Lesson 2 The Structures of Globalization

Lesson 2: The Structures
of Globalization
• THE GLOBAL ECONOMY

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 1990’s.
EIGHT MILLENIUM
DEVELOPMENT GOALS
• Eradicate extreme poverty and hunger.

• Achieve universal primary education.
• Promote gender equality and empower women.
• Reduce child mortality.
• Improve maternal health.
• Combat HIV/AIDS, malaria and other diseases.
• Ensure environmental sustainability.
• Global partnership for development.
POVERTY
• In the Philippines, a person is
officially living in poverty if he
makes less that 100,534 pesos a year,
around 275 pesos a day. This is called
a poverty line or poverty threshold.
POVERTY
•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.
•The UN defines extreme or absolute poverty as

living on less than $1.25 a day. The organization aims
to eliminate extreme poverty for all people by 2030.
POVERTY
• The UN(2015) reported that 836 million people are still
live in extreme poverty but that is down from 1.9 billion,
so there is a successor at least a lot of progress.
• The World Bank predicted that by 2030 the number of

people living in extreme poverty could drop to less than
400 million.
• Climate change has to be considered since it is a threat to

these improvements in global poverty.
POVERTY
• Most people who have been lifted out of
extreme poverty are still poor and being
poor comes with serious problems, from
disease to lack of water. Income
inequality is rampant and one in seven
people still live without electricity.
• So why is extreme poverty
falling?
-access to education
-humanitarian aid
-the policies of international
organizations like the UN
-economic globalization.
ECONOMIC GLOBALIZATION?
• Economic Globalization is a historical
process resulting from human
innovation and technological progress.
• It refers to the increasing integration of
economies around the world,
particularly through the movement of
goods, services
TWO TYPES OF ECONOMIES
ASSOCIATED WITH ECONOMIC
GLOBALIZATION
• PROTECTIONISM
• TRADE LIBERALIZATION
PROTECTIONISM
It refers to the economic policy of a country
implementing measures to restrict or shield its
domestic industries from foreign competition.
These measures are designed to promote and
support domestic industries by limiting the
entry of foreign goods, services, or
investments.
TRADE LIBERALIZATION OR FREE TRADE
This involves the reduction of tariffs, quotas, and

other trade restrictions that hinder the flow of goods,
services, and investments across borders. Trade
liberalization is often associated with the principles
of free trade, where countries aim to increase
economic efficiency, enhance consumer choice, and
foster global economic growth.
TRADE LIBERALIZATION OR FREE TRADE
Free Trade agreements and technological

advances in transportation and communication
mean goods and services move around the
world more easily than ever.
Theories of Global
Stratification
Global stratification refers to the
hierarchical arrangement of
individuals and groups in societies
around the world based on factors
such as income, wealth, education,
occupation, and access to resources.
• Global inequality refers to the unequal
distribution of resources among individuals and
groups based on their position in the social
hierarchy.
• Modern sociologists, however, generally speak

of stratification in terms of socioeconomic
status (SES). A person’s SES is usually
determined by their income, occupational
prestige, wealth, and educational attainment.
PERSPECTIVES • micro
TOWARDS • meso
• macro
STRATIFICATION
MICRO-LEVEL ANALYSIS
It focuses on how prestige and personal influence
create inequality through face-to-face and small
group interactions.
MESO-LEVEL ANALYSIS
It focuses on how connections to organizations
and institutions produce inequality.
MACRO-LEVEL ANALYSIS
The macro level addresses peace, conflict, and
violence in large populations. This level of
analysis is useful for making comparisons
between different nations or states and also for
thinking about the relationships between large
populations.
THEORIES OF
MACRO-LEVEL
INEQUALITY
THEORY OF DEVELOPMENT AND
MODERNIZATION
• Some sociologists use a theory of development and modernization to argue
that poor nations remain poor because they hold onto traditional attitudes and
beliefs, technologies and institutions, such as traditional economic systems
and forms of government.
• Modernists believe large economic growth is the key to reducing poverty in

poor countries.
DEPENDENCY THEORY
• Countries have developed at an uneven rate because wealthy countries have
exploited poor countries in the past and today through foreign debt and
transnational corporations (TNCs). According to dependency theory, wealthy
countries would not be as rich as they are today if they did not have these
materials, and the key to reversing inequality is to relieve former colonies of
their debts so that they can benefit from their own industry and resources.
DEPENDENCY THEORY
Dependency theory is very narrowly focused. It points the finger at the capitalist
market stem as the sole cause of stratification, ignoring the role of things like
how culture and political regimes play in impoverished countries. Most evidences
suggest that, nowadays, foreign investments by richer nations helps and do not
hurt poorer country.
WORLD SYSTEMS THEORY
World systems theory divides countries into the following categories:
• Core: the most economically advanced and industrialized nations in the

world. They have significant technological capabilities, strong financial
institutions, and well-developed infrastructure.
.
• Semi-Periphery: They have some level of industrialization and a mix of
advanced and low-skilled industries. The Semi-periphery nations often serve
as intermediaries in the global trade network, providing goods and services
to both the core and the periphery.
Periphery
-Periphery countries are less developed and often rely on the export of raw
materials and low-skilled labor-intensive industries.
-They have limited access to advanced technology and tend to have weaker
industrial and financial sectors compared to core countries.
-Periphery nations are often dependent on core nations for investment,
technology, and market access.
-The peripheral nations remained economically dependent on the core in a number of
ways, which tend to reinforce each other. These are:
• Poor nations tend to have few resources to export to rich countries.

• Corporations can buy these raw materials cheaply and then process and sell them in
richer nations. As a result, the profits tend to bypass the poor countries.
• Poor countries are also more likely to lack industrial capacity, so they have to import
expensive manufactured goods from richer nations.
All of these unequal trade patterns lead to poor nations owing lots of money to richer
nations and creating debt that makes it hard to invest in their own development.
Critics argue that the world economy is not a
zero-sum game -- one country getting richer
does not mean other countries are getting poorer.
Innovation and technological growth can spill
over to other countries, improving all nations’
well-being and not just rich.
Some of the poorest countries in Africa, like
Ethiopia, were never colonized and had very
little contact with richer nations. Likewise,
some former colonies, like Singapore and Sri
Lanka now have flourishing economies.
By learning about Economic Globalization ,
we are able to know about the issues and
debates about it. We are also able to think
critically about solutions to the various
problems brought by globalization.
REFERENCES
https://courses.lumenlearning.com/boundless-sociology/chapter/global-
stratification/ Aldama, P. K. R. (2018). The Contemporary World. Rex Book
Store, Inc. Martinez.R.M, et.al. (2018). The Contemporary World. Mindshapers
Co.,Inc.

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Lesson 2: The Structures

• THE GLOBAL ECONOMY

• Eradicate extreme poverty and hunger.

•The UN defines extreme or absolute poverty as

• The World Bank predicted that by 2030 the number of

• Climate change has to be considered since it is a threat to

This involves the reduction of tariffs, quotas, and

Free Trade agreements and technological

• Modern sociologists, however, generally speak

• Modernists believe large economic growth is the key to reducing poverty in

• Core: the most economically advanced and industrialized nations in the

• Poor nations tend to have few resources to export to rich countries.

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