CHAPTER 6 LOCATING THE GLOBAL SOUTH Learning Outcomes At the end of the chapter, the students must: | 1. define Global South; 2. compare the economie aspect of Global South from the Global North | 8. present the effect of globalization from the different perspectiv 4, analyze the resistance of the Global South from the coloni: order; and 5. appreciate the Global South as a rising economy. oe his chapter explores the development, ( ind underdevelopment paradox of slobalization as a means to shed light on the term “Global South’, The topic examined the inequalities between countries and illustrate how these inequalities necessitate the ‘emengence of categories like the Global South, Itsituates the historical emergence of the term “Global South’ and its antecedent forms like, “Third World” by looking at how inequalities have been produced through political projects like colonization and present day neo- liberalism globalization. Industrialization, borderless economy, and open market were the factors that define the niche of the Global South. ‘The European exploration and their economic changes in the unknown world creates a new platform of what the world looks today. Their insatiable search for fame dubbed as the 3Gs (gold, glory and god) change the looks of the world today thereby ereating the world called the North described as develop economies and the South as developing economies. The capitalist North and labor rarkets South had been the subject of most world thinkers like the global citizens whom wanted to elevate standard of living of the depressed, displaced and discouraged world. This chapter deseribes how the world looks and defined by the complexities of their ceconomie behaviors and perspectives THE GLOBAL SOUTH The countries of the Global South are dubbed as less developing and struggling ‘economies. They ean be described as products of the western colonization and an offshoot of the western industrialization. It is believed that such countries are the results of the opposing ideologies of the highly developed and developed ceonomies (capitalism and communism) of the worl. Thehighly developed economies capitalist) Ihave the access of the productive factors of the Global South (less developing nations) On the one hand, the developed economies (communist) have the upper hand of the most ofthe raw materials for manufacturing. Both are highly advanced in the development of industrial resources, financial resources, the military, and foreign politieal powers. The lack of ownership of the productive factors like land, labor, capital, and entrepreneurial ability makes the Global South countries dependent to the rich countries like the Global North. This economic condition was disclosed by Wolla (n.d,) and Surbhi (2015) that the growth rate of the Tess developed nations determines the gap between rich and poor countries. The countries with low industrialization, unstable economie policies, poor access to produetive factors, and low human capital (education and health) ‘make it hard for them to develop. As @ result sithe global south ountries became the haven for criminality, prostitution, environmental degradations, graft and corruption, illegal drugs, and terrorism cells. This phenomenon of economic stagnation creates influx of migration, dependence to foreign aids, and ballooning foreign debts to those rich countries that can offer them their remedy for economic development. Likewise, the ownership and little access to capital makes the global south countries to cling to their former colonizers whom offers trades and development at a lesser advantage With higher productivity and innovation incentives such countries in the south could bounce back and play their roles in the competitive world of globalization. ‘The Global South refers to: 2 Developing countries or less developed countries in the Southern Hemisphere? c ‘The underdevelopment of certain states/peoples and their lack of representation in global political processes. ca Interstate inequalities ~ of aggregate economic and political power between states. @ Contemporary crities of neo-liberal globalization, countries victimized by the violent economic “cures” of institutions like the International ‘Monetary Fund (IMF). @ “Third World” or the logic of the non-alignment in their rejection of “colonialism” from both the USA and the USSR (cold war-era critics). @ The Global South is everywhere, located at the intersection of entangled political geographies of dispossessions and repossession (Sparke, 2007) @ Global South is both a reality and a provisional work-in-progress, Itis not a directional designation or @ point due south from a fixed north (Grovogui, 2011). imbalances 6 ‘The Global South is constituted p, regions in Asia, Africa, Middle East ang South, and Latin America-~ which are aj) developing nations and non-democratig On the other hand, the “Global North” jg constituted of countries like, USA, Canad, Western Europe, developed parts of Asia, ‘Australia, and New Zealand --which arg wealthy, industrialized, and democratig capitalist. GLOBALIZATION IN DIFFERENT PERSPECTIVES BASED ON THE FOLLOWING POINTS/ISSUES ‘The following were various conditions affecting disparity of the Global South, whieh led to the assumptions why it cannot easily adjust to globalization: Underdevelopment of the Global South prevents it from being globalized. ‘The shanty represents the tenacity of the local, which is unable to participate in a cosmopolitan culture represented by the Starbucks Coffee Shoppe. Globalization creates both affluence and poverty. It pushes peoples and groups into a modernity associated with Western culture and capital, while simultaneously leaving behind others. Neo-liberalism cause and reinforce the endemie poverty of the Global South. For the neo-liberalism critic, the enforcement of the neo-liberal consensus deepens inequality in the world’s poorest countries, Various forms of inequality eut across national boundaries. (lars) The proletariat has no country. There is a Global South in the Global North, and vice versa, Global South in the interstate inequalities The decolonization process produced States, now recognized as sovereign under the system of international law promoted by the United Nations.Solution to problems produced by globalization are largely forwarded on state level. z Eric Hobsbawn (1996) states may not be ideal for the purpose ofa much more globalized world, Walden Bello (2006) contends that development in the Global South most begin by drawing most of a country’s financial resources for development from within rather than becoming dependent on foreign financial markets, __ States are empowered to regulate firms working within their borders. Ex ‘Transnational are the results of state policies. Global South is a product of Western imagination. In 16% cent. The Spanish conquest of Latin America, 'G W F Hegel believed that a universal spirit” propelled world history, leading humankind to higher levels of consciousness. GLOBAL SOUTH RESISTANCE TO COLONIAL ORDER Institutions Matter property rights refers 10 the abilty of People ond businesses to own land and espitel, Ownership enables people £0 froduce, buy. ond sel goods and services pros to profit from business ventures. Fhe right to own private property O50 rsuges the obiity to sel that property, Iaithout secure property rights, not man people would be wllng to stort business. Bayo house or land or invest Free and open markets refers 10 the comity of people and businesses °° buy ond sell goods and ser minimal interfer vices with pee by government. This ent a balancing act: While gevernr™ jproviges protection foritscitzers through ereeuiatons, too much regulation moke economic ronsactions: ‘unprofitable ond unattractive. | Rule of faw holds th Frdividual gevernment incotionand that the Gove Sorernment leaders, and at te Pe govertow tne tow. The rules C7 provides asense ofstobiity ond eertainty ats the law-not leaders-gover” thot ie des oft game wile stole rather thainmnastateofconstat charge ‘eonomic growth is defined as an increase in the nation’s capacity to produce goods and services itis the result of the process, ori the product of development anditis an increase in ‘output or produetion, One can get the economic ‘growth ofa country by comparing its GDP at present with the GDP last year. However, it is not so easy to measure development as itis ‘based upon many parameters such as health, ‘education, literacy levels, and life expectancy and 50 on. ‘These struggles led to the various perspectives of different protagonist below: ‘@_ Benedict Anderson (2007) has shown ‘that there were resistance against ‘Spanish colonialism in Latin America ‘and the Philippines. Ex. Domestic nationalism ca The Socialist International (Social Democrats) takes a more radical and militant interpretation of socialism for these struggles to be recognized. a Lenin founded the Communist International (1919) and argued that ‘capitalism's strength is premised cathe creation of new markets via ‘imperialism. ca Asia-African Con! to forge economic an cooperation. (Sukarno) Third worldism began as eioanmon resistance to now forms of colonialism. STRUGGLES INTHE GLOBAL SO} MADE GLOBAL ‘therois aig difference between developed ances (North) and developing countries developed countries are self 1d while the developing 5 a developed fare the one who erence (Bandung) d cultural UTH count (South) as the contained flourishes ‘countries are emerging ‘Country: Developing eountries 38rr exporience the phase of development for the to achieve the same. This is enumerateg ime. Ifwe talk about developed countries, as follows: cee dustrial economies and dueto ca The ills ofthe Global South are being glo. die etnias pronase tat balized, and the Grecks seem tobe sharing from the service sector (Surbhi 2015). our struggles. Further, commented that developed ca The Global South has routinely provided countries havea high Human Development models of resistance for the world. Index as compared to developing countries. cz The Global South- as a symbol and met, The former has established itself in all___aphor. It also signifies that the south fronts and made itself sovereign by its continues to be globalized. efforts while the latter is still strugaling pape gy Differences Between Developed Countries and Developing Countries beeline Mea esa ee ee ‘Acountry raving an effecive Developing country is a country ecring rate ofincustrialzation end which has 0 slow rate of induce! Income is known as industrialization and low per developed country capita income. Unemployment ond Poverty Low High oe cr eat te, death rota High infant mertolty rate, death Grdernete iow hietholte recent ond bh rte tong wth epectoney reves igh tov ite expectancy ree Go0g Moderate Generates more revenue trom industrial sect: + Indust sector Service sector Growth i igh industrial growth They rely on the developed countries for their growen ‘Standard of ving High low Distribution of income Equal Unequal Factors of Product tion Erfectively ui WY Utized effectively utitzeg Saco meoa/naysterencescan/at Economics is basicaly : ‘ically concerned with the fair distribution of nthe The rea tion of good son is to obtain both o : ptimum Meee ute vale sear en of all "Sof all memb 40situation forces every Global South economy to do whatever it takes to survive. When one answers this very essence of shortcomings, then not complaint but rather adapt it to obtain probable benefits in the consumption ‘of goods and services coming from foreign aids of rich countries. Similarly, in the study of economies, economic growth is taken as a quantitative measure while development is both a ‘quantitative as well asa qualitative measure, which makes it difficult to quantify. In similar fashion, the growth in the country’s economy ‘means an increase in physical output or production capability. The quest and desire for optimum satisfaction lead Global South people to find means and allocate limited resources for maximum benefit. Their understanding of searcity and limitation on the access of the factors of production, economic uncertainty and the need to address deficiency of the nation’s economy. The economic conditions led them to find means by migrating to other ich countries even with low wage rates and a prevalence of human rights abuses ‘These countries somehow, do resolve to make alliances, establish military treaties, and even resort to borrowings at the expense of their raw materials, Their economic conditions, political, social, and cultural being was threatened by such conditionality EFFECTS OF ECONOMIC DEPENDENCE (FOREIGN BORROWINGS) OF DEVELOPING COUNTRIES ‘The following are the major assumption effets to the Global South economic Gependeney to the Global North: 1. Environmental pollution and degra- dation 2. Poverty increased due toless jobs and government restriction 8, Produet exploitation and consumer- Eradication of local producers 5. High risks of invasion 6. Capital flight and a tendency to become a servant to the foreign investors 7. Poor collection of taxes due to tax holidays and the host country will become dependent to the lenders SOLUTIONS TO ECONOMIC DEPENDENCE (FOREIGN BORROWINGS) OF DEVELOPING. COUNTRIES ‘The following are suggested solutions to the Global South economic growth mechanisni: 1. Government subsidies of infant factories and companies 2. Efficient and effective collection of taxes, tariffs and revenues 3. Increase the tariffs, and customs of foreign owned companies 4, Minimize foreign direct investment 5. The Central Bank should prioritize Filipino investors and entropreneurs access to credits and loans with less interest rates 6. Abolition of foreign owned companies tax holidays 7. Increase exports and minimize importation 8 Increase budget for research and development ‘The Global South poses «challenge in the ‘world today, the ill living conditions must be addressed properly. The quest and desire for optimum satisfaction mustbe the goal in every government as regard its people. Finding ‘means to properly allocate limited resources for maximum benefit. By understanding scarcity and limitation of goods and services ‘one must not complaint but rather adapt it to ‘obtain probable benefits in the consumption of goods and services. Finally, increasing access to international trade ean provide markets for the goods produced by less-developed countries and also increase productivity by inereasing the access to capital resources (Cunningham, n.d), a SstEa Ses Ne oe De ee eee eee ee) EXERCISES i ifthe given statement is correet, and False if tis not, W se or False. Write True if the given statement is correct, ite yoy a aoe ‘on the space provided before each number. 4 +10, ‘Thoreis big diference between Developed Countries (North) and Devel, aunties South) asthe developed countries re sef-ontained ourshed ee the developing countries are emerging as a developed eountry 1 Benedict Anderson (2007) has shown that there were resistance against Sponigg colonialism in Latin America and the Philippines, which are manifestations yf domestic nationalism, ‘The Socialist International Social Democrats) didnot take amore rad militant interpretation of socialism forthe struggles of the global south to.be recognized. ‘The Global South do not pose a challenge in the world today since t Sood living conditions in the majority, if not all, ofthese countries ‘The Global South refers to tho developing and least developed countries, ‘The industrial revolution and economic exploration changed the Way people thought about everything from economics to the way governments hola work The European exploration and their economic changes in the unknows: world had nothing to do with the ereation ofa new platform of what the world Took today. In many developing countries, cities grew around factories and working people {Wed incomfrtable subdivisions and apartments, which were caeflly planned resulting to an abundant supply of water and better sewage system, {Reveloped countries, the standard oflivng of peopleishigh, which s moderate in developing countries. The countries which are independent and prosperous are known es developed countries, The countries which are facing the beginning ofindustralization ve called developing countries. ical ang ation, here ane B. Identification. Identity the correet answer for each question. Write your answer on the space provided before each number. 1. Itrefers tothe sovereign state, whose economy has highly progressed and Possesses great technological infrastructure, as compared to other nations. 2. They constituted by regions in Asia, Africa, Middle East and South, and Latin America—-which are all developing nations in which some ofthese countries are non-democratic. . ‘The term for countries with low industrialization and low human development index. 4. It promotes faster economic growth, and faster growth allows a nation to escape poverty. Wed gro tiny nf asaya ange in the way of life ~a shift from rural to urban population. 6. Ton indneen Prada vi nth tect i ae ha third worldism began as a common resistance to new forms of colonialism10. He founded the Communist International (1919) and he argued that capitalism’s strength is premised on the creation of new markets via imperialism, ‘Take a more radical and militant interpretation of socialism for the struggles of the Global South nations to be recognized. Tt caused and reinforced the endemic poverty of the Global South since the enforcement of the neo-liberal consensus deepens inequality in the ‘world’s poorest countries. It produced states, now international law promoted by the Unit recognized as sovereign under the system of ited Nations. 43—_—_ — CHAPTER Wh GLOBALIZATION PACIFIC AND SOU Learning Outcomes a At the end of the chapter, the stu 1. differentiate regional 2, identify the factors lea¢ | 3. analyze critically how different Asian ste and regionalization. Pees his chapter will discuss the ¢ relationship between the process of globalization and the region of Asia- Pacific and South Asia. This also deals with fa framework along three trajectories: the region as an abject impacted by globalization, the region as a subject pushing globalization forward, and considering the region as alternative to globalization, which will present a series of snapshots as a way to offer a larger tapestry of the relationship between process, place, and globalization in the Asia-Pacific and South Asia, THE HISTORICAL CONNECTIONS OF GLOBALIZATION AND REGIONALIZATION In the contemporary world, globalization and regionalization are inescapable twin concepts. Though these two are not novel processes. Both however are intertwined and relevant to each other since the 1980s and uring the 1990s after the end ofthe Cold War. ‘There are motivating forces behind the interest of states and nations towards regional cooperation. The relationship of the regionalization process with the globalization process must be particularly considered, There is a historical context in which regionalization and globalization took off and the events that affect these developments, There are two processes seemingly in tension in the contemporary world politics: ints must ization from globalization; ‘ dling to a greater integration of the Asian region; and ates confront the challenges of globalization AND THE ASIA- TH ASIA 1.) Globalization that integrates economis, political, social, and cultural lines and b,) the ‘emerging influence of Asia as global force. For purposes of discussion Asia confines only Asia, Pacific and South Asia. It covers largest and populous state (China and India), generates the largest share of global GDP and in sheer size emerged over the past decades ag a new political force in the world. ‘Sweeney contends that the beginnings of globalization go back to the period when ‘human beings first puta boat into the sea. This implies that globalization and regionalization are classic concepts, which existed since time immemorial. The end of the Cold War was particularly important in changing the context by which states conducted their security and political relationships According to organizations in the 1990s, Firs, it emancipated the states from geopolitical and ideological constraints; second, the growing global interdependence and the consolidation of neo-liberal international financial institutions, When the USA became the sole superpower in the 1990s, the regional cooperation policies and agrecments was farther strengthened. The task to define globalization is highly controversial. Fundamentally it is defined a8 the increased flows of goods, services, capital, people, and information across borders. ‘The same holds true on the definition of @ region. What criteria to follow whether ie US gee aoacultural, commercial or historical is no less controversial and a daunting task. Basically a region is a group of countries in the same geographically specified area. On the other hand, regionalization is the societal {ntogration and the often undirected process of social and economic interaction. This concept is different from regionalism, which pertains to the formal process of intergovernmental collaboration between two or more states. Globalization has economic, cultural, social and/or political implications in the contemporary world. What is the impact of globalization to the nation-state and its central role within the inter national system is very challenging. Hence globalization gradually undermines the nation-states’ capacity, autonomy, and sovereignty. At the present times, global economy guarantees the ‘mobile international investors the upper hand cover domestic political authorities. ‘Among the important reasons behind regionalism include security concerns and the promotion of peace and stability. Regional economic integration enhances confidence building within a region. For instance, the European Union, its main goal was to pacify the conflicting relationship between France and Germany. Other examples include ASEAN Regional Forum and the Shanghai Cooperation Organization Civilizations comprise culture and identity. ‘The states have increasingly defined their {interests in civilizational terms after the Cold ‘War world, Huntington (1993) identified nine major cvilizations- Western, Latin American, African, Islamic, Sinic, Hindu, Orthodox, Buddhist, and Japanese. But it cannot be denied that economic motivations are the main ‘motivational forces behind the contemporary new regionalism. The globalized economy today challenges the states'eapacity and their maneuver room. Henee these states regain some control over the flows of capita by joining ‘and cooperating in regional organizations. ‘The strategie trade theory argues that domestic companies benefit from belonging to a regional market big enough to allow them scale cconomies while still being protected from global competition, This is the benefit as the regional organizations will allow the national companies the opportunity to succeed ina very competitive global market, Non-state actors often act as the impetus towards (new) regionalism, Let us clarify on whether or not globali- zation and regionalization are conflicting processes. The very nature of globalization is by nomenclature global while regionalization is naturally regional. Another advantage of regionalization in the world system is that the economic activity develops the potential benefits coming out from a liberalized global economy. Regional organizations privileges the regional partners over the other states "These respond to the states’ attempt to reduce the perceived negative effects of globalization ‘To a certain extent, regionalism is a kind of counter-globalization. ‘The development of regionalization ‘and inter-regionalism is indeed global in nature. Henee the new regionalism should not be considered as the barrier to political globalization but rather, it is completely compatible with it, if not a source of encouragement. The different. motivations and forces behind the states’ renewed interest in pursuiig regional cooperation policies ‘are numerous and inseparable. The complex mixture of motivations and factors are used to better mitigate and manage the the perceived negative effects of globalization Itis axiomatic though that regional cooperation policies, which are states’ rationally chosen policies for the numerous conerete objectives already discussed. Thus, the increasing regionalization diminishes the sovereignty and autonomy of the nation-states, Understandably, the states have to abide to the regional organizations norms that regulate their behaviour. ‘THE ECONOMIC GROWTH OF SOUTHASIA ‘The export-oriented growth in South Asia should not be curtailed by the possible eo 48protectionism made by the advanced economies. The World Bank reported that South Asia remains the fastest- growing region in the world, widening its lead relative to East Asia. Specifically, the regional GDP growth rises from 6.7 percent in 2016 to 6.8 percent in 2017, and 7.1 pereent in 2018. ‘The regions in South Asia have tabe flexible to the higher trade barriers imposed by the advanced states. Henee this global integration has been contributory to economic development. and poverty reduction, Selective protectionism would result to trade diversion away from the established suppliers. These South Asian economies also considered the advanced economies as their largest export markets. India leads the group for South Asia as a whole. The GDP growth of India will Brow to 7.2 percent in 2018, after rising by 7 a slightly lower than expected 6.8 pereeny 2016. In the case of Pakistan, it is to accelerate to over five percent this While Nepal and Maldives are coping with their respective economic backlash Bangladesh had remained strong with a higp growth record. ‘Thereis a contagion or domino effect wh, regional developments occur in one part oft, world. Indeed the increasing developments js inter-regional cooperation manifests that ty, regionalization process is global in natun, Regionalism is seen here as critical part gg the political economy of globalization, Hi the core driving force is global though thy ‘manifestation is regional. South Asian Countries Potential fo, Growth.Note: est = estimated, f = forecas, “Bangladesh 2016 Rate Actual iy Table 7.1 South Asian Countries Afghanistan (CY) Bongiodesh FY) «6B 7 Bhuton 73) 74 nese) ge a Molcves (C1) 22. 62 Nepal Bae oa PIE Gor a, es Sitoniacy 50st 45 “Sis e entero roe cI eagle gon THE EFFECTS OF GLOBALIZATION The technological revolution and scientific discoveries since the 1980s have stimulated the further development of globalization, The dominion of neoliberalism resulted to the Prevalence of exploitation over cooperation and the widening gap between the rich and the poor. This is also where the democratic rincipies have yielded to market las, Stability then became threatened with the unprecedented explosion of global social Tanes: 67 70 S38 ga 60 87 67.73 75 7s et 45 49 Poe abe ae 42 Ba Sp Slept Cae 3 484s 4s inequality. The concentration of wealth has been speeding up in a short span of time. Unexpectedly today 1% of the world Population has the same wealth of 82% of the world population. Sad to note that the 200 richest individuals now possess the same ‘wealth of the 2.2 billion people. This scenario has become uncontrollable, Another threat to the stability of human kind is the increase of robotization, This accounts today to 12% of the industrial oe keproduction and is estimated to reach 62% in 25 years. Macro-regionalization is the new paradigm to be investigated upon. This is the recomposition of the international order towards the creation ofa specified number of macrregions. There are pivotal states in the world, which aspire to become the centres of gravity for small countries and thus create their own macro-regions, This results to the inevitable friction and overlapping interests. For example, the European Union comprises cone macro-region in which Germany emerges fas an economic development leader. On the other side, Russia is also working in the strengthening ofits influence and expanding the area to appear as a world power. Reaching the vision of the international order is also dreamt by China, India, Turkey, Nigeria, and Brazil to become a macro-regional power. ‘A multi-polar world has two sides but itis rather viewed as more logical and viable than a unipolar one. There is still a controversy ‘though on whether this maero-regionalization is the first or best alternative solution for the medium or small countries. The challenge now is on how to neutralize the dividing forces, which provide the lines of separation but not in the sense of encouraging hegemony. How to balance the essential need for regional solidarity and for better global governance should be properly addressed especially at the global level. ‘The UN agenda consists of many open ‘opportunities for research and collaboration to tackle certain issues, which are not squarely defined, but requires proper experimentation and collective learning efforts, This requires genuine collaboration and international scientific cooperation to strengthen the irreplaceable role of the United Nations. Consequently, there will be new ideas and ‘concrete proposals that can emerge in order ‘twestablish a healthier and more harmonious relationship in this ambitious process of slobalization. Economic globalization has both the positive and negative effects. On the positive pee es side, it has improved the standards of living for the many people in Asia. When these countries reach a certain level of development, there are pressures to improve ‘workplace and the environmental conditions with a confident voiee in the global stage as they counter inequities and loopholes of geopolitical structures, On the negative aspects, the international capital movements have produced new inequalities of every kind ‘There is a huge concentration of the benefits of growth upon the advanced sectors within and among societies while aggravating the conditions of those disadvantaged ( Richard Falk in Gills 47-49). Globalization is also regarded as a ‘paradigm shift” which includes the cultural and social shift in our value system and lifestyle while recognizing and accepting the diversity of the other system or culture, in the ethnic or religious aspects. As Thomas Friedman (2005) noted, “what is new is the system, what is old is power politics, chaos, clashing civilizations, and liberalism;” they are all part of the new world order and “the interaction between this new system and all these old passions and aspirations make this process a very complex one. GLOBALIZATION IN THE ASIA- PACIFIC REGION The Asia-Pacific Region is the only region in the world whose economic ties are considered significant. This has not really experienced military factor in the national polities. The regional countries have now become postmodernist states, which focused mainly on strengthening their welfare, seience, and technological developments. The regional integration isnot contradictory to the process of total globalization. But this rather includes the desire to collectively develop a common policy and poltieal solution, which are acceptable to all, taking into aecount the “universal welfare of the parties concerned. Among the most successful economic development models are South Korea, Taiwan a7which Province of China, and Singapore, wh’ triumphantly emerged from the erses of the 1970s.and 1980s. There was a slowdown i ‘world economic growth n the 19708and 19805, which exacerbated social eontraglictions in the developing countries. Based on research studies, the econ development and success are always intertwined with the globalization processes and the correctness of institutional structures ‘There must be proper understanding of the + increasing globalization of economic activity and the planning, implementation, and effectiveness ofthe different policies (Beeson, 2007; Dunning, 2000; Dosch, 2006; 2007; Konstadakopulos, 2002; Chang and Ramkishen, 2001; Nesadurai, 2003). These elements also hold true of the role of South Korea, Taiwan Province of China, Singapore, Malaysia, and Thailand in policy-making and the particularity of national policies (Bowie ‘and Unger, 2002; Yeoh and Lin, 2012; Huff, 1994; Meyer, 2001; Nah, 2005; Niels, 2007; Pang, 1982; Schein, 1997;Sum, 1996;'Tongzon, 2002; Zainal-Abidin, 2000; Watkins, 2002). Singapore is an example of a country with 4 highly competitive environment and flexible taxation policy. Ithas then the largest banking center. Their strategy includes the significant reduction ofthe tax burden on foreign businesses thus completely relieving foreign companies and private investorstrom taxation within the five- ‘year period. This system has encouraged the ‘transnational corporations to begin funding and developing research and development. for industrial exploitation (Property ‘Tax, 2008). Singapore has become the segond engine of the ‘world economy contributing more than one-third of the country’s GDP growth is its financial sector: Its international monetary exchange is one of the world’s leading financial centers, ‘concomitant with London, New York, and Tokyo (Niels, 2007). ‘An important outbreak also in Singapore is the establishment of the Southern triangle, which help in solving the acute labor shortage with the aid of the southern state of omic 4g - and the Indosiesian provinces. This Maloysie vat of Lee Kuan Yew, however, wag oe ane’ by the geographical factor of g pit jones to foreign investors, runtry’s attra si ansklled Inbor force became employed inthe manufacturing, shipbuilding, ang cnsinecring. Various trainings were given to j the labor resources, which formed the basis of the country’s economic growth. Watkins (2002) stressed that the Government formulated leadership strategy of training the skilled labor resources in the Third World. Pang (1982, 549-553) noted that the influx of skilled workers, professionals, and entrepreneurs with capital and production experience with the rights to stay for a long-term in the country became evident — in Singapore. There is a reduction in the labor-intensive industries and services and the development of high-tech areas. Certain, privileges were guaranteed like the special — working status and the right to permanent residence for the highly skilled workers and wealthy Chinese from Malaysia, Indonesia, ‘Hong Kong, and the Taiwan Province of China, Japan had developed a detailed scientific, technical, and innovation policy, which strengthened its production and the growth of macroeconomic indicators, Such that the basies of this industrial growth are made through structural innovations as there was a transition from a trade policy to a production policy, and the reorientation of exports, which further stimulates the foreign investments. The same story with South Korea, Taiwan, Province of China, and Singapore, which subsequently developed into the most powerful regional motors. They likewise have modelled after the Japanese economic system. At the end of the twentieth century and the beginning of the twenty-first century, the advanced economies utilized Scientific and technological systems. To produce a knowledge-based economy, the government policies and foreign investments play an important role in strategie allianees with their economie and innovationbreakthroughs. Research and innovation activities are particularly important in the creation and sale of scientific and technical products from the production to the industrial use stage. These comprise the creation of software and systems that will address the data collection, reprocessing, and transmission of the computing systems, According to the Materials of the Institute of Government Accounts and Finance (20914), there must be a lose cooperation between science and industry that will lead toa change in the structure and nature of the economy. The latter is highly Aependent on new knowledge and ideas, For instance in the Republic of Korea, their government solved their employment problems by creating new rescarch institutes. There is the development of scieneo and technology, which are associated with the arrivals of foreign Koreans returning mainly from the United States in the middle 19706. ‘After these Koreans gained massive trainings in the leading universities in the United States, they came back to their native lands subsequently. Additionally, the Taiwanese society has also transformed its people through the Taiwanese universities’ competitiveness ‘on the world stage. There are three main areas developed- attracting foreign students; providing opportunities for'Taiwanese students to go abroad; and implementing international cultural and educational exchanges and cooperating with the other states, The globalization of learning is evidently popular in the Republic of Korea, which became known in the international eommunity South Korea has been able to attract foreign talent through the support of e-learning in the universities and the e-learning programs became adopted. This country has contributed toimproving the quality of education through {information and communication technologies; specifically its national project known as Digital Education. In Singapore, the foreign labor resources influenced its innovative capacity by quantity and quality. The immigrants are a significant part of Singapore's workforce; the ralicy on foreign workers took a separate direction, ‘The Singaporean Government defined the requirements downto the level of professionalism of foreign workers, which was reflected in a three-tier system of foreign Inbor employment. ‘The workers therein are assigned statuses depending on their qualifications and monthly income. A very important aspect of this policy is that the Singaporean Government has always emphasized equality regarding the valuable contributions of all immigrants in the development of Singapore. Undeniably, Singapore's world-class educational enter san integral part ofthe country’s innovative economy. Moreover its industrial products become more complex which attraet new investments. ‘And even in the face of economic downturns, Singapore's export performance improved considerably. It narrated that the country is ‘moving into the “second industrial revolution.” Huff (1994) reported that the Singaporean Government assigned the task of developing ‘knowledge-based produetion hased on research and development not only in the sphere of computer software but also in the engineering projects. Thus, a knowledge-based society and knowledge-based economy are formed based on the highly trained competitive professionals ‘who are conneeted in the internationalization lobaly peace Inevitably, the world has become a global village through the growing process and influence of globalization. Its real and strong actualization are concretized in the fields of technological development, esonomy, financial flows, communication networks and the value systems, Hence it has become a ommomplace in all social sciences a long time ago. Through trading, the world has become one. This is also true in the growth of the ‘Asian region and the Asian economies, which integrate them into the global economy. Besides developing economic efficiency, this economic integration promotes policy coordination, which will minimize future conflicts in the regionsThe factors contributing in the progress of the Asian intra-regional trade include the rise in regional income, the elimination of the trade barriers, and the advances in production and transportation technologies, The intra- regional trade in Asia is described by the high Proportion of trade in parts, components and intermediate produets ( Ando, 2006; Kimura, 2007; Kimura and Ando, 2005). The People's Republic of China is contributory in the intra- regional component trade. China is regarded as the last leg of the production chain. It assembles final products and exports them to the rest ofthe world (Eichengreen, et.al, 2004; Gaulier,et.al.,2008), It can be simply stated that the intra-regional trade in Asia is trade creating rather than trade diverting. Hence its expansion is both the regional integration and its integration with the world which are strengthened. The trade dynamism variable given by the ratio of external trade to GDP is routinely used to describe an economy's degree of trade integration with the global economy. The ratio of imports should be assessed based on the amount of trade between the two economies and the result is the degree of bilateral trade integration, There are numerous alternatives to reduce the tfade hindrances in the region, ‘The adverse dollar shortage effect on trade experienced in the recent alobal crs day. But China, for example, Ith pit ekemefrrss-boder trade settlement in Renminbi by selecting firms in the five Chinese cities and Hong Kong. By theory, an increase in the degree of trade integration between the economies does not necessarily mean that the business eycles are syenchronized. But the impact depends on the shock and nature the increased trade connections. It means that if trade integration induces production specialization across economies, which are targeted by sector- specific shocks, then trade integration will lead to the synchronization of the business cycles. While, if the trade is of an intra-industry nature, then this logic is inapplicable. EE EXERCISES A. True or False, Write True if the given statement is correct, and False if' answer on the space provided before each number. 1. Globalization and regionalization are completely new processes, 2. The effects of globalization can be seenin the economic, itis not. Write your cultural, social and/or political spheres of the contemporary world. universalism, growth in South Asia. 3. Security concerns, promoting peace, and stability are powerful reasons behind Culture and identity are civilizations. . Another important economic motivation behind regic trade theory, which argues that domestic companie: a regional market big enough to allow them scale protected from global competition, 6. Regionalization of the world system and economic acti potential benefits coming out from a liberalized global ‘The new regionalism is a barrier to political globalization, 8. Possible protectionism in advanced economies should det ionalism is the so-called * benefit from belonging to conomies while still being Vity undermines the economy, er export-oriented 80