Global Economics and Development PDF

Technological Innovations - They break down geographical barriers and enable instantaneous communication and transactions between buyers and sellers across the globe. They enhance efficiency, reduce transaction costs, and expand market access for businesses, fostering greater interconnectedness and...

Technological Innovations - They break down geographical barriers and enable instantaneous communication and transactions between buyers and sellers across the globe. They enhance efficiency, reduce transaction costs, and expand market access for businesses, fostering greater interconnectedness and competition in the global marketplace. Power Dynamics - These shape the global interstate system by determining the influence and interactions between nation-states, often leading to alliances, conflicts, and shifts in geopolitical balances. Dominant powers exert significant influence over international affairs, shaping diplomatic relations, security policies, and the distribution of resources on the global stage. Multilateralism vs. Unilateralism - The differences between multilateralism and unilateralism affect contemporary global governance by influencing the inclusivity, legitimacy, and effectiveness of decision-making processes and policy outcomes. Multilateral approaches promote cooperation and shared responsibility among multiple actors, while unilateral actions by individual states may undermine collective efforts and lead to tensions or conflicts in global governance initiatives. Impact on Latin America Income Inequality - Latin America is known for its significant income disparities, where a small elite holds a disproportionate share of wealth compared to the majority of the population. This disparity is exacerbated by global economic trends that often favor developed regions over developing ones. The Global Market - Latin American countries often face challenges in accessing global markets on equal terms due to trade barriers, tariffs, and unequal trade agreements. This limits their ability to compete globally and benefit fully from international trade. Commodities- Many Latin American economies are heavily reliant on exports of primary commodities (such as oil, minerals, and agricultural products). Fluctuations in global commodity prices can lead to economic instability and vulnerability. Social and Human Development - The global divide perpetuates poverty and social exclusion in Latin America, where a significant portion of the population lacks access to basic services such as education, healthcare, and sanitation. Economic disparities drive migration from Latin America to more developed regions seeking better economic opportunities and living conditions. This has social and economic implications for both sending and receiving countries. Finally, access to quality healthcare and education varies widely across the region, with rural and marginalized urban populations often facing significant barriers to accessing these essential services. Political Influence and Governance - Latin American countries may have less influence in global decision-making forums compared to more economically powerful regions. This can impact their ability to advocate for their interests on issues such as trade agreements, environmental policies, and international aid. Economic disparities can contribute to political instability and governance challenges in Latin America, including corruption, social unrest, and political polarization. Technological Access and Digital Divide -There is a digital divide in Latin America, with disparities in internet access and connectivity between urban and rural areas, as well as across socioeconomic groups. This affects access to information, education, and economic opportunities. Limited investment in research and development compared to more developed regions hinders technological innovation and competitiveness in Latin America, impacting economic growth and development. Environmental and Climate Challenges - Latin America is home to rich biodiversity and natural resources. However, global environmental policies and climate change disproportionately affect the region, leading to challenges such as deforestation, biodiversity loss, and vulnerability to natural disasters. The demand for Latin America’s natural resources by more developed regions can lead to environmental degradation and social conflicts over land use and resource extraction. Asia-Pacific Economic Cooperation (APEC) 1989 Promote sustainable economic growth and prosperity in the Asia-Pacific region. FOUNDING MEMBERS: Australia Brunei Canada Indonesia Japan South Korea Malaysia New Zealand Philippines Singapore Thailand United States Association of Southeast Asian Nations (ASEAN) 1967 Economic integration, political cooperation, social progress, and cultural development. MEMBERS: Brunei Cambodia Indonesia Laos Malaysia Myanmar Philippines Singapore Thailand Vietnam Bay of Bengal Initiative for MultiSectoral Technical and Economic Cooperation (BIMSTEC) 1997 To ensure dynamic and mutual cooperation, especially in the areas that are of common interest to the member countries. To create an environment for ensuring expeditious economic growth in the South Asian and Southeast Asian countries. MEMBERS: Bangladesh Bhutan India Myanmar Nepal Sri Lanka Thailand South Asia Subregional Economic Cooperation (SASEC) 2001 Enhancing cross-border connectivity between the member nations, promoting trade and economic growth. MEMBERS: Bangladesh Bhutan India Maldives Myanmar Nepal Sri Lanka Technological Innovation - Globalization encourages collaboration and innovation in technology-intensive industries across Asian countries. Joint research initiatives, technology transfers, and investments in innovation hubs contribute to regional technological advancement. News Provides information about current events, politics, the economy, and other societal issues. Newspapers Online news websites Podcasts Radio news Television news Entertainment Encompasses films, television shows, music, video games, and online streaming services designed to entertain audiences. Films / Movies Music Podcasts TV series Video games Social Platforms that allow users to create, share, and interact with content and each other. Facebook Instagram LinkedIn Threads TikTok X (formerly Twitter) Educational Content designed to educate and inform is often used in academic and professional settings. E-books Educational videos Online courses Podcasts Black Lives Matter The movement has used social media to highlight police brutality and systemic racism, leading to global protests and calls for justice. Makati City is the business hub of Metro Manila, as most large enterprises are found within it, which can include business process outsourcing (BPO) companies, telecommunications, and shopping centers, among others. It also hosts some government offices. Taguig City is slowly becoming another business hub of Metro Manila, largely due to Fort Bonifacio Global City and the Philippine Stock Exchange (which was previously in Makati). It hosts some government offices and some companies, such as shopping centers and BPOs. Climate Change in Global Cities Greenhouse Gases - Global cities are major sources of greenhouse gas emissions from various sectors such as transportation (especially cars and airplanes), energy production, industries, and residential buildings. The high concentration of people and economic activities leads to increased energy consumption and, thus, higher emissions. Urban heat island effect - Urban areas, especially global cities with extensive infrastructure and dense buildings, tend to have higher temperatures than surrounding rural areas. This phenomenon, known as the urban heat island effect, results from the absorption and retention of heat by concrete, asphalt, and buildings, exacerbated by reduced vegetation cover. Consumption and Waste - Global cities often drive high levels of consumption and waste generation, which contribute to environmental degradation and resource depletion. The production and disposal of goods and materials lead to emissions from manufacturing processes, as well as landfill methane emissions. Transportation - Global cities are hubs of transportation networks, including roadways, ports, and airports. These transport systems contribute to emissions through vehicle exhaust, maritime shipping emissions, and aviation fuel combustion. Impact in Climate Change Sea Level Rise - Many global cities are coastal or located near bodies of water, making them vulnerable to sea level rise. This can lead to increased flooding, coastal erosion, and damage to infrastructure. Extreme Weather Effects - Climate change is intensifying extreme weather events such as hurricanes, storms, heat waves, and heavy precipitation. Global cities face increased risks of infrastructure damage, disruptions to services, and threats to public health during such events. Water Stress - Climate change can alter precipitation patterns, leading to increased droughts or floods in different regions. Global cities may face challenges in managing water resources for drinking, sanitation, and agriculture. Health Issues - Climate change can exacerbate air pollution levels in cities, leading to respiratory diseases and other health issues. Heatwaves can also pose direct health risks, especially for vulnerable populations. Economic Disruptions - Climate-related impacts can disrupt economic activities in global cities, affecting businesses, tourism, transportation, and supply chains. Artificial Intelligence and Sustainable Development Impacts on Sustainable Development Environmental Monitoring. AI can track deforestation, monitor wildlife populations, and predict natural disasters, helping to protect ecosystems. Resource Management. AI optimizes the use of water, energy, and other resources, enhancing efficiency and reducing waste. Smart Cities. AI technologies improve urban infrastructure, manage traffic, reduce energy consumption, and enhance public services, contributing to urban sustainability. Global food security means that all people, at all times, have physical, social, and economic access to sufficient, safe, and nutritious food that meets their dietary needs and food preferences for an active and healthy life. Dimensions of Global Food Security Availability = Sufficient quantities of food must be consistently available on a national and global scale. This includes production, imports, and food stocks that can meet demand during normal times and in times of crisis. Access - Individuals and households must have the economic means to access food, either through purchasing power (income and prices) or through social safety nets and food assistance programs. Utilization - Access to food must translate into adequate nutrition and dietary diversity to ensure individuals receive essential nutrients and maintain good health. Stability - Food security requires that access to food is stable over time without sudden disruptions due to factors such as price spikes, conflicts, natural disasters, or economic downturns. Challenges and Factors Affecting Global Food Security Poverty and Inequality Poverty limits access to food due to a lack of purchasing power, inadequate infrastructure, and limited access to education and healthcare. Climate Change Impacts Increasing frequency and intensity of extreme weather events and changing climatic conditions pose challenges to agricultural productivity and food systems resilience. Natural Resource Management Sustainable management of land, water, and biodiversity is essential to ensure long-term food production without degrading ecosystems. Conflict and Displacement Conflict and forced displacement disrupt food production and distribution, exacerbating food insecurity among affected populations. The Triple Bottom Line (Three Pillars) Model Economic sustainability (profit) Ensures long-term economic growth without negatively impacting social or environmental systems Environmental sustainability (planet) Protect and conserve natural resources, ecosystems, and biodiversity. Social sustainability (people) Ensure social equity, inclusivity, and access to basic needs such as healthcare, education, and housing. The Doughnut Model of Economy This model, developed by economist Kate Raworth, visualizes sustainable development as a doughnut-shaped space. It balances social foundation with the environmental ceiling, with the goal of ensuring human development occurs within this "safe and just space," where the needs of people are met without overshooting ecological limits. The Ecological Economics Model This model integrates the economy as a subset of the environment. It emphasizes that economic growth should be limited by ecological constraints, recognizing that natural resources are finite. The goal is to shift the focus from unlimited economic growth to maintaining a steady-state economy, where resource use and waste production are kept within ecological limits. Natural Capitalism This model emphasizes the value of natural resources (natural capital) in economic systems. It advocates for sustainable business practices that focus on resource efficiency, renewable energy use, and closed-loop production processes (minimizing waste). It aims to align business practices with the principles of ecological sustainability and social responsibility. Capabilities Approach Developed by Indian economist and philosopher Amartya Sen, this model focuses on expanding people's capabilities and opportunities rather than just economic growth. It considers factors such as education, healthcare, political freedom, and social inclusion as key elements of sustainable development. It aims to enhance the quality of life by expanding individuals' abilities to live the lives they value, promoting both social and environmental sustainability. Sustainability - Advocating for sustainable practices that ensure the well-being of future generations. Ethical Obligations Promoting Human Rights. Upholding and advocating for the rights and dignity of all individuals. Fostering Peace. Engaging in activities that promote peace and conflict resolution. Impacts of War Environmental Impact - War contributes to environmental degradation. Destruction of natural habitats, pollution, and resource depletion are common consequences. Curriculum Integration Peace education can be integrated into various subjects such as history, social studies, and literature. This helps students understand the importance of peace and conflict resolution within different contexts.