LESSON 7

Why are some countries members of a particular association while others cannot be part of it? Why do you think
the United States is always to the rescue when the Philippines needs help, like Typhoon Yolanda? How does it feel to have
a best friend to your rescue from the International community when problems seem to be so much like this Covid 19?
Why do you think President Duterte is a friend of the Chinese President? What is that friendship for? This modern world
system is structured politically as an interstate system of competing and allying states. Our topic for today is the Global
Interstate System, and it t is the main focus of the field of International Relations. Are you ready?

Global governance or world governance is a movement towards political cooperation among transnational actors,
aimed at negotiating responses to problems that affect more than one state or region.

The global Interstate System is the whole system of human interactions. The modern world-system is structured
politically as an interstate system of competing and allying states. Political Scientists commonly call this the
international system, and it is the main focus of the field of International Relations. Why countries need to be in a good
economic relationship with each other is evident due to interdependence.

Institutions of global governance

1. United Nations – The United Nations is an international organization designed to make the enforcement of
international law, security, and human rights; economic development; and social progress easier for countries
worldwide. The United Nations includes 193 member countries and two permanent observer entities that
cannot vote. The UN Charter sets out four primary purposes: Maintaining worldwide peace and security.
Developing relations among nations. Fostering cooperation between countries in order to solve economic,
social, cultural, or humanitarian international problems

2. World Bank - The International Bank for Reconstruction and Development (IBRD), commonly referred to as
the World Bank, is an international financial institution. The purposes include assisting the development of its
member nation's territories, promoting and supplementing private foreign investment, and promoting
long-range balanced growth in international trade.

3. International Criminal Court of Justice - The International Criminal Court (ICC) is an intergovernmental
organization and international tribunal in The Hague, Netherlands. The ICC has jurisdiction to prosecute
individuals for the international crimes of genocide, crimes against humanity, war crimes, and the crime of
aggression. The establishment of an international tribunal to judge political leaders accused of international
crimes such as the Tokyo-Rome-Berlin Axis that started World War II.

4. World Trade Organization - The World Trade Organization (WTO) is the only international organization
dealing with the global rules of trade. Its primary function is to ensure that trade flows as smoothly,
predictably, and freely as possible. The WTO has six key objectives: (1) to set and enforce rules for
international trade, (2) to provide a forum for negotiating and monitoring further trade liberalization, (3) to
resolve trade disputes, (4) to increase the transparency of decision-making processes, (5) to cooperate with
other major international economic institutions involved in global economic management, and (6) to help
developing countries benefit fully from the global trading system.

5. NAFTA - The North American Free Trade Agreement's purpose is to reduce trading costs, increase business
investment, and help North America be more competitive in the global marketplace. The agreement is between
Canada, the United States, and Mexico.

6. International Monetary Fund - The International Monetary Fund (IMF) is an organization of 189 countries,
working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote
high employment and sustainable economic growth, and reduce poverty worldwide.

7. World Health Organization - The WHO has multiple leadership priorities that include providing access to
universal health care, preventing infectious diseases, and researching factors that affect health. The
Organization's purpose is to direct and coordinate health for its signatory nations, provide leadership and
determine paths for research. WHO's main functions can be summed up as follows: to act as a directing and
coordinating authority on international health work, ensure good and productive technical cooperation, and
promote research—the objective of WHO is the attainment by all peoples of the highest possible level of
health.

8. NATO - The North Atlantic Treaty Organization (NATO)'s essential and enduring purpose is to safeguard the
freedom and security of all its members by political and military means. Collective defense is at the heart of the
Alliance and creates a spirit of solidarity and cohesion among its members. NATO is a formal alliance between
the territories of North American and Europe. Its primary purpose was to defend each other from the possibility
of the communist Soviet Union taking control of their nation from its inception.

These Institutions of global governance (The United Nations, the International Criminal Court, the World Bank, World
Trade Organization, NAFTA, etc.) —tend to have limited or restricted power to enforce compliance.

Global governance involves multiple states, including international organizations, with one state having more lead roles
than the rest. The modern question of world governance exists in globalization and globalizing regimes of power:
politically, economically, and culturally. In response to the acceleration of worldwide interdependence, both between
human societies and between humankind and the biosphere, the term "global governance" may name the process of
designating laws, rules, or regulations intended for a global scale. Global governance is not a singular system. There is
no "world government," but the many different regimes of global governance do have commonalities:
 While the modern system of global political relations is not integrated, the relation between the various regimes of
global governance is not insignificant, and the system does have a common dominant organizational form. The
dominant mode of organization today is bureaucratic rational—regularized, codified and rational. It is common to all
modern political power regimes and frames the transition from classical sovereignty to what is described as the second
regime of sovereignty—liberal international sovereignty.

The term world governance is broadly used to designate all regulations intended for organization and centralization of
human societies on a global scale. The Forum for a new World Governance defines world governance simply as
"collective management of the planet."

Traditionally, the government has been associated with "governing," or political authority, institutions, and, ultimately,
control. Governance denotes a process through which institutions coordinate and control independent social relations
and can enforce their decisions. However, authors like James Rosenau have also used "governance" to denote the
regulation of interdependent relations in the absence of an overarching political authority, such as in the international
system. Some now speak of the development of "global public policy." It shows that No country operates alone, just
like No man is an island. We are all interdependent in this world.

Importance of global interstate system

The most important feature of the interstate system is that it is anarchic. Unlike politics within states, relations between
states take place in a Hobbesian state of nature. Since an anarchic system is one in which all states constantly face
actual or potential threats, their main goal is security.

Purposes of global, interstate system

1. Stimulate economic progress and world trade.
2. Providing a platform to compare policy experiences,
3. Seeking answers to common problems involving member states,
4. Identify good practices and coordinate domestic and international policies of its members

LESSON 7 – MARTIAL LAW

Why are some countries members of a particular association while others cannot be part of it? Why do you think
the United States is always to the rescue when the Philippines needs help, like Typhoon Yolanda? How does it feel to have
a best friend to your rescue from the International community when problems seem to be so much like this Covid 19?
Why do you think President Duterte is a friend of the Chinese President? What is that friendship for? This modern world
system is structured politically as an interstate system of competing and allying states. Our topic for today is the Global
Interstate System, and it t is the main focus of the field of International Relations. Are you ready?

Global governance or world governance is a movement towards political cooperation among transnational actors,
aimed at negotiating responses to problems that affect more than one state or region.

The global Interstate System is the whole system of human interactions. The modern world-system is structured
politically as an interstate system of competing and allying states. Political Scientists commonly call this the
international system, and it is the main focus of the field of International Relations. Why countries need to be in a good
economic relationship with each other is evident due to interdependence.

Institutions of global governance

1. United Nations – The United Nations is an international organization designed to make the enforcement of
international law, security, and human rights; economic development; and social progress easier for countries
worldwide. The United Nations includes 193 member countries and two permanent observer entities that
cannot vote. The UN Charter sets out four primary purposes: Maintaining worldwide peace and security.
Developing relations among nations. Fostering cooperation between countries in order to solve economic,
social, cultural, or humanitarian international problems

2. World Bank - The International Bank for Reconstruction and Development (IBRD), commonly referred to as
the World Bank, is an international financial institution. The purposes include assisting the development of its
member nation's territories, promoting and supplementing private foreign investment, and promoting
long-range balanced growth in international trade.

3. International Criminal Court of Justice - The International Criminal Court (ICC) is an intergovernmental
organization and international tribunal in The Hague, Netherlands. The ICC has jurisdiction to prosecute
individuals for the international crimes of genocide, crimes against humanity, war crimes, and the crime of
aggression. The establishment of an international tribunal to judge political leaders accused of international
crimes such as the Tokyo-Rome-Berlin Axis that started World War II.

4. World Trade Organization - The World Trade Organization (WTO) is the only international organization
dealing with the global rules of trade. Its primary function is to ensure that trade flows as smoothly,
predictably, and freely as possible. The WTO has six key objectives: (1) to set and enforce rules for
international trade, (2) to provide a forum for negotiating and monitoring further trade liberalization, (3) to
resolve trade disputes, (4) to increase the transparency of decision-making processes, (5) to cooperate with
other major international economic institutions involved in global economic management, and (6) to help
developing countries benefit fully from the global trading system.

5. NAFTA - The North American Free Trade Agreement's purpose is to reduce trading costs, increase business
investment, and help North America be more competitive in the global marketplace. The agreement is between
Canada, the United States, and Mexico.
 6. International Monetary Fund - The International Monetary Fund (IMF) is an organization of 189 countries,
working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote
high employment and sustainable economic growth, and reduce poverty worldwide.

7. World Health Organization - The WHO has multiple leadership priorities that include providing access to
universal health care, preventing infectious diseases, and researching factors that affect health. The
Organization's purpose is to direct and coordinate health for its signatory nations, provide leadership and
determine paths for research. WHO's main functions can be summed up as follows: to act as a directing and
coordinating authority on international health work, ensure good and productive technical cooperation, and
promote research—the objective of WHO is the attainment by all peoples of the highest possible level of
health.

8. NATO - The North Atlantic Treaty Organization (NATO)'s essential and enduring purpose is to safeguard the
freedom and security of all its members by political and military means. Collective defense is at the heart of the
Alliance and creates a spirit of solidarity and cohesion among its members. NATO is a formal alliance between
the territories of North American and Europe. Its primary purpose was to defend each other from the possibility
of the communist Soviet Union taking control of their nation from its inception.

These Institutions of global governance (The United Nations, the International Criminal Court, the World Bank, World
Trade Organization, NAFTA, etc.) —tend to have limited or restricted power to enforce compliance.

Global governance involves multiple states, including international organizations, with one state having more lead roles
than the rest. The modern question of world governance exists in globalization and globalizing regimes of power:
politically, economically, and culturally. In response to the acceleration of worldwide interdependence, both between
human societies and between humankind and the biosphere, the term "global governance" may name the process of
designating laws, rules, or regulations intended for a global scale. Global governance is not a singular system. There is
no "world government," but the many different regimes of global governance do have commonalities:

While the modern system of global political relations is not integrated, the relation between the various regimes of
global governance is not insignificant, and the system does have a common dominant organizational form. The
dominant mode of organization today is bureaucratic rational—regularized, codified and rational. It is common to all
modern political power regimes and frames the transition from classical sovereignty to what is described as the second
regime of sovereignty—liberal international sovereignty.

The term world governance is broadly used to designate all regulations intended for organization and centralization of
human societies on a global scale. The Forum for a new World Governance defines world governance simply as
"collective management of the planet."

Traditionally, the government has been associated with "governing," or political authority, institutions, and, ultimately,
control. Governance denotes a process through which institutions coordinate and control independent social relations
and can enforce their decisions. However, authors like James Rosenau have also used "governance" to denote the
regulation of interdependent relations in the absence of an overarching political authority, such as in the international
system. Some now speak of the development of "global public policy." It shows that No country operates alone, just
like No man is an island. We are all interdependent in this world.

Importance of global interstate system

The most important feature of the interstate system is that it is anarchic. Unlike politics within states, relations between
states take place in a Hobbesian state of nature. Since an anarchic system is one in which all states constantly face
actual or potential threats, their main goal is security.

Purposes of global, interstate system

1. Stimulate economic progress and world trade.
2. Providing a platform to compare policy experiences,
3. Seeking answers to common problems involving member states,
4. Identify good practices and coordinate domestic and international policies of its members

How do leaders in the past could be compared to our global leaders today? Let us take a look back at how
the past President of our country ruled the Philippines.

How did President Ferdinand Marcos govern the Philippines?

It was believed that President Marcos ruled the country with his absolute and centralized power, or dictatorship. What is
a dictatorship? What is Martial Law?
Dictatorship - refers to the centralization of power to a single entity. The leader personifies the entire political structure
as/she rules without limitations. Dictatorship is historically related to performing related to war. It is attributed to
expediency and logistic efficiency. It ranges from autocracy to totalitarianism. (Friedrich and Brzenzinski, 1966) (2012
Center for Youth Advocacy and Networking; Friedrich Ebert Stiftung—Philippine Office)
Martial law is the imposition of direct military control of normal civil functions or suspension of civil law by a
government, especially in response to a temporary emergency where civil forces are overwhelmed or in occupied territory.
(en.wikipedia.org.)
Rekindling the Past: Martial Law Days
More than 25 years since the EDSA People Power revolution that ended Martial Rule (1972-81) about 40 years ago,
Filipinos – especially the young – seem to appear confused, misinformed, and indifferent about the terrors of dictatorship
during the martial rule and spirit and symbolism of the people power revolution. The Marcoses are back in power (with
Senator BongBong, Congresswoman Imelda and Governor Imee). A House of Representatives resolution was passed with
193 signatories supporting the burial of the former dictator in the Libingan ng mga Bayani (Heroes’ Cemetery). ( 2012
Center for Youth Advocacy and Networking; Friedrich Ebert Stiftung—Philippine Office)
Declaration of Martial Law
On the evening of September 23, 1972, the late President Ferdinand Marcos appeared on national television to formally
announce that the Philippines was under Martial Law. This began almost ten years of military rule in the country. Marcos
formally ended Martial Law on January 17, 1981. Still, it was not until 1986 when democracy was restored – after the
dictator and his family were forced into exile, overthrown by a popular uprising that came to be known as the People
Power Revolution.
When Marcos signed Proclamation 1081 on September 21, 1972, he cited the communist threat as justification. His diary,
meanwhile, said the proclamation of Martial Law became a "necessity," following the supposed ambush of then defense
secretary Juan Ponce Enrile. There were subsequent reports that said the ambush was staged, with the Official Gazette
citing Enrile's admission in 1986 that it was faked to justify the imposition of Martial Law.
What happened under Martial Law?
Through various general orders, Marcos effectively put the entire government power under the rule of one man: his own.
He was to lead the nation and direct the operation of the whole government. He ordered the armed forces to prevent or
suppress any act of rebellion. Curfew hours were enforced, group assemblies were banned, privately-owned media
facilities were shuttered. Those considered threats to Marcos – such as prominent politicians and members of the media
– were rounded up and arrested by members of the military and the notorious Philippine Constabulary. Some hail the
discipline and supposed order of the New Society, as Marcos called it, and considered that period as among the "best
years" of the Philippines.
Among the myths: that the Philippines enjoyed a golden age under the Marcoses. Various reports and historical accounts
debunk this;. At the same time, infrastructure spending indeed increased during that period, it came at a staggering cost:
plunging the Philippines in billions of dollars in debt. From $8.2 billion in 1977, the country's debt ballooned to $24.4
billion in 1982 – or within just five years. The Marcoses also plundered the country's coffers, with various estimates
putting the amount at between $5 billion to $10 billion.
The Presidential Commission on Good Government, the body, going after the Marcoses' ill-gotten wealth, is still recovering
this money; over the past 30 years, at least P170 billion have been recovered.
Aside from the billions in illegally amassed wealth, human rights abuses were rampant during those days. According to
Amnesty International, about 70,000 people were imprisoned and 34,000 tortured, while 3,240 were killed from 1972 to
1981. During this dark chapter of Philippine history, thousands of people were subject to various forms of torture.
Prisoners were electrocuted, beaten up, and strangled. They were burned with a flat iron or cigars. Water was poured
down their throats, then forced out by beating. Women were stripped naked and raped, various objects forced into their
genitals.
Historian Alfred McCoy wrote about Marcos' elite torture units, whose specialty was psychological torture and humiliation
aside from the physical pain. It has been many years since then, but the victims have not forgotten – especially as the
Marcoses have neither acknowledged their crimes nor made reparations for their sins. At the Supreme Court
hearing on the proposed Marcos burial at the Heroes' Cemetery, victims were asked to speak before the Court to recount
their horrifying ordeals.
President Rodrigo Duterte’s Governance of the Philippines
His Promise of Real Change
On May 10, 2016, Rodrigo Duterte, then seventy-one years old, was elected President, winning 39 percent of the vote in
a five-way race. Charismatic, blunt, and frequently profane, Duterte combined a Dirty Harry persona with a track record
as a successful mayor of Davao City, Mindanao's largest city.
Within weeks of his inauguration as President of the Philippines in June 2016, Rodrigo R. Duterte became the most
internationally known Filipino leader since Ferdinand Marcos, the country's infamous dictator, and Corazon Aquino, the
iconic housewife-turned-president who championed the restoration of democracy in 1986. A great deal of media attention
has been paid to Duterte's murderous war on drugs as well as to his often crass and controversial statements. His
embrace of China and his visceral disdain for the United States have garnered additional attention in foreign policy circles.
He is frequently included in media reports and scholarly articles on the rise of populism globally.
Key Concerns and Priorities
The Duterte government’s top priorities include combating illegal drugs and crime, promoting rapid infrastructure
development, sustaining economic growth and making it more inclusive, enhancing peace and development in Mindanao,
and reorienting the Philippines’ foreign relations. To support these goals, the government has significantly increased
spending on infrastructure, raised the salaries of government employees, expanded existing social development programs,
revived the stalled peace process with the Moro National Liberation Front (MNLF) and the Moro Islamic Liberation Front
(MILF), entered into negotiations with the communist insurgents, and established a closer relationship with China.
Under President Duterte, progress on the political and security front has been mixed. This is largely due to the May 2017
occupation of Marawi City, in Lanao del Sur province, by Islamist extremists affiliated with the self-proclaimed Islamic
State. It took five months of combat operations to regain control over the extensively damaged city for the Philippine
military. In response to the Marawi crisis, Duterte imposed island-wide martial law, which remains in effect. The most
significant accomplishment about Mindanao was the passage of the Bangsamoro Organic Law (BOL) in July 2018. The
BOL translates many of the provisions included in the 2014 peace agreement between the Aquino government and the
MILF. Under the BOL, a new political entity, the Bangsamoro Autonomous Region in Muslim Mindanao, would replace the
current Autonomous Region in Muslim Mindanao. The BOL is an important step forward, but multiple challenges remain,
including possible objections to its constitutionality, a forthcoming plebiscite scheduled for late January and early February
2019, and the actual establishment of the new autonomous entity.
Similarities of President Rodrigo Duterte’s and President Ferdinand Marcos governance
Many Filipinos believe that Ferdinand E. Marcos and Rodrigo R. Duterte have many things in common. They shared the
same insatiable drive for power with the ability to control and destroy democratic institutions to achieve authoritarianism
ultimately.
The varying methods of attaining their goals differ because of the different circumstances of their times. Marcos's swift
and sudden imposition of martial law in September 1972 caught flat-footed millions of Filipinos. In one fell swoop,
decades of democratic experiment abruptly ended. All media outlets were closed down; thousands were arrested and
detained; Congress was padlocked; the Supreme Court was castrated, and the long night of oppression descended upon
our land.
In a democracy, no one is supposed to be penalized for holding and expressing their political beliefs. This latest episode
thus begs the question: are we now under a dictatorship?
Similar strategy: Demobilizing traditional opposition through force
The demobilization of the opposition through force is often the distinguishing mark of a dictatorship. Such demobilization
also happens in democracies, but it is done through illegitimate or duplicitous, coercive means in dictatorships. According
to Mark R. Thompson in his (1995)book The Anti-Marcos Struggle: Personalistic Rule and Democratic Transition in the
Philippines, “Marcos demobilized much of the traditional opposition by abolishing Congress; shuttering pro-opposition
newspapers, radio stations, and television stations; banning demonstrations; and imprisoning many leaders of the
opposition.”
In almost one half of his term, similar developments have taken place: (i) while Duterte has not abolished Congress, he
has captured the legislature through a 'supermajority' in the House of Representatives and the removal and weakening of
opponents in the Senate, (ii) Duterte tried to "shutter" media institutions such as Rappler, ABS-CBN and Inquirer (iii)
Senator de Lima has been in jail for one and a half years and Senator Trillanes’ arrest now seems forthcoming, and (iv)
Duterte’s intervention in the Judiciary has also been revealed in the ouster of Chief Justice Sereno through a quo
warranto. Moreover, just like Marcos, Duterte has been looking to the military and the police as a base of support.
Both Marcos and Duterte also made/make use of "enemies" as mobilizing factors. Communists for Marcos, drug users,
and pushers for Duterte. Consolidating around enemies was/is the way by which these leaders separate/d the grain from
the chaff: those who did/do not acknowledge the (identified) "enemies of the state" are also their (Marcos' and
Duterte's) enemies.
In the regimes between Marcos and Duterte, demobilization of the opposition also happened. Still, it came in capturing
opposition forces hitherto through material inducements and political horse-trading (e.g., pork barrel). What sets Duterte
apart from these regimes and makes him more similar to Marcos is his use of force to quell dissent and mobilize support.
All this has fostered a politics of fear and a culture of violence – exactly what Marcos built and what Duterte is now
rebuilding. In Marcos' time, this kind of politics and culture resulted in more than 70,000 imprisonments, 34,000 torture
victims, and 3,240 deaths (as per Amnesty International). In Duterte's time, the number is just as alarming: more than
20,000 deaths. The dominance of fear and violence makes Duterte's regime a defacto dictatorship – even without the
Marcos-style proclamation of Martial law.
Alexis Romero (Philstar.com) posted on January 16, 2017, the statement made by Chief Presidential Legal Counsel
Salvador Panelo regarding President Duterte from former President Ferdinand Marcos, who placed the Philippines under
Martial Law in 1972 supposedly to curb communist insurgency and other threats. He also mentioned, "There are
safeguards under the present Constitution. "Let us remember that it is very out of the character of President Duterte to
be abusive. That characterizes his service as mayor and as President. He hates abuses," he added.
Chief Presidential Legal Counsel, Salvador Panelo, allayed fears sparked by President Rodrigo Duterte’s recent statement
on martial law, saying it is not within the chief executive’s character to abuse his powers. Panelo stressed that the
President would only declare martial law under certain conditions. He added, "I think the message of the President is
obvious. It is as he said, 'if.' It is when 'if' the situation. He is telling us the reality on the ground. If it becomes virulent
and if it is needed, then it is his duty — constitutional duty to declare martial law."

LESSON 8
Is there anybody here who knows somebody who got more prosperous because of his investment abroad? Is
McDonald's a type of foreign direct investment? How about Starbucks and Jollibee, are these part of foreign direct
investment in other countries? Did you know that even businesses can have daughter companies entirely owned by a
parent company? Today we will be discussing foreign direct investment, its method, types, and examples. Let’s start now.
What Is a Foreign Direct Investment (FDI)?

A foreign direct investment (FDI) is a purchase of an interest in a company by a company or an investor located
outside its borders. Generally, the term is used to describe a business decision to acquire a substantial stake in a foreign
business or buy it outright to expand its operations to a new region. It is not usually used to describe a stock investment
in a foreign company.

● Foreign direct investments (FDI) are substantial investments made by a company into a foreign
concern.
● The investment may involve acquiring a source of materials, expanding a company's footprint, or
developing a global presence.
● As of 2020, the U.S. is second to China in attracting FDI.

How Foreign Direct Investments (FDI) Work

Companies considering a foreign direct investment generally look only at open economies that offer a skilled
workforce and above-average growth prospects for the investor. Light government regulation also tends to be prized.
Foreign direct investment frequently goes beyond capital investment. It may include the provision of management,
technology, and equipment as well.

A key feature of foreign direct investment is that it establishes effective control of the foreign business or
substantial influence over its decision-making. In 2020, foreign direct investment tanked globally due to the COVID-19
pandemic, according to the United Nations Conference on Trade and Development. The total $859 billion global
investment compares with $1.5 trillion the previous year.1
And, China dislodged the U.S. in 2020 as the top draw for total investment, attracting $163 billion compared to
investment in the U.S. of $134 billion.

Special Considerations

Foreign direct investments can be made in various ways, including opening a subsidiary or associate company in a
foreign country, acquiring a controlling interest in an existing foreign company, or utilizing a merger or joint venture with
a foreign company. The threshold for a foreign direct investment that establishes a controlling interest, per the
Organisation of Economic Co-operation and Development (OECD) guidelines, is a minimum 10% ownership stake in a
foreign-based company. That definition is flexible. There are instances in which effective controlling interest in a firm can
be established by acquiring less than 10% of the company's voting shares.3
Types of Foreign Direct Investment

Foreign direct investments are commonly categorized as horizontal, vertical, or conglomerate.

● With a horizontal direct investment, a company establishes the same type of business operation in a foreign
country as it operates in its home country. A U.S.-based cell phone provider buying a chain of phone stores in
China is an example.
● In a vertical investment, a business acquires a complementary business in another country. For example, a U.S.
manufacturer might develop an interest in a foreign company that supplies it with the raw materials it needs.
● In a conglomerate type of foreign direct investment, a company invests in a foreign business unrelated to its core
business. Since the investing company has no prior experience in the foreign company's area of expertise, this
often takes a joint venture.

Examples of Foreign Direct Investments

Foreign direct investments may involve mergers, acquisitions, or retail, services, logistics, or manufacturing
partnerships. They indicate a global strategy for company growth. They also can run into regulatory concerns. U.S.
company Nvidia has announced its acquisition of ARM, a U.K.-based chip designer. In August 2020, the U.K.'s competition
watchdog had announced an investigation into whether the $40 billion deal would reduce competition in industries reliant
on semiconductor chips.4

FDI in China and India

China's economy has been fueled by an influx of FDI targeting the nation's high-tech manufacturing and services.
Meanwhile, relaxed FDI regulations in India now allow 100% foreign direct investment in single-brand retail without
government approval6. The regulatory decision reportedly facilitates Apple's desire to open a physical store in the Indian
market. Thus far, the firm's iPhones had only been available through third-party physical and online retailers.

What Is the Difference Between FDI and FPI?

Foreign portfolio investment (FPI) is the addition of international assets to a company's portfolio, an institutional
investor such as a pension fund, or an individual investor. It is a form of portfolio diversification achieved by purchasing
the stocks or bonds of a foreign company. Foreign direct investment (FDI) requires a substantial investment in a company
based in another country. The outright acquisition of FDI is generally a more significant commitment made to enhance a
company's growth.

Both FPI and FDI are generally welcome, particularly in emerging nations. Notably, FDI involves a greater
responsibility to meet the country's regulations that host the company receiving the investment.

What Are the Advantages and Disadvantages of Foreign Direct Investment (FDI)?

FDI can foster and maintain economic growth, both in the recipient country and in land investing. Developing
countries have encouraged FDI to finance the construction of new infrastructure and the creation of jobs for their local
workers. On the other hand, multinational companies benefit from FDI to expand their footprints into international
markets.

However, a disadvantage of FDI is that it involves the regulation and oversight of multiple governments, leading
to a higher level of political risk.

What Are Some Examples of Foreign Direct Investment (FDI)?

One of the most prominent examples of Foreign Direct Investment (FDI) in the world today is the Chinese
initiative known as One Belt One Road (OBOR). This program sometimes referred to as the Belt and Road initiative,
involves a commitment by China to substantial FDI in a range of infrastructure programs throughout Africa, Asia, and
even parts of Europe. The program is typically funded by Chinese state-owned enterprises and organizations with deep
ties to the Chinese government. Similar programs are undertaken by other nations and international bodies, including
Japan, the United States, and the European Union.
LESSON 9
Anybody here who knows somebody who is so in these times is so much different than the past. Our life has
changed so much in almost all aspects such as transportation, healthcare, crime detection, new jobs, etc. Today we will
be discussing technological Innovation, its methods, types, and effects. Are you guys ready? Let's begin.

TECHNOLOGICAL INNOVATION

Technological Innovation is the process where an organization (or a group of people working outside a structured
organization) embarks on a journey where the importance of technology as a source of Innovation has been identified
as a critical success factor for increased market competitiveness.

Technological innovations comprise new products and processes and significant technological changes of products
and processes. Innovation has been implemented if it has been introduced on the market (product innovation).

Technology is applying scientific knowledge for practical purposes or the branch of knowledge concerned with applied
sciences.
Innovation is evolutionary and is a response to an unsolved problem and unexploited opportunity. It is the effort to
create purposeful, focused change in an enterprise’s economic or social potential.

Creativity and Innovation

1. Creativity involves the use of imagination or original ideas to create something. It is the idea phase. In other
words, creativity is the idea phase, and Innovation is the action phase.

2. Innovation is the act of introducing something new. The word "new" relates to creativity, and the term "act of
introducing' refers to Innovation.

Invention and Innovation

1. Invention is the creation of a new product or service or process; Innovation introduces new product or service or
process into the marketplace.
2. Invention may have economic or non-economic motives. Innovation always has economic reasons. Invention
precedes Innovation follows invention.

3. An invention is based on a new idea that is turned into some conceptual model that demonstrates the feasibility.
Innovation is concerned with developing and implementing new systems, products, or services and is typically based on
an invention.

Why is technology innovation important?

Technology innovation can be a crucial component of any effort to address needs and better serve individuals and
families. This, in turn, encourages experimentation with various IT providers at low cost and low risk, leading to
innovative ways of using technology to deliver healthcare and human services.

Technological Innovation Examples

The innovations include technological inventions such as wind turbines, photovoltaic cells, concentrated solar power,
geothermal energy, ocean wave power, and many other emerging innovations.

20 Examples of Innovative Technology Designs

● SA950 3D MONITOR BY SAMSUNG Wireless Charging Technology From Ecoupled.
● TROMM Styler Clothes Steamer. U-Socket AC and USB Power Outlet.
● Touch Mouse by Microsoft. Lady Gaga's Polaroid Camera Glasses.
● Nomad iPad Paint Brush Stylus. Robot Scooba 230 Floor Washer.

CHANGES DUE TO TECHNOLOGICAL INNOVATION

1. Transportation. Transportation has become faster, like individuals can move rapidly starting with one place and
then the next. In the past, people cannot travel as rapidly as today because of not having enough modern
transportation. This technology allows vehicles to communicate, via wireless radio signals, driving information such as
speed, lane departure, and environment information to other cars on the highway. The potential safety benefits of
these types of advancements are impossible to ignore.

2. Communication. Technology has changed the way people communicate in the modern workplace. Communication
among the employees, management to subordinates, or management to management has become fast, instantaneous,
more deliberate, collaborative, and unified. Speed and Costs. The most significant impact of technology on
communication is the spread of the Internet and the possibility of sending emails and chatting. The Internet has thus
increased the speed of communications manifold and reduced the costs drastically. Communication has changed so
much over the years. From speech to the postal services, there are now telephones, cellphones, computers, and email,
which makes the way we humans communicate extremely easy and fast. Life has been made pretty much easy
because of these inventions.

3. Education. Technological changes in the educational industry have created new ways to teach and to learn.
Technological changes allow teachers to access information on a global scale via the Internet to enhance their lessons.
Likewise, students can use the vast resources of the Internet to enrich their learning experience. Technology positively
affects student engagement, enabling students to retain and learn more information. Many students are more
stimulated and eager to know when interacting with the hands-on learning tools that educational technology provides.

4. Job Creations - Technology also created a host of new positions that never before existed. Think about it:
computing specialists, social media managers, digital marketers, energy engineers, software and app developers, drone
operators, YouTube content creators.

5. Health care - The Most Significant Medical Innovations of the Past 20 Years. Vaccines and Immunization to prevent
outbreaks. Electronic Health Records (EHRs) It is hard to believe in such a modern era, but fewer than 18 percent of
medical providers used electronic health records a mere decade ago. HIV Combined Drug Therapy. Minimally Invasive
Surgery. Needle-Free Injection Technology.

6. Relationships - Technology is often introduced into a social system with the stated intention of making life easier
for people. As it becomes more pervasive in everyday life, the assessment of technology's presence in relationships and
its impact on how humans interact with one another, especially long-distance relationships, is becoming very popular,
giving way to intermarriages between races. Sometimes, people's use of technology can create problems between
romantic partners, potentially stirring conflict and dissatisfaction in the relationship. They also found that younger users
were more likely to report both increased tension and enhanced closeness in their relationships due to technology.

7. Crime Detection - As technology is used to commit more sophisticated crimes, law enforcement officers and those
in the legal system increasingly use tech tools to combat corruption. The criminal justice industry must use
cutting-edge software, tracking systems, and more to keep the public safe and protect human life. Modern marvels
 such as DNA analysis or image enhancement technologies have made forensic science easier in one respect. Forensic
scientists solve for murders and other violent crimes and for chemical attacks, cybercrimes, and any other acts of
violence that come with the modern territory.

TYPES OF INNOVATION

1. Incremental Innovation:

These are small but important improvements in a product, process or service. Such innovations are associated with
enhanced customer satisfaction. Example: Intel Pentium III to Pentium IV LAN to WAN Modular Innovation. These
Innovation do not alter the overall product structure, but change can occur in the component technology. Example:
Change in car engine technology will not change any other features.
2. Architectural Innovation:
These innovations take existing technologies and link new technologies in novel ways; they are built not on new
technological breakthroughs but on integrating competencies, i.e., product structure change with no important effect
on component subsystems. Example: Change of shape of a car with no change in engine. Honda's smaller motorcycles.

3. Radical Innovation:
These innovations are revolutionary. Railroads, electricity, computers, the Internet can be termed as breakthrough
innovations. Railroads changed the way in which goods and people were transported. Electricity changed the way
people lived and used equipment. Computer changed how organizations worked. The Internet transformed how people
communicate, acquire knowledge and do business. Radical innovations are also known as breakthrough innovations
and discontinuous innovations. Example: Digital imaging(polaroid) Quartz movements(watches) Radial tires.

Protests in the Digital Era

The following are images of different widespread mass protests worldwide—from the Arab Spring; Black Lives Matter,
#MeToo Movement, Youth Climate Strike to our very own 1986 People Power Revolution. Why do people protest? What
significant issues do you know that people are protesting about? Have you ever joined a protest?

Does sharing posts online count as a protest? Is protesting easier today than in the past? Why are protests an essential
part of democracies, and how has it changed—for better or worse—in the Digital Era? Read Article III of the Bill of
Rights, Section 4 of the 1987 Constitution of the Philippines: “No law shall be passed abridging the freedom of speech,
of expression, or of the press, or the right of the people peaceably to assemble and petition the government for a
redress of grievances."

The constitutional guarantee serves as the foundation for

the many freedoms or civil liberties that we enjoy as citizens of a democracy. Another way to look at it is these civil
liberties are what we ought to claim, preserve and fight for so that democracy remains vigorous and vibrant. This is
why people protest—because it is both their right (as part of their freedom of expression) and their responsibility (to
shape the public discourse and the society).

LESSON 10 - QUIZ
LESSON 11
Anybody here who knows someone who is selling anything and earns money from markups? Why do you think
sellers never stop selling? Why (SRP) suggested that the government impose retail prices or price ceilings for certain
commodities in times of calamity? Can you sell anything in the market? All of these things can be answered in our lesson
today. Our topic is about Economic systems. Ready? Let’s start!

What is an economic system?

An economic system, or economic order, is a system of production, resource allocation, and distribution of goods
and services within a society or a given geographic area. It includes the combination of the various institutions,
agencies, entities, decision-making processes, and consumption patterns that comprise a given community's economic
structure.
An economic system organizes the distribution and exchange of a country's goods, resources, and services. From
an economics perspective, a financial system regulates various economic issues, including production, the supply of
capital and labor, and all other physical resources.

Basic economic questions

As such, an economic system is a type of social system. The mode of production is a related concept. All economic
systems have basic questions: what to produce, how to create and in what quantities, and who receives the production
output. Four basic questions that a society needs to answer.

1. What to produce, in other words, which essential products and services and which enjoyable but optional
products and services should an economy have to ensure the subsistence of a population and the happiness of
that population.

2. How to produce goods and services, and how much of these goods to make. Produce too much, and there is a
waste, create too little, and the cost of production rises.

3. Whom to produce? There's also the question of what is allocated on the production: those who can afford it
most, or those who need it most?

4. How economic systems must cope with change. Even when the factors of production and the distribution of
output have been settled, economic systems eventually change. The way a financial plan is governed also
 determines how it copes with change. Economic change can result in some economic participants being worse
off, and an economy should help participants equalize inequalities over time.

Economic systems can be very government-driven and highly regulated or more dependent on private operators and
lightly regulated. Many agencies, government entities and institutions, and various regulations are involved in an
economic system. Overall, financial systems are complex and need continuous intervention to ensure smooth
functioning.

What are the four main types of economic systems?

There are four primary types of economic systems: traditional, command, market, and mixed. Each economy has its
strengths and weaknesses, its sub-economies and tendencies, and, of course, a troubled history.

The Traditional Economic System

The most basic of all the economic types and in practice since ancient times, the traditional financial system involves
very little division of labor (in other words, individuals specializing in producing specific goods) and very little in the way
of economic governance.

Characteristics of a Traditional Economy

1. Traditional economies are often based on one or a few of agriculture, hunting, fishing, and gathering.
2. Barter and trade are often used in place of money.
3. There is rarely a surplus produced.
4. Often, people in a traditional economy live in families or tribes.

Advantages of a Traditional Economy

1. Traditional economies produce no industrial pollution and keep their living environment clean.
2. Traditional economies only produce and take what they need,
3. So there is no waste or inefficiencies involved in creating the goods required to survive as a community.

Disadvantages of Traditional Economy

1. It isolates the people within that economy.
2. Large outside economies can overwhelm a traditional economy. ...
3. It offers very few choices, and they can only have whatever they produce in the area.
4. There may be a lower overall quality of life.
5. It creates specific health risks, like malnutrition, diseases.
6. Unpredictability creates survival uncertainties.

The Command Economic System

A more advanced economic system compared to the traditional financial system, the command economic system
involves planning from a centralized point, either a local government or indeed the national government, as under
communist rule.

Nonetheless, some people would argue that the command economy has advantages in that the government can better
control supply and demand than the market can. The idea is that a command economy can lead to lower prices for the
public while also ensuring an ongoing, plentiful supply of jobs for the population.

Command Economy Characteristics

1. Government is in control of the pricing of goods and services by central economic planning.
2. The government owns all the factors and means of production.
3. The government makes all decisions for finances in the country, may even assign people jobs.
4. Social equality is the essential feature of a command economy. No one is rich or poor.

Advantages: Low levels of inequality and unemployment, and the common good replacing profit as the primary
incentive of production.
Disadvantages: include lack of competition and lack of efficiency.

The Market Economic System

A market economy is a system where the laws of supply and demand direct goods and services. (1). Supply includes
natural resources, capital, and labor. (2) Demand includes purchases by consumers, businesses, and the government.
Businesses sell their wares at the highest price consumers will pay

Market forces control the economy.

1. Consumers are deciding whether to buy a good at a specific price, wait before buying it, or never buy a market
force. They want lower prices of commodities.
2. Businesses pricing products to create maximum profit, taking into account consumer demand, is another
market force. They produce more if consumers buy more.

Advantages of a Market Economy

1. Competition leads to efficiency because businesses that have fewer costs are more competitive and make
more money.
2. Innovation is encouraged because it provides a competitive edge and increases the chance for wealth.

Disadvantages of a Free Market Economy

1. Factors of Production is not employed if it is not profitable.

 2. The market system may not produce certain goods and services.
3. The free market may encourage harmful goods.
4. Production may lead to negative externalities.
5. A free market economy may increase the gap between the rich and the poor.
6. Unemployment and Inequality.

The Mixed Economic System

Traditional economic systems are incapable of dealing with the advanced requirements of a developed society, but
there are arguments for and against both the market and command economies. This is why the mixed economic
system emerged, a mix between the command economy and the market economy.

Mixed economy
A mixed economy is an economic system combining private and public enterprises. A mixed economic system is a
system that combines aspects of both market and command. A mixed economic system protects personal property and
allows a level of economic freedom in the use of capital, but also allows for governments to interfere in economic
activities to achieve social aims

Characteristics of mixed economy:

1. Co-existence of the Private and Public Sectors- minor industries for the people and major industries belong to
the state such as Expressways, LRT/MRT and Dams, National Power Corporation, etc.
2. Existence of Joint Sectors like Public and private, both private companies
3. Regulation of Private Sector such as price control and declared illegal products.
4. Planned Economy – the businessmen decide what to produce, how much
5. Private Property – individuals can have own properties as long as he can have the means to buy
6. Provision of Social Security – benefits and insurances returns upon retirement
7. The motive of Business Concerns – profit maximization, market share, survival in the market
8. Reduction of Inequalities of Income and Wealth – all are given the chance to participate in wealth
accumulation.

Advantage: A mixed economy permits private participation in production, which in return allows healthy competition
that can result in profit. It also contributes to public ownership in manufacturing, which can address social welfare
needs.

The disadvantage of mixed economies: is that they tend to lean more toward government control and less toward
individual freedoms. Sometimes, government regulation requirements may cost a company so much that it puts it out
of business. In addition, unsuccessful regulations may paralyze features of production.

Which is the best economic system?

The way an economic system function has a massive effect on the daily lives of the citizens of a country. For these
citizens to live in an environment that supports personal sustenance and personal growth is essential, and there are
many arguments for and against all economic systems.

Perhaps the best argument is for an economic system that provides enough incentive for innovation and growth and
considers the needs and desires of all economic factors rather than just those responsible for growth and innovation.

Inevitably it is a balancing act, with no absolute implementation of an economic system serving the needs of society
well. Exactly where this balance lies, however, is up to citizens. This is why there is a modest variation in economic
systems around the world and perhaps why the world's economy effectively operates a mixed economic system.

LESSON 12
Anyone here who lives in a mansion? Or living in style and always dining out? Why do we need to turn off the lights
when not in use? Why are some people so conscious of their energy consumption/expenditures? Did you waste your food
often? Do you have a vegetable garden in your backyard? How long do you take a bath, and how many gallons of water
you wasted? Did you put your garbage in bins, or did you throw it anywhere? Did you know that the Earth we live in is
breaking before our eyes? Why? It is because people were careless and do everything to pollute the environment. Here
we go. Our topic for today is about a Sustainable world: Sustainable Development. Are you ready? Let’s start now,

A sustainable world is the outcome of the different development strategies and program implementation that will
keep the world in existence over a long time.

Significant factors, such as human population size, biosphere robustness, resource stock, food supply, and
environmental quality, must remain in balance globally. This state of the balance must last long enough so that it will
not be merely a blip on the curve of unsustainable growth. Even though we might not attain that balance, we must
move in that direction if humanity and the ecosystem survive.

Sustainability is living to minimize humans' negative impact on the earth and the animals and plants we share it with.
Making sustainable choices is a means to preserve the world and tackle climate change for future generations to come.

Because the Earth is a closed system, a sustainable world is not compatible with extreme extravagance and
expenditures of natural resources. Activities that promote polluting the land, water and air in environment.

Sustainable development, in the dictionary, is economic development that is conducted without depletion of natural
resources. However, it applies to and can be incorporated into everything we do. Its application spans from growing
food, sourcing product materials, operating a business to building societal infrastructure and how we live individually
and as a society.

What is sustainable development according to some experts?

1. Carey Kennedy, Landscape Architect, organic gardener/farmer (1996-present) September 14, 2019
“Sustainable world is one where the inputs and outputs balance. Right now, we generate millions of tons of waste that
pollute our environment. We need ways where all outputs are recycled back into the system, becoming beneficial. It's a
world where toxic outputs can be dealt with in a way where they aren't harmful to anything or anyone."

2. Shashikant Nishant Sharma, Expert of Urban and Regional Planning. September 30, 2018
"Sustainable development means using the natural resource for developmental processes and conserving it for future
generations. It has two objectives:
(1) Resource planning should be done for the judicious use of the resource.
(2) Harm to the environment should be least.”

3. (UN Brundtland Commission). “Sustainable development is the development that meets the needs of the
present without compromising the ability of future generations to meet their own needs.”

Example: Environmental sustainability is the rate of renewable resource harvest, pollution creation, and
non-renewable resource depletion that can be continued indefinitely. We're consuming more natural resources than
nature itself can reproduce, some of which are non-renewable. We are also causing irreparable damage to our
environment due to our high level of consumption.

Facts to think about:

● On average, each person produces about 4.3 pounds of garbage each day
● Garbage could take up to 100-400 years to decompose, primarily if you used disposable things.
● 300 million tons of plastic are produced each year globally, with only about 10% of that being recycled
● 16 billion pounds of waste are dumped into oceans each year
● 35 billion barrels of oil are burned worldwide each year (2016 statistic)
● Waste can cause land, air, and water pollution, produce harmful gases, and cause respiratory problems in
people around the world, and it's a threat to public health.
● Forest is the lungs of the earth, it gives oxygen to make the air breathable, but illegal logging is on.
● While the United States makes up 5% of the world's population, it uses 25% of its resources. Note that
economic development in isolation of social and ecological development has not increased the quality of life of
US citizens in the last 45 years.

Here are some top areas you will want to familiarize yourself with and ponder what you can do to make a difference.

1. Climate change - contributes to global warming. Summers get so hot, and it kills people of heatstroke. With
this, planting trees and vegetable lessen the heat.
2. Energy consumption - curve our energy consumption and find better ways to create energy (solar, wind,
water, etc. ). Air conditioners should be used moderately and wisely.

3. Sustainable sourcing - sourcing local and buy local helps the farmers to plant and grow more.
4. Waste production must be kept to a minimal environmental footprint - focus on recycling versus constant
trips to a local landfill. Reduce consumption, Reuse products, and recycle things.

Green Living Tips -It's difficult for people to change their lifestyle completely, but here are some effortless "green
living" tips you can incorporate into your every day that you won't notice, but the environment will.

1. Reduce energy consumption by turning off lights and electronics when not in use. Install high-efficiency
LED Light bulbs. Wash clothes in cold water. Use a drying rack to dry your clothes. Insulate your home to
increase your home's heating and cooling efficiency—downsized everything.
2. Purchase reusable water bottles, Buy a water filter, and don't drink bottled water. This will cut down
dramatically on plastic waste.
3. Save water by taking shorter showers, use faucet aerators, install high-efficiency toilets, washing machines,
and dishwashers.
4. Make your cleaning supplies with non-toxic items. Baking soda, vinegar, and lemon are among popular
ingredients that can be used to clean countertops to toilet bowls, to your washing machine.
5. Buy reused items if possible and refurbish older items such as furniture, clothing, and appliances.
6. Eat less meat and buy locally made products.
7. Walk, bike, or take public transit to work to reduce your fuel costs and impact on the environment.
8. Donate used items you don’t need to local non-profits.
9. Recycle as much as possible. Local municipalities have recycling programs to support the reuse of plastic,
paper, appliances, and more. Contact your local government or go online to learn about the recycling options in
your area.

Ways to Achieve Sustainable Development

Sustainable Development is an increase in quality of life within a community between two points in time, using the
skills of the population and the ecological services from the landmass it manages in a manner that can be maintained
in perpetuity. It is accomplished through a combination of :
1. Technological Development is the creation or enhancement of systems of infrastructure with an
expectation of an increase in the efficiency that people can use their time to convert resources into the means
to meet their wants and needs, such that it will increase the quality of life of a community and,
 2. Human Development is the identification and removal of the obstructions within the self, family, or
community that prevent people from being able to meet their needs, and by so doing, increase the freedoms,
choices, and capabilities of the population.

Advantages can be achieved in the long run.

1. It allows the next generation of people to have access to a better quality of life for the community.
2. It makes life meaningful and worth living for us. Imagine if we can reduce the number of greenhouse gases in
the air, this will lessen the effect on the ozone layer and the resulting climatic disasters. Maybe then we will
have to face less heat globally.
3. With sustainable development, we can feed a hungry world and sustain and save quality aquatic floral and
fauna life.
4. Sustainable development also teaches us to be responsible. Don't throw plastics in the ocean, don't burn
openly, don't throw wastes in drainages, don't waste food. All this means we're taking charge of our lives. And
in the end, it is all to our benefit.
5. Sustainable development also helps us cut down costs and reduce waste. You don't buy what you don't need.
You don't order for an amount of food you can't exhaust.

Disadvantages are in the concise term - one has to pay for the investment in whatever before the returns start
coming in. It may take years for the investment to have paid itself off in full.

1. The satisfaction of human needs and aspirations in the major objective of development. The essential needs of
many people in developing countries for food, clothing, shelter, jobs - are not being met. Beyond their basic
needs, these people have legitimate aspirations for an improved quality of life.
2. A world in which poverty and inequity are endemic will always be prone to ecological and other crises.
Sustainable development requires meeting the basic needs of all and extending to all the opportunity to satisfy
their aspirations for a better life.

3. Living standards that go beyond the basic minimum are sustainable only if consumption standards everywhere
regard long-term sustainability. Yet many of us live beyond the world's ecological means, for instance, in our
energy use patterns.

4. Perceived needs are socially and culturally determined, and sustainable development requires the promotion of
values that encourage consumption standards within the bounds of the ecological possible and to which all can
reasonably aspire.

5. Meeting essential needs depends in part on achieving full growth potential. High levels of productive activity
and widespread poverty can coexist and can endanger the environment. Hence, sustainable development
requires that societies meet human needs by increasing productive potential and ensuring equitable
opportunities for all.

Current Trend for Sustainable living:

Minimalist Lifestyle. Today, many people have realized living in a big house is so expensive in space and energy
requirements. The solution they found is downsizing everything except for the essentials. Living with the bare minimum
is now the trend to prevent mortgages and enormous taxes for real properties. They were saving more money for
needs and the future. Aside from the peace of mind that no huge bills are coming to every end of the month, make life
more sustainable in the long run. What are three reasons people choose to buy a tiny house? Here are five of the best
reasons to buy a tiny house!

1. Get all the charm of a full-sized home In a fraction of the space of a home and garden.
2. You can buy a tiny house for less than the cost of a whole house, more savings.
3. You'll save on energy costs because the space is so cute and does not require much energy. It is sometimes
built off the grid or sustained by solar panels.
4. A minimalist lifestyle is mentally beneficial because you save yourself from stress coming with bills.
5. Tiny homes are customizable depending on style and how many members of the family.
6. It can be built on wheels saving more money for trips and hotel accommodations for people who go places for
their work.

Sources: Living Big In A Tiny House www.livingbiginatinyhouse.com/

LESSON 13
Alright again, is there anyone here who has lots of food at home and you find it so tiring to eat every time you
want food? How do you feel about people who are so obese or so slim? How does it feel about raising your food and
eating something fresh from the vine? Why is goat raising an excellent source of food production without any costs at all?
These things have something to do with our topic today, which is Food Security? Let’s read the text below.
What is meant by global food security?

Food security; as defined by the United Nations' Committee on World Food Security; means that all people, at all
times, have physical, social, and economic access to sufficient, safe, and nutritious food that meets their food
preferences and dietary needs for an active and healthy life.

Household food security exists when all members, at all times, have access to enough food for an active, healthy life.
Individuals who are food secure do not live in hunger or fear of starvation.

Importance of Global Food Security

1. Food insecurity – often rooted in poverty.
 2. Poverty decreases the ability of countries to develop their agricultural markets and economies.
3. Access to quality, nutritious food is fundamental to human existence
4. Increased global security and stability. Improved health and healthcare.

Why is food security a global issue?

People need to have sufficient incomes and resources to obtain food. But with proper nutrition, sanitation, and hygiene,
many diseases-especially those caused by food and waterborne contaminants-are less likely to occur. Food security is
an issue both globally and at home in the United States. The 1996 World Summit on Food Security declared that "food
should not be used as an instrument for political and economic pressure".

Pillars of food security

Growth of World Food Supply (caloric base) per capita. The WHO states that three pillars determine food security:
food availability, food access, and food use and misuse. The FAO adds a fourth pillar: the stability of the first three
dimensions of food security over time. In 2009, the World Summit on Food Security stated that the "four pillars of food
security are availability, access, utilization, and stability".

1. Food Availability
Food availability relates to the supply of food through production, distribution, and exchange. Enough nutritious food of
sufficient quality needs to be available to people for their consumption. Availability can be affected by: Production,
distribution, and exchange.

Production: how much and what types of food are available through produced and storage locally. Crop production is
affected by rainfall, land use, management, harvesting, etc. Not all countries can have food like Japan and Singapore.

Goats are an essential part of global food security because they are relatively low-maintenance and easy to raise and
farm.

Distribution: how is food made available (physically moved), in what form, when, and to whom. It also involves
storing, processing, transport, packaging, and marketing foods.
Exchange: how much available food can be obtained through exchange mechanisms such as barter, trade, purchase,
or loans. The exchange of food requires efficient trading systems and market institutions, which can affect food
security. Per capita world food supplies are more than adequate to provide food security to all, and thus food
accessibility is a greater barrier to achieving food security.

2. Food Access
Food access refers to the affordability and allocation of food and the preferences of individuals and households.

Individuals and households must acquire sufficient food to eat a healthy, nutritious diet or have access to adequate
resources needed to grow their food (e.g., land). Food access can be (1.) Direct access – producing your food and (2)
Economic access – buying your food from suppliers. Access can be affected by:

Affordability is the ability of individuals, households, or communities to afford the price of food or land for producing
food relative to their incomes. Location can affect access to food and which type of access a family will rely on. A
household's assets, including payment, land, products of labor, inheritances, and gifts, can determine a household's
access to food.

The UN Committee on Economic, Social, and Cultural Rights noted that the causes of hunger and malnutrition are often
not a scarcity of food but an inability to access available food, usually due to poverty. Poverty can limit access to food
and increase how vulnerable an individual or household is to food price spikes.

Allocation: the economic, social, and political mechanisms are governing when, where, and how food can be accessed
by consumers and on what terms. For example, food may be unequally allocated according to age and gender within
households.

Preference: social, religious, and cultural norms and values that influence consumer demand for certain types of food
(e.g., religious prohibitions or the desire to follow a specific dietary pattern such as vegetarianism, weight management
sets aside a specific group of foodstuffs).

The USDA adds that access to food must be available in socially acceptable ways, without, for example, resorting to
emergency food supplies, scavenging, stealing, or other coping strategies.

3. Food utilization. People must have access to a sufficient quantity and diversity of foods to meet their nutritional
needs and must also eat and properly metabolize such food. Utilization can be affected by:

Nutritional value: the nutritional value provided by the foods that are consumed, as measured in calories, vitamins,
protein, and various micronutrients (e.g. iron, iodine, vitamin A). Education about nutrition and food preparation can
affect food utilization and improve this pillar of food security.
Health status: Access to healthcare is another determinant of food utilization since the health of individuals controls
how the food is metabolized. For example, intestinal parasites can take nutrients from the body and decrease food
utilization. Sanitation can also reduce the occurrence and spread of diseases that can affect food utilization.
Food safety: Food safety affects food utilization and can be affected by the food preparation, processing, and cooking
in the community and household. Nutritional values of the family determine food choice and access to food free from
food spoilage or toxic contamination introduced during the production, processing, packaging, distribution, or
marketing of food; and from food-borne diseases such as salmonella.
Preparation and consumption: Sanitation and hygiene are essential in food preparation. The resources (e.g.
cooking tools and fuel), knowledge and ability to prepare and consume food in a healthy and hygienic way.
Food Stability
Food stability refers to the ability to obtain adequate food over time. Food may be available and accessible to all people
at all times. Access, Availability, and utilization should be stable over time.

“All people at all times” is integral to the definition of food security and is the key to achieving national or global food
security objectives.

Stability describes the temporal dimension of food and nutrition security, the time frame over which food and nutrition
security are being considered. Stability is given when the supply on the household level remains constant during the
year and in the long term. Food stability is affected by:

The concept of stability can therefore refer to both the availability and access dimensions of food security. People
should not risk losing access to food due to sudden shocks ( e.g., economic or climatic crisis) or cyclical events such as
seasonal food insecurity.

Buffer stock - A buffer stock is a system or scheme which buys and stores stocks at times of good harvests to
prevent prices falling below a target range (or price level) and releases stocks during bad harvests to avoid prices rising
above a target range (or price level). A buffer stock scheme attempts to use commodity storage to stabilize prices in an
entire economy or an individual market. Specifically, commodities are bought when a surplus exists in the economy,
stored, and sold from these stores when economic shortages occur.

Public distribution system - is a government-sponsored chain of shops entrusted with distributing basic food and
non-food commodities to the needy sections of the society at very low prices.
Advantages are: (1) It has helped in stabilizing food prices and making food available to consumers at affordable
prices.(2)It has helped in avoiding hunger and famine by supplying food from surplus regions of the country to
deficient regions are the two important components of food security system in a state.

How can food security be assessed?

The state of food security varies over a range of scales, ranging from the individual to global. Even where food security
is present at a particular individual or household level, it may not be so regional. Conversely, while a nation or region
may be generally considered food secure, certain (groups of), individuals may still suffer from food insecurity.

Food Insecurity - Food insecurity, on the other hand, is defined by the United States Department of Agriculture
(USDA) as a situation of "limited or uncertain availability of nutritionally adequate and safe foods or limited or uncertain
ability to acquire acceptable foods in socially acceptable ways
."
Their frequency or duration can also distinguish types of food insecurity:

1. Chronic food insecurity. A long-term and persistent condition of food insecurity. A population suffers from chronic
food insecurity when it cannot meet minimum food consumption requirements for extended periods (approximately six
months of the year or longer). Chronic (or permanent) food insecurity is defined as the long-term, persistent lack of
adequate food. In this case, households are constantly at risk of being unable to acquire food to meet the needs of all
members
2. Transitory food insecurity. A short-term and temporary condition of food insecurity. A population suffers from
transitory food insecurity when there is a sudden drop in the ability to produce or access sufficient food for a healthy
nutritional status (e.g., after a period of drought or as a result of the conflict).

3. Seasonal food insecurity. A condition of food insecurity that reoccurs predictably, following the cyclical pattern of
seasons.

Measuring food (in)security

No single tool can account for all dimensions of food security. However, one useful method for measuring food
insecurity on an individual level is the FAO's Food Insecurity Experience Scale, which is based on the following eight
questions. During the last 12 months, was there a time when, because of lack of money or other resources:
1. You were worried you would not have enough food to eat?
2. You were unable to eat healthy and nutritious food?
3. You ate only a few kinds of foods?
4. You had to skip a meal?
5. You ate less than you thought you should?
6. Your household ran out of food?
7. You were hungry but did not eat?
8. You went without eating for a whole day?

These questions compose a scale that covers a range of severity of food insecurity from mild to severe.

Figure 3: A scale to measure food insecurity based on the Food Insecurity Experience Scale.
Adapted from FAO, n.d.
Effects of food insecurity

1. Famine and hunger are both rooted in food insecurity. Chronic food insecurity translates into a high degree of
vulnerability to famine and hunger; ensuring food security presupposes elimination of that vulnerability.
2. Stunting and chronic nutritional deficiencies among children with symptoms of low calorie and low protein
intake results to decreasing body size (stunted growth). This process starts in utero if the mother is
malnourished and continues through approximately the third year of life. It leads to higher infant and child
mortality, but at rates far lower than during famines. Once stunting has occurred, improved nutritional intake
after about two years is unable to reverse the damage.
3. Premature failure of vital organs during adulthood. For example, a 50-year-old individual might die of heart
failure because his/her heart suffered structural defects during early development; Stunted individuals suffer a
higher rate of disease and illness than those who have not undergone stunting;
4. Severe malnutrition in early childhood often leads to defects in cognitive development.[62] It, therefore,
creates disparity among children who did not experience severe malnutrition and those who share it.
5. Depression, anxiety, and sleep disorders - A recent comprehensive systematic review showed that over 50
studies have shown that food insecurity is strongly associated with a higher risk of depression, anxiety, and
sleep disorders.[63] For depression and anxiety, food-insecure individuals have almost a threefold risk increase
compared to food-secure individuals.