The document discusses the United Nations' Millennium Development Goals aimed at reducing extreme poverty and addresses the impact of economic globalization on poverty and inequality. It highlights the complexities of globalization, including its benefits, challenges, and the need for sustainable development to tackle environmental degradation and inequality. Additionally, it touches on various economic theories explaining global stratification and dependency, emphasizing that while progress has been made, significant challenges persist in achieving global economic equality.

1. The Global Economy

2. Group 2
Ainne Booc Haide Molde Crislyne
Melgo
Erika Jill
Lozano
Doven Almonia
Evangeline
Soposo
Shawn Kirby
Giangan

3. INTRODUCTION
The United Nations (UN) tried to address the different
problems in the world. Their efforts were guided by the eight
Millennium Development Goals, which they created in the
1990s. Among these eight goals, the eradication of extreme
poverty and hunger ranked as the first.
The other seven goals include:
• Achieving universal primary education
• Promoting gender equality and women empowerment
• Reducing child mortality
• Improving maternal health
• Combating diseases like HIV/ AIDS and malaria
• Ensuring environmental sustainability
• Having a global partnership for development

4. In the Philippines, a person is officially living in poverty if he makes less than 100,534 pesos per
year, around 275 pesos a day. This is called the poverty line or poverty threshold. But we are
going to focus on extreme poverty which, according to the UN(2015), is a condition
characterized by severe deprivation of basic human needs including food, safe drinking water,
sanitation facilities, health, shelter, education, and information. The UN defines extreme or
absolute poverty as living on less than $1.25 a day.
It was three years ago and the results were in. The UN(2015) reported that 836 million people
still live in extreme poverty but that is down from 1.9 billion. The World Bank or predicted that
by 2030 the number of people living in extreme poverty could drop to less than 400 million.
However, climate change has to be considered since it is a threat to these improvements in
global poverty.

5. So why is extreme poverty falling?

6. The answer to this is really complicated. A set of factors 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.

7. Economic globalization refers to the increasing
interdependence of world economies through trade, capital
flows, and technology spread.
World War II shifted the dominant economic policy from
protectionism to trade liberalization
Economic Globalization and Global Trade

8. There are two different types of economies associated with economic
globalization; protectionism and trade liberalization.
• Protectionism- " a policy of systematic government intervention in foreign trade
with the objective of encouraging domestic production. This encouragement
involves giving preferential treatment to domestic producers and discriminating
against foreign competitors".
• Trade liberalization- Free trade agreements and technological advances in
transportation and communication mean goods and services move around the
world more easily than ever.
Economic globalization has both positive and negative impacts, and fair trade seeks
to address inequities in the global economy.
Globalization made some countries, especially the developing ones, to gain more
in the global economy at the expense of other nations.
Fair trade- defined by the International Fair Trade Association, is the "concern for
the social, economic, and environmental well being of marginalized small
producers.

9. • Give at least 5 main ingredients or raw materials in
manufacturing the chosen product. Identify the
corresponding country from which each ingredient or
raw material came from.
• Aside from the Philippines, list other countries in which
the product is being sold.
• Cite the kinds of technology that made the creation of
the product possible.

10. There are some significant downsides to globalize trade and perhaps the strongest argument
against economic globalization is its lack of sustainability.
Sustainable development aims to balance economic growth with the preservation of the earth's
resources for future generations.
Globalization and sustainability are multidimensional, involving economic, political, and
technological aspects.
Continuous production and consumption of natural resources have led to positive effects such
as energy utilization and technological advancements but have also accelerated climate change
and perpetuated global inequality.
Economic Globalization and Sustainable
Development

11. • Economic development, particularly during the Industrial Revolution, has led to
environmental degradation.
• Efficiency means finding the quickest possible way of producing large amounts of a
particular product.
• Increased production and efficiency have resulted in carbon emissions and waste disposal,
damaging the atmosphere and marine biodiversity.
• Many experts question the sustainability of a growing global economy due to deforestation,
pollution, and climate change.
Environment Degradation

12. Harvey (2005) noted that neoliberals and environmentalist debate the impact of free trade on
the environment.
Two groups that have different views on the issue:
• Environmentalist argue that environmental concerns should be prioritized over economic
ones.
• On the other hand, neoliberals view the efforts of environmentalist as barriers to trade.
They argue that economic growth, facilitated by free trade, can lead to better resources for
environmental protection.
Proponents of the ecological modernization theory believe that globalization can both protect
and enhance the environment.
Environment Degradation

13. Various efforts are underway to deal with climate change. However, strong resistance on the part of
governments and corporations counters these. For instance, the Kyoto Protocol aimed at a reduction
of global carbon emissions, but failed to take off largely because it was not ratified by the United
States (Armitage, 2005). However, momentum is being built up in corporate circles in dealing with
environmental problems. how to explain this
Environment Degradation

14. • Implementing measures like "carbon tax" and "carbon neutrality" presents significant challenges
(Ritzer, 2015).
• Finding alternatives to fossil fuels is difficult. The use of ethanol, for example, is less efficient and has
led to an increase in corn prices (Barrionuevo, 2007).
• Biofuels produce lower emissions, but their extraction and transport contribute significantly to total
emissions.
• A global perspective is necessary when addressing environmental issues. Focusing on specific regions
overlooks impacts elsewhere.
• A global perspective is necessary when addressing environmental issues. Focusing on specific regions
overlooks impacts elsewhere.
Environment Degradation

15. Food Security
The demand for
food is projected to
increase by 60% by
2050, requiring
global food security
for a population of 9
billion people.
Food security is a
priority for all
countries,
regardless of their
development level.
Environmental
challenges, such as
deforestation,
industrial fishing,
decline in freshwater
availability, pollution,
and climate change,
impact food security.
The United Nations
and organizations like
the World Economic
Forum have set goals
and initiatives to
address global food
security through
sustainability and
public-private
partnerships.

16. Economic Globalization, Poverty, And
Inequality
Economic
globalization creates
winners and losers,
with corporations
and consumers
benefiting from
cheaper products,
while high-wage
workers may lose
their jobs.
Low-wage foreign
workers often
receive higher
wages compared to
other job
opportunities in
their countries, but
they may face
hazardous working
conditions.
Critics argue that
economic globalization
can lead to
exploitation and
oppression, putting
profits before people
and disregarding labor
and environmental
regulations.
Proponents of
globalization argue
that it creates more
opportunities for
workers, leading to
competition for
labor and higher
wages

17. Economic Globalization, Poverty, And
Inequality
Economic
globalization has
helped lift millions
of people out of
extreme poverty,
but the challenge is
to address poverty
while ensuring
environmental
sustainability.
Enabling people to
participate in the
economy, such as
through
microcredit, can
improve their lives
and support
entrepreneurship.
However, many people
participating in the
global economy still
face poor working
conditions and low
wages compared to
developed countries.

18. GLOBAL INCOME INEQUALITY
• Global economic inequality is closely linked to globalization, with divisions between
developed and less developed nations.
• There are two main types of economic inequality: wealth inequality and income inequality.
• Wealth inequality refers to the distribution of assets, while income inequality focuses on the
distribution of new earnings.
• Global wealth is estimated to be around 3.5 trillion dollars and is not distributed equally
among countries.
• The Industrial Revolution and economic globalization have contributed to the widening
income gap between rich and poor nations.

19. GLOBAL INCOME INEQUALITY
• Globalization and market capitalism have improved living standards for
many, but wealth concentration has increased for the few.
• Skill-based technological change and the outsourcing of low-skilled
manufacturing jobs have contributed to income inequality.

20. THE THIRD WORLD AND THE GLOBAL SOUTH
• The terms "First World," "Second World," and "Third World" originated during the Cold War
to categorize countries based on political and economic blocs.
• After the Cold War, the category of Second World countries became obsolete, but the terms
"First World" and "Third World" persisted.
• These terms are outdated and inaccurate, as they do not accurately reflect the economic
stability of countries labeled as "Third World."
• A more accurate and simplified classification is the division between the "Global North"
(developed countries) and the "Global South" (developing countries).

21. THE THIRD WORLD AND THE GLOBAL SOUTH
• The terms "Global North" and "Global South" highlight common economic and political
issues faced by countries in the South and aim for equality worldwide.
• The distinctions between the Global North and the Global South are influenced by racial
inequality, with a disproportionate representation of whites in the Global North and blacks
primarily in the Global South.
• Economic differences between the wealthy Global North and the poor Global South have
historically been characterized by a racial dynamic.

22. The Global City
• Globalization has had a significant impact on the rural-urban differentiation and
agricultural production.
• The rise of global agribusiness and factory farms has led to the South producing non-
traditional products for export and becoming dependent on industrialized food
imports from the North.
• This shift in agricultural production has resulted in the displacement of local farmers
and a change in the staple diet of rural economies.
• The concept of global cities, such as New York, London, and Tokyo, describes urban
centers that exert control over the world's political economy.
• Global cities are characterized by inequalities both between cities and within each
city.
• While cities are major beneficiaries of globalization, they also face unique political
problems in dealing with global issues at the local level.

23. Theories of Global Stratification
• Global stratification refers to inequalities in wealth and power between societies.
• Theories of global stratification include modernization theory, dependency theory,
world systems theory, and neoliberalism.
• Modernization theory suggests societies progress through stages of development.
• Dependency theory argues underdevelopment is due to dependence on more
powerful nations.
• World systems theory views global stratification as a result of the capitalist world
economy.
• Neoliberalism emphasizes free markets and globalization as drivers of development.
• These theories provide different perspectives on global stratification.

24. Modernization Theory
Modernization theory explains global
stratification as a result of technological and
cultural differences between nations.
The theory highlights the Columbian Exchange
and the Industrial Revolution as two historical
events that contributed to Western Europe's
faster development.
The Columbian Exchange brought agricultural
staples and trade opportunities to Europe but
had devastating effects on Native American
populations due to diseases.
The Industrial Revolution, with advancements in
technology and mechanization, led to significant
improvements in living standards in industrialized
countries.
Modernization theory suggests that the tension
between tradition and technological change is a
barrier to growth, and societies more rooted in
tradition may be resistant to adopting new
technologies.
The Protestant work ethic, emphasizing progress and
financial success as signs of personal virtue, played a
role in Europe's modernization.

25. Walt Rostow’s Four Stages Of Modernization
Walt Rostow's theory of modernization
identifies four stages: traditional, take-off, drive
to technological maturity, and high mass
consumption.
The traditional stage is characterized by small,
local communities with limited resources and
technology, focused on labor-intensive food
production.
The take-off stage occurs when individuals begin
to use their talents to produce beyond
necessities, creating new markets for trade and
greater individualism.
The drive to technological maturity is marked by
technological growth, population growth, poverty
reduction, and social change.
The high mass consumption stage is reached when a
country's production becomes more focused on
wants rather than needs, often accompanied by
social support systems for basic necessities.
Modernization theory argues that investing in better
technologies can raise production and overall well-
being, and rich countries can help others through
technology exports and foreign aid.

26. Walt Rostow’s Four Stages Of Modernization
Critics argue that modernization theory is often
seen as promoting capitalism as the only path to
development and overlooks historical factors,
Eurocentric biases, and downsides of economic
progress.
Critics also argue that modernization theory blames
poor countries for their lack of development
without acknowledging external factors.

27. Dependency Theory And The Latin American
Experience
European
colonialism in the
Americas, Africa,
and Asia led to the
exploitation of
natural and human
resources, including
the transatlantic
slave trade.
Dependency theory
emerged as a critique
of the traditional
explanation for
underdevelopment,
emphasizing the
impact of colonialism
and unequal trade
relationships.
Dependency theory
argues that liberal
trade leads to greater
impoverishment for
less developed
countries and
advocates for import
substitution as a self-
sustaining path to
development.
Core nations, more
industrialized and
wealthier, exploit
peripheral nations
through the unequal
distribution of wealth.

28. Dependency Theory And The Latin American
Experience
The theory highlights
the reliance of
peripheral economies
on manual labor and
the export of raw
materials, while core
countries process and
sell these materials at
higher prices.
Dependency
theorists argue that
the international
system has
prevented the
development of
certain countries.
The North American
Neo-Marxist and
Latin American
structuralist
approaches are sub-
theories within
dependency theory.
Dependency theorists
recognize the
interconnectedness of
interests between
dominant classes
within both
developed and less
developed countries.
The historical-
structural version of
dependency theory
allows for the
possibility of
changing dependent
relations over time.

29. The modern world-system, as
described by sociologist Immanuel
Wallerstein, is characterized by a
capitalist world economy with high-
income core nations, low-income
periphery nations, and middle-income
semi-periphery nations.
The periphery remains economically
dependent on the core through
unequal trade patterns, where raw
materials are cheaply exported and
processed and sold at higher prices
by richer nations.
Dependency theory argues that the
problem lies in the unequal
distribution of global wealth, with
poor nations lacking resources,
industrial capacity, and accumulating
debt.
Critics of dependency theory argue
that the world economy is not a
zero-sum game, and innovation and
technological growth can benefit all
nations.
The Modern World System

30. They also point out that colonialism
alone cannot explain current economic
disparities, as some non-colonized
countries remain poor while former
colonies have flourishing economies.
Dependency theory is criticized for
its narrow focus on the capitalist
market system and its lack of
practical solutions for combating
global poverty.
While global stratification remains a
pressing issue, there has been
progress in reducing global poverty
rates, with the share of people living
on less than $25 per day halving
since 1981.
The Modern World System

31. THANK YOU!
Ainne Booc Haide Molde Crislyne
Melgo
Erika Jill
Lozano
Doven Almonia
Evangeline
Soposo
Shawn Kirby
Giangan