Soc.-Scie.-Midterm_Chapter-3 (Kingfisher School of Business & Finance) PDF

KINGFISHER SCHOOL OF BUSINESS AND FINANCE McArthur Highway, Lucao District, Dagupan City S.Y 2023-2024 THE CONTEMPORARY WORLD TOPIC: A World of Regions 1 Learning Objectives ▶ Define the terms “Global So...

KINGFISHER SCHOOL OF BUSINESS AND FINANCE McArthur Highway, Lucao District, Dagupan City S.Y 2023-2024 THE CONTEMPORARY WORLD TOPIC: A World of Regions 1 Learning Objectives ▶ Define the terms “Global South” and “Global North” ▶ Discuss the three “worlds” and their ideological differences ▶ Analyzehow differentstates confront the ▶ Differentiate of challenges globalization the Global and South from the Third regionalization World ▶ Identify the factors leading to a greater integrationof Asian region 2 2 3 ZERO SUM GAME GAME THEORY ZERO GAME ANALYSIS 4 GAME IN SUM SITUATION Characterized as one side wins at the expense of another ; country’s gain such as increased in exports in another nation’s loss. 5 7  As of 2013, the number of poor citizens (people who live on less than USD 1.90 a day) worldwide reached 767 million. In the HDI for 2015, Norway ranked first with an almost perfect score of ____. 0.949 Human Development Index is used to measure the holistic development of a country in terms of ____. Educarion- schooling Health – life expency Eonomy – GNI per capita / people / income 8 HUMAN DEVELOPMENT INDEX (2021-2023) 9 HUMAN DEVELOPMENT INDEX (2021-2023) 10 11 Countries, Regions, and globalization ‣ Edward D. Mansfield and Helen V. Milner state that economic and political definitions of regions vary Regions “a group of countries located in the same geographically specified area” The concept of a region is flexible and can vary significantly based on the context in which it is used. It provides a way to organize and understand different parts of the world based on shared characteristics or purposes. 12  Countries, Regions, and ‣globalization Edward D. Mansfield and Helen V. Milner state that economic and political definitions of regions vary Regions “an amalgamation of two regions or a combination of more than two regions” Example: RCEP (Regional Comprehensive Economic Partnership ASEAN + FTA A Free trade Agreement (FTA) is an agreement between two or more countries where the countries agree on certain obligations that affect trade in goods and services, and protections for investors and intellectual property rights, among other topics. For the United States, the main goal of trade agreements is to14 Fifteen countries signed RCEP in Plus five regional countries 2020. These countries include the with which ASEAN has free 10 members of the Association of trade agreements: Southeast Asian Nations (ASEAN): Brunei-Darussalam Australia Cambodia China Indonesia Japan Laos South Korea Malaysia New Zealand Myanmar Philippines Singapore Thailand Vietnam 15 REGIONALISM AND REGIONALIZATION Regionalization – defined as the increased in the cross-border flow of capital, goods, and people within specific geographical area - alliances Regionalism – regionalism refers to a political ideology that emphasizes the interests, culture, and values of a particular region, rather than those of an entire country. Unity in diversity, political interaction and affairs 17  Regionalism is a political ideology that prioritizes the interest of the region over the interest of the nation as a whole.  Regionalization is defined as the increased in the cross-border flow of capital, goods, and people within a specific geographic area.  Regionalism refers to the political process characterized by economic policy cooperation and coordination among countries.  Regionalization refers to the regional concentration of economic flow 18 Countries, Regions, and globalization ‣ Reasons for regional association: Military defense 1. NATO – North Atlantic Treaty Organization Its purpose is to secure peace, promote cooperation among its members, and to guard their freedom. (North America and European) Collective Defense an attack on one member attack as a whole, undeclared leader is US , western powers , Article Brussels Belguim – Nato Headquarters 2. Warsaw Pact - this is formally known as the Warsaw Treaty of Friendship, Cooperation and Mutual Assistance - was a collective defense treaty established by the Soviet Union and seven other Soviet satellite states in Central and Eastern Europe 1961 Tsar Bomba most destructive like 3000x tha Hiroshima 50 megaton of atmospheric blast Nato and Soviet Union 19 20 Countries, Regions, and globalization ‣ Reasons for regional association: Pool their resources and get better return for their export OPEC – Organization of the Petroleum Exporting Countries They coordinate & unify petroleum policies among member countries, in order to secure fair and stable prices for petroleum producers and efficient economic regular suppl of petroleum to consuming nations. 21 Countries, Regions, and globalization ‣ Reasons for regional association: Protect their independence from the pressures of superpower politics Non-Aligned Movement (NAM) Non-alignment country is focused on the support of self-determination, national independence, sovereignty and territorial integrity of state. These are countries that are not formally aligned or against any major power bloc. India was a founding member of the Non-Aligned Movement in 1961 and has maintained its non-aligned status throughout its modern history. 22 Countries, Regions, and globalization ‣ Reasons for regional association: Economic crises compel countries to come together. ASEAN (Association of Southeast Asian Nation) This was establish with the purpose of accelerating economic growth and security cooperation among its members. Countries respond economically and 23 Countries, Regions, and globalization ‣ Reasons for regional association: Military defense NATO and Warsaw Pact Pool their resources and get better return for their export OPEC Protect their independence from the pressures of superpower politics Non-Aligned Movement (NAM) Economic crises compel countries to come together. - ASEAN Countries respond economically and 24 THE GLOBAL DIVIDES: THE NORTH AND THE SOUTH, FIRST AND THIRD WORLDS 25  26 Willy Brandt GLOBAL NORTH AND GLOBAL SOUTH Brandt Line also known as the North-South Divide, is an imaginary division line that was proposed by German Chancellor Willy Brandt in the 1980s. The line was used to illustrate the socio- economic disparities between the wealthy, industrialized countries of the Northern Hemisphere and the poorer, developing countries of the Southern Hemisphere. The concept was popularized in Brandt's report titled "North-South: A Program for Survival," 27 North-South Divide in the Contemporary World Global South Global North ‣ Economically ‣ Economically rich and developed poor and developing partsof the world countries GDP per capita GDP per capita that is that is above the World’s below the GDP per World’s GDP Capita per Politically 28 more powerful C apita 30 First World country Countries that are industrialized and developed refered as CAPITALIST SUPERPOWERS Countries that are dubbed as the capitalist camp led by the US and Uk and western allies. Second World emerge These are the countries who aligned with communist side led by the USSR or Union of Soviet Socialist Republics. Socialist camp led by eastern bloc like USSR and China and other European countries lead by USSR. Opposing the west. Third World These countries were mostly former colonies of Western power but were nevertheless reluctant to be overtly included in either camp. NOT ALIGN. NUETRAL IN THE COLD WAR. 31 BUT THINGS HAVE CHANGED The opposing bloc looses its stars was taken off life support the second world lost its power and has never come close reacquiring it. ONCE COLD WAR IS OVER The first world remain as is but the third world came to mean underdeveloped and impoverished nations 32 FOURTH WORLD These nations means nomadic hunters, gatherers, sub-populations, native groups or groups living in a third world conditions in a first world countries. 33 “open veins” *Dependency Theory OPEN-VEINS "Open Veins of Latin America: Five Centuries of the Pillage of a Continent" is a book written by Uruguayan journalist, writer, and poet Eduardo Galeano. explores the history of Latin America from the time of Columbus to the present day, focusing on the exploitation and oppression of the region by colonial powers and later by 35 OPEN-VEINS- Brutal Reality of Western Colonization Galeano, criticizes the corruption of creole oligarchy. Galeano claims that Latin America’s oligarchy is controlled by foreign power and has contributed to perpetuating the exploitation of the region. Galeano's writing is passionate and critical, offering a detailed account of how European powers and later the United States have exploited the continent's resources and people. 36 *Overview and Structure* The book is divided into two main sections: "Mankind's Poverty as a Consequence of the Wealth of the Land" and "Development is a Voyage with More Shipwrecks than Navigators.“ Each section delves into different aspects of the exploitation that Latin America has endured from the European colonization to modern-day imperialism. 37  THE DEPENDENCY THEORY It is at the heart of Open veins which argues that the underdeveloped status of Global South is not a natural state but rather the result of the economic exploitation by the developed countries in the North. The natural resources of Latin America is continuously flowing outward, and inward to the hands of capitalist such as the Global North. 38 Center of the Center – most powerful countries Periphery of the Centers – industrialized wealthy countries- the Canada, Netherland or Japan little less global power Center of the Periphery – are countries that are developing but they have a fair amount of wealth like S. Africa, India or Brazil Periphery of Periphery – poorest of the poor like Cambodia 39 THE DEPENDENCY THEORY ARGUES THAT: 1. International Division of Labor -western countries has a role to industrialized the world and the eastern bloc is to provide for the production of agricultural cultivation results to the interest of the countries of the center 2. Class Distinction 3. Global Capitalism 40  Why Philippines remains poor or underdeveloped? Its imports remain high 41  Why Philippines remains poor or underdeveloped? The government fails to strengthen the domestic market through industrialization. The government rely too much on global remittances rather than adapting the twin policy of the North. 42 Why Philippines remains poor or underdeveloped? What is the role of remittances to keep the economy afloat? 43  Why Philippines remains poor or underdeveloped? 1. Economic Stability: Remittances provide a stable source of income for recipient families. This stability can help cover basic needs such as food, housing, and education, reducing poverty and enhancing economic stability at the household level. 44  Why Philippines remains poor or underdeveloped? 2. Poverty Alleviation: Remittances are often a crucial lifeline for families in developing countries. They help lift recipients out of poverty by providing funds for education, healthcare, and small business initiatives, creating opportunities for economic mobility. 45  Why Philippines remains poor or underdeveloped? 3. Increased Household Spending: Families receiving remittances tend to increase their spending on goods and services, which stimulates local economies. Increased demand for products and services can lead to economic growth and job creation in various sectors. 46  Why Philippines remains poor or underdeveloped? 4. Foreign Exchange Earnings: Remittances contribute to a country's foreign exchange earnings. These funds can be used to pay for imports, stabilize the local currency, and enhance the overall balance of payments, especially in countries heavily reliant on remittances. 47  Why Philippines remains poor or underdeveloped? 5. Investment in Local Businesses: Some families use remittances to start or expand small businesses. This entrepreneurial activity can lead to job creation, stimulate economic growth, and contribute to the development of local 48  Why Philippines remains poor or underdeveloped? 6. Reduced Dependence on Foreign Aid: Countries receiving substantial remittances may find themselves less reliant on foreign aid or loans. This reduced dependence can enhance a country's economic sovereignty and self-reliance. 49  Why Philippines remains poor or underdeveloped? 7. Social and Cultural Impact: Remittances can also have social and cultural impacts, fostering a sense of connection between migrants and their home communities. This connection can lead to community development initiatives, including investments in infrastructure, education, and healthcare. 50 Globalization and Asian Regionalization 51 Globalization and Regionalization in Asia ‣ Asia is now at the forefront of the globalization and regionalization due to several factors China in 2014 surpassed the US as the world’s biggest economy in terms of GDP (By the end of 2014, according to IMF, China accumulated 16.48% GDP count which is equivalent to USD 17.632 trillion, whereas the US accumulated 16.28% of GDP which is equivalent to USD 17.416 52 trillion.) Globalization and Regionalization in Asia ‣ Asia is now at the forefront of the globalization and regionalization due to several factors China in 2014 surpassed the US as the world’s biggest economy in terms of GDP Southeast Asia is among the world’s most vibrant economic zones with much potential for further growth rich in essential natural resources some Asian countries are among the world 53 Globalization and Regionalization in Asia Asia is now at the forefront of the globalization and regionalization due to several factors Southeast Asia is among the world’s most vibrant economic zones with much potential for further growth - pertains to increasingly more educated workforce (professional) and stable 54 Globalization and Regionalization in Asia Asia is now at the forefront of the globalization and regionalization due to several factors rich in essential natural resources some Asian countries are among the world leaders in innovation, another dynamic “driver of globalization” 55 Globalization and Regionalization in Asia Regional Trade Agreement ASEAN-China Free Trade Area (ACFTA) biggest free trade area in terms of population covered “trade between China and ASEAN countries including Brunei,Indonesia, Malaysia, Philippines, Thailand and Singapore has become duty-free for more than 7000 products” ASEAN Economic Community (AEC) Asia is also the center of China’s 900 billion- dollar Belt and Road initiative 56 Globalization and Regionalization in Asia ASEAN Economic Community (AEC) Asia is also the center of China’s 900 billion-dollar Belt and Road initiative (modern-day version of Silk Road)  Belt and Road initiative is expected to make intercontinental trade between Asia, Africa, and Europe in larger volume and capacity.  The project includes six “corridors” 1. New Eurasian Land Bridge (Western China to Western Europe) 2. China-Mongolia-Russia Corridor (Northern China to Eastern Russia 57 Globalization and Regionalization in Asia ASEAN Economic Community (AEC) 3. China-Central Asia-West Asia Corridor (Western China to Turkey) 4. China-Indochina Peninsula Corridor (Southern China to Singapore) 5. Bangladesh-China-Myanmar Corridor (Southern China to Myanmar) 6. China-Pakistan Corridor (Southwestern China to Pakistan) ‣ This century might become the time “when China rules the world.” 58 Confronting the Challenges of ‣ Income Inequality and Wealth Gap (1426 richest Globalization individuals) which will be used to fund social services such as education, healthcare, and housing. Brain Drain and Labour shortage OFW nurses Japan  Brain drain reduces the capacity of Third World countries to make full use of their human and natural resources.  Hence, the reliance of developing countries on Confronting the Challenges of ‣ Income Inequality and Globalization Wealth Gap Brain Drain and Labour shortage OFW nurses Japan Destruction High only Favour interest loans Industrialized Countries Subsidizing agricultural sectors and industrialization Trade deficit *Brexit *Greece 60 Confronting the Challenges of Globalization Massive-Environmental Destruction  faster trade means bigger demands for commodity which resulted to massive extraction of natural resources  In the Philippines, Bayan Muna Party list files Housebill 4315 (An Act Re-orienting the Philippine Mining Industry, Ensuring the Highest Industry Development Standards, and for other purposes.)  as a way to balance the need for development-oriented mining and the need to preserve the environment for future generation.) 61 Confronting the Challenges of Globalization Favors only Industrialized Countries High interest rates Subsidizing agricultural sectors and industrialization Trade deficit Brexit This pertains to the withdrawal or exit of United Kingdom from the European 62 Union Confronting the Challenges of Globalization Favor only Industrialized Countries High interest rates Subsidizing agricultural sectors and industrialization Trade deficit *Brexit *Greece Terrorism 63 Confronting the Challenges of Globalization 64 65 Brain drain It reduces the capacity of Third World countries to make full use of their human and natural resources. Such as skilled workers in developing countries like India and Philippines may be attracted by better rates of pay and working conditions in developed countries, such as the US and Western Europe Trade Deficit A trade deficit occurs when the value of a country's imports exceeds the value of its exports—with imports and exports referring both to physical goods and services. Put simply, a trade deficit occurs when a country buys more goods and services than it sells. Income inequality is the difference in how income is distributed among the population. Wealth gap describes the disparity of cumulative assets across races and ethnicities. This disparity results from differences in income and in the historical accumulation of assets across generations. 66 67