The document discusses the concept of the 'global divide', which highlights the disparities in income and living conditions between advanced industrialized states and developing states. It covers aspects of income inequality, dependency theory, neoliberal theory, and world system theory, examining their impact on global relationships and economic conditions. Additionally, it addresses globalization's role in perpetuating these divides and the challenges faced by poorer nations in a global economy dominated by wealthier countries.

1. GLOBAL
DIVIDE
C H A P T E R V I I I
Nahine, Angel Mae
Cabrahan, Tricxie Gwen
Presenters:

3. What is Global
Divide?
The term “global divide” connotes the disparities in income and living conditions
between the advanced industrialized states and developing states. This chapter
looks at the different aspects of the global divide, including income, inequality and
developement.
Wealthy countries with modern industries,
strong economies, and high quality of life (like
the US or Germany).
Advanced industrialized States Developing States
Countries that are less wealthy and still
working to improve their industries,
economy, and living conditions (like India
or the Philippines).
.

4. The concept of ‘global divide’ has been closely
linked with the concept of development.
Whether a state belongs to the North or South
largely depends on its level of development.
Oftentimes, development is equated with
growth of the economy over a certain period.
This approach is equating growth and
development was most during the 1950's and
1960's and it remain prevalent today.
CONTEMPORARY
GLOBAL DIVIDE

5. WHAT IS INCOME INEQUALITY?
It is a measure of how the wealth in the economy is distributed among
the population. It looks at the share of wealth owned by the rich and the
poor. It is link with GDP per capita and the number of people living in the
poverty.
Income inequality is important in part because it tells about the
conditions in the society: the privileged wealthy lead luxurious lives while
some people live in poverty.
Income inequality leads to another question on the proportion of poor in
a given state. Poverty is defined as an extremely low level of income. The
World Bank distinguishes between
absolute poverty and moderate poverty.

6. According to the United Nations Development Programme, in 2015 the
Philippines ranks 116th, two notches below its 2014 rank as 114th, of the 188
countries included in the Human Development Report.

7. What is Dependency Theory?
• It views poverty and underdevelopment as results of
imperialism and the dependence of poorer nations on
wealthier ones.
• This happens through systems like trade, loans, and
foreign investments that benefit rich countries at the
expense of poorer ones.
Poor societies are not
born but made.

8. “Endo”, Globalization, and the
South
"End all forms of
contractualization" is a
call to stop unfair labor
practices in the
Philippines, particularly
the system called "endo"
(short for "end of
contract").

9. What is Neo-Liberal Theory?
• It is the belief that free markets, minimal government
interference, and open trade are the best ways to grow
economies and solve societal problems.
• It promotes policies like privatization, reducing government
spending, and encouraging competition, arguing that these
approaches make economies more efficient and prosperous.
Critics argue that neo-liberal policies often lead
to greater inequality and social issues by
prioritizing profits over people.

10. What is Neo-Liberal Theory?
• Neo-liberal policies are often promoted by global
institutions like the IMF and the World Bank through
"structural adjustment programs."
• The "Washington consensus," is a set of neo-liberal
principles, gained traction globally but faced backlash
in places like Latin America.

11. International Trading
Imported goods are
common to be found in the
Philippines, satisfying
consumers and increasing
business profit.
However, imports compete
with locally produced goods,
making it hard for Filipino
enterprises to strive.

12. • Developed by Immanuel Wallerstein,
explains global inequality by looking at
how countries interact in a single global
economy. It divides countries into three
categories.
What is World System
Theory?

13. It divides countries into three categories:
1.Core Countries: Wealthy and powerful nations that dominate
global trade and benefit most from the system.
2.Semi-Peripheral Countries: Middle-income nations that act as
intermediaries, serving the core but also exploiting the poorest
countries.
3.Peripheral Countries: The poorest nations that provide cheap
labor and raw materials to the core, often remaining
underdeveloped and exploited.
What is World System Theory?

14. Economic Success of South
Korea Neo-liberal thinkers praise
the economic growth of
countries like South Korea
(an East Asian "tiger"), World
System Theory suggests they
achieved semi-peripheral
status because core
countries allowed it to
expand their own markets.

15. Walden Bello
- a Filipino political economist, argues
that globalization has not removed
the traditional power differences
between rich and poor countries.
Globalization and the Global
South

16. • In the Philippines, "crony capitalism" allows wealthy elites to
misuse public resources for personal gain.
• Globalization is still driven by powerful countries, such as those
in North America, Japan, and the European Union.
• China has become more active globally, partnering with Brazil
and India to challenge trade agreements favoring wealthy
nations, as seen in the Doha Round.
Globalization and the Global
South

17. • BRICS countries (Brazil, Russia, India, China, South Africa) are
advocating for reforming global trade and economic systems,
such as the WTO, to incorporate the interests of the Global
South. They seek gradual economic opening, protecting
vulnerable sectors, and improving access to markets in
wealthier countries.
Globalization and the Global
South

18. ACTIVITY
1.What is a major factor contributing to the
global divide?
a. Equal access to resources
b. Unequal distribution of wealth and resources
c. Increased global cooperation
d. Rapid development in all countries

19. ACTIVITY
1. What is a major factor contributing to the
global divide?
a. Equal access to resources
b. Unequal distribution of wealth and
resources
c. Increased global cooperation
d. Rapid development in all countries

20. ACTIVITY
2. How does globalization affect the global
divide?
a. It completely eliminates inequalities.
b. It narrows the gap for all nations equally.
c. It widens the gap for many poorer nations
while benefiting wealthier ones.
d. It prevents global trade and development.

21. ACTIVITY
2. How does globalization affect the global
divide?
a. It completely eliminates inequalities.
b. It narrows the gap for all nations equally.
c. It widens the gap for many poorer nations
while benefiting wealthier ones.
d. It prevents global trade and development.

22. ACTIVITY
3. What strategy is often suggested to reduce
the global divide?
a. Closing international trade
b. Reforming global trade systems to benefit
developing nations
c. Increasing tariffs on developing countries
d. Reducing international cooperation

23. ACTIVITY
3. What strategy is often suggested to reduce
the global divide?
a. Closing international trade
b. Reforming global trade systems to benefit
developing nations
c. Increasing tariffs on developing countries
d. Reducing international cooperation

24. ACTIVITY
Do you agree that advanced industrialized
states and developing states should be
divided? Why or why not?

25. THANK
YOU!
Nahine, Angel Mae
Cabrahan, Tricxie Gwen
Presenters: