - Established in 1960 by five founding could severely impact Canada’s members: Saudi Arabia, Iraq, Kuwait, economy. Iran, and Venezuela. - Positive Consequences: - Formed to increase oil prices, which - NAFTA has reduced prices by had been low and inadequate in eliminating tariffs and opened new keeping pace with inflation. opportunities for small- and - Current members include the original medium-sized businesses. five plus the United Arab Emirates, - Trade among the three countries Algeria, Libya, Qatar, Nigeria, and quadrupled, and approximately five Indonesia. million U.S. jobs were created. - EU: - Negative Consequences: - Composed of 28 member states, with - The agreement has also led to most in the Eurozone adopting the excessive pollution, the loss of over euro as their currency. 682,000 manufacturing jobs in the - Some Western European countries, U.S., exploitation of workers in such as Great Britain, Sweden, and Mexico, and difficulties for Mexican Denmark, opted not to adopt the euro. farmers. - Critics argue that the euro has led to increased prices in Eurozone countries and contributed to low International Monetary System Drawing Rights, but these measures - refers to the framework of rules, norms, were insufficient. instruments, and institutions that shape - Transition to Floating Exchange Rates: payment conditions in international trade - The U.S. abandoned the (Mikita, 2015). gold-exchange standard in 1973, - The Gold Standard was the first international leading to a floating exchange rate monetary system, established by England in system. 1816 and later adopted by other countries, - The IMF allows flexibility for member functioning as a fixed exchange rate regime states in determining exchange rates, based on gold content. enabling managed float systems - Key features included unlimited currency where central banks can intervene. convertibility into gold, stability in trade, and - Countries are prohibited from manipulating automatic balance of trade equilibrium. their currencies for short-term gains that harm - Balance of payments deficits would decrease other economies. money supply, leading to lower domestic prices, benefiting exports but harming imports. History of Market Integration: From Unilateral to - Limited cash flow and economic development Multilateral Trade Order due to reliance on gold resources were - Mercantilist Period (17th-18th Century): significant weaknesses. - Characterized by colonial expansion - World War I Impact: and surplus accumulation of gold - The Gold Standard collapsed during through exports and limited imports World War I, leading to a shift to paper (Benczes, 2014). money with exchange rates - Economic relations framed as a determined by supply and demand. zero-sum game, leading to trade wars - Genoa Conference (1922): and beggar-thy-neighbor policies. - Attempted to modify the Gold - Industrialization (19th Century): Standard with the Gold Bullion - Led by the United Kingdom, marked Standard, but it failed due to lack of the advancement of trade currency convertibility and collapsed in liberalization, especially during the 1931 during the Great Depression. Repeal of the British Corn Laws in - Interwar Period: 1846 (Benczes, 2014). - Characterized by beggar-thy-neighbor - The U.S. and Germany adopted policies, trade protectionism, and import substitution industrialization, increased state intervention based on imposing tariffs to protect domestic Keynesian principles. industries. - Bretton Woods Conference (1944): - Post-World War I: - Established a new international - Free trade regime overturned, with a monetary system with 44 countries resurgence of protectionism. aiming to prevent interwar chaos. - The U.S. resisted becoming the new - Introduced the adjustable-peg system hegemon and supported protectionist (dollar-gold standard) with the U.S. policies during the Great Depression dollar as the only convertible currency (1929-33), prompting retaliation from at $35 per ounce of gold. other nations (Benczes, 2014). - Bretton Woods System Stability: - Reciprocal Trade Agreements Act (1932): - Maintained currency exchange rates - Addressed declining international within a +/- 1% range. trade by empowering the U.S. - Initially successful but faced president to make trade decisions, challenges with U.S. reducing Congressional pressure from balance-of-payments deficits as protectionist interests (Benczes, Europe and Japan regained economic 2014). power. - Post-World War II Trade Regime: - Collapse of Bretton Woods: - Established under the "embedded - System instability from 1959 to 1968, liberal compromise" influenced by exacerbated by the U.S. Keynesian economics, promoting an balance-of-payments problems and open global economy with domestic loss of confidence in the dollar. protections (Ruggie, 1983). - Attempts to stabilize included the - Featured informal multilateral formation of the Gold Pool and Special agreements, emphasizing principles of  trade liberalization, nondiscrimination, - Promoted the idea of a "big reciprocity, safeguards, and government" that allows exceptions for development (Cohn, 2011). capital controls and domestic trade - The development principle was protections (Balaam & Dillman, 2014). insufficiently prioritized by major - Challenges to Keynesianism: trading powers. - Stagflation in the 1970s (rising - GATT Limitations: unemployment and inflation) - Criticized for inadequate dispute challenged the Keynesian paradigm settlement mechanisms and inability to (Heywood, 2011). impose free trade limitations on - Led to a resurgence of liberalism essential policy areas (Ala'i, 2011). through neoliberalism, emphasizing - While tariffs were reduced, non-tariff free market principles and minimal barriers (NTBs) emerged, posing new state intervention. challenges for global trade (Ala'i, - Neoliberalism: 2011). - Influenced by economists Friedrich - Creation of the WTO: Hayek and Milton Friedman, - Transitioned from the informal GATT advocating for privatization, to a formal multilateral institution with deregulation, reduced public spending, legal status and binding dispute and lower corporate taxes. settlement mechanisms (Barton et al., - Gained prominence through political 2008). leaders like British Prime Minister - Expanded coverage to include goods, Margaret Thatcher and U.S. President intellectual property, investments, and Ronald Reagan, known as services. Thatcherism and Reaganism (Balaam - Disillusionment of Developing States: & Dillman, 2014). - Outcomes of the Uruguay Round left - Promoted globalization and integration developing countries feeling into the global economy, claiming that disadvantaged, as they perceived capitalism would lead to prosperity losses in services and intellectual and democratization. property compared to limited gains in - Washington Consensus: textiles and agriculture (Cohn, 2011). - A set of ten neoliberal policy - The subsequent Doha Round, aimed prescriptions developed by John at development, struggled to produce Williamson (2004) for crisis-ridden successful agreements due to countries: increasing membership and inability to 1. Fiscal discipline reach consensus. 2. Reordering public expenditure - Stalemate in Negotiations: priorities - Conflicting demands between 3. Tax reform developing countries (implementation 4. Liberalizing interest rates of the Uruguay Agreement in 5. A competitive exchange rate agriculture) and developed nations 6. Trade liberalization (labor, environment, and investment 7. Liberalization of inward foreign concerns) led to the failure of direct investment negotiations (Benczes, 2014). 8. Privatization 9. Deregulation 10. Property rights - These policies were often implemented through Structural From Keynesianism to Neoliberalism Adjustment Programs (SAPs) by the - Keynesian Economics (1930s): IMF and World Bank, which faced - Influenced by John Maynard Keynes criticism for their negative effects on during the Great Depression. developing nations. - Advocated for government intervention - Resistance to Neoliberalism: to boost aggregate demand through - Global civil society reactions against fiscal and monetary policies, as neoliberal globalization and economic outlined in The General Theory of inequality emerged, exemplified by Employment, Interest, and Money movements such as: (1936).  - The Zapatista Movement in Road Initiative, along with broader Mexico against NAFTA. economic frameworks like APEC and - The Battle of Seattle during ANZUS. the WTO Ministerial - Looser gatherings like the G20, G7, and Conference in the 1990s. World Economic Forum do not create - Continued collective resistance in the treaties but provide spaces for discussion, 21st century, including the Spanish policy alignment, and norm-setting. Indignados Movement, Arab Spring, - Multi-stakeholder institutions (e.g., Internet and Occupy Movement. Engineering Taskforce (IETF), World Wide - These movements are part of the Web Consortium (W3C)) aim to align global broader "global justice movement," standards. advocating against inequality and the concentration of wealth. The United Nations - Despite ongoing efforts, these - The United Nations (UN) is the foremost movements have not yet produced organization for fostering international significant pressure on international cooperation, maintaining peace, and ensuring institutions, but they persist in security. exposing the issues within the global - It is uniquely authorized to sanction the use of economic system. force against aggressors, making it a central figure in global military security. Lesson 3: The Global Interstate System and Global - The UN operates under two key chapters of its Governance Charter: - Chapter VI: Facilitates peaceful Global Governance Overview dispute resolution among member - Global governance involves diverse actors states. coordinating collective action for global public - Chapter VII: Focuses on collective goods, including peace, security, justice, and military security and the imposition of functioning markets. sanctions. - Key focus includes catastrophic risk - While its main goal is to promote peace and management to reduce the likelihood and order, the UN can also act as a conflict actor impact of global disasters. and may be influenced by the interests of - The United Nations (UN), founded in 1945 specific member states. after World War II, is the primary institution for - As a membership-directed organization, the global governance, aiming to prevent actions and effectiveness of the UN are large-scale conflicts. significantly influenced by its member states - Composed of 193 member states, the UN (Wallensteen, 2012). operates through the General Assembly and - Principal Organs: addresses security issues primarily through - The UN Charter, established in 1945, the Security Council. outlines six principal organs: - The UN has broadened its core functions 1. General Assembly since its inception to promote shared 2. Security Council prosperity and global stability. 3. Economic and Social - Initiatives like the Sustainable Development Council Goals (SDGs) were established in 2015 to set 4. Trusteeship Council common objectives for global progress. 5. International Court of - Bretton Woods Institutions: Justice - World Bank and International 6. Secretariat Monetary Fund (IMF) regulate the global economy and credit markets. Economic and Social Council (ECOSOC) - These institutions face criticism for - Advance the economic, social, and perpetuating economic inequality. environmental aspects of sustainable - Regional and Strategic Organizations: development. - Regional bodies like the European - Acts as a platform for UN partnerships and Union (EU) and ASEAN coordinate coordinates international development goals policies among their members. through policy review, dialogue, - Strategic initiatives include NATO (led recommendations, and implementation. by the US) and China’s Belt and  - Composed of 54 elected members from the - Comprises 15 members: 5 permanent General Assembly, serving overlapping members (P-5) and 10 elected non-permanent three-year terms. members (NPM). - Relationship with Specialized Agencies: - Permanent Members (P-5): China, France, - The International Monetary Fund (IMF) Great Britain, Russia, and the United and the World Bank (WB) are States—nuclear states and allies from WWII. specialized agencies affiliated with the - Non-Permanent Members: 10 members UN. elected by the General Assembly for - They submit annual reports to overlapping two-year terms, divided by region. ECOSOC. - Authorized to act on behalf of the UN to - The World Trade Organization (WTO) maintain international peace and security is a related agency but not required to (Article 24). report to ECOSOC. - Can impose economic sanctions, investigate - The UN has limited authority over the IMF and situations breaching peace, and categorize WB, primarily because these institutions do crises (threat to peace, breach of peace, act of not seek UN funding. aggression). - Developed countries fund these institutions, - Responsibility to Protect (R2P): which operate under a weighted voting - Established during the 2005 World system, unlike the one-nation, one-vote Summit, emphasizing international system of the UN. intervention when states fail to protect their populations. Trusteeship Council - First executed in 2011 in Libya, raising debates about the legality and - Created as a main organ of the United Nations effectiveness of military interventions. under Chapter XIII of the UN Charter. - Veto Power: - To provide international supervision over Trust - Permanent members hold veto power, Territories administered by seven member which can impede decisions and states. actions on conflicts. - Ensure adequate steps are taken to prepare - Also a “hidden veto” exists, requiring the peoples of Trust Territories for support from at least seven self-governance. non-permanent members to prevent - All 11 Trust Territories achieved independence passage of substantive resolutions. by 1994. - Challenges: - The operation of the Trusteeship Council has - Veto usage often leads to inaction in been suspended and will only meet as crises, as seen in Syria. necessary. - Major powers acting outside UN mandates have diminished the UN's International Court of Justice authority, leading to calls for reform of the Security Council. - Principal judicial organ of the United Nations, - Instruments for Peacekeeping: established under Chapter XIV of the UN - Sanctions: Non-military measures, Charter. including economic, trade, and - Contentious Cases: Settles legal disputes diplomatic sanctions targeting between states. individuals or groups. - Advisory Opinions: Provides advisory - Peacekeeping Operations: Deployed opinions on legal questions referred by UN to assist countries transitioning from organs and specialized agencies. conflict to peace, guided by principles - Operates in accordance with international law. of consent, impartiality, and non-use of - Engages in both contentious and advisory force except for self-defense. proceedings to uphold justice and legal - Evolution of Peacekeeping: standards. - Three generations of peacekeeping operations: Security Council 1. First Generation: Classical peacekeeping focused on - Most powerful UN organ, capable of making consent and neutrality legally binding resolutions. (1950s-1980s).  2. Second Generation: - Since the Cold War, the SC has taken Multidimensional operations a dominant role in decision-making, adapting to complex conflicts. limiting the influence of the GA and 3. Third Generation: More Secretariat in international issues. robust mandates allowing use of force for protection, shifting Reforming the United Nations the focus from neutrality to intervention when necessary. - The only significant reform occurred in 1963 - Blurring lines between peacekeeping and when the UN General Assembly (UNGA) peace enforcement, with potential for military expanded the Security Council (UNSC) from interventions to resemble war-fighting. 11 to 15 member states. - Ongoing debates regarding the legitimacy and - In 1994, an Open-ended Working Group was effectiveness of current UN peacekeeping formed to discuss equitable representation missions. and membership increase in the UNSC, but negotiations have been largely unsuccessful, General Assembly (GA) leading to its label as a "Never-ending Working Group." - The only UN organ with all 193 member states - Two main criticisms: represented. - Efficiency: Concerns about the - Decisions on essential questions require a effectiveness of the UNSC. simple majority. - Equity: Overrepresentation of - Matters of peace and security, budget, and permanent members (P-5) and new member admissions require a two-thirds underrepresentation of Asia and majority. Africa, reflecting the North-South - Conducts yearly General Assembly Sessions divide. featuring general debates with heads of state. - G-4 proposal from India, Brazil, Germany, and - Elects a GA President and 21 Vice-Presidents Japan calls for permanent seats, while smaller for a one-year term based on equitable states seek more equitable representation for geographical representation. the Global South. - Can discuss issues related to international - Gould and Rablen (2017) caution that peace and security but can only make expanding UNSC membership may not recommendations if a dispute is already under improve equity effectively and could hinder discussion by the Security Council (SC). efficiency. - The SC remains the primary decision-maker in - They propose a reform that requires two matters of international peace and security. permanent member votes to exercise a veto, - Uniting for Peace Resolution (1950): which may enhance both equity and efficiency. - Allows the GA to assume issues that - Challenges in including rising powers in the the SC cannot address due to vetoes, UNSC stem from the lack of prospects for enabling it to recommend measures, change. including the use of force. - Diverging preferences of the P-5 and structural - Criticized as unconstitutional for hurdles in the UN Charter hinder reforms, such potentially usurping the SC's primary as the requirement for P-5 inclusion and the role in maintaining international peace two-thirds majority for substantive decisions in and security. the UNGA. - In crises, actions can be coordinated through - If reforms seem unlikely, leveraging the the SC, GA, and the Office of the General Assembly's latent potential to Secretary-General. counteract the UNSC's power through the - The chief administrative officer of the UN "Uniting for Peace" resolution could be a Secretariat, appointed by the GA based on SC solution. recommendations for up to two five-year - This resolution enables the GA to recommend terms. measures, including international intervention, - Mandated to alert the SC about threats to particularly when the UNSC is paralyzed by international peace and security (Article 99). vetoes, as seen in the Syrian conflict. - Interrelation of UN Organs: - Carswell (2013) emphasizes the moral - The GA, SC, and Secretariat are authority of the GA, which represents the interrelated and work together to entire international community and can check support UN viability. the UNSC's exercise of veto power in accordance with the UN Charter. Formation of an Asian Interstate System sovereignty, balance of power, and international law. - Bilateral Diplomatic Relationships: - Non-Western nations were often - Analysis of bilateral diplomatic denied equal sovereignty and relationships in Asia leads to insights subjected to colonial and imperialist about the formation and changes in practices. the interstate system. - The 1960s marked significant shifts in the - Cold War Era (1960s-1970s): global system, highlighting issues like the - The mid-1960s were dominated by North-South divide and international Cold War divisions, with clear interdependence. distinctions between Communist and - The principle of equality now applies to all 'Liberal' blocs. states, as the outward code of the Western - In the mid-1970s, ASEAN members State System has lost its function. initiated a potential interstate system post-Vietnam unification (1976), but Association of Southeast Asian Nations (ASEAN) Vietnam's invasion of Cambodia (1978) disrupted this progress. - ASEAN was founded on 8 August 1967 in - Isolation and Chaos (1980s): Bangkok by five original member countries: - Vietnam and Cambodia became Indonesia, Malaysia, the Philippines, isolated from other Asian countries, Singapore, and Thailand. resulting in a chaotic regional system. - Membership Expansion: - From the late 1980s, Japan, China, - Brunei Darussalam joined on 8 Thailand, and ASEAN states pursued January 1984. concerted diplomacy to encourage - Vietnam became a member on 28 Vietnam’s withdrawal from Cambodia. July 1995. - Cambodia’s Restoration (1990s): - Laos and Myanmar joined on 23 July - Vietnamese forces withdrew in 1997. September 1989, and the United - Cambodia was added on 30 April Nations Transitional Authority in 1999. Cambodia (UNTAC) was established - According to the ASEAN Declaration, the in March 1992 to aid reconstruction. organization's goals include: - Cambodia restarted as the Kingdom of 1. Accelerating economic growth, Cambodia in September 1993. social progress, and cultural - Post-Cold War Conditions: development in the region through - The end of the Cold War and the cooperative efforts based on equality collapse of the Soviet bloc in the and partnership, which aims to create 1990s created conditions for an a prosperous and peaceful interstate system based on equality in Southeast Asian community. East Asia. 2. Promoting regional peace and - By the late 1990s, Taiwan maintained stability by upholding justice and the informal relations with regional rule of law among member countries, nations, and North Korea had while adhering to the principles of the diplomatic ties with most Asian United Nations Charter. nations. - In 1995, ASEAN Heads of State and - Modified Asian Interstate System: Government reaffirmed that "Cooperative - The emerging Asian interstate system peace and shared prosperity" are the is a modified version of the Western fundamental goals of ASEAN. State System, lacking Western dominance. Fundamental Principles of the Treaty of Amity and - The Western State System had Cooperation (TAC) historically favored Western nations, leading to political, economic, and - The Treaty of Amity and Cooperation (TAC) cultural damage to non-Western was signed on 24 February 1976 at the First nations. ASEAN Summit, establishing key principles for - Core Principles of the Western System: relations among member states. - The Western system operated on - The fundamental principles include: three core principles: national - Mutual respect for the independence, sovereignty, equality, territorial  integrity, and national identity of all 1971 Declaration on a Zone of Peace, nations. Freedom, and Neutrality (ZOPFAN) and the - The right of every state to lead its Southeast Asia Nuclear Weapon-Free Zone national existence without external (SEANWFZ). interference, subversion, or coercion. - Non-interference in the internal MODULE 3: A WORLD OF REGIONS and IDEAS affairs of other states. - Peaceful settlement of differences or Lesson 1 Global Divides: The North and the South disputes. - Renunciation of threats or the use of The Global North force. - Effective cooperation among - The Global North comprises More member states Economically Developed Countries (MEDCs) characterized by economic stability and higher Political Cooperation standards of living. - Notable countries in the Global North include - The Treaty of Amity and Cooperation (TAC) Canada, the United States, Greenland, and emphasizes that ASEAN's political and Russia. security dialogue aims to enhance regional - Characteristics of MEDCs peace and stability through increased regional - Economic Stability: Countries in the resilience. North typically enjoy stable economies - Achieved through self-confidence, that contribute to a higher quality of self-reliance, mutual respect, cooperation, and life. solidarity among Southeast Asian nations. - Standard of Living: Indicators of a - Major Political Accords: better standard of living include life - ASEAN Declaration (August 8, 1967) expectancy, education levels, access - Zone of Peace, Freedom, and to healthcare, and technological Neutrality Declaration (November advancement. 27, 1971) - The United States has a life expectancy of 79 - Declaration of ASEAN Concord years for women and 77 years for men. (February 24, 1976) - In contrast, Somalia, classified as a Less - Treaty of Amity and Cooperation Economically Developed Country (LEDC), has (February 24, 1976) significantly lower life expectancies of 51 years - ASEAN Declaration on the South for women and 48 years for men. China Sea (July 22, 1992) - Canada offers free universal healthcare and - Treaty on the Southeast Asia free secondary education, resulting in an Nuclear-Weapon-Free Zone improved quality of life for its citizens. (December 15, 1997) - Many African countries, predominantly LEDCs, - ASEAN Vision 2020 (December 15, suffer from inadequate education and 1997) healthcare systems, highlighting the disparities - Declaration on Joint Action to between MEDCs and LEDCs. Counter Terrorism (November 5, - Factors such as economic stability, healthcare 2001) access, and educational opportunities - Declaration of ASEAN Concord II distinctly separate MEDCs from LEDCs, (October 7, 2003) contributing to the broader North-South divide - ASEAN Convention on Counter (Guttal, 2016). Terrorism (January 11, 2007) - Cebu Declaration on the The Global South Acceleration of the Establishment of an ASEAN Community by 2015 - The Global South refers to the region below (January 11, 2007) the North-South Divide, often characterized as - Joint Declaration of ASEAN developing or "poor" countries. Defense Ministers (May 25, 2016) - Notable countries in the Global South include - Although primarily focused on economic and Somalia, Vietnam, Haiti, and India. social issues, ASEAN includes a security - Characteristics of Less Economically function involving confidence-building Developed Countries (LEDCs): measures and the establishment of a - Economic Indicators: LEDCs nuclear-weapon-free zone, aligned with the typically exhibit low Gross Domestic  Product (GDP) and low Human - The term "Third World" was coined by French Development Index (HDI), indicating a scholar Alfred Sauvy in 1952, referring to lower standard of living. formerly colonized nations in Asia, Africa, and - Poor Quality of Life: Citizens in these Latin America. countries often face poor living - By the 1960s, it became a political slogan for conditions and low quality of life. the radical left, emphasizing the choice - Instability: Many LEDCs struggle with between capitalism and socialism for these unstable governments and weak societies. economies. - The Third World states sought to navigate - Skewed HDIs: Some countries, like between capitalist and socialist poles, giving Indonesia, may have relatively high rise to the Non-Aligned Movement. GDPs but still possess low standards - The Third World is also referred to as the of living, leading to skewed HDI Less-developed World, Majority World, metrics. Non-Western World, Poor World, and - Historical Context: Undeveloped World, all highlighting economic - Impact of Colonization: A significant challenges. factor contributing to the