Tarlac State University Social Science 1D - Contemporary World Midterm Module PDF

DISCLAIMER This module is exclusively made and designed, in good faith, for the STUDENTS OF TARLAC STATE UNIVERSITY ONLY to address the flexible learning scheme for A.Y. 2020-2021 as implemented by the Commission on Higher Education brought by the COVID -19 pandemic. Furthermore, this is pa...

DISCLAIMER This module is exclusively made and designed, in good faith, for the STUDENTS OF TARLAC STATE UNIVERSITY ONLY to address the flexible learning scheme for A.Y. 2020-2021 as implemented by the Commission on Higher Education brought by the COVID -19 pandemic. Furthermore, this is particularly intended and strictly limited for EDUCATIONAL and NON- COMMERCIAL purposes only. Many parts of the module were lifted or adapted from different sources; for this, the designer claims no ownership. All credits and rights remain and are reserved to the authors and owners. No reproduction of any part of this module may be used, sold, or distributed for commercial purposes or be changed or edited for other business, work, or publication, whether in print or electronic copies.  Republic of the Philippines Tarlac State University COLLEGE OF ARTS AND SOCIAL SCIENCES Main Campus Tarlac City Tel. No. (045) 493-0182; Fax. No. (045) 982-0110 Social Science 1D – Contemporary World TSU VMGO VISION Tarlac State University is envisioned to be a premier university in Asia and the Pacific. MISSION Tarlac State University commits to promote and sustain the offering of quality & programs in higher and advanced education ensuring equitable access to education for people empowerment, professional development, and global competitiveness. Towards this end, TSU shall: 1. Provide high quality instruction trough qualified, competent & adequately trained faculty members & support staff. 2. Be a premier research institution by enhancing research undertaking in the fields of technology & sciences & strengthening collaborating with local and international institution. 3. Be a champion in community development by strengthening partnership with public and private organization & individuals CORE VALUES E - xcellence Q - uality U - nity I - ntegrity T - rust in God, Transparency & True Commitment Y - earning for Global Competitiveness PREPARED BY THE FOLLOWING FACULTY MEMBERS: DR. MARIA ELENA D. DAVID Ed.D. Professor VI [email protected] Dr. Maria Elena Dela Cruz-David, Ed.D. is a graduate of BA Social Sciences from the University of the Philippines, a holder of Master’s Degree in Public Administration and Doctorate degree in Educational Management. She served as consultant and Team leader for various government projects such as the verification of the ancestral domain claim of the Aetas in Bamban and Moriones, Tarlac; Monitoring and Evaluation Project of the Business Permits & Licensing System (BPLS) and Local Economic Development and Competitiveness Index for Cities and Municipalities in the Philippines of the Department of Trade and Industry (DTI). Consequently, she had presented and published results of some of the studies she conducted in various conferences and research journals here and abroad. Currently she is a faculty member of the College of Arts and Social Sciences of Tarlac State University. ASST. PROF. LOUELLA P. CAPITULO Assistant Professor II [email protected] Asst. Prof. Louella P. Capitulo has been with Tarlac State University for 27 years (1993-present), teaching Social Sciences subjects at the Laboratory School, CoED and CASS. Prior to this, she spent her eight years (1985-1993) as a College Instructor at Central Luzon State University, which accorded her master’s scholarship (alongside with Fulbright-FAPE) at the Ateneo de Manila University. She earned her bachelor’s degree (BA Social Sciences) at the University of the Philippines (Baguio). Currently, she has earned 30-units in MA Socio-Anthro at ADMU. She is part of CASS General Education Department Faculty. RUBY ROSE P. VINLUAN Lecturer [email protected] Ruby Rose P. Vinluan is a graduate of Bachelor of Arts in Social Sciences Major in Economics and Minor in Political Science at University of the Philippines Baguio in 2015. Currently, she is taking up Juris Doctor at Tarlac State University. She is also a lecturer of General Education Department (Social Science), College of Arts and Social Sciences of the same institution since 2015. She has been teaching different social science subjects such as Readings in Philippine History, Philippine Constitution, Life and Works of Rizal, Economics and Taxation, Humanities, Sociology, Socio- Anthropology, Ethics, Contemporary World, and Gender and Society. COURSE DESCRIPTION: This three-unit course deals with the study of the Contemporary World. It focuses on the interdisciplinary analysis of the various aspects of Globalization in order to help students situate themselves in the global world as Global Citizens imbued with Ethical Responsibility. This course traverses the significant topics on Globalization covering global cities, global economy, migration and demography and global governance with the end in view of providing a multi-dimensional analysis of the various problems that globalization might bring. COURSE OUTLINE: Course Content/Subject Matter Week 1 A. Introduction to Globalization Week 2 B. Introduction to Globalization Week 3 C. The Global Economic Structure Week 4 D. Global Governance Week 5 E. Global Governance Week 6 F. Global Civil Society and Non-governmental Organization Week 7 G. Global Development and Divide Week 8 H. Global Development and Divide Week 9 I. MIDTERM WEEK Week 10 J. Global Media Cultures Week 11 K. Global Media Cultures Week 12 L. The Global City Week 13 M. The Global City Week 14 N. Global Citizenship Week 15 O. Global Citizenship Week 16 P. Social Issues and problems of urbanization Week 17 Q. Social Issues and problems of urbanization Week 18 R. FINAL WEEK One week S. Allotted for the Midterm and the Final Exams (or an equivalent of three hours)  RATIONALE Contemporary World is a 3-unit subject which falls within the Social Sciences domain. This subject focus on the interdisciplinary analysis of the various aspects of Globalization in order to help students situate themselves in the global world as Global Citizens imbued with Ethical Responsibility and their social, economic, and political impacts. In line with the flexible learning for the academic year 2022-2023, this module provides a wide discussion and developmental activities of the subject that would give students new knowledge and help them to think critically especially in the social, economic, and political context. The discussion was made easier to comprehend by giving illustrations and examples for them to have a better understanding with the different concepts of globalization. The activities given also improve the comprehension and analytical skills of the students. IMPORTANT NOTICE: Parts of the module were lifted or adapted from the book – Introduction to Contemporary World by Felix De Ocampo, Bernardo Ramos, Rex Llonora, Agnes Macaraeg and Ma. Elena David. All credits and rights are reserved to the authors. No copyright infringement intended. This is for EDUCATIONAL PURPOSES ONLY.  UNIT 1 CHAPTER 1 THE CONCEPT OF GLOBALIZATION: IS GLOBALIZATION A PHENOMENON? Learning Objectives: After studying this chapter, the student will be able to: 1. Understand the meaning of globalization. 2. Define Globalization as a theory and phenomenon. 3. Discuss the characteristics and qualities of globalization as a phenomenon. 4. Analyze the different interpretations and concepts globalization. 1.1 Definition of Globalization In the area of academe, there is no single definition of globalization. There are various competing interpretations emerged vying for dominance and universal recognition. The inception of the term globalization brought much attention to the public especially among intellectuals who have interest to delve the contending forces of this notion. But what is this term globalization? Is this a phenomenon? Is globalization a global trend? Globalization refers to a multidimensional set of social processes that create, multiply, stretch, and intensify worldwide social interdependencies and exchanges while at the same fostering in people a growing awareness of deepening connections between the local and the distant (McGrew, 2003). For Justine Rosenberg’s definition of globalization, he argues that globalization as a phenomenon gave rise to the interconnectedness of human society that replaced the sovereign state system with multilateral system of global governance. His definition centers on the process, condition, time, and age of this condition. From the lens of Ritzer (2008), he described this phenomenon as the spread of worldwide practices, relations, consciousness, and organization of social life. The interconnectedness of social segments from macro institutions to the smallest sectors of the world have coincided the fabrics of globalization. Globalization, as a theory lies in the works of many 19th and 20th century scholars and intellectuals like Karl Marx, MacKinder, and Robertson who began to introduce the term “globality”. However, it was in the 1960’s and 1970’s when this term gained worldwide attention. 1  Globalization simply puts it as a social process of reshaping and remaking the world order. Operations of social institutions transcend across territories and boundaries with the goal of expanding its reach – economic, political, and technological fibers. Understanding the term globalization, requires a critical examination of its origin, development, and usage as part of our understanding of social change within the spectrum of contemporary world. Thus, the deployment of new ideas in trans-planetary setting and the structural emergence of nation- state project moved communities to be included in a trans-state and transnational domain. Figure 1.1 Forces and Drivers of Globalization Economics Technology Politics GLOBALIZATION Individuals Culture and Institutions Environment 1.2 Qualities and Characteristics of Globalization (Held & McGrew, 2002) 1. Creation and Multiplication of social networks and cultural activities which break the traditional norms and practices in the political, economic, and cultural realms of most communities. 2. Expansion and stretching of social operations and connections which is seen in the financial markets and trading operations around the globe. (Examples: World Trade Organization, ASEAN Economic Community, World Economic Forum and European Union) 3. Intensification and Acceleration of human activities which describes the process of world and individual connection works. Consumer markets and consumerism continue to rule in this postmodern aera where the farthest have the access to reach the central portion of global events. 4. Consciousness and Awareness. People, as the primary actors of globalization are the frontliners as reflected in their experiences. The human consciousness is critical on how they impact the growing outcomes and markets of globalization. 2  1.3 Is Globalization the same as Westernization? NO. The concept of Westernization is deeply rooted in the Western World where often associated with the Western culture and values (Sairin, 2011). This concept is famously used in referring the western value system and it influences countries outside its territory and sovereignty. The political, economic, and technological prowess of United States and European countries are best describedin the idea of Westernization. Importance of Understanding the Correlation of Mcdonald’s and Globalization: Visit this link as a reference for this topic: https://studybay.com/blog/globalization-and-impact-of- mcdonalds/ Video Link: Globalization explained (https://youtu.be/JJ0nFD19eT8) REFERENCE: De, Ocampo F., Ramos, B., Llonora, R., Macaraeg, A., & David, M.E. (2018). Introduction to Contemporary World. St. Andrew Publishing House. 3  CHAPTER 2 COMPETING THE THEORETICAL APPROACHES Learning Objectives: After studying this chapter, the student will be able to: 1. Discuss the definition of three leading theories explaining globalization. 2. Familiarize the known leading theorists and standpoint on globalization. 3. Discuss the origin of the three theories and its relevance to the study of globalization. 4. Apply the three theories on the current political, economic, and technological situations of the world. We see globalization in the field of international relations through number of perspectives and explanations. Examining the causes of events and analyzing the levels of events require sufficient facts to better explain the narratives of the situation. In our understanding on the lens and interpretations, it would be more interesting if we are going to look into the three prominent theories. The three sociological perspectives that will best explain globalization are realism, liberalism, and idealism. 2.1 Realism The realist perspective explaining globalization focuses on the shifting distribution of power among states (Walt, 1998 and Synder, 2004). They explained that the core idea of dominating the world through the employment of power. This force comes from different angles, depending on the power availability of a nation. However, realists warn that countries may suffer, and struggle to maintain its power it will be overreached and used wrongly. Realists argue that countries open their economies to the world is because of two contending reasons: 1. Financial returns of expanding markets offer new economic opportunities to the capitalist (origin country). (Examples: McDonald’s, Chevron, Ford, Coca-Cola, Citibank, Microsoft, and H&M) 2. The continued centrality of political power and military strength are obvious forces of interdependence and realistic behavior of the more and most powerful countries. Realists see economic alliance and corporation as medium of flourishing activities under favorable security conditions. Economies tend to forge partnership if they see advantages from other countries. In some cases, political-military 4 alliances are sometimes used especially within the bipolar world where economic power is utilized to strengthen military capability. 2.2 Liberalism Liberalism is a perspective in international relations where actors and institutions emphasize relationships, and negotiations. Liberalists observe the importance of interaction and communication and focus on solving problems and conflicts affecting them. This idea is very evident in countries where democratic governance and institutions play major roles in maintaining national cohesiveness in managing domestic and international affairs. Example: When Chinese government asserted its rights over the contested West Philippine Sea, Realist China has shown its military strength to its neighbors through giving signal of its advantageous capability. On the other hand, Liberalist Philippines utilized soft approaches through protesting in the International Criminal Court the act of China pertaining to its aggressiveness over the West Philippine Sea. Liberalists believe that to avoid international conflict and problems, and negotiations and dialogues are potential mechanisms in confronting issues among parties. Three Factors that describe the Transformation of Political-Economic Structure and Development of Global Interconnectedness: 1. Spread of Democracy and Institutions Democracy as a frontline of liberalism has been utilized as a sociopolitical apparatus in challenging political actors who act beyond their power and control. The strong participatory presence of citizens in key issues affecting the interest and welfare of the public could be used as a reference in balancing the interest of stakeholders. Liberalists see that democracies are venues of not using threat to intimidate and harm other nations. Many liberals believe in the vital function played by the rule of law as safeguard of self-respect and social stability. 2. Global Economic Ties Liberalists see economic ties and cooperation such as market integration and economic alliances are fitting fixtures of globalization. The core belief of liberalism is that economic alliance and integrating the domestic economy into a regional or economic bloc will deliver prosperity and security. Opening to markets to other countries is described as an act of country’s commitment to global consciousness and moral understanding of multistate interests. (Examples: European Union’s Eurozone and Association of Southeast Asian Nations Economic Community (AEC)). 5  3. International Organizations Liberals believe that the formation of leading regional and international organizations like global commerce and governance are main instruments in the maintenance of peace and solidarity. (Examples: Organization of Petroleum Exporting Countries (OPEC) and North Atlantic Treaty Organization (NATO)) 2.3 Idealism Idealists and constructivist hold the notion that values, and norms play pivotal roles in sustaining and reforming the process and works of individuals, group, and nations. This theory emphasizes on the functions of ideologies, frameworks, systems, and identities in understanding globalization and international order. Its core beliefs centers on the centrality of ideas, beliefs, emotions, and collective values that shape the political and economic landscapes of the world. Alexander Wendt and Hugh Ruggie are the two most prominent founders of this school of thought. Idealism presents the changing norms and evolutions of individuals, groups, and states with the goal of influencing the dynamics and pattern of social structure. Furthermore, they value the importance of “appropriateness” and “transparency” in reshaping and framing rules affecting the general welfare of its members, may it be individual or collective. Idealists emphasize appropriate policies and decisions during the state of conflict as it advances the moral aspects and ethical dynamics of actions. Role of Ideas and Technology in Globalization Ideas are non-material entities of culture; it embodies one’s perception of his social world or environment. It defines on how values, norms, and beliefs are used by governments and institutions in hold and exercising of power (Nau, 2008). When ideas are used well based on their intended application,development takes place. It could be utilized for linking and transfer of knowledge in a transnational community of nations, scientific, and social innovation, and increase in the understanding of people in their day-to-day life. Ideas are necessary in this particular scene because the definitions and concepts constructed are used in interpreting how people act and behave. 6 Three Important Technological Trends that made Significant Changes in the Interaction of Nations and People: 1. Knowledge and technology are significant determinants of wealth and power. The success of economy of a country requires pool of resources like ideas and technology. The technological advancement of a nation is an identity of its economic power. 2. The fast pace of technological change. From industrialization to modernization, technology has taken a significant role in business, government, and individuals. The countless forms of technological breakthrough change the cycle of the 21st century. The advent of fourth industrial evolution, the global community is expected to embrace multiple technical changes and technological developments. 3. Dispersed knowledge and technology. The increasing trends in communication revolution make it more possible to move data and ideas from people to people and country to country at faster and more convenient way. Innovation as a product of technological advancement have rendered national borders irrelevant in international system. Discoveries and changes in science and technology make markets around the world a borderless contact, making the global economic structure more intertwined. Because of global reach, economies find this trend as a ground of tough competition, with rivals’ states and institutions who have vast resources of wealth and power. In addition, resource- poor countries are prone to the damage of these changes. Technology in this day of postmodernity can be used to project global power at the same time intimidates countries that are technologically behind. For example, African States and countries from part of the global south have the difficulty to rise and compete with resource-rich countries. 2.4 Institutions and Globalization Institutions consist norms, set of activities, and regulate structures that provide meaning and stability to the social behavior of a group (Peter, 2012). Norms like the rules, guidelines, programs, and the types of activities constitute the operation of an institution. They are understood as structures that are parts of a society. Meyer and Rowan (1977) describe the formation of institution as a symbolic manifestation on the needs of society. The actions and behavior of the group members can change and alter the movement of community and its people. A different view explained by Giddens (1979), states that institutions will not be recognized as institutions if they do not shape the behavior of individuals. As a set of systems and norms, institutions convey individuals on how to behave 7 and conform to the practices of the group as a way of accepting the legitimacy of the norms and values of the organization. Global governance is directed by two important institutions: political and economic institutions. The operation of the political and economic life of globalization depends on how plans are implemented and how accountable theses institutions are in their actions. Liberalists emphasize the importance of institutions in international order and stability. Domestic and international institutions have various roles in maintaining growth and development in both political and economic realms. International institutions are classified intergovernmental organizations that are formed by national governments. These are international formal organizations that set rules and with the purpose of regulating the flow of communication and movement of resources. Governments engaged in internationalizing their organizations because of retaining and asserting control over global activities and networks brought by global changes and transformations. Example: The International Monetary Fund (IMF) performs globally and countries around the world depend on the common rules set by the body. Like IMF, World Trade Organization (WTO) is an international institution that plays key role in the management of global trade. Its member-economies are bound to adhere and behave in accordance to its guidelines in the conduct of international trade. REFERENCE: De, Ocampo F., Ramos, B., Llonora, R., Macaraeg, A., & David, M.E. (2018). Introduction to Contemporary World. St. Andrew Publishing House. 8  CHAPTER 3 THE PRACTICE OF GLOBALIZATION Learning Objectives: After studying this chapter, the student will be able to: 1. Identify the waves of globalization and its historical backdrop. 2. Discuss the developments of globalization from its earliest period up to the present. 3. Be familiar with the historical origin and developments of globalization. 4. Appreciate how the process of globalization is affecting countries and institutions around the world. The take-off of globalization has made borders and state business systems decline. The advances in technology, transportation, finance, and communications resulted to the increase of uniform, standard, and homogenous practices of nations. The world is totally an integrated environment composed of different forms of interrelated drivers of changes and social developments. However, globalization as a new social formation, adds color to the endless debates and criticisms of the current mode of state interactions. There are identified losers and winners, some will be pushed as part of the growth while other might be pulled due to the absence of core ingredients of the transformation process. The question here, how did globalization started? How did affect the interrelation of different nations across the globe. This chapter presents important topics on the historical development of globalization as well as dimensions of this phenomenon. It will also explain how competition works at a global scale by using the ideas of world orders. 3.1 Globalization in Historical Perspectives There are key events and developments in the history of globalization from the time it was initially observed and describe as a phenomenon up to the current era of advancement and modernization. The useful checklist training the phases of globalization was drawn by Holton (1998), Sholte (2001), and Lawson (2012). The following chain of events is not of definite, but it provides a clearer view on the cycle of globalization. 9  Table 3.1 Timeline of Events First Phase Second Phase Third Phase (Mid 18th Century – (1920s – 1960s) (1960s – Present) 1870s) Development of Establishment of Establishment of global international networks League of Nations communication Beginning of Global effect of Cold Increasing power and international fairs War influence of international financial institutions International relations Rise of Third World Rapid rise of US and through treaties and Countries in expansion of western agreements in Europe international arena investments and multinational firms Establishment of Increased attention to End of Cold War International Committee humanitarian works and of the Red Cross in development aid 1863 Significant development Introduction of global Increase in social in communication and icons and American movement and global civil transportation consumerism society Development of Introduction of World international Wide Web and competitions continuous influence of telecommunications First World War Rise of global attention to environmental concern and snit-globalization campaign 10 3.2 Phases of Globalization For a better grasp on the historical developments of globalization, Thomas Friedman described the phases of globalization into three periods. Table 3.2 Thomas Friedman’s Phases of Globalization Globalization 1.0 Globalization 2.0 Globalization 3.0 (1492 – 1800) (1800 – 1950) (1950 – 2000) Period of Mercantilism End of World War II Period of Technology and Internet Age of Industrialization Age of Pax Brittanica Age of Information (rise of British Economy) Inventions: Formation of Market Intensification of trade Steam engine Integration and worldwide and Printing press Institutionalizations of development of Railway system major economic Multinational activities in global corporations market Development of Social New players and Systems and Institutions: prominent economic Government actors: Education China Exchange of ASEAN goods within the European Union region Japan South Korea 3.3 Three Dimensions of Globalization Anthony Giddens described the globalization as intensification ofworldwide social relations. The global economic activity is the most obvious face of this phenomenon where economic activities have immense effect to other global operations such as governments, education, and technology. Table 3.3 Gidden’s Three Dimensions of Globalization World Capitalist Primary force of globalization. Economy Capitalists states are the main engines of global production and distribution of goods and services. Capitalists engage in transnational operation maintaining pool of resources such as labor and capital. Multinational corporations are very powerful in controlling domestic and foreign market. 11  Nation-state Sovereignty of states has been emphasized as a System primary part of independence and autonomy. The concept of sovereignty in a globalized world is understood as the best form of asserting the existence and operation of a state in order to be recognized. It has been used as a major political unit in international relations. Nation-states have the right to make their own collective objectives. World Military Strengthening military power is the priority of the first world countries as well as the developing and third world countries. Budget allotted by governments to defense and military surged hundred folds with the aim of delivering world-class defense operation and services to its people. US maintains the rank as the world’s most powerful military in terms of military spending (SIPRI, 2017). 3.4 Three Worlds and World Order The concept of First World, Second World, and Third World was a construct of the Cold War era. There were number of interpretations on the origin of Cold War. First, the conflict was cause by aggressive behavior and domestic policies of Soviet Union prompting other countries especially the US to react. Second, the cold war was a result of the US economic system of expansionist-capitalism. Third, the war was a consequence of security response from the two countries on the power vacuum and threat of central Europe. Table 3.4 Three Worlds First World Second World Third World During Cold War Unites States Soviet Union Neutral and non- United Kingdom China aligned Countries Japan Estonia Western Lithuania European Half of Germany Countries Vietnam North Korea Cuba Description Powerful The idea of world Countries are economies having order is described as less stable associated with developed and governments, role of political developing robust financial and military economy or markets, and power during global south. advanced and Cold War. 12  modern The communist Most of the infrastructures, countries of the countries have low poverty, and Second World experience high standard of are found to be colonialism from living trapped between Western World. poverty and prosperity. Video Link: A History of Globalization (https://youtu.be/RieHPO4JeaU) REFERENCE: De, Ocampo F., Ramos, B., Llonora, R., Macaraeg, A., & David, M.E. (2018). Introduction to Contemporary World. St. Andrew Publishing House. 13  UNIT 2 CHAPTER 4 GLOBAL ECONOMY Learning Objectives: After studying this chapter, the student will be able to: 1. Define international trade and identify the reason why countries engage in international trade. 2. Examine the various theories and perspective explaining the practice of international trade. 3. Evaluate the roles and functions of different international economic organizations. 4. Discuss the factor leading the formation of economic integration and cooperation. The global economy is highly interdependent. Global exchanges of commodities create an opportunity to more sustainable and equipped economy while pose a risk to the emerging and less performing country. Top gainers and developed economies in the world are those that have the sufficiency of resources to compete with other most powerful economies. They somehow control and dictate the movement of global demand, investments, and flow of technologies worldwide. If such trend and condition will continue to happen and exist, who shall be blamed by this threatening effect of globalization? Where will less developed and merging economies be under the stewardship of the biggest economies in the world? This chapter discusses the relevance of the economic system in globalization. It deals on issues concerning the function of international trade, its benefits, and damages. This also explains the importance of domestic and foreign policies in international trade and promotion of global economy. The chapter will conclude by explaining the roles of international economic organizations in globalization. 4.1 Economic Systems The global economy of most countries is classified into there categories: market, command, and mixed economies. In countries where democracy prevails, its economic system is usually under freedom, choice, and decisions of its citizens. While countries that are under the control of a single political party and authority, its system could be under the practice of command economy. 14  Table 4. 1 Three Economic Systems MARKET Decision making of private individuals Hongkong ECONOMY Economy under the will and interest of the individuals. New Economic freedom to purchase and sell Zealand products, services, and properties. This condition is not planned by a single Australia person or group that has the ability to manipulate or direct the economy solely. Switzerland It promotes competition among business and firms. COMMAND A central economic planning body North Korea ECONOMY handles the entire decision making. The quality and quantity of goods and Cuba services produced is based on the decision of the government. Russia Production quantity is dictated, consumer behavior is directed, and China market operation is controlled by a single authority. Its objective is to mobilize resources for the common good of the public and for the interest of the nation. Private individuals have no say in the economic operation. MIXED Market-driven economies Philippines ECONOMY Combination of market and command economies. United Some sectors are under the directions of States the private individuals while other aspects of the economy are left within United the guidance of the government. Kingdom State can take over the ownership and operation of a private company for the France purpose of maintaining the interest of the nation. 4.2 International Trade Is the process and the system when goods, commodities, services cross national economy, and boundaries in exchange for money or goods of another country (Balaam and Veseth, 2008). Global trade has grown dramatically since the post-cold war era because of increasing demand of goods and services and 15 countries. This global norm reflects growing practice of internationalizing and globalizing local products and services. Trade Theories 1. Descriptive Theory – it deals with the natural order and the movement of trade. It describes the pattern of trade under the idea of laissez faire, a French term which means “leave alone”. It refers to the notion that individuals are best economic agents to solve the problems through invisible hand rather than government policies. It also addresses the questions which product to trade, how much product to offer and produce, and which country to trade in the absence of government restrictions. 2. Prescriptive Theory – it prescribes whether government, an important economic institution, should interfere and restrict with the movement of goods and services. This theory views government to have participation in deciding which countries to alter the amount, composition, and direction of goods. Three Perspectives on International Trade 1. Economic Liberals For David Ricardo, his influential work, Law of Comparative Advantage explains that free trade efficiency is attainable if two countries can produce more goods and trade products separately. The advantage of this theory in international trade is deriving principle of specialization and division of labor of Adam Smith (Nau, 2009). Countries have different resources and talents; they are better in performing in that economic activity than other economic activities. Economic liberals explain the importance of free trade and the role of individual’s preference in choosing economic activity. It includes making decision, and choices on comparing the costs of products to be produced and traded, the availability of the product, and the efficiency of producing and buying products. 2. Mercantilists Mercantilism is an economic theory emerged from about 1500- 1800. This period was the emerging eras of nation-states and the formation of more central governments. This system flourished due to the following reasons: a. Higher export than import. Governments imposed restrictions and policies requiring economy ant its market to produce higher export that products and services purchased outside the country or import. Countries used this mechanism to support their trade objectives and strengthen their colonial rule and possessions. 16  b. Export less high valued product and import less high valued product. It prevented and monopolized the production and manufacturing operation of the colonies. c. The benefits of colonial powers. Mercantilism is adopted to increase and sustain the colonial power and its authority to direct and control the economic activity of the colony. 3. Structuralists The Modern World System (MWS) theory developed by Immanuel Wallerstein, explain the contact of economies between core, semi- peripheral, and peripheral countries in the world. The core states have the absolute advantage over the other through unequal exchange and extraction of raw materials from the periphery and semi-periphery. This system as part on the structure of the global capitalism, involves exploitation, and transformation in some ways. Why Countries Engage in International Trade? Use of Excess Capacity in Demand. The inadequate domestic demand pushes business organization to expand their market base outside the national territory. This is usually done by the firms and companies that have the resources and capital to operate in transnational market. Giant brands like Nestle, Pepsi, McDonald’s, Toyota, and Starbucks are known for expanding their operations outside their home country. Cost Reduction and Increase of Profit. A market leader for a particular good or service may garner a lower production cost by increasing its market in global rather than domestic. This enables a firm to increase its profit while reducing its operating costs. Cheaper Supplies. a country imports goods from other countries because of inexpensive raw materials and supplies used for production. The availability of buying cheaper materials from other countries lowers the costs in production which might result an increase in the profit of businesses. Addiction to Product Line. Economies usually aim for a variety of products and services available in market. It offers consumer to choose and by products that are competitive prices, degree of importance, and will offer higher satisfaction. Reduction of Risk. Importing products is seen as an alternative to countries that are vulnerable to supply shortage. These countries that have high volume of imported goods are economies that confront the demand and supply condition of the local market. Foreign Policy Tool. The membership of a country to regional market integration and economic relationships is part of its foreign policy. Enhancing the economic and political affiliation of a country is very important in sustaining its international status in a global market. 17 4.3 Transnational Corporations The role of Multinational Corporation (MNCs) in the 21st is distinct and interesting to investigate. The movement of ideas, capital, investment, technology, and people are affected by the operations of MCNs. As the global economy is becoming complex and competitive, MCNs continue to offer innovations and new product and services. For several years, the term MCNs was used to refer to a firm operating in different countries around the world. Because of the magnitude of global production and networks, the term transnational corporation (TNC) became the more acceptable name. This refers to business organizations and firms that compete in regional or global markets. It operates in countries and makes investments in research, technology, facilities, distribution, and production. TNC can control and monopolize the global market especially if it has huge pool of resources making it one of the most powerful economic actors in the world. The number of TNCs from north and west has business operations in the south where cheap labor and raw material are available. TNCs are very powerful economic institutions because of their global influence in investment and network distribution. Sometimes, TNC is being compared to states in terms of value and power. 4.4 International Economic Institutions and Market Integration The formation of economic integration is designed to address and enhance the level of competitiveness of member economies in trade. Free trade is the primary consideration of regional economic integrations. Free Trade Area (FTA) is a trading bloc which involves the reduction of internal tariffs to zero of member economies while retaining different external tariffs. This policy aims to promote free flow of goods and services as well as to increase the volume of trade within the region. However, there are criticisms on FTAs like the unfair trade practice. Unfair Trade is the conduct of trade by a business fir or government that violates and breaks the international trade agreements that are unjustifiable and discriminatory. Examples of common trade practices are issues relating to price, labor, wages, health, and environmental concerns that failed to meet the regulatory standards of the body. There are number of regional economic blocs around the world based on the size and area. For the western part of the globe, European Union and North America Trade Agreement while in Asian and Pacific, Association of Southeast Asian Nations Economic Community and Asia Pacific Economic Cooperation are leading market integrations in the region. There are also major economic institutions who are major players in the operation and management of global trade, investment, and finance. Currently, the 18 international economy has World Trade Organization, World Bank, International Monetary Fund, Asian Development Bank, and the newly formed Asian Infrastructure Investment Bank 1. World Trade Organization (WTO) In 1995, General Agreement on Tariffs and Trade (GATT) of the American government was replaced and succeeded by WTO with 151 members as of 2008 and accounts for 90% of the world’s trade. It is based in Geneva, Switzerland and leads by a director general selected by consensus among its members. Primarily, WTO has the following main functions: a. Implementation of the latest GATT agreements b. A venue for trade negotiations c. A dispute settlement body responsible for resolving trade problems d. Review and assess national and international trade laws and policies e. Assist members and developing economies by providing technical assistance and training programs 2. World Bank Officially called the International Bank for Reconstruction and Development (IBRD), or World Bank is an international agency with 189 member-countries operating in 130 countries worldwide. Formed by Bretton Woods agreement in 1944 to finance the reconstruction of war-torn countries brought by the devastation of World War II. World Bank is composed of four associated agencies: a. International Development Association (IDA). This agency focuses on poor and third world economies in the world by providing financial assistance and load program. b. International Finance Corporation (IFC). c. Multilateral Investment Guarantee Agency (MIGA). d. International Settlement Centre of Investment Disputes (ISCID). 3. International Monetary Fund (IMF) IMF was created as the flagship institution of Bretton Woods agreement with 189-member countries. IMF is responsible in supervising exchange rate system, providing loan programs to economies experiencing balancing payments adjustments, and review domestic economic policies. Its mandated to ensure the stability of the international monetary system including exchange rates and international payments. IMF is keen in monitoring foreign monetary transactions as it has a direct effect on country’s financial climate. It reflects on the amount owed by the country 19  from another country as well as indicates the economic operation like what it produces, consumes, and buys with its money. 4. European Union European Union (EU) is a political economic regional organization of 28 member-economies in Europe. Founded in 1985, European Economic Country (EEC) was formed by six countries: Belgium, Germany, France, Italy, Luxembourg, and Netherlands. Since then, other European countries joined the regional bloc making it as Europe’s most influential and powerful body. EU is guided by its core values, considered as integral part in the way of life of its citizens. It believes on the following value orientation: (1) Human dignity, (2) freedom, (3) democracy, (4) equality, (5) rule of law, and (6) human rights. 5. Association of Southeast Asian Nations (ASEAN) The Association of Southeast Asian Nation (ASEAN) was founded on August 1967 in Bangkok Thailand with Indonesia, Malaysia, Philippines, Singapore, and Thailand as its founding fathers. Brunei Darussalam, Vietnam, Myanmar, and Cambodia joined the organization making up today the 10 member-countries. The ASEAN Political-Security Community, ASEAN Economic Community, and ASEAN Socio-Cultural Community are the three main pillars of ASEAN. As stated in the Treaty of Amity and Cooperation in South East Asia (TAC) of 2976. The ASEAN Community functions under its six fundamental principles (ASEAN.org). a. Mutual respect for the independence, sovereignty, equality, territorial integrity, and national identity of all nations; b. The right of every State to lead its national existence free from external interference, subversion or coercion; c. Non-interference in the internal affairs of one another; d. Settlement of differences or disputes by peaceful manner; e. Renunciation of the threat or use of force; and f. Effective cooperation among themselves 20  Video Link: Better understanding of global trade flows (https://youtu.be/RZKX-0SK41U) COVID-19: What will happen to global economy? | The Economist (https://youtu.be/pnKsrKuUfBc) REFERENCE: De, Ocampo F., Ramos, B., Llonora, R., Macaraeg, A., & David, M.E. (2018). Introduction to Contemporary World. St. Andrew Publishing House. 21  CHAPTER 5 GLOBAL GOVERNANCE Learning Objectives: After studying this chapter, the student will be able to: 1. Define international trade and identify the reason why countries engage in international trade. 2. Examine the various theories and perspective explaining the practice of international trade. 3. Evaluate the roles and functions of different international economic organizations. 4. Discuss the factor leading the formation of economic integration and cooperation. Challenges like civil wars, hunger and poverty, sexual abuse, climate change, and poor infrastructures are most common problems where collective efforts are needed. Governments usually respond based on the need and the urgency of the problem affecting their sovereignty and interests. It is problematic in some respects when institutions and bodies do not agree and show commitments to theses global problems. These institutions at the international level are filled with complexities and difficulties in analyzing their specific power and jurisdiction over a problem. Their contacts and linkages are very political and are backed by interests of their nations and citizens. Political globalization refers to intensification and increasing level of interrelations among nations in the world. These structural processes raise the issue of state sovereignty, the growing implications of intergovernmental organizations, and the prospects of regional and international governance. (Steger, 2003). These features of globalization confront to the framework of the nation-state with the emergence of new conceptual views and grounds. This chapter presents the political dimension of globalization as a primary component in studying contemporary world. This includes examining the nature if global governance and how these nations and states work in globally competitive environment. It will answer questions on who are responsible to issues at the international level? Are national governments responsible and accountable to the problems arising at a global scale? Is there such thing as global governance and governments? 22 5.1 Global Governments and Governance The term global government is a response on the actions of various stakeholders on finding out pressing global problems like climate change and issues on peace and security. The world has no global government and global authority. There are political and economic bodies operating worldwide but no single organization possesses a global authority in enforcing and compelling others to follow. What the world has is the idea of global governance. This term refers to domestic institutions and governments on how large-scale problems and public policy issues are being solved at a global level. It involves a range of actors including states, national and regional bodies that have the willingness and commitment to confront a specific problem (WHO, 2015). It involves management, authority, cooperation, and mechanisms that are aimed to attain certain goals. This international process is bounded by consensus and agreements where members are expected to perform based on the guidelines and policies. The downside of global governance is establishing its sovereignty and accountability to all decision framed and actions implemented. States may not conform and deviate from the norms set by international institutions like UN and WTO especially if it will compromise its economic and political interest. The idea of establishing collectivist approaches in international arena remains a challenge to organizations that have the power and resources. All have well-orchestrated governance practices, but the concept of “governments” remains very elusive. Three Existing Gaps and Issues in Global Governance 1. Jurisdiction Gap The lack of global governance in taking actions to problems affecting key sectors arises from the absence of authority. This involves the need to create power and jurisdiction to governments and international organizations that have the commitment in confronting issues like unemployment, human rights, peace, and crimes. 2. Incentive Gap Global governance is formed with the participation of countries that have the interest to deal problem affecting their sovereignty. It is an issue between the rich and poor countries of the world because of uneven distribution of authority and control over decisions and policies. 3. Participation Gap Member-states sometimes disagree on issues that are harmful to their interests. They do not involve in decisions that are crucial to the economic and political welfare of their sovereignty. 23 5.2 Political Systems The kind of political system used by a country has implications to the success of its economy and the overall governance. Political System means the system, or the form of practice employed by the state. Udayanskar (2012) identified two dimensions of political system. First, a country emphasizes the importance of individualism as opposed to collectivism. Second, a system in which a country is either democratic or totalitarian in its form of government. Table 5.1 Individualism vs Collectivism INDIVIUALISM it is a political system that values the significance of individuals over collective goals. freedom of the people is the primary consideration. government values choices and preferences of its people at a very personal level. it is built in two elements: individual freedom and expression are important in the sense that individuals just like state have sovereignty; and the pursuit of economic interest among individuals. COLLECTIVISM is a philosophy that stresses the importance of the collective goals over individual freedom and interests. the state, as the primary economic manager views collective action as the best strategy in establishing the welfare and interest of the nation. According Plato, social stratification must be built in order for the society and the entire economy and the government be managed properly and orderly. Table 5.2 Democracy vs Totalitarianism DEMOCRACY Democratic institutions and governance focus on the role individuals in political decision making. the practice of direct participation in modern societies involves representation, where individuals periodically elect someone who has the ability to represent them in the government. in a representative democracy, competitive elections occur where candidates freely compete 24  for votes through conduct of fair and honest election. elected officials are accountable for their actions in the government and operation of the state. constitutional laws are provided to safeguard the welfare and interest of the people. TOTALITARIANISM is built on the idea that society and citizens have no right and freedom of expression. totalitarian countries do not recognize the conduct of fair and honest election, the presence of media, and civil liberties. decision making of the states is exclusive only on a single political party if not a ruler who has full control in the political, economic, and social affairs if its government. 5.3 Political Layers and Geopolitics States in contemporary world are hungry for power. Power is the ultimate goal to contain and control other states and nations that do not enjoy much power are considered as powerless states in international arena. Realists define power as capabilities of a country o state like population of its people, resources, territory, economic, and military strengths (Chomsky, 2006; Nau, 2008).In a typical discourse, power is described as the ability of a person, group, or institution to affect the behavior of others against their will. In international relations, geopolitics is defined as a focus and concentration of a country's location, environment, and geography as the basis of its national interests (Nau, 2008). United States and China have ideal geography because of its vast land and territory, Israel on the other hand, has struggles when it comes to defending the territory because it is surrounded by Islam majority countries. India enjoys its huge territory but have some challenges when it comes to territorial security and military relationships with neighboring countries Pakistan and China. Unilateralism The economic growth experienced by China and other emerging economies in the world are dependent on the American market. On the political angle, American military power is considered as the most highly valued military force in the world with billions of dollars annually spent by the government. Its military presence in some countries in Asia and Pacific, Middle East and Africa, Europe and South America is a remarkable manifestation of its control in global defense operation. However, the global stability of power enjoyed by the 25 Americans can only be sustained if it will employ the liberal values of freedom, democracy, and human rights (Balaam, and Veseth, 2008). Multilateralism The idea of multilateralism includes three powers in international system. 1. Bipolar - it happens if there are only two great powers dominating the distribution of power. The Cold War era is fitting example of bipolarity, the global power was highly contested between US and USSR. 2. Tri-polar or tri-polarity - exists if there are only three states dominating the distribution if global order. United States, Japan, and Europe were considered as potential powers during the Second World War. They controlled some areas under the respective military instruments and interests. In the area global economic power, Japan, China, and United States are the most favored nations identified by scholars as the three leading economic giants of modern time. 3. Multipolar or multi-polarity - is situation when more states are involved in the distribution of global power. This geological condition is described as an alignment if the powerful and emerging powers in the world. The current situation of the globe could be described as Multipolar because of state actors joining the prestige of superpowers. Europe, China, Japan, Russia, United States, and major alliances are key players in the distribution of power. Isolationism Isolationists believe that major powers and states exclude the use of force and military in the international system. War and attacking other nations are unethically acceptable in the international political economy. It is already enshrined in the international law. Realist-isolationist stresses that United States must disengage itself using military force over other military interests. 5.4 Global Political Institutions United Nations The United Nations or UN is an international organization established in 1945 with the League of Nations as its original body. Currently, the organization has 193-memberr states performing various capacities and divisions. As the world's most powerful binding political organization, UN can act on the issues confronting humanity in the 21st century such as peace and security, climate change, sustainable development, human rights, disarmament, terrorism, humanitarian and health emergencies, gender equality, governance, food production, and more. UN operates worldwide in providing aids and support services to global problems in countries where it is needed. 26 Organs of United Nations 1. General Assembly- this is UNs main deliberative and decision-making body represented by all its 193 members. The assembly holds general debate from September - December in its headquarters in New York. Two thirds of vote are required to decide range of issues like peace and security, budget, and admission if new members to the organization. 2. Security Council - it is responsible in the maintenance of peace and security. it has the power to impose sanctions or punish members or other bodies for the purpose of restoring international peace and security. 3. Economic and Social Council - commonly called as ECOSOC. its main function is to coordinate, review, and recommend policies relating to economic, social and environmental issues. It serves as the main agency of UN in monitoring and evaluating key results in sustainable development. 4. International Court of Justice - ICJ is the principal body or court of UN. Its role includes setting legal disputes among concerned states and provides opinions on legal matters. This is the only UN organ that operates outside United States with headquarters in the Peace Palace, Netherlands. 5. The Secretariat - it is headed by the UN Secretary - General who sits as its Chief Administrative Officer at the appointment of the secretary general is done through the recommendation of the Security Council for a five-year term. this organ is responsible for the day-to-day work and operation of the UN including its peacekeeping mission and thousands of international staff stationed in different countries. 6. Trusteeship Council North Atlantic Treaty Organization NATO was formed initially as a political association, and not a military alliance. Realists argue that during its proposal in 1949, the idea of collective security arrangement was the main feature of NATO. Its purpose was not directed against the threat of Soviet Union but to strengthen political commitment of governments in Western Europe. However, liberalists point out the belief that NATO was established to back up and save the economic and political problems of Europe from the damages of war. The economic alliances of Europe's powerful countries transformed the region as a major hub in industrialization. Its development transformed NATO as a conventional military alliance and protected Europe from the threat of Soviet Union. 27 Video Link: What is global governance? (https://youtu.be/tNOweWgv5kQ) The United Nations explained (https://youtu.be/vWFiUX1wz9Q) REFERENCE: De, Ocampo F., Ramos, B., Llonora, R., Macaraeg, A., & David, M.E. (2018). Introduction to Contemporary World. St. Andrew Publishing House. 28  CHAPTER 6 GLOBAL CIVIL SOCIETY AND NON-GOVERNMENTAL ORGANIZATION Learning Objectives: After studying this chapter, the student will be able to: 1. Define civil society and non-governmental organizations. 2. Examine the role of civil society organizations in globalization. 3. Discuss the various global civil society organizations and their interests. Civil society and non-governmental organizations or NGOs are the third sector of the society aside from the government and business. The UN recognizes the important role of partnering with civil society groups and NGOs in advancing the welfare of its stakeholders. the participatory mechanisms of NGOs and civil society group like the Occupy Movement provide avenue for all parties to relook actions and norms that are considered potentially beneficial and potentially risky to all. 6.1 Global Civil Society (GCS) The formation of UN was pivotal in the recognition of civil society organizations and NGOs. This era was marked by participation of NGOs in the decision making of the body. They did not only help the role of UN in strengthening relationship with private sectors, but these civic organizations were active also influencing UN in adopting its ECOSOC. NGOs have strong influences and role in globalization. Their operations are very evident across disciplines and industries such as commerce and trade, media and press, human rights, environmental groups, migration and labor. Thesegroups and social interests are described as civil society, an activity for groups and individuals that is relatively independent and not within the scope if governmental interference. GCS is a global and international network of NGOs with the purpose of influencing governments and organizations in various issues and concerns. It is usually identified as organized attempts to create and resists change. This particular form if involvement from the private sector and NGOs in the political and economic realm is seen as armory in the promotion of transparency and accountability. Lobbying in governments, participating in public protest, and maintaining information campaign are some known styles of articulating their interests and expressing their stand on a particular issue. Characteristics of NGOs 1. An NGO must be entirely independent from the control of any government. It should have its own authority and jurisdiction over its 29  operation and decisions. They design their own programs and activities and maintain their networks without interference from the government. 2. NGOs are not considered as political party. They have participation in political issues like human rights and environmental pollution but they are not classified as an organization that is part of the bureaucratic operation of the state. 3. NGOs perform their tasks not because of generating income or profit. They are described as non-profit and not-for-profit organization or entity. The existence and operating costs of NGOs rely on the members' contribution and practice of sponsorship from the private sector and entities that have interest in their causes. Roles of Civil Society Organizations The World Economic Forum (WFC) outlined the following roles of NGOs and CSOs: 1. Watchdog. CSOs monitor the behavior of institutions in the promotion of transparency and accountability. 2. Advocate. They initiate programs that could raise public awareness of issues and challenges and advocating for change. 3. Service Provider. These organizations are active in delivering services to meet societal needs including food and security, health and education as well as preparedness and disaster management. 4. Expert. They bring unique knowledge and experience to evaluate policy and strategy, and identify solutions. 5. Capacity Builder. Civil society provides services providing relevant training, education and capacity building to communities. 6. Incubator. CSOs act as an armory in developing solutions that requires long playback period. 7. Representative. They give power in emphasizing rights of the marginalized and voices of under - represented. 8. Citizenship Champion. CSOs are known in encouraging citizen engagement and championing the rights of the minority. 9. Solidarity Supporter. They promote the ethical, just, and humane practices as part of promoting universal values geared towards sustainability and balanced life of the many. 10. Definer of Standards. CSOs create and frame norms that shape and make activities of the people and societies. Different kinds of Civil Societies (Proceed to p.31) 30 Transnational Nongovernmental Organizations (TNGOs) TNGOs are international not-for-profit organizations that are independent and are not controlled by governments. TNGOs operate as an extension of the private life of the state transcending from domestic to international affairs. TNGOs are seen very active in the domestic affairs in countries under democracy. Democratic states do not only recognize the operation of NGOs but promote as well its involvement in the acceleration and delivery of its services. Economic Nongovernmental Organizations Multinational Corporations (MNCs) and Transnational Corporations (TNCs) are modern versions if global commercial enterprises. MNCs are companies that have global approach to markets and production. Giant firms owned by the world's biggest corporations have the advantage in terms of technology, production, logistics, and sustaining the market. These firms have penetrated the market earning billions of dollars for its sales. Capitalist countries have often the most number of NGOs that are very keen on the actions and decisions of the private sector specifically capitalists and the central or national government as the main economic manager. Example: Powerful organizations and firms like Google, Toyota, ExxonMobil, Walmart, and Samsung continuously generating profit at a large scale. Environmental Nongovernmental Organizations Environmental NGOs are considered as vanguard against the abuses of capitalists and organizations that negatively affect the environment. NGOs usually lobby to influence decision makers, international organizations and governments. They undertake serious actions like research fundraising, publicity and challenging policies and legislatures that are detrimental to the ecology and environment. Example: Greenpeace and World Wildlife Fund (WWF) are two most prominent environmental NGOs. Activities and engagements of these organizations are described as assertive and influential. They operate in almost all countries especially those that have environmental concerns. Greenpeace is known for its fearless stand and expression on the neglect of the institutions in damaging oceans, shipments of toxic products, and forest degradation in areas like Brazil. WWF on one hand is the world's largest multinational conservationorganization. 31 Law and Human Rights Nongovernmental Organizations The adoption of UN Universal Declaration of Human Rights in 1948 which centers on the promotion of political participation and freedom, entitlements and access to adequate food, shelter, clothing, and health care provided a more pronounced obligation of the state to its citizens. This adoption was followed by the resurgence of other bodies and conventions such as women's and children's rights, discrimination and abuse. Under the UNs management, the organization has the right to act issues concerning human rights violation. Example: Amnesty International (AI) is one of the world's most famous and active human rights NGOs operating in different countries worldwide. AI maintains its global prestige and integrity of not accepting money and donations from governments and political organizations/parties. It is known in focusing advocacies and causes on judicial and justice system reform, abolition of death penalty, protecting the rights of migrants and refugees as well as protection to human rights defenders, and promoting the rights of marginalized communities and indigenous peoples. Video Link: Strengthening the capacity of Philippine Civil Societies (https://youtu.be/xj2HYFoLi90) REFERENCE: De, Ocampo F., Ramos, B., Llonora, R., Macaraeg, A., & David, M.E. (2018). Introduction to Contemporary World. St. Andrew Publishing House. 32  CHAPTER 7 GLOBAL DEVELOPMENT AND DIVIDE Learning Objectives: After studying this chapter, the student will be able to: 4. Define development and identify its four paradigms. 5. Examine the agenda of sustainable development goals, its implementation and criticisms. 6. Analyze the issues and challenges if global south and how it relates to globalization. Opening the local market to other economies is aimed to enhance the competitiveness of the domestic market, thus, generating new avenues for development. Stable economies are often the beneficiaries if globalization. These economies are more active and have the higher capability to compete head-to- head with developing and develop countries. The underlying problem with globalization as far as development is concerned is its uneven impact to all players. Developed and middle-income economies have the highest global share in terms of wealth brought by globalization. This chapter presents issues and challenges of global development, problems faced by developing, and poor economies as well as countries within global south. 7.1 Development The term development us described as a process, system, procedure. It is a state or condition of changing and enhancing something. Oxford defines development as "a process and an event constituting a new stage in a changing situation. This process requires a number of factors and consideration in developing a part of its system or constituent elements. Development is a complex and multidimensional concept occurring in an uncertain condition. Bellù (2011) stresses that the development of the other parts of the system could be detrimental to the development of the other thus creating structural and systemic conflicts. Critics of global development assert that countries do not equally get the gains of globalization. Countries that lack resources and infrastructures are at the bottom part of the phenomenon where the benefits are unequally distributed worldwide. Disparity is very evident between rich and poor countries. CSOs describe this situation as maldevelopment, a condition where developing and less developed countries suffer on the downside effects of development and changes. 33 Four Dimensions of Development The Food and Agricultural Organization (FAO) of the UN has enumerated the four dimensions and prevailing paradigms of development. Table 7.1 Four Dimensions of Development Economic Human Sustainable Territorial Development Development Development Development It is focused on UN's Three It is the It focuses on the the qualitative Dimensions of "development that interrelationships of aspect of change Human meets the needs human activities that sometimes Development: of the present between rural and people failed to without urban areas (Bellù, determine like the Long and compromising the 2011) increased quality healthy life ability of future of life, social Knowledge generations to Social activities of improvements and Decent meet their own man part of innovations. needs." (Bruntland territorial standard of Commission) development living include production, Indicators: distribution, and consumption of Life goods and services, expectancy the balance and at birth quality features of Expected its norms and and mean practices that support the years of operation of man's schooling social affairs. Gross National Income (GNI) Sen (1999) Human Development Development is a Territorial defined it as "the Index (HDI) was need and it must development is expansion of created to emphasize be observed and composed of capacities that that economic growth practiced based clusters that linked contribute to the should be used as on the necessity activities and advancement of criterion in assessing of man and his structures. society through the development of a environment. the realization if particular country but Critical to this individuals', firms', the development of However, development is how and communities' the people and their development clusters and potential" capabilities. efforts and agencies respond practices must be to the challenges of in accordance resource scarcity with the harmony which are then of nature without interlinked to compromising the problems like food ecological security, space 34  condition and availability, and future generation. overcrowding. Economic The report was a Six different The development development as a response to the definitions of process if this transformation growing disparity sustainable dimension operates requires altering between the poor development on both national some fundamental and rich where (Streeten, 1991 and transnational economic poverty has become and Goutlet 2000) scope. structures, a major challenge to increasing the governments as part 1. The occupational of its national policy maintenance and capacities of the making. replacement of population, capital assets. empowering the 2. Maintaining the mobility of key environmental economic agents. conditions for the benefit of the all. 3. Resiliency or the ability to adjust and cope with the changes and crises. 4. The avoidance of internal and external debts in the future. 5. Fiscal and political sustainability. 6. The ability to hand over the programs and projects to the decision and control of the citizens. 7.2 Sustainable Development Goals (SDGs) SDGs was established as part on the success of the Millennium Development Goals of 2015. In the next 15 years, member-countries of UN, rich and p3, developed or developing are expected to mobilize all efforts to end the global problem of poverty, solve inequality, and address impacts if climate change. Parties involved in the global war on poverty believe that a more active participation and higher level of commitments are necessary to materialize SDGs by 2030. This global partnership among states is not binding however, national 35 governments have the ownership and authority to make and implement national policies that are in line with the objectives of SDGs. These policies are of high quality and have accessibility to public and other concerned bodies as a mechanism in delivering and relevant works and outputs. 17 Sustainable Development Goals GOAL 1: No Poverty. End poverty in all its forms everywhere. GOAL 2: Zero Hunger. End hunger, achieve food security, and improved nutrition and promote sustainable agriculture. GOAL 3: Good Health and Well-being. Ensure healthy lives and promote well- being for all at all ages. GOAL 4: Quality Education. Ensure inclusive and equitable quality education GOAL 5: Gender Equality. Achieve gender equality and empower all women. GOAL 6: Clean Water and Sanitation. Ensure availability and sustainable management of water and sanitation for all. GOAL 7: Affordable and Clean Energy. Ensure access to affordable, reliable, sustainable, and modern energy for all. GOAL 8: Decent Work and Economic Growth. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all. GOAL 9: Industry, Innovation and Infrastructure. Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation. GOAL 10: Reduced Inequality. Reduce inequality within and among countries. GOAL 11: Sustainable Cities and Communities. Make cities and human settlements inclusive, safe, resilient, and sustainable. GOAL 12: Responsible Consumption and Production. Ensure sustainable consumption and production patterns. GOAL 13: Climate Action. Take urgent action to combat climate change and its impacts. GOAL 14: Life Below Water. Conserve and sustainably use the oceans, seas, and marine resources for sustainable development. GOAL 15: Life on Land. Protect, restore, and promote, sustainable use of terrestrial ecosystems, sustainable manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss. 36 GOAL 16: Peace and Justice Strong Institutions. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels. GOAL 17: Partnerships to achieve the Goal. Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development. How will the Sustainable Development Goals be implemented? The Addis Ababa Action Agenda of the Third International Conference on Financing for Development came up with the following actions on the implementation of SDGs: A. The success of policies and programs of SDGs rely on the actions and willingness of members-parties and states in aligning their plans with the kind of global commitments. Plans initiated and implemented within the national level are gauge in how governments respond to the demands of SDGs. B. Resource mobilization and financing strategies are fundamental requirements in materializing nationally-framed and locally-led sustainable development goals. C. The expected contribution of government, private sector, civil society groups, and other stakeholders of the SDGs. The roles of NGOs and CSOs are potentially advantageous in the attainment of SDGs. These private entities and organizations perform tasks where governments fail to act and deliver. D. The 2030 Agenda for Sustainable Development requires partnership between the efforts of global community and national government. Global governance is the main driver of achieving SDGs with the cooperation of national governments who have commitments and responsibilities this agenda. 7.3 Global South In academic setting, the term global south is widely used in social sciences like sociology, political science, and economics. It is major subject of discourses especially topics concerning globalization, global divide, and uneven development across the globe. South has a geographical connotation described as largely equivalent, but not identical with Third World (Pagel, Ranke, et al 2014). However, the term south does not refer to countries outside United States and Europe, Australia and New Zealand do not belong the "South". It also refers to countries that are excluded if not deprived from socioeconomic prominence like Africa, Middle East, South America, South Asia and countries within Pacific. The inequalities and global divide between rich and poor countries part of globalization and territorializing is also a part on the reality of global south (Lopez, 2007). 37  The idea of global south is a contemporary issue in socioeconomic and political divide. Countries like United States, Canada, outmost and western part of Europe, Japan, Australia, and New Zealand are giant economies parts of the global north. These countries are described as highly industrialized, developed, and most advanced economies in the world. It rests on the fact that the entire world's industrially developed countries lie to the north of its developing countries. Countries which belong to the global south possess various political and economic descriptions and experiences. In Africa, debts, poor infrastructure, education, employment, health care, and peace and security are key impediments. The region's problem on poverty is the fundamental challenge of governments and institutions providing key to these countries. Asian countries are fond to be a combination of emerging and developing economies with the exception of Singapore. Domestic and regional problems like unstable governments, rule of law ad environmental pollution are continuously at the frontline of concerns in the region. Central Asia on the other hand consists of countries that have experienced transitioning governments. There are former territories of the Soviet Union and stabilizing the economy brought by the damage of the former communist Soviet regime is still evident. Political and economic reforms are insufficient to address the fabric of communism during the Cold War era. West Asian region has its unique social struggle. The region is confined in a costly conflict involving territorial insecurity, peace and order, and competing extreme ideological clashes. Thought the region is an oil-rich country but regional issue are barriers in the development process of West Asia. Natural disaster and the absence of sufficient investment as major source of the economy, make countries in the Pacific Islands a victims of slow growth. Its economies are dependent with the influx of business and commercial activities of nearby countries in the Pacific as well as countries in Oceania, Asia, and America. Countries belonging to Latin America are trapped in turbulent economic environment. Regional matters like unstable democratic governance and fiscal problems are known challenging facing countries of the region. Latin and Caribbean countries are described as countries that have experienced "lost development" because of missed economic opportunities especially in the 60s and 70s. Causes of Global Divide The following are some of the main factors of causing global dividebetween the north and south. 1. Globalization in the 1990 The economic intensification observed in the 90s fueled countries to establish boundaries. Poor countries that can not cope with the demands of the rich and developed countries suffer most of the potential damage of globalization. Countries of the global south especially under unstable 38  governments and weak economics failed to produce outputs as a response to the internationalization system of economy and government. There were countries that disappear from the pipelines of the global competition. Some countries mostly third world shifted its interest through relying to a more powerful economy. 2. Uneven Immigration