Chapter IV

R.A. 11469: Bayanihan to Heal as One Act and Market Integration

Manuscript Intended for: Students

Modality: Blended/Flexible Learning
Module No./Subject: 4, Contemporary World
Allotted time: 3 hours, 4th week
Author: Dr. Arsenio M. Escalona

I. Learning Outcomes
This lesson intends to prepare students to:
1. Explain the dynamic of local market integration and global market integration;
2. Explain the role of International Monetary Fund (IMF) and World Bank (WB) in the creation of a
global economy;
3. Narrate a short history of global market integration;
4.Negotiate the world of technology responsibly; and
5. Organize one’s self for lifelong learning.

II. Learning Management System

Lesson 1: Suggested Activity/Activities
Activity 1- Educational Psychology taught us that Question and
Answer Method, others called it Socratic Method, as teaching
technique has unparalleled effectiveness. Alertness of students
is seen as an indicator of students’ readiness and preparedness.
Thus, starting every session with this method allows quality
delivery of desired outcomes especially now that the University
strictly advocates Outcomes-based Education (OBE)
Curriculum. (Thank you.) Ask some of students if they are
knowledgeable about the products of DOST-Food and Nutrition
Research Institute: the “BigMo” and the “E-Nutribun”. Both are
known as complementary foods which are very rich in protein,
calcium, vitamin A, and iron. Nutritious foods like these help us
in strengthening our immune system. Informed them also of the
findings of a research conducted by an anonymous social
worker which revealed that hotdog, noodles and meatloaf were
foods mostly prepared for elementary students as these meals
for breakfast were easier to prepare as cited by GMA Reporter
Mr. Arnold Clavio in one of his programs. Tickle their minds by
asking the nutritional value of these processed foods mentioned
earlier. Connect at this stage, the food relief packages www.manilatimes.net/2020/03/25/second-headline/read-republic-act-11469-or-the-bayanihan-to-heal-as-one-act/706268/

distributed by their respective barangay officials. Let them dominate on this discussion to introduce
“market place” method. This teaching strategy emanated from the greatest philosopher Socrates. It is a
forum which discovers idea best suited in such time of discussion. Such well-grilled “idea” being a by-
product of a consensus is so essential especially if used in decision making being given by well-informed
members. Expect these items: two (2) kilos of rice, payless and sardines. Ask them nutritional value of
these relief goods. Contemporary world discussion in class explains reality especially if norms or
standards have to be set in their minds to achieve a mind set for a much better Philippine society.
Humanity has to reach a level free from deceits and deceptions.

Lesson 2: Integration
www.pinterest.ph/pin/205476801724710309/
could probably hurt them.
Topic 1- Ephesians 2:10. Cite and read it loudly. “For we
are his workmanship, created in Christ Jesus unto good
works, which God hath before ordained that we should
walk in them.” Emphasized that similar to the mandated
Health Protocols being enforced in this time of community
quarantine, the Holy Bible teaches us to follow God’s plan
instead of selfish plans. Even in the Lord’s prayer Jesus
taught us to allow Father-God’s will for us to inherit
God’s kingdom here on earth. Liken to a Light Rail
Transit (LRT) Father-God has prepared in advance the
railed tracks before He created us. The celestial,
terrestrial, water domains, animals and plants for our
consumption, and others. We are blessed with nutritious
foods in order to have healthier bodies. But, this
contemporary world presents processed foods
manufacture and distributed by multinational corporations.
Advertisements created a different norm more appealing
to human eyes but devoid of nutritional value. Please just
allow them to critically think but do not impose things that

Lesson 3: Motivation
Topic 1- One Town, One Product (OTOP). Ask them about the slogan: “We stay in our work for all of
you. Please stay at your Home for us”. Emphasized love for one’s family in order to win this battle.
Introduce “One Town, One Product” (OTOP) equally so important in order for our country to achieve
prosperity and economic progress. The Department of Trade and Industry (DTI) highlighted the
importance of protecting our own economy by patronizing first our own products instead of foreign
goods. We are asked by God to do good works. Buying goods locally made by Filipino entrepreneurs will
boost local market. Liken to a functional train, we just need to follow the track God has built for all
Filipinos. Let them discover on their own that economy will prosper if everyone would journey
altogether.

Lesson 4: Presentation
Topic 1-Market integration defined.
Market integration occurs when prices among different location or related goods follow similar pattern
over a long period of time. Groups of goods often move proportionately to each other and when this
relation is very clear among different markets it is said that the markets are integrated. Economy is the
only social institution that has one of the biggest impact on any given society. Covid-19 pandemic slows
 down world’s economy. In our country,
Social Amelioration Program (SAP)
provided a clear path to help
marginalized sectors to cope up
momentarily. Fear of work displacement
hunts employees in the private sectors.
Similarly situated, contract of services
and casual employees in the public sector
fear the same. International Monetary
Fund (IMF) financial managers predicted
that recession is inevitable to happen by
the second-quarter of 2020. Dislocation
of capital if not recovered at once would
hit directly the global market which is
seen by economic expert worldwide as
too fragile. To resolve it, economic
stimulus should be given at the right time
when it is needed. The whole world while
it awaits the New Normal, ask some
students what economic system would be
effective for the entire humanity? Such
tough question needs good discussion. Enlighten them that capitalistic societies like South Korea and the
United States are both criticized because of poor families proliferating in their countries. Venezuela is in
brink of economic crisis. Challenge them by getting own opinion about communist countries like
Vietnam, China, Russia and others advancing very rapidly economically.

Lesson 5: Discussion Proper

Topic 1- Economy defined
Economy –is composed of people; it is also the sole social institution that handles all production,
consumption, and the trade of goods in our society. Or what we simply call our “market”.
Topic 2- Three (3) Sectors of Production
1. Primary sector of the economy extracts/harvests raw materials from our environment. Activities under
primary sector are agriculture, fishing, farming, mining and hunting.
2. Secondary sector of the economy focuses on manufacturing finished goods. Activities under secondary
sector are metal working, smelting, engineering, breweries and bottlers, and constructions.
3. Tertiary sector of the economy is the service industry. Activities under tertiary sector are entertainment
(cinemas, theaters, television, music, etc.), transportation and distribution, insurance, health care,
restaurants, and banks.
Note that in lifting community quarantine level these three sectors were considered by the IATF.
Topic 3- History of Global Market Integration
Before the rise of today’s modern economy, people only produced goods for their family. Nowadays,
economy demands the different sectors to work together in order to produce, distribute, and exchange
products and services. What caused this shift in the way people produce for their needs? In order to fully
understand this, we will go back in time twelve-thousand (12,000) years ago.
Agricultural Revolution is the first big economic change that shaped history. Farmers learned how to
domesticate plants and animals. They learned that it is more productive than hunter-gatherer societies.
The second major economic revolution happened during the Industrial Revolution period. With the rise of
industry came new economic tools. Factories pooped out and changed how work functioned. Overall,
productivity went up, standards of living increased, and people had access to wider varieties of goods due
to mass production. However, every economic revolution comes with economic casualties. The workers
in the factory- mainly from poor families worked in dangerous conditions for low wages. With more
productivity came greater wealth but also brought greater economic inequality. The working class are
seldom emancipated from what had been promised by the capitalistic system equal wealth distribution to
all. In the late ninetieth (19th) century, labor union began to form organizations to improve wages and
working conditions. Inspired by the Marxist principle labor unions demand more protections to get
minimum wage laws, reasonable working hours and regulations to protect the safety, limbs, and life of the
workers.
Topic 4- Capitalism and Socialism
There are two (2) competing economic models that sprung up around the time of Industrial Revolution, as
economic capital became more and more important to the production of goods. These were capitalism and
socialism. Capitalism is a system in which all natural resources and means of production are privately
owned. It emphasizes profit maximization and competition as the main drivers of efficiency. This is best
illustrated by having this example: Tess owns a business. She needs to outperform Sheryl and Mica her
competitors if she is going to succeed. She is incentivized to be more efficient by improving the quality of
her products and consequently, reducing it prices. The idea is that if one leaves a capitalist economy
alone, consumers will regulate things themselves by selecting goods and services that provide the best
value. Economist Adam Smith called this: the “invisible hand” of the market. In practice, however, an
economy does not work very well if it is left completely on autopilot. There are many sectors were a
hands-off approach can lead to what economist call market failures. This situation happens when a certain
company has no competition for customers. Sad to say that majority of thriving corporations in the
Philippines were owned by the same families which in effect had sole control how prices have to be fix
contrary to what was dictated by the “market”. Filipino consumers have to be educated to reap fully the
benefits of free enterprise, that is, quality goods for reduced prices. Monopoly is a kind of market failure.
Companies can charge higher prices without worrying about losing customers. As a result, rich people
becoming much richer and poor people becoming much poorer. In critical situation like this, the
government have to step in and force the company to break up into smaller companies to increase
competition. Market failure like this are reasons most countries are not called purely capitalist societies.
For example, the United States federal and state governments own and operate a number of business, like
schools, the postal service, and the military. Government also set minimum wages, create workplace
safety laws, and provide social support programs like unemployment benefits and food stamps. Food
stamps supposedly should minimize problems about hunger and mendicancy.

Government plays an even larger role in socialism. In socialist system, the means of production are under
collective ownership. It rejects capitalism’s private property and hands-off approaches. Instead, in
socialism, property is owned by the government and allocated to all citizens, not only those with money
to afford it. Socialism emphasizes collective goals, expecting everyone to work for the common good and
placing a higher value on meeting everyone’s basic needs than on individual profit. When Karl Marx first
wrote about socialism, he viewed it as a stepping stone toward communism, a political and economic
system in which all members of a society are socially equal. In practice, this ideal set-up has not played
out in the countries that have modeled their economies on socialism, like Cuba, North Korea, China, and
Russia. Millennials described as volatile, uncertain, complex, and ambiguous have to be enlightened first
before asking them, why? As Karl Marx hoped that as economic differences would vanished in
communist society, the government would simply wither away and disappears, but that never happened.
In contrary, the opposite did happen. Rather than freeing the workers from inequality the massive power
of government gave enormous power and privilege to political elites. The contemporary result is the
retrenchment of inequalities along political line rather than strictly economic line. In China, scrupulous
businessmen are being blacklisted to ensure equal protection in economic activities. Some critics often
criticized this move as offensive but law has to punish and penalized those who violated good conduct; if
not what would be the essence of the law. Dura lex sed lex. How hard is the law it is still the law.
Topic 5- Bretton Woods System
Bretton Wood System was established after World War I, the Great Depression in 1930s, and World War
II. According to Ritzer: Major economies in the world suffered a lot during this time, to curb the fear of
recurrence of lack of cooperation among nation-states, political instability and economic turmoil,
reduction of barriers to trade and free flow of money among nations become the focus to restructure the
world economy and ensure financial stability and Bretton Woods System will cure all of these. It was
created to make sure that money would be of value and be used to kick start the economy of most fallen
countries and create a harmonious relation with all the other nation after the disasters that besotted them.

Topic 6- Five (5) Key Elements of the Bretton Woods System

1. Expression of Currency- the expression of currency for gold or gold value to establish a par value- this
means that to create unified value equivalent, gold was used as an example. An ounce of gold was
equivalent to a certain amount of dollars, then they would also imply what it amounted to another
currency (example: peso) then they will use those equivalent to determine how much peso was equivalent
to dollar.
2. Agreement of Monetary Authorities- the official monetary authority in each country- a central bank or
its equivalent would agree to exchange its own currency for those of other countries at the established
exchange rate, plus or minus a one percent margin. For example, nowadays 1 dollar is equivalent to
around 49 pesos, and 1 euro is equivalent to around 55 pesos. Because the Bangko Sentral ng Pilipinas
has agreed and converted the foreign currency to the Philippine peso in response to the established
exchange rate, but the stock market greatly affects the exchange rate from time to time, sometimes a
dollar can be worth 55 pesos. This shift is attributed most of the time if economic fundamentals are strong
enough to withstand the current global market realities or otherwise it weakens value of peso, thus,
devaluation happens.
3. Establishment of the International Monetary Fund- the establishment of an Overseer for the exchange
rate. IMF was created to monitor the exchange rate of every country and would make sure everything is
just and proper, preventing over the top rates for monetary exchanges. Student activist at the forefront of
expressing grievances renounces bluntly the roles of World Bank and IMF in rallies but realities should
have taught us that unscrupulous politicians are the real culprit of our disadvantaged economic posture.
History as it enfolds should educate all Filipinos how global market economy would favor us to fast tract
Philippines national development.
4. Eliminating Restrictions- restrictions has been eliminated for states that are a member of the IMF in the
international trade. This has been done to make sure that the trade would be easier for the member-states,
hence, would result to a much more stable economy for the member-states.
5. US dollar as the global currency- United States dollar has been the global basis for currency.
Topic 7- General Agreement on Tariffs and Trades (GATT) and World Trade Organization
(WTO)
GATT was one of the systems that were born out of the Bretton Woods. It was established in 1947
consisted of twenty-three (23) forum member countries. It focused on multinational trade agreements.
The World Trade Organization (WTO) replaced GATT in 1994, and it officially commenced on 1995. It
aimed on reducing or eliminating trade barriers so that all nations will benefit. But there were criticisms
towards it. One is that, trade barriers that were made by developed countries could not be countered
enough by the WTO, especially in agriculture. Grain prices increased and food riots occurred in many
member-states of the WTO like Mexico, Egypt and Indonesia. Rice Tariffication Law was enacted by the
Philippine Congress to counter ill effects of unfair trading and help Filipino farmers to produce enough
rice to support domestic trades.
Topic 8- International Monetary Fund (IMF) and the World Bank (WB)
The IMF and the World Bank were founded after World War II. Their establishment was mainly because
of peace advocacy after the war. And to keep the balance of global economy. These two (2) International
Financial Institutions (IFIs) were designed to complement each other. IMF serves as a lender or a last
resort of countries which needed financial assistance. The World Bank, however, in comparison had more
of a long-term approach. It focused on the eradication of poverty through funding specific projects of
poor countries, especially, to reach their goals. Here lies the challenge in country like ours. At present our
economy is in the start-up stage ready to take off once again which had happened twice during President
Ramos’ and President Arroyo’s terms. The administration of President Noynoy Aquino had enough
accomplishments but public expenditures especially in infrastructure development was left behind. This
explains why the “Build, Build, Build” is so essential in current development status. We should always be
vigilant in protecting government initiatives. Filipinos should mature politically to sustain development
efforts regardless of political colors. Our multi-partisan politics led us to too much desperation and
hopelessness. This is the reason why this subject: Contemporary World is very much relevant. It should
awaken civic-consciousness and political involvement to rediscover sense of history, our roots, and our
prophetic destiny, that is, greatness in God’s name. Malasakit and Makabuluhang Pagbabago should not
serve as “Ningas-Cogon” only but we should place these in our being as Filipinos working to deepen our
National Identity as heir of true development in store for us.
Topic 9- The Organization for Economic Cooperation and Development (OECD)
The OECD like the Organization of Petroleum Exporting Countries (OPEC), and the European Union
(EU) have similarities. These three (3) international organizations had created much impact in economic
status of countries worldwide. OECD has thirty-six (36) members and is the most despite the group
having little formal power. This power emanates from the member-countries natural resources and
economic prowess. OPEC focuses more in oils. It is formed because member countries wanted to increase
the price of oil, which in the past had relatively low price and had failed in keeping up with inflation. EU
is composed of twenty-eight (28) member-states, most of its members in the Eurozone adopted euro as
the basic currency but some in the Western Europe did not. Critics argue that the euro increased the prices
in Eurozone which resulted to a depressing economic growth rates. Students should learn at this point the
tremendous effect of regional economic integration. Having alliances became the name of the game and if
one country did not join or involved itself such country will be left out.
Topic 10- North American Free Trade Agreement (NAFTA)
NAFTA is a trade between United States, Canada, and Mexico. It was created in January 1, 1994.
NAFTA helps in developing and expanding world trade by broadening international cooperation. It also
aims to increase in cooperation for improving working conditions in North America by reducing barriers
to trade as it expands the markets of the three (3) countries. NAFTA has its positive and negative
consequences. It lowered the prices by removing tariffs, opened up new opportunities for small and
medium businesses to establish a name for itself, quadrupled trade between the three (3) countries but the
negative effects include pollution, loss of more than 682,000 manufacturing jobs, exploitation of workers
and moving farmers out of business.

III. Process Questions

The following questions are laid down to assess effectiveness of teaching-learning process. It will also
help them remember important concepts and principles discussed earlier and to apply what they have
learned in daily lives.
1. Enumerate all possible products which can be produced out of a coconut tree. Example of which are
the following: virgin coconut oil, coconut juice, coconut lumber, basket, buko pie, vinegar, bunot, etc.
How would you assess our local economy? Are we now ready at this point to compete with the global
market? Please cite goods being exported to other countries.
2. Rice Tariffication Law was enacted in response to global challenges posted by the establishment of the
World Trade Organization (WTO). Do you think recent news which discredit proper implementation of
this Act really true? Why? Why not?
3. One Town, One Product (OTOP) of the Department of Tourism (DOT) was so successful in listing
down prospective goods and services in the countryside. What do you think are hindrances why up to
now such very good program does not prosper?