SS1D CHAPTER 4 efficiency is attainable if two countries
can produce more goods and trade
GLOBAL ECONOMY The global economy is
products separately
highly interdependent. Global exchanges
of commodities create an opportunity to Mercantilism is an economic theory
more sustainable and equipped economy emerged from about 1500- 1800. This
while pose a risk to the emerging and less period was the emerging eras of nation-
performing country. states and the formation of more central
governments. This system flourished due to
Economic Systems The global economy of
the following reasons:
most countries is classified into three
categories: market, command, and mixed a. Higher export that import.
economies. In countries where democracy Countries use this mechanism to
prevails, its economic system is usually support their trade objectives and
under freedom, choice, and decisions of its strengthen their colonial rule and
citizens. possessions.
b. Export less high valued product
Three Economic Systems
and import less high valued
MARKET ECONOMY The economy under product. It prevented and
the will and interest of the individuals. monopolized the production and
manufacturing operation of the
COMMAND ECONOMY Production quantity colonies
is dictated, consumer behavior is directed, c. The benefits of colonial powers.
and a single authority controls market Mercantilism is adopted to increase
operation and sustain the colonial power
MIXED ECONOMY Combination of and its authority to direct and
market and command economies. control the economic activity of
the colony.
International Trade Is the process and the
system when goods, commodities, Structuralists The Modern World
services cross national economy, and System (MWS) theory developed by
boundaries in exchange for money or Immanuel Wallerstein, explain the
goods of another country (Balaam and contact of economies between core,
Veseth, 2008). semi peripheral, and peripheral
countries in the world.
Trade Theories
Transnational Corporations The role of
Descriptive Theory – it deals with the Multinational Corporation (MNCs) in the
natural order and the movement of 21st is distinct and interesting to investigate.
trade. It describes the pattern of trade The movement of ideas, capital, investment,
under the idea of laissez faire, a French technology, and people are affected by the
term which means “leave alone”. operations of MCNs
Prescriptive Theory – it prescribes International Economic Institutions and
whether government, an important economic Market Integration The formation of
institution, should interfere and restrict economic integration is designed to address
with the movement of goods and and enhance the level of
services. competitiveness of member economies
in trade. Free trade is the primary
Three Perspectives on International
consideration of regional economic
Trade
integrations
Economic Liberals For David Ricardo, his
World Trade Organization (WTO) In
influential work, Law of Comparative
1995, General Agreement on Tariffs and
Advantage explains that free trade
Trade (GATT) of the American government like climate change and issues on peace
was replaced and succeeded by WTO and security.
with 151 members as of 2008 and
Global governance. This term refers to
accounts for 90% of the world’s trade.
domestic institutions and governments
World Bank Officially called the on how large-scale problems and public
International Bank for Reconstruction policy issues are being solved at a global
and Development (IBRD), or World Bank is level.
an international agency with 189
Three Existing Gaps and Issues in
member-countries operating in 130
Global Governance
countries worldwide.
Jurisdiction Gap The lack of global
International Monetary Fund (IMF) IMF
governance in taking actions to
was created as the flagship institution of
problems affecting key sectors arises from
Bretton Woods agreement with 189-
the absence of authority.
member countries.
Incentive Gap Global governance is formed
European Union European Union (EU) is a
with the participation of countries that have
political economic regional organization
the interest to deal problem affecting their
of 28 member-economies in Europe.
sovereignty. It is an issue between rich
Founded in 1985, European Economic
and poor countries of the world because of
Country (EEC) was formed by six countries:
uneven distribution of authority and
Belgium, Germany, France, Italy,
control over decisions and policies.
Luxembourg, and Netherlands
Participation Gap Member-states
Association of Southeast Asian Nations
sometimes disagree on issues that are
(ASEAN) The Association of Southeast Asian
harmful to their interests
Nation (ASEAN) was founded on August
1967 in Bangkok Thailand with Political Systems The kind of political
Indonesia, Malaysia, Philippines, system used by a country has implications to
Singapore, and Thailand as its founding the success of its economy and the overall
fathers. Brunei Darussalam, Vietnam, governance. Political System means the
Myanmar, and Cambodia joined the system, or the form of practice
organization making up today the 10 employed by the state
member-countries
INDIVIDUALISM it is a political system
that values the significance of
individuals over collective goals.
CHAPTER 5 GLOBAL GOVERNANCE
freedom of the people is the primary
Challenges like civil wars, hunger and consideration.
poverty, sexual abuse, climate change, and
COLLECTIVISM is a philosophy that stresses
poor infrastructures are most common
the importance of the collective goals
problems where collective efforts are
over individual freedom and interests.
needed.
DEMOCRACY Democratic institutions and
Political globalization refers to
governance focus on the role individuals
intensification and increasing level of
in political decision making.
interrelations among nations in the
world. TOTALITARIANISM is built on the idea that
society and citizens have no right and
Global Governments and Governance
freedom of expression.
The term global government is a response
on the actions of various stakeholders Political Layers and Geopolitics States in
on finding out pressing global problems contemporary world are hungry for power.
Power is the ultimate goal to contain and The Secretariat - it is headed by the UN
control other states and nations that do not Secretary - General who sits as its Chief
enjoy much power are considered as Administrative Officer at the appointment of
powerless states in international arena. the secretary general is done through the
recommendation of the Security Council for a
Unilateralism The economic growth
five-year term. Responsible for the day to
experienced by China and other emerging
day work and operation of the UN
economies in the world are dependent on
the American market. Trusteeship Council elects a President
and a Vice-President from among the
Multilateralism The idea of multilateralism
representatives of the members of the
includes three powers in international
Council
system.
North Atlantic Treaty Organization NATO
Bipolar - it happens if there are only two
was formed initially as a political association,
great powers dominating the
and not a military alliance. Realists argue
distribution of power
that during its proposal in 1949, the idea of
Tri-polar or tri-polarity - exists if there are collective security arrangement was the
only three states dominating the main feature of NATO.
distribution if global order.
CHAPTER 6 GLOBAL CIVIL SOCIETY AND
Multipolar or multi-polarity - is situation NON-GOVERNMENTAL ORGANIZATION
when more states are involved in the
Civil society and non-governmental
distribution of global power
organizations or NGOs are the third sector of
Isolationism Isolationists believe that major the society aside from the government and
powers and states exclude the use of business.
force and military in the international
Global Civil Society (GCS) The formation
system
of UN was pivotal in the recognition of civil
Global Political Institutions society organizations and NGOs.
United Nations The United Nations or UN is Characteristics of NGO’s
an international organization
1. An NGO must be entirely
established in 1945 with the League of
independent from the control of any
Nations as its original body.
government. Should have it’s own
Organs of United Nations authority and jurisdiction.
2. NGOs are not considered as
General Assembly- this is UNs main political party. Organization that is
deliberative and decision-making body not part of the bureaucratic
represented by all its 193 members. operation of the state.
Security Council - it is responsible in the 3. NGOs perform their task not because
maintenance of peace and security. of generating income or profit.
Described as non-profit or not for
Economic and Social Council - commonly profit organization or entity.
called as ECOSOC. its main function is to
coordinate, review, and recommend Roles of Civil Society Organizations
policies The World Economic Forum (WFC) outlined
International Court of Justice - ICJ is the the following roles of NGOs and CSOs:
principal body or court of UN. Its role 1. Watchdog. CSOs monitor the behavior
includes setting legal disputes. The only of institutions in the promotion of
UN organ that operates outside United transparency and accountability.
States
2. Advocate. They initiate programs that considered as vanguard against the
could raise public awareness of issues abuses of capitalists and organizations
and challenges and advocating for that negatively affect the environment.
change.
Law and Human Rights
3. Service Provider. These organizations Nongovernmental Organizations The
are active in delivering services to meet adoption of UN Universal Declaration of
societal needs including food and security, Human Rights in 1948 which centers on the
health and education as well as promotion of political participation and
preparedness and disaster management. freedom, entitlements and access to
adequate food, shelter, clothing, and health
4. Expert. They bring unique knowledge
care provided a more pronounced obligation
and experience to evaluate policy and
of the state to its citizens
strategy, and identify solutions.
CHAPTER 7 GLOBAL DEVELOPMENT AND
5. Capacity Builder. Civil society provides
DIVIDE
services providing relevant training,
education and capacity building to Development The term development us
communities. described as a process, system,
procedure. It is a state or condition of
6. Incubator. CSOs act as an armory in
changing and enhancing something.
developing solutions that requires long
Oxford defines development as "a process
playback period.
and an event constituting a new stage in a
7. Representative. They give power in changing situation.
emphasizing rights of the marginalized
Four Dimensions of Development
and voices of under - represented.
Economic Development It is focused on
8. Citizenship Champion. CSOs are known
the qualitative aspect of change that
in encouraging citizen engagement and
sometimes people failed to determine
championing the rights of the minority.
like the increased quality of life, social
9. Solidarity Supporter. They promote improvements and innovations.
the ethical, just, and humane practices
Human Development Human
as part of promoting universal values geared
Development Index (HDI) was created to
towards sustainability and balanced life of
emphasize that economic growth should be
the many.
used as criterion in assessing the
10. Definer of Standards. CSOs create development of a particular country but
and frame norms that shape and make the development of the people and their
activities of the people and societies. capabilities UN's
Transnational Nongovernmental Three Dimensions of Human
Organizations (TNGOs) TNGOs are Development:
international not-for-profit
• Long and healthy life
organizations that are independent and are
not controlled by governments. • Knowledge
Economic Nongovernmental • Decent standard of living
Organizations Multinational Corporations
Sustainable Development
(MNCs) and Transnational Corporations
(TNCs) are modern versions if global It is the "development that meets the
commercial enterprises needs of the present without
compromising the ability of future
Environmental Nongovernmental
generations to meet their own needs."
Organizations Environmental NGOs are
(Bruntland Commission)
Territorial Development GOAL 11: Sustainable Cities and
Communities. Make cities and human
It focuses on the interrelationships of
settlements inclusive, safe, resilient, and
human activities between rural and urban
sustainable.
areas (Bellù, 2011)
GOAL 12: Responsible Consumption and
Sustainable Development Goals (SDGs)
Production. Ensure sustainable
SDGs was established as part on the success
consumption and production patterns.
of the Millennium Development Goals of
2015. In the next 15 years, member- GOAL 13: Climate Action. Take urgent
countries of UN, rich and p3, developed or action to combat climate change and its
developing are expected to mobilize all impacts.
efforts to end the global problem of
GOAL 14: Life Below Water. Conserve and
poverty, solve inequality, and address
sustainably use the oceans, seas, and marine
impacts if climate change.
resources for sustainable development.
17 Sustainable Development Goals
GOAL 15: Life on Land. Protect, restore,
GOAL 1: No Poverty. End poverty in all its and promote, sustainable use of terrestrial
forms Everywhere. ecosystems, sustainable manage forests,
combat desertification, and halt and reverse
GOAL 2: Zero Hunger. End hunger, achieve
land degradation and halt biodiversity loss.
food security, and improved nutrition
GOAL 16: Peace and Justice Strong
and promote sustainable agriculture.
Institutions. Promote peaceful and inclusive
GOAL 3: Good Health and Well-being. societies for sustainable development,
Ensure healthy lives and promote wellbeing provide access to justice for all and build
for all at all ages. effective, accountable and inclusive
institutions at all levels.
GOAL 4: Quality Education. Ensure
inclusive and equitable quality education GOAL 17: Partnerships to achieve the
Goal. Strengthen the means of
GOAL 5: Gender Equality. Achieve gender implementation and revitalize the Global
equality and empower all women. Partnership for Sustainable Development.
GOAL 6: Clean Water and Sanitation. Global South In academic setting, the term
Ensure availability and sustainable global south is widely used in social sciences
management of water and sanitation for all. like sociology, political science, and
GOAL 7: Affordable and Clean Energy. economics. It is major subject of discourses
Ensure access to affordable, reliable, especially topics concerning globalization,
sustainable, and modern energy for all. global divide, and uneven development
across the globe.
GOAL 8: Decent Work and Economic
Growth. Promote sustained, inclusive and Causes of Global Divide
sustainable economic growth, full and Globalization in the 1990 The economic
productive employment and decent work for intensification observed in the 90s fueled
all. countries to establish boundaries. Poor
GOAL 9: Industry, Innovation and countries that can not cope with the
Infrastructure. Build resilient infrastructure, demands of the rich and developed countries
promote inclusive and sustainable suffer most of the potential damage of
industrialization and foster innovation. globalization.
GOAL 10: Reduced Inequality. Reduce Uneven Immigration The pattern of
inequality within and among countries. migration in the last three decades saw an
unprecedented rise of migrant workers and
citizens seeking greener opportunities in
other countries
The hegemonic nature if international
economic relations The global problem of
poverty and inequality are outcomes of the
evil practices of western countries. These
problems are associated with the abuse of
capitalists who control most of the world's
wealth.
