Global Economy Notes

The United Nations established the Eight Millennium Development Goals (MDGs) in 2000.
Aimed to address poverty, inequality, and development challenges by 2015.
Focused on improving the quality of life in developing countries.

UN (2024) reported that 700 million people, or 8.5% of the global population, live in extreme poverty.
The World Bank predicted that by 2030, the number of people in extreme poverty could drop to less than 400 million.

According to the United Nations, economic globalization is the increasing interdependence of world economies.
This is a result of:
- Growing cross-border trade of commodities and services
- Flow of international capital
- Rapid spread of technologies

Trade Protectionism: Government policies that restrict international trade to help domestic industries.
Trade Liberalization: Removing or reducing trade barriers and encouraging the free exchange of goods between nations.

Trade protectionism usually comes in the form of quotas and tariffs.
Trade liberalization makes movement of goods around the world easier.
The Philippine Rice Tariffication Law:
- Before 2019, the Philippines used import quotas on rice.
- This protected local farmers from cheap imported rice.
- After the Rice Tariffication Law, tariffs replaced quotas.
- This led to a flood of imported rice, hurting local farmers but lowering rice prices for consumers.
ASEAN Free Trade Agreement (AFTA):
- The Philippines reduced tariffs on goods traded with ASEAN countries like Indonesia and Malaysia.
- This made imported products cheaper and helped Filipino companies export goods more easily.

Economic globalization involves growing interconnection of economies through international trade, investment, and technology.
It can lead to economic growth and access to resources.
It must be balanced with sustainable development (meeting current needs without compromising future generations).

Economic development was hastened by the Industrial Revolution.
This period made possible the cycle of efficiency means finding the quickest way to produce large amounts of a particular product.
Economic activities driven by globalization (mining, logging, and industrialization) often harm the environment.
Example: Increased carbon emissions from factories damage the earth’s atmosphere.

The demand for food will be 60\% greater than it is today.
The challenge of food security requires the world to feed 9 billion people by 2050 (Breene, 2016).
Global food security means delivering sufficient food to the entire world population.
The security of food also entails the sustainability of society, such as population growth, climate change, water scarcity, and agriculture.
Globalization can help by importing food but can also hurt local farmers.

Globalization can create jobs and improve economies.
It can also widen the gap between the rich and the poor, both between and within countries like the Philippines.
The multiplier effect suggests that an increase in one economic activity can lead to an increase in other economic activities (a single project benefits the builders and multiplies its impact across the local economy).
Opponents of economic globalization call outsourcing of jobs exploitation and oppression (a form of economic colonialism that puts profits before people).
Economic globalization has helped millions of people get out of extreme poverty.
The challenge of the future is to lift up the poor while also keeping the planet livable.

Two main types of economic inequality:
- Wealth Inequality
- Economic Inequality

Wealth refers to the net worth of a country.
It takes into account all the assets of a nation (natural, physical, and human) less the liabilities.
Wealth is the abundance of resources in a specific country.

Includes income inequality (differences in salaries and wages), wealth inequality, and access to resources (education, healthcare, opportunities).
It looks at how unequally people are living economically, whether in earnings, living standards, or services.

Both terms describe less developed countries from different time periods with slightly different meanings.

Origin: Cold War period (1947–1991).
Meaning: Originally referred to countries not aligned with either the Western bloc (U.S. and allies) or the Eastern bloc (Soviet Union and allies).
- Over time, it came to refer to poor or developing nations, often in Asia, Africa, and Latin America.
Criticism: The term is outdated and sometimes considered negative because it implies being "third" or lower in status.

Meaning: A modern term to describe countries that are economically poorer and less developed, mostly located in the Southern Hemisphere (though not always).
- Includes countries in Africa, Latin America, Asia, and Oceania.
Focuses not just on poverty but also on shared struggles like colonial history, inequality, and global marginalization.
It is more neutral and respectful than “Third World.”

A global city (also called a world city) plays a major role in the global economy, culture, and politics.
These cities are hubs of international trade, finance, technology, and communication.
They connect local economies to the rest of the world.

Global cities shape:
- Job opportunities
- Cultural trends
- International relations
- Urban planning and environmental issues