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Lesson 3 Economic Globalization, Poverty, and Inequality

This document discusses economic globalization, poverty, and inequality through multiple perspectives. It begins by quoting Hans Rolling saying that the poorest billion suffer from globalization deficiency but being left out of globalization is worse. It then discusses the multiplier effect where increasing one economic activity can increase others. It also quotes Muhammad Yunus saying poor entrepreneurs lack opportunities to turn their creativity into sustainable income. It defines wealth and income inequality and discusses how the industrial revolution increased gaps between rich and poor nations. It profiles economists like Branko Milanovic and Richard Freeman who have studied these topics. Finally, it discusses concepts like the global city, the global South, and challenges cities face from globalization.

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Carlo Magcamit
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3K views13 pages

Lesson 3 Economic Globalization, Poverty, and Inequality

This document discusses economic globalization, poverty, and inequality through multiple perspectives. It begins by quoting Hans Rolling saying that the poorest billion suffer from globalization deficiency but being left out of globalization is worse. It then discusses the multiplier effect where increasing one economic activity can increase others. It also quotes Muhammad Yunus saying poor entrepreneurs lack opportunities to turn their creativity into sustainable income. It defines wealth and income inequality and discusses how the industrial revolution increased gaps between rich and poor nations. It profiles economists like Branko Milanovic and Richard Freeman who have studied these topics. Finally, it discusses concepts like the global city, the global South, and challenges cities face from globalization.

Uploaded by

Carlo Magcamit
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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ECONOMIC GLOBALIZATION,

POVERTY, AND
INEQUALITY
CHAPTER II: GLOBAL ECONOMY
ECONOMIC GLOBALIZATION, POVERTY,
AND INEQUALITY

“The 1 to 2 billion poorest in the world who don’t have food


for the day suffer from the worst disease, globalization deficiency.
The way globalization is occurring could be much better, but the
worst thing is not being part of it.”
-Hans Rolling
ECONOMIC GLOBALIZATION, POVERTY,
AND INEQUALITY

• Multiplier Effect
An increase in one economic activity can lead to an
increase in other economic activities.
ECONOMIC GLOBALIZATION, POVERTY,
AND INEQUALITY

“In my experience, poor people are the worlds greatest


entrepreneurs. Every day they must innovate in order to survive.
They remain poor because they do not have the opportunities to
turn their creativity into sustainable income.”
-Muhammad Yunus
GLOBAL INCOME
INEQUALITY
Two main types of economic inequality:
1. Wealth Inequality
2. Income Inequality
GLOBAL INCOME
INEQUALITY
Wealth Inequality
 Wealth refers to the net worth of a country. It takes into account all
the assets of a nation—may they be natural, physical, and human—
less the liabilities. In other words, wealth is the abundance of
resources in a specific country. This means that wealth inequality
speaks about distribution of assets. However, there is no widely
recognized, monetary measure that sums up these assets.
GLOBAL INCOME
INEQUALITY
In order to measure global economic inequality, economists
usually look at income using the Gross Domestic Product (GDP).
Income is the new earnings that are constantly being added to the
pile of a country’s wealth. When we talk about income inequality,
we mean that new earnings are being distributed; it values the flow
of goods and services, not a stock of assets.
“ECONOMIC BIG BANG”

Industrial Revolution caused the


differences among countries. Through
this “explosion” of industry and modern
technology, some nations became
economically developed while others
were developing. Ultimately, the result is Branko Milanovic
the economic gap among countries. The  Serbian-American economist.
gap between the richest and the poorest  He is most known for his work on 
nations are greater today than in the past. income distribution and inequality
RICHARD FREEMAN

“The triumph of globalization


and market capitalism has
improved living standards for
billions while concentrating
billions among the few.”
 The Herbert Ascherman Professor of Economics at Harvard University
 and Co-Director of the Labor and Worklife Program at 
Harvard Law School.
 Freeman is also Senior Research Fellow on Labour Markets at the
Centre for Economic Performance, part of the 
London School of Economics, funded by the 
Economic and Social Research Council, the UK's public body funding
social science.
THE THIRD WORLD AND THE GLOBAL
SOUTH
Deconstructing First, Second, and Third World (watch video:
“Third World vs First World Countries – What’s the
Difference?”)
THE GLOBAL CITY
Sassen (1991) used the concept of global cities to describe the three urban
centers of New York, London, and Tokyo as economic centers that exert
control over the world’s political economy. World cities are categorized as
such based on the global reach of organizations found in them. Not only are
there inequalities between these cities, there also exists inequalities within
each city. Alternatively, following Castells (2000), these cities can be seen
as important nodes in a variety of global networks.
THE GLOBAL CITY

Although cities are major beneficiaries of globalization,


Bauman (2003) claimed that they are also the most severely
affected by global problems. Therefore, the city faces peculiar
political problems and “local politics has become hopelessly
overloaded”.
ACTIVITY 3: ARGUMENTATIVE ESSAY

DIRECTIONS: Write a 3 paragraph argumentative essay based


on the statement, “Global free trade has done more harm than
good.”

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