CO N T E M P O R A R Y W O R L D

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WHICH OF THE FOLLOWING COUNTRIES DOES NOT
BELONG TO ASIA?

A. JAPAN
B. CAMBODIA
C. PHILIPPINES
D. GERMANY
 GLOB A L D I V I D E S :
A L N O R TH A N D T H E G L O B A L
THE GLO B
O C U S O N L AT I N A M E R I CA )
SOUTH ( F
THINK PAIR SHARE

• IMAGINE THAT YOU ARE AN ECONOMISTS, HOW SHOULD WE CATEGORIZE COUNTRIES BY THEIR
DEVELOPMENT?
• THE WORLD IS DIVIDED INTO THOSE NATIONS/COUNTRIES THAT ARE INDUSTRIALIZED, HAVE POLITICAL
AND ECONOMIC STABILITY, AND HAVE HIGH LEVELS OF HUMAN HEALTH, AND THOSE NATIONS THAT DO
NOT. THE WAY WE CATEGORIZE THESE NATIONS/ COUNTRIES HAS CHANGED AND EVOLVED OVER THE
YEARS AS WE HAVE MOVED THROUGH THE COLD WAR-ERA AND INTO THE CONTEMPORARY OR MODERN
AGE; HOWEVER, IT REMAINS THAT THERE IS NO CONSENSUS AS TO HOW WE SHOULD CATEGORIZE
NATIONS/COUNTRIES BY THEIR DEVELOPMENT.

• You shall learn in this topic the features of the Global South and the Third World. You shall also
learn the foreign and economic policies of some countries in Latin America.
PRESENTATION OF CONTENT
THE GLOBAL SOUTH

• THE GLOBAL SOUTH HOLDS ALL OF THE COUNTRIES SOUTH OF THE EQUATOR IN THE SOUTHERN
HEMISPHERE. IT IS CALLED THE “DEVELOPING WORLD” WHICH INCLUDES SOME COUNTRIES OF AFRICA
AND LATIN AMERICA AND SOME DEVELOPING COUNTRIES IN ASIA. THE GLOBAL SOUTH INCLUDES NEARLY
157 OF A TOTAL OF 184 RECOGNIZED STATES IN THE WORLD AND MANY HAVE LIMITED RESOURCES. IT IS
ALSO CALLED THE THIRD WORLD WHICH IS A PHRASE USED TO DESCRIBE THE DEVELOPING COUNTRIES.

• THESE ARE THE NEWLY CREATED INDEPENDENT COUNTRIES OF AFRICA AND THE COUNTRIES OF ASIA
THAT BECAME INDEPENDENT AFTER WORLD WAR II. THESE AREAS SHARE COMMON ECONOMIC AND
POLITICAL PROBLEMS AND ISSUES.
THE GLOBAL SOUTH AND THE THIRD WORLD

• THE GLOBAL SOUTH IS A CONCEPT THAT HAS THREE IMPORTANT DEFINITIONS. FIRST, IT
HAS BEEN USED WITHIN INTERGOVERNMENTAL DEVELOPMENTAL ORGANIZATIONS
ORIGINATED IN THE NON-ALIGNED MOVEMENT AND AS A POST-COLD WAR ALTERNATIVE
TO “THIRD WORLD.”
• SECOND, THE GLOBAL SOUTH HAS A DETERIORATING GEOGRAPHY AND MEANS TO
ACCOUNT FOR CONQUERED PEOPLE WITHIN THE BORDERS OF DEVELOPED COUNTRIES.
• AND THIRD, GLOBAL SOUTH REFERS TO THE RESISTANT IMAGINARY OF A
TRANSNATIONAL POLITICAL SUBJECT THAT RESULTS FROM A SHARED EXPERIENCE OF
SUBJUGATION UNDER CONTEMPORARY GLOBAL CAPITALISM.
• ON THE OTHER HAND, THE DESIGNATION OF “THIRD WORLD” COUNTRIES WAS CREATED
BY ALFRED SAUVY, A FRENCH DEMOGRAPHER, IN AN ARTICLE THAT HE WROTE FOR THE
FRENCH MAGAZINE, L’OBSERVATUER IN 1952, AFTER WORLD WAR II AND DURING THE
COLD WAR-ERA, THE THIRD WORLD ALSO ARE THOSE COUNTRIES THAT DID NOT ALIGN
WITH EITHER THE FIRST WORLD OR SECOND WORLD COUNTRIES AFTER WORLD WAR II
AND ARE DESCRIBED AS LESS DEVELOPED COUNTRIES. THE THIRD WORLD INCLUDED
THE DEVELOPING NATIONS OF AFRICA, ASIA, AND LATIN AMERICA.

• HOWEVER, GLOBALIZATION HAS HAD ITS NEGATIVE EFFECTS IN THESE LESS DEVELOPED
NATIONS. GLOBALIZATION HAS INCREASED INEQUALITY IN DEVELOPING NATIONS
BETWEEN THE RICH AND THE POOR. THE BENEFIT OF GLOBALIZATION IS NOT UNIVERSAL
BECAUSE IT MAKES THE RICH RICHER AND THE POOR POORER.
EXPERIENCES OF LATIN AMERICAN COUNTRIES

• STARTING IN THE 1500S, EUROPEAN EXPLORERS SPREAD THROUGHOUT THE AMERICAS, AFRICA, AND ASIA
CLAIMING LANDS FOR EUROPE. THE UNITED STATES, WHICH BEGAN AS COLONIES, SOON SPREAD THROUGH THE
NORTH AMERICA AND TOOK CONTROL OF HAITI, PUERTO RICO, GUAM, PHILIPPINES, HAWAIIAN ISLANDS AND
PANAMA AND CUBA. WITH COLONIALISM CAME THE EXPLOITATION OF BOTH NATURAL AND HUMAN RESOURCES.
THE SLAVE TRADE FOLLOWED A ROUTE BETWEEN AFRICA, THE AMERICAN AND CARIBBEAN COLONIES, AND
EUROPE. AS THE SLAVE TRADE DIED DOWN IN THE MID-NINETEENTH CENTURY, THE IDEA OF COLONIALISM CAME
TO BE LESS ABOUT HUMAN RESOURCES AND MORE ABOUT NATURAL RESOURCES. IN 1870, ONLY 10% OF AFRICA
WAS COLONIZED. ONLY ETHIOPIA AND LIBERIA WERE NOT COLONIZED IN 1940. EUROPEAN COUNTRIES TOOK
CONTROL OF LAND AND RAW MATERIALS TO SEND WEALTH BACK TO THE WEST. MOST COLONIES LASTED UNTIL
THE 1960S AND THE LAST BRITISH COLONY, HONG KONG, WAS FINALLY GRANTED INDEPENDENCE IN 1997.
• THE ECONOMIC SHOCKS BROUGHT BY THE DEPRESSION AND TWO WORLD WARS, IN COMBINATION WITH
THE STRENGTH OF NATIONALISM TILTED ECONOMIC POLICY AFTER 1945 TOWARD INTERNAL DEVELOPMENT
AS AGAINST OUTWARD ORIENTATION THAT HAD PREDOMINATED SINCE INDEPENDENCE. THE OUTWARD
POLICY HAD BEEN UNDERMINED BY THE TRADE CONTROLS AND INDUSTRIAL PROMOTION SCHEME ADOPTED
AS DEFENSIVE MEASURES IN THE AFTERMATH OF THE DEPRESSION AND DURING THE SECOND WORLD WAR.

• NOW, HOWEVER, A REORIENTATION OF POLICY WAS CALLED BY SOME OF LATIN AMERICA’S MOST
INFLUENTIAL FIGURES, SUCH AS THE ARGENTINE ECONOMIST RAUL PREBISCH, HEAD OF THE UNITED NATIONS
ECONOMIC COMMISSION FOR LATIN AMERICA. PREBISCH AND HIS FOLLOWERS INSISTED THAT THE TERMS
OF TRADE AND INVESTMENT IN THE CONTEMPORARY WORLD WERE STACKED IN FAVOR OF THE DEVELOPED
COUNTRIES AS AGAINST THE DEVELOPING COUNTRIES. THEIR STRATEGY INCLUDED EMPHASIS ON ECONOMIC
DIVERSIFICATION AND IMPORT SUBSTITUTION INDUSTRIALIZATION FOR THE SAKE OF GREATER ECONOMIC
AUTONOMY. THEY CALLED FOR ECONOMIC INTEGRATION AMONG LATIN AMERICAN COUNTRIES THEMSELVES
WITH A VIEW TO ACHIEVE ECONOMIES OF SCALE. AND THEY RECOMMENDED INTERNAL STRUCTURAL
REFORMS TO IMPROVE THE ECONOMIC PERFORMANCE OF THEIR COUNTRIES INCLUDING LAND REFORM.
• IN THE SMALL CARIBBEAN AND CENTRAL AMERICAN REPUBLICS AND SOME OF THE POORER AND SMALLER
SOUTH AMERICAN COUNTRIES, THE GOVERNMENTS STILL HESITATED TO PROMOTE MANUFACTURING AT
THE EXPENSE OF TRADITIONAL PRIMARY COMMODITIES. BUT, IN COUNTRIES ACCOUNTING FOR A
DISPROPORTIONATE SHARE OF LATIN AMERICA’S POPULATION AND GROSS DOMESTIC PRODUCT, THIS
APPROACH RECEIVED FULL PLAY THROUGH PROTECTIVE TARIFFS, OFFICIAL PREFERENCES, AND SUBSIDIES.

• OVERVALUED EXCHANGE RATES, WHICH MAY AFFECT TRADITIONAL EXPORTS, MADE IT EASIER TO IMPORT
INDUSTRIAL MACHINERY AND EQUIPMENT. MANUFACTURING COSTS REMAINED HIGH, FACTORIES WERE SO
MUCH DEPENDENT ON IMPORTED INPUTS OF ALL KINDS. IN ALL MAJOR COUNTRIES THE OUTPUT OF
INTERMEDIATE AND CAPITAL GOODS ROSE TOO.

• IN OTHER INSTANCES LATIN AMERICA’S TRIED TO DEVELOP NEW, NON-TRADITIONAL PRIMARY COMMODITY
EXPORTS. COLUMBIAN CUT FLOWERS WERE A HIGHLY SUCCESSFUL EXAMPLE, PROMOTED FROM THE
1960’S THROUGH SPECIAL INCENTIVES SUCH AS TAX REBATES; COLUMBIA BECAME THE WORLD’S SECOND
LEADING FLOWER EXPORTER. IT ALSO ASSUMED A LEADING ROLE IN THE ILLEGAL NARCOTICS TRADE.
• THE LAST TWO DECADES OF THE 20 CENTURY WITNESSED AN ECONOMIC CRISIS IN LATIN AMERICA,
TH

CAUSED BY EXTERNAL FACTORS AND DOMESTIC MISMANAGEMENT, IN SEARCH OF A WAY OUT,

COUNTRIES PUT THEIR TRUST IN NEOLIBERAL APPROACHES FAVORING A FREE FLOW OF TRADE AND
INVESTMENT AND REDUCTION OF ROLE OF THE STATE AS RECOMMENDED BY INTERNATIONAL MONETARY
FUND.
ASIAN REG IO N A L I S M
• WE ARE NOW IN THE POST-COLD WAR ERA ONE CHARACTERISTIC OF INTERNATIONAL SOCIETY IS TO
STRENGTHEN THE MOVES TO SEEK REGIONAL CONFLICT RESOLUTION THROUGH WORLD FORUMS SUCH
AS THE UNITED NATIONS. THE UN IS BROADENING ITS ROLES AND FUNCTIONS IN ECONOMIC AND SOCIAL
DEVELOPMENT THROUGH ITS PEACEKEEPING OPERATIONS.

• ANOTHER CHARACTERISTIC OF INTERNATIONAL SOCIETY IS TO ESTABLISH AND STRENGTHEN REGIONAL

COOPERATION. SOME OF THE EXAMPLES ARE THE INSTITUTIONALIZATION OF APEC (ASIA PACIFIC
ECONOMIC COOPERATION), AND FROM THE US-CANADA FREE TRADE AREA TO NAFTA (NORTH AMERICAN
FREE TRADE AGREEMENT).
• WHAT ARE THE RELATIONSHIPS BETWEEN THESE REGIONAL AND GLOBAL MOVES? DOES REGIONALISM
CONTRADICT GLOBALIZATION? HOW CAN REGIONAL ORGANIZATIONS COOPERATE WITH THE UNITED
NATIONS TO SOLVE SECURITY ISSUES?

• ACCORDING TO PROFESSOR BJORN HETTNE IN HIS PAPER, HE SEES THE CURRENT WORLD AS A
BORDERLESS WORLD IN WHICH TERRITORY HAS LOST ALL IMPORTANCE AND CHARACTERIZED BY AN
ONGOING PROCESS OF GLOBALIZATION WITH A CHANGING INTERNATIONAL DIVISION OF LABOUR,
FINANCIAL TRANSACTIONS AND TRADE IN GOODS.

• IN THE SECOND PAPER OF PROFESSOR BRUCE RUSSETT, “GLOBAL OR REGIONAL: WHAT CAN
INTERNATIONAL ORGANIZATIONS DO? HE POINTS OUT THAT INTERNATIONAL ORGANIZATIONS ARE
CREATED FOR SPECIFIC PURPOSES INCLUDING PEACE AMONG MEMBERS, EXTERNAL SECURITY,
ECONOMIC DEVELOPMENT, SECURING HUMAN RIGHTS AND DEMOCRACY. REGIONAL ORGANIZATIONS ON
THE OTHER HAND VARIES. THE EUROPEAN MODEL BECAUSE IT IS HOMOGENOUS THAT’S WHY IT IS THE
MOST SUCCESSFUL. WHILE DUE TO DIVERSITY SUCCESS IS DIFFICULT IN OTHER REGIONS.
• THE CURRENT AND CONTEMPORARY TREND OF THE WORLD DEVELOPMENT ECONOMY REQUIRES THE FULL
AND THOROUGH ANALYSIS AND EVALUATION OF THE RELATION BETWEEN REGIONALIZATION AND
GLOBALIZATION.

• ALTHOUGH SOME ECONOMIC ANALYSTS CONSIDER REGIONALIZATION AS A REACTION TO GLOBALIZATION

OF SOME COUNTRIES, IT MAY BE OBSERVED THAT ON MICROECONOMIC LEVEL THIS HAS A SIGNIFICANT
CONTRIBUTION TO THE DEVELOPMENT OF GLOBALIZATION PROCESS.

• MODERN COUNTRIES SUPPORTS THE GLOBALIZATION PHENOMENON. AS GLOBALIZATION IS

CHARACTERIZED BY THE POSSIBILITY TO REMOVE AND REDUCE THE GAPS BETWEEN THE NATIONAL
ECONOMIES AS WELL AS BY THE ENHANCED CONNECTIONS AMONG THESE ECONOMIES, IT REPRESENTS
THE FUNDAMENTAL TRADE OF THE CURRENT WORLD ECONOMY.
DIFFERENCE BETWEEN GLOBALIZATION AND REGIONALIZATION

• GLOBALIZATION AND REGIONALIZATION ARE KEY DEFINING CHARACTERISTICS OF THE CONTEMPORARY

WORLD POLITICS. THESE ARE NOT COMPLETELY NEW PROCESSES BECAUSE THERE WAS AN EMERGENCE OF
BOTH SINCE 1980S AND PARTICULARLY DURING THE 1990S AFTER THE END OF THE COLD WAR. THERE HAS
BEEN EXISTING REGIONAL ORGANIZATION SUCH AS THE EU, NAFTA, THE ARAB LEAGUE, APEC AND OTHERS. BY
2006.

• WHAT ARE THEREFORE THE MOTIVATIONS AND FORCES AMONG THESE STATES TOWARD REGIONAL
COOPERATION? AND WHAT IS THE RELATION OF THE REGIONALIZATION PROCESS WITH THE GLOBALIZATION
PROCESS? ARE THEY CONFLICTING PROCESS OR IS REGIONALIZATION PART OF OR BUILT ON
GLOBALIZATION?
• THE EFFECTS OF GLOBALIZATION CAN BE OBSERVED AND SEEN IN THE ECONOMIC, CULTURAL, SOCIAL AND
POLITICAL SPHERES OF THE CONTEMPORARY WORLD. ONE IMPACT OF IT IS ITS CHALLENGE TO THE NATION-
STATE AND ITS ROLE WITH THE INTER-NATIONAL SYSTEM. GLOBALIZATION UNDERMINES NATION-STATES
CAPACITY, AUTONOMY AND SOVEREIGNTY.

• SECURITY ISSUES, PROMOTING PEACE AND STABILITY ARE REASONS BEHIND REGIONALIZATION. AND THIS CAN
BE REALIZED THROUGH ECONOMIC COOPERATION WITHIN A REGION. THE FORCES OF GLOBALIZATION AND
REGIONALIZATION HAVE RESHAPED THE WORLD ECONOMIC LANDSCAPE OVER THE PAST CENTURY. GLOBAL
TRADE AND FINANCIAL FLOWS HAVE REGISTERED GROWTH DURING THIS PERIOD. INTRA-REGIONAL ECONOMIC
LINKAGES HAVE BECOME STRONGER WITH THE ESTABLISHMENT OF REGIONAL TRADE AGREEMENTS.
• THE TERMS REGIONALIZATION AND GLOBALIZATION SHOULD NOT BE USED INTERCHANGEABLY.
REGIONALIZATION IS A PROCESS THAT IS GENERALLY SIMILAR TO GLOBALIZATION IN A WAY THAT IN BOTH
CASES, THERE IS A MOVEMENT TOWARDS ECONOMIC INTEGRATION OF MORE COUNTRIES. IT ALSO MEANS
THE TENDENCY TO FORM DECENTRALIZED REGIONS. ALTHOUGH, THE TWO ARE SIMILAR, REGIONALIZATION
IS DIFFERENT TO GLOBALIZATION.

• WHILE THE TERM GLOBALIZATION IS THE PROCESS OF INTERNATIONAL INTEGRATION ARISING FROM THE
EXCHANGE OF WORLD IDEAS, PRODUCTS AND OTHER ASPECTS. WHILE REGIONALIZATION IS THE
PROCESS OF DIVIDING A PLACE INTO SMALLER REGIONS. AT THE GLOBAL LEVEL, GLOBALIZATION AFFECTS
BOTH ECONOMIC AND POLITICAL PROCESSES WHILE REGIONALIZATION ONLY INVOLVES PROCESSES AND
NEEDS OF SPECIFIC PLACES OR AREAS OF THE COUNTRY. ONE SPECIFIC EXAMPLE OF REGIONALIZATION IS
THE DIVISION OF A NATION INTO STATES OR REGIONS OR PROVINCES.
FACTORS LEADING TO THE INTEGRATION OF THE ASIAN REGION

• THE ENTIRE WORLD IS MOVING TOWARDS INTEGRATION. BUT A REGIONAL PARTNERSHIP IS THE FIRST STEP,
WE HAVE THE EUROPEAN UNION, AFRICAN UNION, UNION OF SOUTH AMERICAN NATIONS AND OTHERS. IN
ASIA, THE SOUTHEAST ASIAN COUNTRIES HAVE ALREADY FORMED ASEAN ASSOCIATION (SOUTHEAST ASIAN
NATIONS).

• THE IDEA OF REGIONAL INTEGRATION OR REGIONALISM CAN BE TRACED BACK TO THE 19 CENTURY, BUT
TH

GIVEN SERIOUS ATTENTION IN THE 1950S TO 1960S. HOWEVER, REGIONAL INTEGRATION IN MANY PARTS OF
THE WORLD, EXCEPT IN EUROPE, WERE NOT VERY SUCCESSFUL. IN THE 1990S, REGIONAL INTEGRATION
BECAME INCREASINGLY WIDE- SPREADING, DUE TO RISING GLOBALIZATION AND SLOW PROGRESS IN
WORLD TRADE ORGANIZATION NEGOTIATIONS.
• THERE ARE MANY FACTORS THAT ARE LEADING THE ASIAN REGION INTO GREATER
INTEGRATION.
• TRADE- THE WORLD ECONOMY IS INTERDEPENDENT WITH EACH OTHER. COUNTRIES WANT OR NEED
SOMETHING FROM ANOTHER PART OF THE WORLD, AND GLOBAL TRADE FACILITATES THAT.
• SIMILAR CULTURE- ASIA HAS A DIVERSE CULTURE BUT ASIANS DO SHARE IN COMMON. AND THIS
MAKES IT EASIER FIT DURING TIMES OF NEGOTIATIONS.
• COMMON GOALS- THE ASIAN REGION RECOGNIZES THE MUTUAL BENEFIT OF A SLOW INTEGRATION.
THE TERRITORIES INVOLVED ARE NOT FAR FROM EACH OTHER AND THE HARD WORKING ATTITUDE OF
ITS POPULATION CAN WORK AS A POWERFUL TOOL AGAINST THOSE FROM OTHER PARTS OF THE
WORLD.
• SECURITY NEEDS- THIS ASSOCIATION NEEDS TO CONTEND WITH FOREIGN SUPPORTED TERRORIST
GROUPS WHICH ARE HANDLED WELL.
• THE ASIAN REGION EXTENDS BEYOND THE AREAS OR TERRITORIES OF THE ASEAN MEMBER NATIONS. THE
NORTHERN ASIAN COUNTRIES LIKE JAPAN, TAIWAN, NORTH KOREA, SOUTH KOREA DO NOT BELONG TO
DISTRUST EACH OTHER. SOMEDAY THESE NATIONS WILL REALIZE THE BENEFIT OF INTEGRATION WITH THE
REGIONAL AUTONOMY.

• COUNTRIES RESPOND TO GLOBALIZATION IN DIFFERENT WAYS. THERE ARE LARGE COUNTRIES THAT HAVE
ENOUGH RESOURCES THAT WOULD ENABLE THEM TO DICTATE HOW THEY PARTICIPATE TO GLOBAL
INTEGRATION. CHINA, FOR INSTANCE, HAVE CHEAP AND EXTENSIVE LABOUR FORCE WHICH ATTRACTED
FOREIGN INVESTORS AND EXPAND TRADE WITH COUNTRIES AS MARKETS OF THEIR PRODUCTS. OTHER
COUNTRIES, ON THE OTHER HAND, THOUGH SMALL IN AREA MADE USED OF THEIR STRATEGIC LOCATION
LIKE SINGAPORE AND SWITZERLAND. SINGAPORE WERE ABLE TO DEVELOP ITS HARBOUR FACILITIES
WHICH ENABLE THEM TO BECOME THE FIRST CLASS TRANSIT PORT FOR SHIPS CARRYING PRODUCTS
FROM AFRICA, MIDDLE-EAST, EUROPE AND OTHER COUNTRIES. HOWEVER, THERE ARE CASES WHEREIN
COUNTRIES FORM ALLIANCE FOR THEY BELIEVE IN THE SAYING “IN NUMBERS THERE IS STRENGTH”.
• COUNTRIES FORM AND JOIN REGIONAL ASSOCIATIONS FOR SEVERAL REASONS. THE NORTH ATLANTIC
TREATY ORGANIZATION (NATO) WAS FORMED FOR MILITARY DEFENCE. ANOTHER REASON WHY
COUNTRIES FORM REGIONAL ORGANIZATIONS IS IN ORDER TO COMBINE THEIR RESOURCES OR FOR
ECONOMIC INTERDEPENDENCE. FINALLY, THERE ARE COUNTRIES THAT FORM REGIONAL ORGANIZATIONS
TO PROTECT THEIR FREEDOM FROM THE PRESSURES OF SUPERPOWER COUNTRIES.
HOW ASIAN STATES CONFRONT THE CHALLENGES OF GLOBALIZATION AND
REGIONALIZATION

• CLEARLY, GLOBALIZATION HAS HAD A GREAT IMPACT ON ASIA’S ROLE IN THE WORLD ECONOMY. DECADE AGO,
THE DEVELOPING COUNTRIES OF ASIA ACCOUNTED FOR ONLY ONESIXTH OF WORLD OUTPUT. BUT WITH
MANY COUNTRIES IN THE REGION HAVING FOLLOWED SOUND DOMESTIC POLICIES, MOBILIZED HUGE
AMOUNTS OF DOMESTIC SAVINGS, AND ATTRACTED PRIVATE CAPITAL INFLOWS, ASIA, NOW ACCOUNTS FOR
ABOUT QUARTER OF WORLD GDP ON PURCHASING POWER PARITY-ADJUSTED TERMS. ON THIS TREND, THE
REGION COULD ACCOUNT FOR ONE-THIRD OF WORLD OUTPUT BY THE YEAR 2005.

• GENERALLY SPEAKING, THE LEVEL OF DEVELOPMENT OF MOST ASIAN COUNTRIES IS LOWER THAN EUROPEAN
AND AMERICAN DEVELOPED COUNTRIES. A LOT MORE NEEDS AND EFFORTS ARE TO BE DONE FOR THE
DEVELOPMENT OF THE ASIAN ECONOMY.
• MOST ASIAN COUNTRIES TAKE THE EXPORT-ORIENTED STRATEGY SO THAT THEY DEPEND MUCH ON
FOREIGN MARKET. DUE TO ECONOMIC GLOBALIZATION AND THE TRADITIONAL INTERNATIONAL ECONOMIC
ORDER, DEVELOPING COUNTRIES IN ASIA FACE FINANCIAL AND ECONOMIC CRISES.

• IN THE 1997-1998 FINANCIAL CRISIS, THE EFFECT ON SOUTHEAST ASIAN COUNTRIES WAS SEVERE. IN
2008, WALL STREET’S FINANCIAL TSUNAMI LED TO GLOBAL ECONOMIC AND FINANCIAL CRISIS WHICH
HAS AFFECTED ASIAN ECONOMY VERY MUCH. JAPAN HAS FALLEN INTO RECESSION, AND IN THE NEW
ECONOMIES OF CHINA AND INDIA ECONOMIC GROWTH SLOWED FOR THE FIRST TIME IN MANY YEARS.
• IN THIS SITUATION, ASIA FACES THE CHALLENGES TO IMPROVE THE FINANCIAL SYSTEM, TO CHANGE THE
GROWTH MODEL, TO RESTRUCTURE INDUSTRY, AND TO EXECUTE STANDING DEVELOPMENT. IN ORDER TO
SOLVE THE GLOBAL FINANCIAL CRISIS, IT IS NECESSARY TO STRENGTHEN ASIA’S COUNTRIES
COOPERATION IN FINANCE, INVESTMENT AND TRADE TO PROMOTE ASIA’S ECONOMIC INTEGRATION.
SUMMARY
• BY LEARNING ABOUT THE FEATURES OF THE GLOBAL SOUTH AND THIRD WORLD, WE ARE ABLE TO KNOW
ABOUT WHY DO COUNTRIES ORGANIZE THEMSELVES INTO REGIONS AND WHY THERE ARE MANY
UNDERDEVELOPED COUNTRIES IN THE WORLD. WE ARE ALSO ABLE TO THINK CRITICALLY ABOUT
SOLUTIONS TO HOW WE CAN UPLIFT OUR PHILIPPINE ECONOMY. THE GROWTH OF THE WORLD ECONOMY
AND EXPANSION OF WORLD TRADE HAVE IMPROVE OUR STANDARDS OF LIVING WORLDWIDE, WITH EVEN
THE POOREST COUNTRIES.

• AFTER THE SECOND WORLD WAR, ONE OF THE QUESTIONS ABOUT INTERNATIONAL WHETHER IT IS CALLED
“THIRD WORLD” OR “DEVELOPING” COUNTRIES ALL OVER THE WORLD ARE PUSHING TO GROW AND MOVE
FORWARD. WITHOUT PROPER FUNDING AND EDUCATION, IT BECOMES INCREASINGLY DIFFICULT TO
IMPROVE.
• NOW, THE CONCEPT REGIONALIZATION IS THE CONCEPT THAT HELPS STUDY THE REGIONAL
COOPERATION, AND REGIONALIZATION IS UNDERSTOOD AS THE ANSWER TO GLOBALIZATION FORCES, AND
AS AN INTERMEDIATE STOP ON THE WAY TO FULL AND REALIZE GLOBALIZATION.

• GLOBALIZATION AT THE GLOBAL LEVEL AFFECTS ECONOMIC AND POLITICAL PROCESSES BUT
REGIONALIZATION INVOLVES, ALL CONSIDERATIONS OF EVENTS AND THE NEEDS OF CERTAIN PLACES OR
AREAS OF A COUNTRY. BOTH GLOBALIZATION AND REGIONALIZATION INFLUENCE INTERNATIONAL
ECONOMIC RELATIONS.