Lesson 2

The Structures of Globalization

I Introduction:

This lesson introduces the learners to the concept of economic globalization along with the
different factors that contribute to the rise and fall of different world economies. And the
importance of having a healthy Global trade among different nations of the world.

II Objectives:

At the end of the lesson you are expected to:

1. Identify and discuss the 8 Millennium Development Goals.
2. Define Economic Globalization
3. Discuss the process of Global Value Chain
4. Develop a deeper understanding on the Great Depression

III Lesson Proper:

A. The Global Economy

 8 Millennium Development Goals

 Created by the United Nations (UN) in the 1990s to address the different problems in the
world.
 In September 2000, 189 countries recognized the importance of developing this
partnerships that aimed to reduce extreme poverty by 2015 through the achievement of
the set target.

Indicators:

1. Reduce by half the proportion of people living on less than a dollar a day.
2. Achieve full and productive employment and decent work for all, including women and
young people.
3. Reduce by half the proportion of people who suffer from hunger.
 Indicators:
1. Ensure that all boys and girls complete a full course of primary schooling.

Indicators:
1. Eliminate gender disparity in primary and secondary education preferably by
2005, and at all levels by 2015.

Indicators:
1. Reduce by two thirds the mortality rate among children under five.
 Indicators:
1. Reduce by three quarters the maternal mortality ratio.
2. Achieve, by 2015, universal access to reproductive health.

Indicators:
1. Stop and begin to reverse the spread of HIV/AIDS.
2. Achieve, by 2010, universal access to treatment for HIV/AIDS for all those who
need it.
3. Halt and begin to reverse the incidence of malaria and other major diseases
Indicators:
1. Integrate the principles of sustainable development into country policies and
programmes; reverse loss of environmental resources.
2. Reduce by half the proportion of people without sustainable access to safe drinking
water and basic sanitation.
3. Achieve significant improvement in lives of at least 100 million slum dwellers, by 2020

Indicators:
1. Develop further an open, rule-based, predictable, non- discriminatory trading and
financial system.
2. Address the special needs of the least developed countries.
3. Address the special needs of landlocked developing countries and small island
developing States (through the Programme of Action for the Sustainable Development
of Small Island Developing States and the outcome of the twenty- second special
session of the General Assembly).
4. Deal comprehensively with the debt problems of developing countries through national
and international measures in order to make debt sustainable in the long term.
5. In cooperation with pharmaceutical companies, provide access to affordable essential
drugs in developing countries.
6. In cooperation with the private sector, make available the benefits of new technologies,
especially information and communications
MILLENIUM Development Goals
• Poverty Line or Poverty Threshold
– a situation wherein a person is officially living in poverty if he makes less than
100, 534 Pesos a year, around 275 Pesos a day.
– Poverty
– is a condition characterized by sever deprivation of basic human needs
including food, safe drinking water, sanitation facilities, health, shelter
education, and information.
• The organization aims to eliminate extreme poverty for all people by 2030.
According to United nations (2015) report…
• From 1.9 billion people living in poverty it is now down to 836 million.
• The World Bank predicted that by 2030 the number of people living in extreme poverty
could drop to less than 400 million.
Why is Extreme Poverty falling?
• There are different factors that contributes like better access to EDUCATION,
HUMANITARIAN AID, and the POLICIES of International Organizations like the UN
have MADE A DIFFERENCE.
• However, the GREATEST contributor is ECONOMIC GLOBALIZATION. The world’s
economies have become more interconnected and free trade has driven the growth
of many developing economies.

ECONOMIC GLOBALIZATION AND GLOBAL TRADE:

• BIMETALLISM
– is a monetary system where the value of money is based on two different metals
- the gold and silver.
– it was during 15th century
• GOLD STANDARD
– It is a monetary system where a country's currency or money has a value directly
linked to gold.
– With the gold standard, countries agreed to convert paper money into a fixed
amount of gold.
– A country that uses the gold standard sets a fixed price for gold and buys and
sells gold at that price. That fixed price is used to determine the value of the
currency.”
 – It was proposed by the U.S during 18th century which makes this as the first
international currency.
• PUMP PRIMING
– is the action taken to stimulate an economy.
– is funding the local businesses but in exchange those businesses should pay 5%
tax to the government.
• GREAT DEPRESSION
– was a severe worldwide economic depression preceding the World War II.
– 1929 to1939 when USA experienced Great Depression.

The Coming of Great Depression:

1. During the 1920’s many Americans enjoyed what seemed like an endless era of
prosperity. But in 1929 the stock market crashed.
2. World War loans
3. Declining Trade
4. Production fell, unemployment rose, and the economy went into a period of dramatic
decline.
5. Years after the Great depression began, periodic contraction was seen as part of the
business cycle.
6. Economic historians usually attribute the start of the Great depression to the sudden
devastating collapse of the US stock market prices on October 29, 1929 known as the
Black Tuesday.
7. By mid 1930 interest rates dropped to low levels, but expected deflation and the
continuing reluctance of people to borrow meant that consumer spending and
investment were depressed.
8. By may 1930 automobile sales had declined to below the levels of 1928. Price in general
began to decline, although wages held steady in 1930; but then a deflationary spiral
started in 1931.
9. Conditions were worse in farming areas where commodity prices plunged and in mining
and logging areas unemployment was high and there were few other jobs.
HOW DID GREAT DEPRESSION END?

• INVENTIONS
1. HENRY FORD
– He is the owner of Ford Motors.
– Supplier of Military Jeepney.
2. Railings or Train System that used coal or steam to function

• ALDRICH – VREELAND ACT

– aims to help the local businesses inside the USA by giving financial
support/funds in exchange of 5% tax.
– that 5% tax goes to emergency fund.
After World War II
The ECONOMIC POLICY shifted from PROTECTIONISM to TRADE LIBERALIZATION.
ECONOMIC GLOBALIZATION AND GLOBAL TRADE
Free Trade Agreements and Technological Advances in transportation and communication
means that the goods and services move around the world more easily than ever.
There are INNOVATIONS on the products and services which will benefit the customers as well
as the producers.
• LEAPFROGGING
– is the idea that countries can skip straight to more efficient and cost-effective
technologies that were not available in the past.
• FAIR TRADE
– is the concern for the social, economic, and environmental well-being of
disregarded small producers.
– more moral and equitable global economic system
FAIR TRADE is concerned with PROTECTION OF WORKERS and PRODUCERS,
establishment of more FAIR PRICES, engagement in ENVIRONMENTALLY SOUND
PRACTICES and SUSTAINABLE PRODUCTION, creation of RELATIONSHIPS between
PRODUCERS in the South and CONSUMERS in the North, and promotion of SAFE WORKING
ENVIRONMENT.

IV Activities:
1. Enumerate government programs which aims for the realization of the eight millennium
development goals. (2 programs for each)
2. Explain the concept of Global Economy.
3. Get news clippings from the newspaper about Globalization and give your reaction
regarding the article.