z

Module 3
Globalization
z
 z
Learning Objectives
Define the terms as follows:
1. Global Divide;
1. Global North; and,
2. Global South.
2. Explain the following:
1. How does the Global Divide affect people’s lives?
2. How does the North and South divide?
3. Discuss the characteristics of the Global North and
Global South.
 z
What is global divide?

It describes global disparities

primarily between developed and
developing economies of the world in
terms of resources; i.e., human,
natural, physical (infrastructural and
technological advancement) and
financial, massive capital formation,
among others.
z
Question to Ponder

Is the global divide

something that you feel is
affecting you? How does it
affect you? In what ways
does global divide affect
you?
 z

What are the two global divides?

The North-South divide is broadly considered a
socio-economic and political divide. The global North
refers to the First World countries or developed
countries. While the global South refers to the Third
World countries or developing or underdeveloped
countries.
Why didz the North and South

divide?
The origin of dividing countries
into the North-South Divide arose
during the Cold War of the mid
20th century. During this time,
countries were primarily
categorized according to their
alignment between the Russian
East and the American West.
 z
What is Global North?

It encompasses the rich and powerful regions such

as North America, Europe and Australia.
Developed by Wallerstein to describe a global
capitalist system that separates countries into the
core (the North), semi-periphery and periphery (the
South) based primarily on their economic
participation.
 What
z countries are in the Global North?

Generally, the definitions of the Global North

is not exclusively a geographic term and it
includes countries and areas such as
Australia, Canada, the entirety of Europe
and Russia, Israel, Japan, New Zealand,
South Korea and the United States.
 z
What is the Global South?

The term “Global South” refers to countries

classified by the World Bank as low or middle
income that are located outside North America
and Europe. It includes the “Third World” and
the “periphery” mostly low income (but not all)
and often politically and culturally
marginalized.
 z

The Global South or the industrializing world

refers to the countries of the rest of the world,
most of which are in the Southern hemisphere.
Most of the Global South is in South and Central
America, Africa and Asia.
 What are the characteristics of the Global
z

North?

In Wallerstein’s Modern World System theory,

the Global North refers to the core countries
considered as dominant capitalist countries that
exploit peripheral countries for labor and raw
materials.
 z

They are strong in military power. The United

States military power is the strongest among
the world’s military power that comes out on
top ahead of Russia and China. After the Cold
War Era, the U.S emerged as the superpower
in the new world order.
 z

The Global North is characterized by massive

wealth, democratic governance, peace and
stability and constantly prone to human
progress.
 z

What are the characteristics of the Global South?

In Wallerstein Modern World System theory, the

Global South refers to the peripheral area of world
economies. They are the ones that have been
oppressed and exploited by colonial powers.
 z

The peripheral countries are continuously

exploited by countries due to the exportation of
surpluses of raw materials and cheap labor to
the highly industrialized core countries for
manufacturing and distribution.
 z
What is the similarity of Global North and Global
South?

When comparing the Global North and Global

South, there aren’t similarity. Both believe the
exact opposite on many different topics. These
includes topics on economics, social, military,
and political ideas.
 z
What are the differences of the Global North and South?

The Global North includes

major world powers and the
countries that contain much of
the global wealth, they are the
highly developed countries.
z

Meanwhile, the Global

South includes countries
that are not reaping the
benefits of global wealth
and globalization, they
are the developing or
underdeveloped
countries.
 z
ACTIVITY: Writing of a Reflection Paper

Write a reflection paper of the Global Divide.

 z
How to Write a Reflection Paper
 Understand and summarize the material;

 Analyze the material;

 Select a theme;

 Begin with an introduction;

 Write the body of the paper;

 End with a good conclusion;

 Proofread and edit.

 z
ACTIVITY: Global Divide

How do you identify the Philippines, global north

or global south? Explain your answer.

How can the Philippines become a developed

country? Explain your answer.
z

End
 z
Why is that the Third World is now called
Global South?
For some scholars and many non-
governmental organizations (NGOs), the term
Global South generally refers to countries
classified by the World Bank as low or middle
income that are located in Africa, Asia,
Oceania, Latin America and the Caribbean.
 z

is one of a family of terms, including “Third

World” and “Periphery,” that the phrase “Global
South” refers broadly to the regions of Latin
America, Asia, Africa, and Oceania. It note
regions outside Europe and America, mostly
(though not all) low-income and often politically
or culturally marginalized.
 z
Why cold countries are richer?
The theory that cold environments would be
more conducive to the development of
technologically advanced civilizations was
widespread in the 19th and 20th centuries. The
argument behind it is that cold climate would
have offered extra challenges to survival, thus
favoring a process of evolution of society.
 z

Why are Third World countries underdeveloped?

In developing countries, low production rates
and struggling labor market characteristics are
usually paired with relatively low levels of
education, poor infrastructure, improper
sanitation, limited access to health care and
lower costs of living.
 z

What is the impact of globalization on the

Global South?
The main political impact of globalization on
the Global South has been the loss of political
economy, especially in the context of
implementing macroeconomic policies that are
concomitant with the development imperatives
of the Global South countries.
 z
What are the main causes of
underdevelopment of an economy?
The main causes of underdevelopment
include: Poverty, Child Marriage, Illiteracy, High
Population Growth Rate, Corruption, High
Dependence on Agriculture, Economic
Inequality, Lack of Structural, Institutional and
Teachnical Change.
 z

Are hotter countries poorer?

The study by economists at the
Massachusetts Institute of Technology, found
that in years with higher temperatures, poor
countries experienced significantly slower
economic growth.
 z

The term “Global South” refers to those

countries which are developing or
underdeveloped. The following are some of
the reasons why these countries are distinctly
poor:
z

High Level of Unemployment in such

countries is a key cause of poverty.
 z

High dependence on agriculture of which

70% of the population depends on agriculture
and lacks scientific farming.
 z

Income disparity between the rich and the poor

in which rich people in Global South are
becoming richer and the poor becoming even
poorer.
 z

Low per capita Income due to the people’s

low per capita income, the people are very
poor.
The examples
z of the relationship between a Global North
and a Global South countries.
The US and India have recently built a strong commercial
connection. India’s Prime Minister Narendra Modi traveled
to the US and spoke to high-level business executives to
persuade them to invest in India. As a result, big US
corporations such as Walmart, Amazon and Ikea Furniture
have invested in India, creating numerous job possibilities.
The government has also grown more open to international
investment and has promoted it. As a result, there have
made some changes which led to the rise of trade.
ASIAN REGIONALISM
z
 z
Learning Objectives:

1. Define the terms as follows:

1.1 Regionalism;
1.2 Economic Regionalism;
1.3 Political Ideology;
1.4 Association of Southeast Asian Nations.
 z
2. Explain the following:
2.1 Asian regionalism in terms of: purpose,
benefits and impacts to development;
2.2 Challenges of Asian Regionalism;
2.3 Asia Financial Crisis;
2.4 Role of Asia in a globalized world; and,
2.4 Importance of Asia to global economy.
 z

3. Design a poster, on the theme:

Asian Regionalism: It’s Challenges to Asian
Economies.
 z
What is Regionalism?

It is a political ideology that seeks to increase

the political power, influence, and/or self-
determination of the people of one or more
subnational regions.
 z

Economic regionalism is a conscious

attempt to manage the opportunities and
constraints created by the dramatic
increase in international economic ties
since the end of World War II.
 z

Examples of economic regionalism include

free trade areas, customs unions, common
markets and economic unions.
 z

Examples of Free Trade Areas

EFTA (European Free Trade Association consists of

Norway, Iceland, Switzerland.
NAFTA (North American Free Trae Agreement) a trilateral
free trade zone of the United States, Mexico and Canada.
SAFTA (South Asian Free Trade Area) comprising of
Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal,
Pakistan and Sri Lanka.
 z
What is the main purpose of Asian Regionalism?

The first wave of global

regionalism during the 1950’s and
1960’s coincided with the founding
of ASEAN, which marked the
inception of Asian Regionalism.
The aim of the bloc was to form a
loose security alliance against
communist expansion rather than
economic integration.
 z
How can Asian Regionalism benefit the world?

A dynamic and outward-looking Asian

regionalism could bring huge benefits not just
to Asia, but to the world. It could help sustain
the region’s growth, underpin its stability and
with the right policies reduce inequality.
Whatz are the benefits of Asian regionalism to our
country?

Cheaper good and services.

Other than better travel options,
ASEAN also gives nations
within the region to do more
trade for goods and services.
Tax on imported goods is
lowered or even eliminated.
 How does Regionalism affect a country?
z

State policies for cooperation within

a region can boost the confidence
of individual states, helping to dispel
the fear and distrust among them
that can spark conflict. Enhanced
economic integration further pacifies
divergent states as their economic
prosperity becomes increasingly
intertwined.
 z
How does regionalism affect development?

Extreme regionalism harms the national identity and

interest. Locally centered emotional attachment is
an obstacle to overall national growth. If extreme
regionalism among the states is allowed to continue
it will cause serious disputes among states. It leads
to unhealthy development of the country.
 z
What are the challenges of Asian Regionalism?

The biggest challenge was the global economic

crisis, which had mixed impact on Asian
regionalism. On one hand, it spurred calls for
regional action, much in way of the financial
crisis that hit Asia hard in 1997-98.
 z
What is the Asian financial crisis?
The Asian financial crisis was a
period of financial crisis that gripped
much of East Asia and Southeast
Asia beginning in July 1997 and
raised fears of a worldwide economic
meltdown due to financial contagion.
However, the recovery in 1998-1999
was rapid and worries of a meltdown
subsided.
Why
z
is there an economic crisis?
Since several exchange rates in
East Asia were pegged to the US
dollar, wide swings in the
dollar/yen exchange rate
contributed to the buildup in the
crisis through shifts in international
competitiveness that proved to be
unsustainable (in particular, the
appreciation of the US dollar from
mid-1995).
 z
What is the role of Asia in a globalized world?

Asia is the world’s largest regional economy

and, as it s economies integrate further; it has
the potential to fuel and shape the next phase of
globalization.
 z
Why is Asia important to the global economy?

The economy of Asia comprises

more than 4.5 billion people
(60% of the world’s population)
living in 49 different nations.
Asia is the fastest growing
economic region as well as the
largest continental economy by
both GDP Nominal and PPP in
the world.
z
ACTIVITY: POSTER MAKING

Design a poster on Asian Regionalism

It’s Challenges to Nation-states in Asia
 z
How to make a Poster?

 Identify the purpose of the poster;

 Choose a poster template;

 Draft an outline (the ideas you want to convey);

 Add photos and graphics; and,

 Decide on your color scheme.