THE GLOBAL DIVIDE:

The Global North (First World)

 The First World was the
allied powers of western
Europe and North
America, including of
course, their allies.
Generally, the Global
North is comprised of
countries which have
developed economies.
 considered as the most
affluent and
economically stable
countries in the world

Group of Eight(also known

as the G8) and the permanent
members of the United
Nations Security Council
(also known as the Permanent
Five, Big Five or P5).

 The G8 or the eight

highly industrialized
nations came from the
North namely, France,
Germany, Italy, the
United Kingdom, the
United States,
Canada,Russia, with the exception of Japan;
 the permanent members of the United Nations Security Council
(also known as the Permanent Five, Big Five, or P5) are the five states
which the UN Charter of 1945 grants a permanent seat in the UN
Security Council include: China (formerly the Republic of China),
France, Russia (formerly the Soviet Union), the United
Kingdom, and the United States.
 The Global North also includes the Four Asian Tigers namely: Hong
Kong, Singapore, South Korea and Taiwan, as well as Australia
and New Zealand (as mentioned previously. Mostly, it covers the
West, along with much of the Second World.
Basis for this classification:
 country’s economic development
 advancements in technology
 improvement in living standards
 life expectancy
 levels of education
 poverty rate
 employment rate
 transition from an agricultural economy to an industrial one

The Global South (Third World Countries)

 It was actually defined as all those states that did not involve
themselves in the Cold War conflict of ideologies.
 This loose conglomeration of countries included most of Africa, almost
all of Central and South America, most of the Baltic States and the
Middle East, most of the southern Asian countries from Afghanistan
to Thailand as well as most of the island nations between Australia
and southern Asia.
 term ‘Third World’ is almost exclusively used to refer to countries with
lots of poverty and very little economic or industrial development.
 Less Economically Developed Countries (LEDCs) because their Gross
Domestic Product (GDP), Human Development Index (HDI), and the
general standard of living are deemed inferior to that of countries in
the North.
 The Global South is described as the poorer part of the world that lacks
appropriate technology, has no political stability, whose prices are
fluctuating, economies are unyielding and whose foreign exchange
earnings are primarily dependent on export products to the North.
 Another common characteristic of the countries in the South is the
very high population rate that lack of basic amenities.
 The Global South comprises the 3/4 of the world populations that has
access to only 1/5 of the world income. Some examples of these
countries include Somalia,Botswana, Sumatra, Sudan, Vietnam,
Haiti and India.

KEY DIFFERENCES BETWEEN THE GLOBAL DIVIDES:

The following are the major differences between the Global North and the
Global South:
1. The countries which are independent and prosperous are known as Global
North (Developed Countries). The countries which are facing the beginning of
industrialization are called (Developing Countries).
2. The Global North have a high per capita income and GDP as compared to
the countries in the Global South.
3. Countries in the North have literacy rate that is high. Conversely, illiteracy
rate is high in the South.
4. The Global North have good infrastructure and a better environment in
terms of health and safety, which are absent in the Global South.
5. The first world countries generate revenue from the industrial sector while
the third world countries generate revenue from the service sector.
6. In developed countries, the standard of living of people is high, which is
moderate in developing countries.
7. Resources are effectively and efficiently utilized in the North. On the other
hand, proper utilization of resources is not done in the South.
8. In the North, the birth rate and death rate are low, whereas in developing
countries both the rates are high.

The Original Second World Countries

 In the past, there existed an incredibly large and quite powerful nation
called the Soviet Union (USSR). It consisted of what is now Russia
as its core member, with the capital of the Soviet Union being Moscow,
Russia. The rest of the Soviet Union included member states that are
non-independent countries called: Armenia, Azerbaijan, Belarus,
Estonia, Georgia, Kazakhstan, Kyrgyzstan,Latvia, Lithuania,
Moldova, Tajikistan, Turkmenistan, Ukraine and Uzbekistan.

 the original term of a Second World country had a more geopolitical

ring to it.

 Second World countries have a fair degree of development and wealth

(but not as much as the richest nations.
 Other communist nations at the time were: Poland,
Albania,Yugoslavia, Czechoslovakia, Romania, Bulgaria,
Hungary, East Germany, Angola, Benin, Congo-Brazzaville,
Ethiopia, Mozambique, Somalia, Afghanistan, Cambodia,
Mongolia, North Vietnam, South Yemen, China, North Korea,
Vietnam, Laos, and Cuba.

 In a modern manner of speaking, the term Second World is used far

more loosely. Today, it is sometimes used by people to refer to
countries with developing economies that are not quite as advanced as
Western nations like the U.S. but definitely not as far behind as many
developing nations, such as some of those in found in Africa.
 ASIAN REGIONALISM

GLOBALIZATION is the process of international integration arising from

the interchange of world views, products, ideas and other aspects of human
life such as technology.
 It refers to the establishment of worldwide operations and the
development of standardized products and marketing. The rationale
behind globalization is to compete by establishing worldwide economic
of scale, offshore manufacturing and international cash flows
REGIONALIZATION, on the other hand, is the process of dividing an area
into smaller segmentscalled regions. Basically, this is the division of nation
into states or provinces.
 According to Hoshiro(2008), regionalization is defined as an increase in
the cross-border flow of capital, goods, and people within a specific
geographical area
 REGIONALIZATION is more limited to an area like a prefecture, that
has
many cities, each of which has unique, special ways of doing business.
 REGIONALIZATION is more manageable and less risky, which allow
firms to capitalize on local competencies while subsidiaries retain a
flexible approach to each other.
 region is a conceptual unit; it is a place defined not necessarily
by strict physical borders but by whatever criteria the geographer finds
to be most useful.
 Breaking apart a larger area into smaller regions is something known
as the regionalization process
 Formal regions are defined by a single trait shared by every
person in the region.
 Vernacular regions are more cultural, defined by common ideas
shared bypeople in the region.
 People in a functional region share some sort of relationship with a
concrete
focal point.
 The scale of a region, whether it is global, national, or local, can help
geographers identify trends or groupings of people

Globalization Vs. Regonalization

ASPECT GLOBALIZATION REGIONALIZATION

 NATURE -Promotes -divides an area into
integration of smaller segments
economies across
state border around
the world.
MARKET -Always allows many
Monopolies are more
corporations to trade
likely to develop.
on international
Monopoly means one
level; it allows free
producer controls
market supply of a good or
services, and where
the entry of new
producers is
prevented or highly
restricted.
CUTURAL AND -Acceleration to multi Does not support
SOCIETAL RELATIONS culturalism through multi-culturalism.
free an inexpensive
movement of people.
AID -Globalized -Regionalized area
international does not get involved
communities are in the affairs of other
more willing to aid areas.
countries stricken by
disasters
TECHNOLOGICAL -Globalization has -Advance technology
ADVANCES driven great is rarely available in
advances in one country or region.
technology

REGIONALISM is defined as a political will to create a formal arrangement

among states on a geographically restricted basis.
REGIONALISM refers to the conscious and deliberate attempts by
national states to create a formal mechanism for dealing with common
transnational issues through intergovernmental dialogue and treaty (Breslin,
2004). In simplest term, it is a formal process of intergovernmental
collaboration between two or more states. Since its main participants are
governments, it can be expressed as an artificial top-down process.

REGIONALISM IN ASIA

POSITIVE IMPACTS OF REGIONALIZATION IN ASIA

 link the competitive strengths of its diverse economies in order to
boost their productivity and sustain the region’s exceptional growth;
  connect the region’s capital markets to enhance financial stability,
reduce the cost of capital,and improve opportunities for sharing risks;
 cooperate in setting exchange rate and macroeconomic policies in
order to minimize the effects of global and regional shocks and to
facilitate the resolution of global imbalances;
 pool the region’s foreign exchange reserves to make more resources
available for investment and development;
 exercise leadership in global decision making to sustain the open
global trade and financial systems that have supported a half century
of unparalleled economic development;
 build connected infrastructure and collaborate on inclusive
development to reduce inequalities within and across economies and
thus to strengthen support for pro-growth policies;
 and create regional mechanisms to manage cross-border health,
safety, and environmental issues better.

An integrated Asia can:

 generate productivity gains, new ideas, and competition that boost
economic growth and raise incomes across the world;
 contribute to the efficiency and stability of global financial markets by
making Asian capital markets stronger and safer, and by maximizing
the productive use of Asian savings;
 diversify sources of global demand, helping to stabilize the world
economy and diminish the risks posed by global imbalances and
downturns in other major economies;
 provide leadership to help sustain open global trade and financial
systems; and create regional mechanisms to manage health, safety,
and environmental issues better, and thus contribute to more effective
global solutions of these problems.

ASIAN REGIONAL ORGANIZATION

ASSOCIATION OF SOUTH EAST ASIAN NATIONS (ASEAN)

 Founded in 1967, the ASEAN now has ten member states (Brunei
Darussalam, Cambodia,Indonesia, Laos, Malaysia, Myanmar, the
Philippines, Singapore, Thailand and Viet Nam). Cooperation in ASEAN
up to this day has focused on economic integration.
 Its member states decided to establish the ASEAN Economic
Community (AEC) in November 2015 as a symbolic step towards an
internal market with free movement of goods and capital and freedom
of movement for workers.
 The ASEAN Charter, which entered into force on December 15, 2008,
motivated cooperation within ASEAN, particularly in the political and
security spheres, and in the cultural and social fields.
 The Charter provides a foundation for the further development of the
ASEAN community and gives ASEAN a legal personality. It also records
 the ASEAN states’ commitment to the rule of law,democracy and good
governance and envisages the formation of a human rights body.

ASEAN + 3
 ASEAN Plus Three is the name given to the regional framework for
dialogue between the ten ASEAN member states and the three East
Asian powers China, Japan and South Korea.
 ASEAN Plus Three was formed in the late 1990s in response to the
Asian financial crisis and works mainly on economic, trade and
financial policy, but also on environmental and health issues.
 The multilateral cooperation of ASEAN Plus Three has also given rise to
a number of agreements such as the free trade agreements of the
ASEAN with China, Japan and South Korea.

EAST ASIA SUMMIT (EAS)

 16 Heads of State and Government of the 10 ASEAN states as well as
of China, Japan, South Korea, Australia, New Zealand and India have
been meeting in the framework of the East Asia Summit since 2005.
 The United States and Russia have been full members of the EAS
process since the EAS Summit in 2011.
 The EAS, a forum in which security policy issues and soft issues are
discussed, is becoming increasingly important.
 The EAS complements the Asia-Pacific Economic Cooperation, which
primarily focuses on economic and financial policy issues.

ASEAN Regional Forum (ARF)

 The ASEAN Regional Forum (ARF) was founded in 1994 following a
decision by the ASEAN Foreign Ministers.
 The ARF deals with security issues and is the only institutionalized
security-policy discussion forum in the Asia-Pacific region.
 Along with the ten ASEAN member states, another 16 countries –
Australia, Bangladesh, Canada, China, India, Japan, Mongolia, New
Zealand, North Korea,Pakistan, Papua New Guinea, the Russian
Federation, South Korea, Sri Lanka, Timor-Leste and theUnited States –
currently participate, as well as the EU. For the EU, the ARF is the
important forum in the Asia-Pacific for advocating its security policy
concepts and promoting confidence-building and preventive
diplomacy.

SOUTH ASIAN ASSOCIATION FOR REGIONAL COOPERATION (SAARC)

 SAARC was founded in 1985 by Bangladesh, Bhutan, India, Maldives,
Nepal, Pakistan and Sri Lanka. Afghanistan has been the eighth
member since 2007.
  SAARC concentrates on economic and trade issues. The agreement to
create the South Asian Free Trade Area (SAFTA), which entered into
force in 2006, marked a milestone in regional economic cooperation.
 SAFTA has been ratified by all member states. SAARC’s remit extends
to cooperation in seven key areas, including agriculture and rural
development, environment and forestry, human resources
development and transport

ASIA-PACIFIC ECONOMIC COOPERATION (APEC)

 APEC was founded in 1989 on the initiative of Japan and Australia and
aims to strengthen economic growth in the Asia-Pacific region, not
least by dismantling tariffs and other barriers to trade.
 At their summit in Bogor (Indonesia) in 1994, the APEC countries
agreed to set up a free trade area within the economic community
(Bogor Goals). Summits at head of state and government level are held
annually with the participation of business executives. Climate
protection appeared on APEC’s agenda for the first time at the 15th
Summit in Sydney in 2007. APEC currently has 2“member economies”:
Australia, Brunei, Canada, Chile, China, Hong Kong, Indonesia, Japan,
Malaysia,Mexico, New Zealand, Papua New Guinea, Peru, the
Philippines, the Russian Federation, Singapore, South Korea, Taiwan,
Thailand, the United States and Viet Nam. Together these economies
account for some 55% of global GDP and some 45% of global trade.

Philippine Development Plan 2017-2022 Overall Framework

 The Philippine Development Plan (PDP) 2017-2022 is the first medium-
term plan anchored on the AmBisyonNatin2040, consistent with
Executive Order No. 5, S. 2016.
 The priorities are guided by the Duterte Administration’s 0 to10-point
Socioeconomic Agenda, the regional consultations conducted by the
various planning committees, and the social development summits
that culminated in the 20@22 Agenda: Malasakit at Pagbabago
 The goal of the PDP 2017-2022 is to enable Filipinos to attain a
matatag, maginhawa at panatag na buhay

Strategic Framework
Targets
1. The Philippines will be an upper middle-income country by 2022
2. Growth will be more inclusive as manifested by a lower poverty
incidence in the rural areas, from 30 percent in 2015 to 20 percent in
2022
3. The Philippines will have a high level of human development by 2022
4. The unemployment rate will decline from the current 5.5 percent to 3-5
percent in 2022.
5. There will be greater trust in government and in society
6. Individuals and communities will be more resilient.
7. Filipinos will have greater drive for innovation.
ASEAN ECONOMIC COMMUNITY
 The AEC is the realization of the region’s end goal of economic
integration. It envisions ASEAN as a single market and product base,
a highly competitive region, with equitable economic development,
and fully integrated into the global economy.
 The history of AEC can be traced back as far as 1992 when the ASEAN
Leaders mandated the creation of the ASEAN Free Trade Area (AFTA).
Since then, efforts were intensified to broaden the region’s economic
potentials. The adoption of ASEAN Vision 2020 by the Leaders in
1997 has further envisaged ASEAN as a highly competitive region
with free flow of goods, services, investments, a freer flow of capital,
equitable economic development and reduced poverty and socio-
economic disparities.
 In 1998, the Leaders adopted the Hanoi Plan of Action (HPA). It
chartered out a set of initiatives for economic integration to realize
the ASEAN Vision 2020. Recognizing the need for an integrated
region, the Leaders issued the Declaration of ASEAN Concord II in
2003 which set out the establishment of ASEAN Community (initially
targeted by 2020 but was later accelerated to 2015). The Declaration
of ASEAN Concord II comprise of three pillars including the AEC.
 The AEC Blueprint 2015 was adopted in 2007 as a coherent master
plan guiding the establishment of the AEC in 2015. Immediately after
that, a new AEC Blueprint 2025 was developed to set the strategic
directions for the next phase of ASEAN’s economic integration
agenda. The AEC Blueprint 2025 is envisaged to further deepen
economic integration and achieve a more integrated the following
characteristics:

 A Highly Integrated and Cohesive Economy

AEC aims to achieve a single integrated market through the
process of regional economic integration.

 A Competitive, Innovative and Dynamic ASEAN

The goal of ASEAN economic integration is to create a stable, prosperous,
and highly competitive economic region. Three core elements under the
competitive region are:
 Competition policy
 Consumer Protection
 Intellectual Property Rights (IPR)

 Enhanced Connectivity and Sectoral Cooperation

Regional economic integration under the AEC necessarily
demands greater connectivity between ASEAN Member States
as well as within the countries. Transport, ICT, energy
connectivity and tourism are key elements of physical and
people‐to‐people connectivity in the region. Additionally, other
 sectors such as agriculture, forestry, fisheries, science and
technology all play an important and complementary role to
achieve an integrated market under the AEC.
 A Resilient, Inclusive, People Oriented and People-
Centered ASEAN,
Key initiative in the development of the resilient and inclusive
ASEAN focus on the development of micro, small and medium
enterprises (MSME’s) and promotion of ASEAN integration
among members of the developing members of ASEAN.
 A Global ASEAN
Establishing ASEAN as a dynamic region with businesses that
are able to compete internationally means looking beyond the
border of ASEAN Economic Community (AEC).

Through Free Trade Agreements (FTA) and Closer Economic Partnership

(CEP) as well as enhanced participation in global supply networks, ASEAN is
both integrating into the global economy as well as enhancing the
attractiveness of its internal market for foreign investment.
 ASEAN-China Economic Relations
 ASEAN-Korea Economic Relations
 ASEAN – Japan Economic Relations
 ASEAN-Plus Three Economic Cooperation
 ASEAN-Hong Kong, China Economic Relations
 ASEAN-Australia- New Zealand Economic Relations
 ASEAN – India Economic Relations
 ASEAN-Russia Economic Relations
 ASEAN-US Economic Relations
 ASEAN-Canada Economic Relations
 ASEAN-EU Economic Relations
 ASEAN – East Asia Summit (EAS) Economic Cooperation
 The Regional Comprehensive Economic Partnership (RCEP)

These characteristics support the vision for the AEC under the ASEAN
Community Vision 2025.