UNIT VI.
GLOBAL DIVIDES: THE “the North,” and the developing countries
NORTH AND THE SOUTH
THE NORTH AND THE SOUTH
Globalization creates divisions between
various countries.
It is not really difficult to understand the
concept of globalization.
GLOBAL DIVIDES DURING THE
COLD WAR
First, Second, and Third World
The terms originated during the Cold War
when the world was divided into three
classifications based on politics and
economics.
• First World – capitalist and
industrialized Western countries.
• Second World – communist
countries and their allies.
• Third World – least developed
countries that were formerly
colonized. Third World which
means “underprivileged people”
was coined by a French
demographer Alfred Sauvy in 1952.
Defining the Third World
Third World countries are also referred to
as impoverished countries because it
composed of mostly poor countries.
GLOBAL DIVIDES AFTER THE COLD
WAR
Global North and Global South
At the end of the Cold War, new and
simpler classification was created – the
North-South Divide. The previous First
World countries became the Global North
and the Third World countries became the
Global South.
The North-South Divide or Rich-Poor
Divide is the socio-economic and political
division that exists between the wealthy
developed countries, known collectively as
or least developed countries, or “the
South.”
Global North comprises of wealthy,
industrialized, and democratic countries
such as:
• USA, Canada, Western Europe, Australia,
New Zealand, Developed parts of Asia.
Global South comprises generally of
developing or the least developed
countries such as:
• Regions of Asia, Africa, Middle East, Latin
America
Struggles in the Global South made global
Global South can also be a
metaphor, implying that the problems of
the south like poverty and environmental
issues are getting globalized.
Defining the Global South
Global South is composed of developing or
less developed countries. The term
emerged to avoid the “poor” stigma
associated with the term “Third World”. It
reflects underdevelopment and
imbalances of economic and political
power between countries.
The Latin American Experience and the
Dependency Theory
After World War II, Latin American
countries such as Mexico, Central America,
and the islands of Caribbeans are still
underdeveloped because they were
colonized by the Spaniards and
Portuguese. This is also an example of
Dependency Theory.
This theory explains that the South’s
economic development decreases and it
increases the North’s economic
development because these rich countries
exploit the poor countries.
UNIT VII. ASIAN REGIONALISM
REGIONALIZATION AND
REGIONALISM
Regionalization is defined as an increase in
the cross-border flow of capital, goods, and
people within a specific geographical area.
Regionalization in Asia
Regionalization helped build bridges
among Asian countries.
ASEAN as a Model of Regionalism
The Association of Southeast Asian
Nations, or ASEAN, was established on 8
August 1967 in Bangkok, Thailand, with
the signing of the ASEAN Declaration
(Bangkok Declaration) by the Founding
Fathers of ASEAN, namely Indonesia,
Malaysia, Philippines, Singapore, and
Thailand.
Aims and Purposes (asean.org)
As set out in the ASEAN Declaration, the
aims and purposes of ASEAN are:
• To accelerate the economic growth,
social progress and cultural
development.
• To promote regional peace and stability
through abiding respect for justice and
the rule of law in whole region and
adherence to the principles of the United
Nations Charter.
• To promote active collaboration and
mutual assistance on matters of common
interest in the economic, social, cultural,
technical, scientific and administrative
fields.
• To provide assistance to each other in
the form of training and research
facilities in the educational, professional,
technical, and administrative spheres.
• To collaborate more effectively for the
greater utilization of their agriculture
and industries, the expansion of their
trade.
• To promote Southeast Asian studies.
ASIAN REGIONALISM
What are the challenges?
Regionalization and Regionalism’s main
goal is to develop the economy of the
nation. Within its goal, there are
challenges that the nations must face.
• Exclusion of countries that do not belong
in the region.
• A threat to strategic partnerships with
countries from other regions.
• Compromised financial stability that may
result in a credit crisis and a weak
currency.
• Expensive and difficult flow of goods
because of the threats on and security of
a country.
• Environmental damages may result in
radical changes in economic policies.
How can regionalism help Asia grow as a
region?
For Asian Development Bank, Asia may be
able to address the challenges of
regionalism by:
(1) Linking the competitive strengths of its
diverse economies to boost
productivity and to sustain the region’s
growth.
(2) Connecting the region’s capital markets
to enhance financial stability, reduce
the cost of capital, and improving
opportunities for sharing risks.
(3) Cooperating in setting exchange rates
and macroeconomic policies in order to
minimize the effects of global and
regional shocks and to facilitate the
resolution of global imbalances.
(4) Creating regional mechanisms to
manage cross-border health, safety,
and other issues.
(5) Exercising leadership in global decision
making to sustain the open global trade
and financial systems that have
supported a half-century of
unparalleled economic development.
(6) Building connected infrastructure
and collaborate on inclusive
development to reduce inequalities
within and across economies and thus
strengthen support for pro-growth
policy

Some factors may hinder the integration of

the Asian region and these are the
following:
• Absence of a non-political platform to
maintain peace and stability among
countries.
• Lack of liberalization of trade in the
region.
• Insufficient support to promote
economic growth, social progress, and
cultural development in the region.
• Lack of communication and cooperation
in Asian countries through media.

Definition of Globalization
Globalization is a process of interaction
and integration among the people,
companies, and governments of different
nations around the world, a process
driven by international trade and
investment and aided by information
technology.

How does Regionalization differ to

Globalization?

Globalization in Asia is an external push by

Western regions such as the United States
and Europe. Globalization is inevitable and
irreversible and it will surely create
economic, political, societal, and cultural
transformation in the Asian region.