WEEK 9
ECONOMIC GLOBALIZATION AND
SUSTAINABLE DEVELOPMENT
Definition:
There are some significant downsides to
globalize trade and perhaps the strongest
argument against economic globalization
is its lack of sustainability or the degree to
which the earth’s resources can be used for
our needs, even in the future.
Definition:
Development has to be ensured in and for
the future generations. One significant global
response or approach to economic globalization
is that of sustainable development, which
seeks to chart a middle path between economic
growth and a sustainable environment
(Borghesi and Vercelli, 2008).
Water and fossil fuel - were able to utilize
energy, discover new technologies, and
make advancements in transportation and
communication.
ENVIRONMENTAL DEGRADATION
Development, especially economic
development, was hastened by the Industrial
Revolution. This is the period in human history
that made possible the cycle of efficiency.
Harvey (2005) noted that neoliberals and
environmentalists debate the impact of free
trade on the environment. Environmentalist
argue that environmental issues
(Antonio, 2007).
There are significant challenges involved in
implementing various measures
such as “carbon tax” and “carbon neutrality”
to deal with environmental problems.
(Ritzer, 2015).
Barrionueo (2007) stated that the use of
ethanol as an alternative to gasoline
has an attendant set of problems.
FOOD SECURITY
The demand for food will be 60% greater than
it is today and the challenge of Food security
requires the world to feed 9 billion people by
2050 (Breene, 2016).
Breene (2016) cited the case of India to show
how complex the issue of food security is in
relation to other factors:
Agriculture accounts for 18% of the economy’s
output and 47% of its workforce. India is the
second biggest producer of fruits and
vegetables in the world. Yet according to the
Food and Agriculture Organization (FAO) of
the
United Nations, some 194 million Indians are
undernourished, the largest number of hungry
people in any single country. An estimated
15.2% of the population of India is too
malnourished to lead a normal life. A third of the
world's malnourished children live in India (n.p).
The decline in the availability of freshwater
(Conca, 2006). The decline in the water supply
because of degradation of soil of desertification
(Glantz, 1977), has transformed what was once
considered a public good into a privatized
commodity.
The use of persistent organics pollutants
(POPs) has led to significant industrial pollution
(Dinhams, 2007). Greenhouse gasses, gasses
that trap sunlight and heat in The earth’s
atmosphere, contribute greatly to global
warming.
ECONOMIC GLOBALIZATION, POVERTY,
AND INEQUALITY
The Swedish statistician Hans Rosling once
said, “The 1 to 2 billion poorest in the world who
don’t have food for the day suffer from the worst
disease, globalization deficiency. The way
globalization is occurring could be much
better,but the worst thing is not being part of it.”
The winners include corporations and their
stockholders who earn more profit. They also
include consumers who get products at a
cheaper price. The losers are high wage
workers who used to make those shoes.
Muhammad Yunus won the Nobel Peace
Prize for implementing a simple idea. “In my
experience, poor people are the world’s greatest
entrepreneurs. Every day they must innovate in
order to survive. They remain poor because
they do not have the opportunities to turn their
creativity into sustainable income”.
GLOBAL INCOME EQUALITY
Globalization and inequality are closely related.
We can see how different nations are divided
between the North and South, developed and
less developed, and the core and periphery
2 TYPES OF ECONOMIC INEQUALITY
Wealth Inequality – it refers to the net worth of
a country. It takes into account all
the assets of nation may they be natural,
physical, and human less the liabilities
Income inequality – income is the new
earnings that are constantly being added to
the pile of a country’s
GROSS DOMESTIC PRODUCT (GDP)
Income inequality, we mean that new
earnings are being distributed; it values
the flow of goods and services, not a stock of
assets ( Economist, 2012).
WEEK 10
THE THIRD WORLD AND THE GLOBAL
SOUTH
The terms “First, Second and Third World”
dates back to the Cold war, when Western
Policymakers began talking about the world as
three distinct political and economical
blocs (Tomlinson, 2003).
In other words, the differences between the
Global North and the Global South are
shaped by migration and globalization.
Nevertheless, the economic differences
between the wealthy Global North and poor
Global South “have always possessed a racial
character” (Winant, 2001, p. 131).
The Western Capitalist
countries were labeled as
the ”First World”.
The Soviet Union and its
allies were termed as the
“Second World”.
Everyone else was
grouped into “Third
World”.
Gross Domestic Product (GDP)
-Which measures the total output of a country.
Gross National Income (GNI)
- Which measures GDP per capita (World Bank,
n.d.)
“Global North” and “Global South”
- are a way for countries in the South to make a
stand about the common issues, problems, and
even causes in order to have equality all
throughout the world.

THE GLOBAL CITY
Global city
- an urban center that enjoys significant
competitive advantages and the serves as a
hub within a globalized economic system. The
term has its origins in research on cities carried
out during the 1980s, which examined the
common characteristics of the world’s most
important cities.
WEEK 11
THEORIES OF GLOBAL STRATIFICATION
Global stratification
- refers to the unequal distribution of wealth,
power, prestige, resources, and influence
among the world’s nations. Means inequalities
in wealth and power between societies.
Two explanations for global stratification are
Modernization Theory and Dependency Theory.
MODERNIZATION THEORY
Frames global stratification as a function of
technological and cultural differences between
nations. Pinpoints 2 historical events:
Columbian Exchange and Industrial Revolution
(18th and 19th centuries).
COLUMBIAN EXCHANGE
(1st HISTORICAL EVENT)
Refers to the spread of goods, technology,
education, and diseases between the Americas
and Europe after Christopher Columbus’s so-
called “discovery of the Americas” This worked
out well for the European countries but not for
Native Americans
Populations were ravaged by the diseases
brought from Europe. Over 80% of the Native
American population died. Smallpox and
measles diseases.
INDUSTRIAL REVOLUTION
(2nd HISTORICAL EVENT)
This is when new technologies, like steam
power and mechanization, allowed countries
to replace human labor with machines and
increase productivity.
Modernization theory rests on the idea that
affluence could be attained by anyone.
Modernization theory argues that the tension
between tradition and technological change is
the biggest barrier to growth.
Why did Europe modernize?
The Protestant Reformation primed Europe
to take on a progress-oriented way of life in
which financial success was a sign of personal
virtue.
TECHNOLOGICAL & CULTURAL
DIFFERENCES RESULTS TO GLOBAL
STRATIFICATION
WALTZ ROSTOW’S 4 STAGES OF
MODERNIZATION
1st Stage - Traditional stage
2nd Stage - Take-off stage
3rd Stage - Drive to technological Maturity
4th Stage - High mass consumption
TRADITIONAL STAGE
(1ST STAGE OF MODERNIZATION)
This refers to societies that are structured
around small, local communities with production
typically being done in family settings.
Most of their time is spent on laboring to
produce food, which creates a strict social
hierarchy.
Examples:
Feudal Europe
Early Chinese Dynasties
TAKE-OFF STAGE
(2nd STAGE OF MODERNIZATION)
Rostow describes this stage as a short period
of intensive growth, in which industrialization
begins to occur, and workers and institutions
become concentrated around a new industry.
Innovation creates new markets for trade. In
turn, greater individualism takes hold and social
status is more closely linked with material
wealth.
DRIVE TO TECHNOLOGICAL MATURITY
(3rd STAGE OF MODERNIZATION)
Nations in this phase typically begin to push for
social change along with economic change
like implementing basic schooling for everyone
and developing more democratic political
systems.
HIGH MASS CONSUMPTION
(4th STAGE OF MODERNIZATION)
It is when your country is big enough that
production becomes more about wants than
needs. Many of these countries put social
support systems in place to ensure that all of
their citizens have access to basic necessities.
Modernization Theory argues that if you invest
capital in better technologies, they will
eventually raise production.
DEPENDENCY THEORY AND THE LATIN
AMERICAN EXPERIENCE
THE LATIN AMERICAN EXPERIENCE
In the 1500s, European explorers spread
throughout the Americas, Africa, and Asia,
claiming lands for Europe.
In the 1900s, The United States soon sprawled
out through North America and took control of
Haiti, Puerto Rico, Guam, the Philippines, the
Hawaiian Islands and parts of Panama and
Cuba.
By 1940, only Ethiopia and Liberia were not
colonized. Under this colonial regime, European
countries took control of land and raw materials
to funnel wealth back to the west. Most colonies
lasted until the 1960’s and the last British colon,
Hongkong was finally granted independence in
1997.
After the Second World War, there were many
countries in the world not developing because
these countries are not pursuing the right
economic policies, or their governments are
authoritarian and corrupt. However, Latin
American scholars are critical and are intrigued
by their region’s underdevelopment and so,
Dependency theory was a product of this
experience.
DEPENDENCY THEORY
Dependency is the condition in which the
development of the nation-state of the South
contributed to a decline in their independence
and to an increase in economic development of
the countries of the North (Cardoso and Felato,
1979).
Trade protectionism
- through import substitution is the key to a
self-sustaining path to development, not
liberal trade or export.
Dependency theory
- focuses on how poor countries have been
wronged by richer nations.
It argues that the prospects of both wealthy and
poor countries are inextricably linked.
GLOBAL STRATIFICATION STARTS WITH
COLONIALISM.

In the 1950s, dependency theory was initially
developed by Hans Singer and Raul Prebisch.
There are
two main sub-theories
- North American Neo-Marxist Approach
- The Latin American Structuralist Approach
The terms “core nations” and “peripheral
nations” are at the heart of dependency
theory.
2 MAIN SUB-THEORIES OF DEPENDENCY
THEORY
NEO-MARXIST APPROACH
Espoused by the North American
Andre Gunder Frank (1969).
- He contended the idea that less developed
countries would develop by following the
path taken by the developed countries.
STRUCTURALIST APPROACH
Also known as the less radical theory.
Developed by Latin American scientists.
The main argument to the Latin American
underdevelopment was the “excessive” reliance
on exports of primary commodities (Palma,
1978).
THE MODERN WORLD-SYSTEM
IMMANUEL WALLERSTEIN
The history of colonialism inspired American
sociologist Immanuel Wallerstein model of what
he called the capitalist world economy:
“Core”
“Periphery”
“Semi-periphery”
CRITICS OF THE 2 THEORIES
MODERNIZATION THEORY
Modernization theory is just a new name for
the idea that capitalism is the only way for a
country to develop.
DEPENDENCY THEORY
The world economy is not a zero-sum game
(one country getting richer does not mean other
countries are getting poorer).
Colonialism certainly left scars, but it is not
enough to explain today’s economic disparities.
Most evidence suggests that, nowadays, foreign
investment by richer nations helps and do not
hurt poorer countries.
Dependency theory is also very narrowly
focused. There is also no solution to global
poverty that comes out of dependency theory.
WEEK 12
MARKET INTEGRATION
Production splits into three sectors:
Primary sector - extracts raw materials from
natural environments
Secondary sector - gains the raw materials
and transforms them into manufactured goods.
Tertiary sector - involves services rather than
goods
 - Were founded after the World War II

- IMF and World banks are started by countries

- Most of the world’s countries are members of

these two institutions.

- Richest countries were those that handled

most financing and ultimately, those who had
the greatest influence.

- The IMF's main goal was to help countries

which were in trouble at the time and who
could obtain money by any means.

- The World Bank’s main goal is to eradicate

poverty and it funded specific projects that
helped them reach goals, especially in poor
countries.

THE BRETTON WOODS SYSTEM

- Reduction of barriers to trade and free flow

of money among nations became the focus to
restructure the world economy and ensure
global financial stability

5 KEY ELEMENTS OF BRETTON WOODS

SYSTEM

1. Expression of currency in terms of gold or

gold value to establish a par value.

2. The official monetary authority in each Organization for Economic Cooperation and
country would agree to exchange its own Development (OECD)
currency for those of other currencies at the 1. OECD
established exchange rates. 2. IRELAND
3. ESTONIA
3. The establishment of an overseer for these 4. AUSTRIA
exchange rates. 5. AUSTRALIA
6. BELGIUM
4. Eliminating restrictions. 7. ICELAND
8. POLAND
5. The U.S dollar became the global currency. 9. DENMARK
10. GERMANY
THE INTERNATIONAL MONETARY FUND 11. FRANCE
(IMF) AND THE WORLD BANK 12. FINLAND
13. SOUTH KOREA 7. ALGERIA
14. LUXEMBOURG 8. LIBYA
15. CANADA 9. QATAR
16. CZECH REPUBLIC 10. NIGERIA
17. NETHERLANDS 11. INDONESIA
18. UNITED STATES
19. MEXICO
20. NORWAY
21. UNITED KINGDOM
22. CHILE
23. PORTUGAL
24. JAPAN
25. SWEDEN
26. SWITZERLAND
27. SLOVAKIA
28. SLOVENIA
29. TURKEY
30. SPAIN
31. GREECE
32. NEW
33. HUNGARY
34. ISRAEL
35. ITALY

Organization of Petroleum Exporting

Countries (OPEC)

1. SAUDI ARABIA
2. IRAQ
3. KUWAIT
4. IRAN EUROPEAN UNION (EU)
5. VENEZUELA
6. UNITED ARAB EMIRATES 1. AUSTRIA
2. BELGIUM
3. BULGARIA and the rise of global cities, this sector
4. CROATIA is facing many challenges.
5. CYPRUS
6. CZECH REPUBLIC As urbanization occurs, it has a
7. DENMARK negative impact on the agricultural
8. ESTONIA sector. More people move to cities,
9. FINLAND which means there are less farms and
10. FRANCE farmers in rural areas. In addition, most
11. GERMANY
rural residents do not have access to
12. GREECE
the same kind of technology that is
13. HUNGARY
available in cities.
14. IRELAND
15. ITALY
16. LATVIA
Urbanization also has an impact on the
17. LITHUANIA availability of land for farming
18. LUXEMBOURG purposes. As more people move into
19. MALTA cities and build homes and businesses
20. NETHERLANDS on previously undeveloped land, there
21. POLAND is less space available for agriculture
22. PORTUGAL purposes. This means that farmers
23. ROMANIA must work harder than ever before to
24. SLOVAKIA cope because their productivity will be
25. SLOVENIA less than what it was before
26. SPAIN urbanization began taking place across
27. SWEDEN the globe.
28. UNITED KINGDOM

1. What do you think is the impact of

urbanization and the rise of global
cities on the agricultural sector?
2.How do we examine economic
In the past, agriculture was the main globalization considering our colonial
source of income for millions of people history?
worldwide. However, with urbanization
The world has changed excessively. The
invention of modern technology, the growth of
international trade, and the globalization of the
economy have had a huge impact on how we
live our lives. However, this economic
globalization has also been accompanied by a
history of colonialism.
The economic globalization that we see today
is not only a product of colonialism but also its
cause. Colonization is responsible for many
things, but it is also responsible for this
globalized economy. More specifically,
colonialism created an environment where it
was possible for international trade to arise
and develop. Apparently, in most countries
around the world today there are still signs
that colonial rule was present at some point in
time during their history.
Because of this legacy of colonialism, we can
examine economic globalization from an
interdisciplinary perspective: economics itself
will be examined alongside history and
geography as well as sociology and
anthropology. This approach allows us to
examine how economic globalization impacts
each part of society differently depending on
where they live or what time period they live
in.
3. Analyze socialism and capitalism in
relation with Philippine society. Which of
these economic systems would work in
our country?
In the Philippines, the economic system is
capitalist. This means that there are a lot of
private businesses that control the economy.
These businesses are run by individuals or
corporations who are allowed to make money
by selling their goods and services.
The government has no say in how these
businesses operate, as long as they follow
certain laws such as paying taxes and
obeying labor laws. The government also has
no control over what happens at these
businesses, Instead it regulates them with
laws such as minimum wage or labor laws.
In conclusion, capitalism is a good economic
system for our country because it allows
people to make money by selling their
products or services rather than being forced
into working for someone else's business.