LESSON 2
INTERROGATING
GLOBALIZATION
01 00 02
ERICA MAE P. CARAQUEL John Michael P. Palomares
Reporters
LESSON 2
LESSON OBJECTIVES
After this lesson, you should be able to:
I. Discuss economic globalization as a complex process
responsible for enormous global and local Changes;
II. Explain economic globalization's accompanying
cultural and political globalization;
III. Articulate the assumptions behind globalization;
and
IV.Critically evaluate the impacts of globalization
especially for poor countries.
LEARN MORE
LESSON 2
Interrogating to analyze an idea or belief, especially by
thoroughly and dispassionately questioning its underlying
Development paradigms
assumptions.
An idea prescribed path to attain
Globalization is the word used to describe the growing development through certain set of
activities, according to a defined vision
interdependence of the world’s economies, cultures, populations ( bellù, 2011)
brought about by cross-border trade in goods and services,
technology, flows of investment, people, and information. It is
mainly conceptualized as intensified transference or exchange of
things across existing boundaries.
LESSON 2
Datu Kaylo Bontulan
A MANABO LEADER QUOTE
He talks about a proposed business investment in their
ancestral land that displace indigenous communities.
“If this (investment) happens, we cannot cultivate our lands
anymore. We cannot grow local crops on our ancestral
domain. They will only force us to evacuate and use the
military who will not think to kill us twice if we stop their
project”.
Salugpungan Ta Tanu Igkanugon, Datu Kaylo Bontulan,
Talaingkod (Velez, 2018)
LESSON 2
Economic Globalization
• Is a complex global process of expanding the
market economic system all throughout the
world.
• It is a corporate-driven process of enhanced
transnational exchange of products services,
technologies, and capital, creating and an
increased interdependence of world economies.
Lesson 2
Flows in the Age of Globalization
Important aspects of globalization include global trading, capital
flows, and movement of people (IMF, 2000).
Lesson 2
TRADING
01 02
International trading Global trading
the economic changes and deals concerns and
between countries is enabled by importation and
exportation.
international fiscal payments where
private banks and the central banks of
particular nations play important roles (
Encyclopedia Britannica, n.d.).
LESSON 2
Capital Movement Movement of people
• Means circulation of capital
between countries with different
currencies. People can migrate to other
• One manifestation of capital countries in search a better
Movements is foreign flows employment opportunities.
• Transnational corporation,
businesses that operate in more than
one country, primary undertake
foreign direct investment.
LESSON 2
Political Globalization Cultural Globalization
The enlargement of the It refers to the increasing
international political system contact between people and
and its establishment, where their cultures-their ideas
inter-regional dealings their values, their ways of
including trade, are managed. life.
Assumption Behind the Pursuit of Globalization
As a paradigm of the development globalization of words and certain assumption about a desirable
economy and development however ,this assumption must be tested in real-world.
Assumption Behind Globalization Critiques to the Assumptions
Rapid economic growth will lead to development. Economic growth is only one aspect of development,
other aspiration are:
• Achieve both material needs and broader social
objectives;
• Social and economic justice and equity;
• self reliance;
• Welfare, adequate provision of basic services; and
• equitable distribution of opportunities, income,
and wealth.
Trading will bring prosperity Trading benefits some more than others
Poor countries will benefit from borrowed funds. Borrowing of poor countries are coupled with
condition (SAPs), which make countries compromise
spending for social services and welfare.
Poor countries need to catch up with rich countries It will be difficult for poor countries to catch up
by implementing economic policies toward because they are caught in unequal exchanges and
economic integration. underdevelopment.
Removal of tariffs, quota can ease global trading Reduction of tariffs in the Philippines since the
and will lead to economic integration (Toward 1980s led to unfair competition of local industries
prosperity) with imports. Industries direly affected by tariffs
cuts we're paper products, textiles, ceramics, rubber
products, furniture, wood, shoes and leather goods.
Institutions and
Actors Shaping
Economic
Globalization
Institutions and Actors Shaping Economic
Globalization
● The pursuit of fast-paced international economic transactions as well as movement of
people and knowledge is driven by certain actors, in engagement with many sectors.
● Globalization is not a random phenomenon.
● International businesses called transnational corporations are important players in
globalization.
● Other important actors and institutions ensuring globalization are the international
financial and trade institutions, as well as the United Nations agencies and regional
organizations, such as the ASEAN.
The roles of the international financial and trade institutions, responsible
mainly for ensuring economic globalization, are discussed briefly:
Table 1. International financial and trade institutions, the World
Bank, IMF, and WTO.
Organization Role In Economic Globalization
World Bank • Facilitate investment of capital for member countries
• Fund large-scale projects by providing loans for member countries
• Implement the Structural Adjustment Policies (SAPS) for countries
borrowing from the World Bank. SAPs are programs imposed on poor
countries that require their governments to:
-reduce spending for social services such as education, health, and
price subsidies;
-prioritize repaying debts;
-increase exports, provide subsidies for foreign export oriented firms;
and
-remove tariffs for imports.
Table 1. International financial and trade institutions, the
World Bank, IMF, and WTO.
International • Provide short-term emergency loans
Monetary Fund • Help bring enormous flow of foreign money through
(IMF) loans
and speculative investment.
World Trade • Create rules for global trade and investment
Organization • Aim to reduce tariffs
(WTO) • Create agreements for member countries regarding
multilateral policies that push governments to relax
regulations on environment, food safety, and product
quality
• Encourage countries to deregulate economies
• The World Bank, IMF, and the WTO aim to make sure that
quicker and easier movement of products, capital, and trading
between countries is achieved by implementing international
policies, reforms, and agreements.
• One objective of global financial and trading institutions is to
enforce common trading and financial flow standards and
policies to all countries.
• Another common goal is to "deregulate" firms (deregulation).
To deregulate businesses is to reduce the control of
government over businesses, making them more powerful in
implementing their visions, goals, and operations.
The Impacts of Globalization
• Economic deregulation is met with disapproval from different
groups such as labor organizations environmental groups,
indigenous peoples, and even consumer groups.
• Lessening government's control over businesses led to
outcomes such a neglect of environment, low wages and
unstable employment, under servicing of consumers, and
privatizing common resources.
World Bank, IMF, and Debts
● Supporters of globalization carry several assumptions about it.
Assumptions need to be scrutinized against real-life conditions.
● Proponents and guardians of globalization, such as the IMF, acknowledge
poverty and inequality existing alongside globalized economies.
● International production is conceived to increase jobs created across
countries.
● Poor countries need to catch up. But countries in the world are divided
according to its role and power in the global system.
CONTRASTING EVIDENCE OF POSITIVE EFFECTS
Increase Income More Employment
Less Poverty
Globalization Have Losers and Gainers.
● Increased trading may result to wider choices of consumer
goods in the market. However, international trading produces
varying results. Restructuring of economy through fast-paced
flux of capital across different countries has impacts on places
and social relations.
● These kinds of global interactions produce uneven
development.
● Unequal playing field for local producers and foreign producers
from developed countries lead to losses for local producers.
The Effects of Global Trading on the Philippine Local Economy
● Because of enhanced global trading, cheap imported vegetables flood
the local market. Local consumers and businesses find it cheaper to
buy imported agricultural products than locally produced goods.
● Local producers are unable to compete with the modern and highly-
supported vegetable production from developed countries such as
China, Australia, New Zealand, and the Netherlands.
The Effects of Global Trading on the Philippine Local Economy
● Advertised to the world as a remedy to all problems,
globalization comes short. It has not raised the poor from
poverty.
● It has hindered democracy and social justice; it has damaged
small communities and displaced farmers from their lands.
● Additionally, it has sped up the largest environmental
degradation known to mankind.
ALTERNATIVES TO ECONOMIC
GLOBALIZATION
• An important impact attributed to globalization is
the nearly six-fold increase in the income
measured in per capita GDP for the richest 25
percent of the world population in the 20th
century.
• However, the poor populations did not
experience this exponential economic growth.
Income inequality worsened.
THANK YOU
>
Presented by: Erica Mae P. Caraquel
John Michael P. Palomares
CREDITS: This presentation template was created by
Slidesgo, including icons by Flaticon, and
infographics & images by Freepik.
