PRAYER

OBJECTIVES
A. Analyze economic and social disparities,

B. Investigate historical and political contexts,

and

C. Identify and evaluate strategies aimed at

promoting sustainable development among
states.
GLOBAL
DIVIDE
What is Global Divide?

• Defined as " Disparities In

Income And Living Conditions
Between The Advance
Industrialized States And
Developing States"
Global North
refers to developed societies of
Europe and North America, which are
characterized by established
democracy, wealth, technological
advancement, political stability, aging
population, zero population growth and
dominance of world trade and politics.
Global South
is generally understood to refer to
less economically developed countries.
It is a broad term that comprises a
variety of states with diverse levels of
economic, cultural, and political
influence in the international order.
The gap between the ‘North’ and ‘South’
Despite very significant development
gains globally which have raised many
millions of people out of absolute
poverty, there is substantial evidence
that inequality between the world’s
richest and poorest countries is
widening.
 In 1820 western Europe's per capita income
was three times bigger than Africa’s but by 2000
it was thirteen times as big. In addition, in 2013,
Oxfam reported that the richest 85 people in the
world owned the same amount of wealth as the
poorest half of the world’s population.
Today the world is much more complex as many
poorer countries have experienced significant
economic and social development. However,
inequality within countries has also been
growing and some commentators now talk of a
‘Global North’ and a ‘Global South’ referring
respectively to richer or poorer communities
which are found both within and between
countries.
For example, while in India is still home to the
largest concentration of poor people in a single
nation it also has a very sizable middle class and
a very rich elite.
There are many causes for these inequalities:
* availability of natural resources;

* different levels of health and education;

* the nature of a country’s economy and its

industrial sectors;

* international trading policies and access to

markets;
There are many causes for these inequalities:

* how countries are governed and international

relationships between countries;

*conflict within and between countries;

*and a country’s vulnerability to natural hazards

and climate change.
GLOBAL NORTH & GLOBAL
SOUTH
 Gross
Domestic
Product
What is Gross Domestic Product
(GDP)
This measure of income is used to
determine how countries are
improving or deteriorating based on
the development aspect.
What is Gross Domestic Product
(GDP)
The total market value of all final goods and
services produced in a country in a given
period. Each country reports its data in its own
currency. To compare the data, each country's
statistics must be converted into a common
currency. The two most common methods to
convert GDP into a common currency are
nominal and purchasing power parity (PPP).
What is Nominal GDP?

Nominal GDP estimates are commonly used to determine the

economic performance of a whole country or region and to make
international comparisons. It is the original concept of GDP.

In the Nominal method, market exchange rates are used for

conversion. It does not take into account differences in the cost of
living in different countries. Fluctuations in the country's currency
exchange rates may change a country's ranking from one year to the
next, even though they often make little or no difference to the
standard of living of its population.
What is GDP PPP?
PPP basis is arguably more useful when
comparing differences in living standards
between nations.
For example: A haircut in New York is more
expensive than in Lima; the price of a taxi ride of
the same distance is higher in Paris than in Tunis,
and a ticket to a cricket game costs more in
London than in Lahore (Pakistan).
What is GDP PPP?
PPP is an exchange rate at which one
country's currency is converted into that of
the second country to purchase the same
volume of goods and services in both
countries. If a hamburger is selling in
London for £2 and in New York for $4, this
will imply a PPP exchange rate of 1 pound
to 2 U.S. dollars. PPP exchange rates are
relatively stable over time. The drawback of
10 COUNTRIES WITH HIGHEST GDP
(NOMINAL)

UNITED STATES
CHINA
JAPAN
© INTERNATIONAL MONETARY FUND WORLD ECONOMIC OUTLOOK (APRIL-
2018)
10 COUNTRIES WITH
10 COUNTRIES HIGHEST
WITH GDP
HIGHEST (PPP)
GDP (PPP)

CHINA
UNITED STATES
INDIA
© INTERNATIONAL MONETARY FUND WORLD ECONOMIC OUTLOOK (APRIL-
2018)
Income Inequality

• A MEASURE OF HOW THE

WEALTH IN THE ECONOMY IS
DISTRIBUTED AMONG THE
POPULATION.
 PO V E R T Y
Poverty Is A State Or Condition In Which A Person Or Community Lacks
The Financial Resources And Essentials For A Minimum Standard Of
Living.
ABSOLUT E POVERT Y MO D E RAT E POV E RT Y

• Refers To Income Below The

Minimum Level Required For • Basic Needs Are Barely Met
Physical Survival. But Survival Is Not Actually
Threatened.
• A Condition Characterized
By Severe Deprivation Of • People In Moderate Poverty
Basic Human Needs, Generally Have Access To
Including Food, Safe The Basic Necessities Of
Drinking Water, Sanitation Life, But They Do Not Have
Facilities, Health, Shelter, Much If Any Disposable
Education And Information. Income Beyond That.

• In 2018, Extreme Poverty • In Moderate Poverty As Less

Widely Refers To Making Than $2 Or $5 A Day
Below The International
Poverty Line Of $1.90/Day
D R CONGO
MOZAMBIQUE
UGANDA
TAJIKISTAN
YEMEN
HUMAN DEVELOPMENT
INDEX
• The HDI was created to emphasize
that people and their capabilities
should be the ultimate criteria for
assessing the development of a
country, not economic growth alone.

• The HDI can also be used to question

national policy choices, asking how
two countries with the same level of
GNI per capita can end up with
different human development
outcomes.

• The Human Development Index (HDI)

is a summary measure of average
achievement in key dimensions of
human development: a long and
healthy life, being knowledgeable
 HUMAN DEVELOPMENT
INDEX

LIFE
EXPECTANCY

INCOM EDUCATION
E
 COMPETING
PERSPECTIVES ON
GLOBAL DIVIDE
 MODERNIZATION THEORY

• Proponents Of this Theory Argue That

Society Undergoes Stages Of Growth And
Move From Being A Traditional Society To A
Modern One.

• Poverty Is The Primordial Condition Of

Humanity.

• All Societies Were Once Poor; But To

Overcome It, Societies Must Advance From
Traditionalism To Modernization.
 DEPENDENCY THEORY

• It Argues That The Root Cause Of Poverty

And Underdevelopment Is Imperialism As
Well As The Dependency Of Poor Nation On
Rich Nations.

• It Is A Counter argument To Modernization

Theory, Which Prescribes That Developing
Countries Must Follow The Path Of The
Developed Nations.
 STAGE 5: HIGH MASS
CONSUMPTION
STAGE 4: DRIVE TO
MATURITY
STAGE 3: TAKE-OFF

STAGE 2: TRANSITIONAL
SOCIETY
STAGE 1: TRADITIONAL
SOCIETY
TIME
 “ENDO”
• It is a form of contractualization which
involves companies giving workers
temporary employment that last them
less than six months and then
terminating their employment just
short of being regularized in order to
skirt on the fees which come with
regularization. some examples of such
benefits contractual workers don't get
as compared to regularized workers
are the benefits of having an
employer and employee SSS,
PHILHEALTH, and the PAG-IBIG
housing fund contribution, unpaid
 NEO-LIBERAL THEORY

• The Intellectual Basis For Neo-liberal Theory Comes From Neo-

classical Economics, Which Combines Arguments Supportive
Of Free Market With Scientifically Inclined School Of
Economics.

• On The International Level, The IMF And The World Bank

Champion Their Own Form Of Neo-classical Economics
Through The Ideals Of Structural Adjustments.

• It Calls Nations To Reduce Government Spending And

Bureaucracy To Encourage Free Markets, To Export, And To
Encourage Entrepreneurship, As Well As To Entice Foreign
Investment And Foreign Technology.

• For Economists, The Culprits Are Paternalistic Politics That

Favour Cronyism, Corruption, And Bloated Bureaucracies.
 WORLD SYSTEM THEORY

• The argument of dependency thinkers that

the cause of underdevelopment and poverty
is external intervention continues in world
system theory, developed by Immanuel
Wallerstein.
CORE CENTER POWERS

SEMI-PERIPHERAL
COUNTRIES
PERIPHER
Y
• Australia Austria Belgium Canada Denmark
• Finland France Germany Greece Hong Kong
• Iceland Ireland Israel Italy Japan
• Luxembourg Netherlands New Zealand Norway Singapore
• Spain Sweden Switzerland United Kingdom United States
Algeria Argentina Brazil China Egypt

Greece India Indonesia

Iran Malaysia Mexico
Poland Portugal Saudi Arabia Singapore
South Korea Spain Nigeria Taiwan Turkey

Venezuela Zaire
 Bangladesh Benin Bolivia Burkina Faso Burundi
Central African Republic Chad Chile
Congo Gambia Ghana Guinea-Bissau
Haiti Honduras Indonesia Kenya
Lesotho Madagascar
Malawi Mauritania Nepal Niger Nigeria
Papua New Guinea Philippines Rwanda Senegal
Sierra Leone Solomon Islands Sri Lanka Sudan
Togo Zambia
 ACTIVITY
• You are tasked to make a creative presentation based on your
investigation of the countries about the world regions.

A. Short background of country investigated

B. Foreign and economic policies of each country

C. Special features of country investigated