UNIT-2-GEC103.docx

**Unit II** **THE GLOBAL ECONOMY** 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 1990s and tried to achieve them by the year 2015. 1. the eradication of extreme...

**Unit II** **THE GLOBAL ECONOMY** 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 1990s and tried to achieve them by the year 2015. 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 8. having a global partnership for development There are different standards of living around the world. In the Philippines, a person is officially living in poverty if he makes less than ₱100,534 a year, around ₱275 a day. This is called the [poverty line] or [poverty threshold]. But the UN focus on [extreme poverty] of which they aim to eliminate for all people by 2030. \* [Extreme Poverty] -- is a condition characterized by sever deprivation of basic human needs including food, safe drinking water, sanitation facilities, health, shelter, education, and information. [UN] (2015) reported that [836 million] people still live in the extreme poverty but that is down from [1.9 billion]. The [World Bank] predicted that by 2030 the number of people living in extreme poverty could drop to less than 400 million. That assumes everything will keep improving as it has been however, [climate change] has to be considered since it is a threat to these improvements in global poverty. - [Factors that cause reduction of extreme poverty]: 1. better access to education 2. humanitarian aid 3. the policies of international organizations like the UN 4. the greatest contributor is [economic globalization] -- [world's economies] have become more [interconnected] and [free trade] has driven the growth of many developing economies. \* [Economic Globalization] -- according to the United Nations, refers to the increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services, flow of international capital, and wide and rapid spread of technologies. - [Two different types of economies associated with economic globalization]: 1. [Protectionism] -- means "a policy of systematic government intervention in foreign trade with the objective of [encouraging] domestic production. This encouragement involves giving preferential treatment to domestic producers and discriminating against foreign competitors. - [Trade protectionism] -- comes in the form of quotas and tariffs. - [Tariffs] -- are required fees on imports or exports. - exists in the world economy despite the growth of trade liberalization. China, Japan, and the United States are being accused of practicing protectionism. 2. [Trade Liberalization/Free Trade/Fair Trade] -- as defined by the International Fair Trade Association., is the "concern for the social, economic, and environmental well-being of marginalized small producers." It aims for a more moral and equitable global economic system. Specifically, it is concerned with: a. protection of workers and producers b. establishment of more just prices c. engagement in environmentally sound practices and sustainable production d. creation of relationships between producers in the South and consumers in the North e. promotion of safe working environment - significant downsides to globalize trade and perhaps the [strongest argument against economic globalization] is the lack of sustainability or the [degree] to which the [earth's resources] can [be used] for our [needs], [even in the future]. \* [Sustainable Development] -- means the development of our world today by using the earth's resources and the preservation of such sources for the future. \- development has to be ensured in and for the future generations. \* [Effects of Development]: 1. a. we were able to utilize energy b. discover new technologies c. make advancements in transportation and communication - these positive effects of development put our environment at a disadvantage. This means that development, although beneficial, entails cost on the other. 2. a. Climate Change accelerated b. global inequality was not eradicated c. environmental degradation - development, especially [economic development], was [hastened by] the [Industrial Revolution]. This is the period in human history that made possible the [cycle of efficiency]. a. the earth's atmosphere is damaged by more carbon emissions from factories around the world. b. The destruction of coral reefs and marine biodiversity as more and more wastes are thrown into the ocean. [Food Security]: - - [India] -- is the second biggest producer of fruits and vegetables in the world. - - - 1. destruction of natural habitats -- particularly through [deforestation]. 2. industrial fishing -- has contributed to a significant destruction of marine life and ecosystems 3. decline in the availability of fresh water -- because of degradation of soil or desertification - destruction of water ecosystem may lead to the creation of "[climate refugees]" -- people who are forced to migrate due to lack of access to water or due to flooding. 4. pollution -- through toxic chemicals -- had a long-term impact on the environment. - Use of POPs (persistent organic pollutants) has led to significant industrial pollution. 5. [Greenhouse gases], gases that trap sunlight and heat in the earth's atmosphere, contribute greatly to global warming (this process causes the melting of land-based and glacial ice with potentially [catastrophic effects], the possibility of [substantial flooding], a [reduction in the alkalinity of the oceans], and [destruction] of [existing ecosystems]). 6. [population growth] and its attendant [increase in consumption] -- intensify ecological problems. 7. manufacturing -- global flow of dangerous debris, with electronic waste of ten dumped in developing countries. 1. [Sustainability] -- United Nations has set ending hunger, achieving food security and improved nutrition, and promoting sustainable agriculture as the second of its 17 Sustainable Development Goals (SDGs for the year 2030). 2. World Economic Forum (2010) addressed this issue through the New Vision for Agriculture (NVA) in 2009 wherein public-private partnerships were established -- mobilized over \$10 billion that reached smallholder farmers. [Economic Globalization, Poverty, and Inequality] According to Hans Rosling, a Swedish statistician, "the 1 to 2 billion poorest in the world who don't have food for the day suffer from the worst disease, [globalization deficiency]." - - - - - [Global Income Inequality] - 1. [wealth inequality] -- speaks about distribution of assets. - 2. [income inequality] -- means that new earnings are being distributed. It values the flow of goods and services, not a stock of assets. - - - - 1. [economic globalization] 2. [international trade] - economist believe that the world's poorest people gained something from globalization while the rich earned a lot more. - according to Harvard economist Richard Freeman (2011) "The triumph of globalization and market capitalism has improved living standards for billions while concentrating on billions among the few." In other words, the poor are doing a little better and the rich are becoming richer due to global capitalism. 3. [access to technology] -- it complemented skilled workers but replaced many unskilled workers. - 1. Workers who are more educated and more skilled would thrive in those jobs by receiving higher wages. 2. Unskilled workers will fall behind. [The Third World and the Global South] - 1. Western capitalist countries -- were labeled as the "First World." 2. Soviet Union and its allies -- were termed the "Second World." 3. [Everyone else] -- was grouped into "Third World." 1. 2. 1. ["Global North"] -- are first world countries, such as the United States, Canada, Western Europe, and developed parts of Asia. 2. ["Global South"] -- includes the Caribbean, Latin America, South America, Africa, and parts of Asia. These countries were used to be called the Third World during the Cold War. 1. 2. 1. New York 2. London 3. Tokyo