STRUCTURES OF GLOBALIZATION
Global Economy
- referring to the global economic system that includes all economic activities which
are conducted both within and between nations
- production, consumption, economic management, work in general, exchange of
financial values and trade.
8 Millenium Development Goals of UN which they created in 1990’s
- Eradication of poverty and hunger.
- Achieve universal primary education.
- Promote gender equality and women empowerment
- Reduce child mortality.
- Improve maternal health.
- Combat diseases like HIV/AIDS and malaria
- Ensure Environmental Sustainability
- Have global partnership for development.
a person is officially living in poverty if he makes less than 100,534 a year, around 275
pesos a day.
Middle class
Poverty line
Extreme poverty
Philippine Poverty (2023)
- a poverty rate of 15.5%, with 17.54 million Filipinos living below the poverty line
- decrease from the 18.1% poverty rate in 2021 but a still significant number facing
economic hardship.
Reasons of Poverty in the Philippines
- Economic Inequality
- Lack of access To education
- Corruption
Extreme Poverty
- According to UN in 2015, extreme poverty is characterized by severe deprivation of
basic human needs.
- living on less than $1.25 a day.
- UN aims to eliminate extreme poverty to all people by 2030.
- 836 million people that are still living in extreme poverty.
- The World Bank predicted that by 2030 the number of people living in extreme
poverty could drop less than 400 million.
- However, climate change had to be considered since it was a threat to these
improvements in global poverty.
Unemployment in the Philippines
- in January 2025 was estimated at 4.3% based on the statistics released by the
Philippine Statistics Authority.
- causes of in-work poverty—low education of the poor, and the scarcity of
productive job opportunities.
- segmented into “good” and “bad” jobs,
- They hold jobs that are informal, temporary or casual, and low-paid.
- including disengagement, feeling of exclusion, and juvenile delinquencies
Climate Change in the Philippines
- a highly vulnerable nation to climate change, is experiencing rising temperatures,
altered rainfall patterns, and increased frequency and intensity of extreme
weather events, including typhoons and heat waves, impacting its economy,
environment, and people.
Observed and Projected Impact of Climate Change
Temperature Increase:
- average temperature rise by 0.65°C between 1951 and 2010, with projections
indicating further warming, potentially reaching 1.8°C to 2.2°C by 2050.
Altered Rainfall Patterns:
- expected to lead to more intense rainfall during the wet season and drier
conditions during the dry season, impacting water resources and agricultural
productivity.
Extreme Weather Events:
- located in the Pacific Ring of Fire and the Tropical Cyclone belt, is already prone to
typhoons, and climate change is expected to exacerbate their intensity and
frequency.
Sea Level Rise:
- country has already experienced sea level rise, and projections indicate further
increases, threatening coastal communities and ecosystems.
Ocean Warming and Acidification:
- Rising ocean temperatures and acidification are impacting marine ecosystems,
particularly coral reefs, which are crucial for food security and the economy.
Impacts on Biodiversity:
- poses a significant threat to the Philippines' diverse ecosystems, with coral
bleaching, habitat loss, and changes in species distribution being observed.
Economic Impacts:
- impacts are projected to lead to annual losses in GDP, damage to infrastructure,
and disruptions to agriculture and fisheries.
Vulnerability of Specific Groups:
- Vulnerability of Specific Groups:
Mitigation to Combat Climate Change
National Climate Change Action Plan:
- (2011-2028) that outlines policies and programs to address climate change.
Renewable Energy Transition:
- towards renewable energy sources to reduce its reliance on fossil fuels and lower
greenhouse gas emissions.
Disaster Risk Reduction and Management:
- to prepare for and respond to extreme weather events.
Community-Based Adaptation:
- are being implemented to help vulnerable communities cope with the impacts of
climate change.
Sustainable Development
- the overarching paradigm of the United Nations
- an organizing principle of meeting human development goals while also sustaining
the ability of natural systems to provide the natural resources and ecosystem
services.
Sustainable Development Goals
- 2030 Agenda for Sustainable Development was adopted by all United Nations
members in 2015
- They have created the 17
- aim of these global goals is “peace and prosperity for people and the planet”
- tackling climate change and working to preserve oceans and forests.
SDG 1: End poverty in all its forms everywhere
- where the poor are not vulnerable to climate change and have equal rights to
economic resources.
SDG 2: End hunger, achieve food security, improve nutrition, and promote sustainable
agriculture.
- ending malnutrition, protecting small farmers, protecting the genetic diversity of
crops produced and investing in research to make farming more productive.
SDG 3: Ensure healthy lives and promote well-being for all ages.
- calls for universal healthcare coverage, increasing manpower, reducing the number
of prime diseases.
SDG 4: Ensure inclusive and equitable quality education and promote lifelong learning
opportunities for all.
- the needs for access to university level education, vocational training, and
entrepreneurial skills.
SDG 5: Achieve Gender Equality and empower all genders.
- freedom from discrimination and violence, ensuring equal share of leadership
opportunities and responsibilities for all genders as well as property ownership.
SDG 6: Ensure availability and sustainable management of water and sanitation for all
- programs that will provide access to basic technologies like toilets as well as
ecosystems that provide water
SDG 7: Ensure access to affordable, reliable, sustainable and modern energy for all
- conversion to renewable resources and a dramatic improvement in efficiency
everywhere.
SDG 8: Promote inclusive and sustainable growth, full and productive employment and
decent work for all.
- closing the gap using innovation as well as separating growth from ecosystem
degradation.
SDG 9: Build resilient infras, promote inclusive and sustainable industrialization and
foster innovation.
- fostering a more innovative and environmentally sound approach to industrial
approach.
SDG 10: Reduced inequality within and among countries
- financial market regulation to make the playing field more equal, making migration
more orderly, safe, regular, and responsible.
SDG 11: Make cities and human settlements inclusive, safe, resilient and sustainable.
- addressing issues like transportation, disaster preparedness, as well as
preservation of the world’s cultural and natural heritage.
SDG 13: Take urgent action to combat climate change and its impacts.
- educating people on climate change to put them on a sustainable path early.
SDG 14: Conserve and sustainably use the oceans and marine resources.
- researching and learning to find out more about what lies beneath the oceans so
as to better save them.
SDG 15: Protect, restore, and promote sustainable use of terrestrial ecosystems.
- halting the threat to living ecosystems and biodiversity on land.
SDG 16: Promote peaceful and inclusive societies.
- reduction of violence, end to torture, reduction of corruption, as well as creation of
institutions and governments that work for everyone.
SDG 17: Strengthen the means of implementation and revitalize the global
partnerships.
- ensuring that countries have what is needed in achieving the rest of the SDGs such
as funds, capacities, and technologies.
ECONOMIC AND SUSTAINABLE DEV’T
Philippine Sustainable Development Goals
- Integration of environmental consideration of decision making
- Proper pricing of natural resources
- Proper rights reform
- Establishment of an integrated protected area system
- Strengthening of residuals management in industry
- Rehabilitation of degraded ecosystem
- Integration of population concerns and social welfare in development planning
- . Inducing growth in rural areas
- Promotion of environmental education
- Strengthen citizen’s participation
THE GLOBAL ECONOMY IN CONTEMPORARY PERSPECTIVE
Global Economy
- most countries is classified into three categories: Market, Command, and Mixed
Economies.
- countries where democracy prevails, its economic system is usually under the
freedom, choice, and decisions of it’s citizen
- While countries that are under the control of a single political party and authority,
the system could be under the practice of command economy.
Market Economy
- an economic system where two forces, known as supply and demand, direct the
production of goods and services. Market economies are not controlled by a
central authority (like a government) and are instead based on voluntary
exchange.
Supply: In economics, supply is the number of products that a producer or seller is
willing and capable to provide to buyers.
Demand: In economics, demand refers to the willingness and ability of a consumer to
buy goods and services at a specific price
Command Economy
- body handles the entire decision making in the operation of the economy. The
quality and quantity of goods in the market is based on the decision of the
government. Production quantity is dictated through the consumer behavior and
market operation is controlled by a single authority.
Consumer behavior
- the study of how people make decisions about purchasing, using, and disposing of
goods, services, time, and ideas. It includes how a consumer's emotions, attitudes,
and preferences influence their buying behavior.
a. To mobilize resources for the common good of public and for the interest of the
nation.
b. Private individuals have no say in the economic operation as this includes the
abolition of private ownership.
c. Opposition to this system states that there is the total absence of economic
competition and innovation.
Mixed Economy
- driven economies like the United States America, Great Britain, and France had
experienced mixed economic system. This practice is a combination of market and
command systems of economic planning and decision-making.
- to take over the ownership and operation of a particular troubled private firm for
the purpose of maintaining the interest of the nation.
- also combines the aspect of capitalism and socialism.
Capitalism: In a capitalist economy, individuals and private owners drive trade and
industry, and the forces of supply and demand determine the production of goods and
services. Prices and wages are set by competition.
Socialism: In a socialist economy, the state or community owns the means of
production, and the government centrally plans resource allocation and
production. The goal of socialism is to equitably distribute wealth and benefits to all
members of society
INTERNATIONAL TRADE
The International Trade System
- exchange of capital, goods, and services across international borders
- gross domestic product (GDP).
- network of laws, regulations, and agreements that govern the exchange of goods and
services between countries.
Categories of Trade System:
IMPORT:
-Bringing goods or services into a domestic country
EXPORT:
- Selling goods or services to a foreign country
ENTREPOT:
- known as re-export, this is when goods are imported into a country and then re-
exported without being distributed within the importing country
The First Trade Route:
the silk road
- commonly known as the first global trade route in history,
- exchange of arts, religion, cultures, ideas and technology.
Contributions of the Silk Road
Established global trade links:
- The Silk Road connected the economies of people across Europe and Asia, and
allowed for the exchange of goods, ideas, and technology.
Promoted cultural exchange:
- was a vehicle for the exchange of art, religion, cultures, ideas, and technology.
- also transmitted cultural exchange including theatric performance, dance, and
music art.
Disseminated Religions:
- Silk Road played a major role in the dissemination of religions.
- The Silk Road as a trade network connected Europe and Asia, and is considered
one of the earliest examples of globalization.
- It was a major factor in the development of trade and cultural ties between the
East and the West, and is considered an important foundation of human
civilization.
- World Tourism Organization (UNWTO) is reviving the Silk Road as a tourism
concept.
Theories Governing International Trade
Descriptive Theory:
- addresses the questions of which products to trade, how much product to offer,
and which country to trade in the absence of government restrictions.
Prescriptive Theory:
- views government to have participation in deciding which countries to alter the
amount composition and directions of goods.
Three Perspectives of International Trade
Economic Liberals:
- explains the importance of free trade and the role of individual’s preferences in
choosing economic activity.
Law of Comparative Advantage:
- explains the free trade is attainable if two countries can produce more goods and
trade products separately.
Mercantilists:
- economic theory that emerged from about 1500-1800.
- form of economic nationalism that sought to increase the prosperity and power of
a nation through restrictive trade practices.
- to increase the supply of a state's gold and silver with exports rather than to
deplete it through imports. It also sought to
- support domestic employment.
Structuralists:
- Structuralist ideas in economics are rooted in Marxist analysis. They focus on how
the dominant economic structures of society affect class interests and relations.
