TAGOLOAN Community College

Baluarte, Tagoloan, Misamis Oriental

Tel.No. (08822)740-835/(088)5671-215

College of Arts and Sciences

GEE 10 Philippine Popular Culture
Semester of A.Y. 2020-2021

Module 12. Forces that Influence Culture

Cultural Influences

Cultural influences means historical, geographical, and familial factors that affect
assessment and intervention processes. Cultural influences that are relevant to the client may
include the client’s:
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 Racial or Ethnic Self‐Identification

The individual/family would report how they identify themselves in a racial or ethnic context.
Example: 1. A biracial 10 year old girl with a White mother and an African American father. 2. A
White 18 year old boy from a Norwegian family line who lives in the East Metro.

 Experience of Cultural Bias as a Stressor

Description of how the individual has experienced cultural bias from other people (cultural
bias being the practice of interpreting and judging behavior by standards inherent to one’s own
culture), and how it relates to his or her overall mental health symptoms.

Example: 1. Etta states that she feels excluded by her classmates because she’s the only
biracial (black and white) child in the classroom and feels like she doesn’t fit in with her classmates.
She says that she tries to insert herself into the conversations around her because she feels ignored
and lonely. She also says that she always worries that she’s doing something wrong and that’s why
they don’t like her. 2. Rick says that he feels like he never fit in in high school; he wasn’t a jock or a
“good student”—he just went to classes. He thinks he was really unpopular and he and his friends
often got taken advantage of by the popular kids at school. The jocks took particular advantage of
him during gym class and made him really self‐conscious because they would laugh at every
mistake.

 Immigration History and Status

Description of the individual’s immigration path . Is the client a political refugee, an

economic refugee, or on a work or student visa? The intent is not to identify whether the client has
documentation to be in the country but more his or her experience as an immigrant. Example: 1.
Ana Lucia’s mother emigrated from Mexico when she was a young adult. Ana Lucia was born in the
United States and identifies as a Mexican American. She says that she’s heard stories about her

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 mother’s difficulty immigrating to the United States but she doesn’t really think that it applies to her
because she’s always been here.

 Level of Acculturation

Level of acculturation (the modification of the culture of a group or individual as a result of

contact with a different culture) could be to “mainstream” culture or it could be into a new social
group, a new town, family (in‐laws or adoption), or any change in group of people with whom the
client associates.

Example: 1. Etta has had trouble fitting in at her new school and finding friends in the
neighborhood. She feels like they all follow a different rule book which no one wants to lend her. Her
teacher states that she often has social missteps with the other children at school and seems to be
having difficulty acculturating to the classroom peer culture. 2. Rick feels like one of the reasons why
he gets along so well with his girlfriend is because he likes her family so much. He says that he
really loves that he can drop over at any time and they will include him in dinner or whatever they
are doing. He reports that his own family was is really rigid with guests and that it took him a while to
realize that he didn’t have to get permission all the time before he goes over to their house.
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 Time Orientation

Time orientation is about how the client understands and uses time. On one end of the
continuum there are people with Monochronic orientation of time—task oriented, expect things to be
on time, and a separate time and place for work and play. On the other end are people with
Polychronic orientation of time—time and schedules are more flexible, maintaining relationships and
socializing is more important than accomplishing tasks.

Example: 1. Etta’s teacher states that Etta is always focused on time and whether or not
things will get done on time. She constantly checks to clock to make sure that the class is switching
subjects at the right time according to the schedule. She also “nags” the other students when they
are not done when something is due and seems overly anxious about due dates and timelines to the
point that she misses the point of the activity. 2. Rick described how bothered he gets when people
rush him to get places. He hates it when people get mad at him for not showing up on time. He says
he’s always been the late one in the family. He can never keep track of time and things that people
just get worked up over that stuff—which is why he is scared about getting a new job.

 Social Orientation

Can involve information regarding the client’s friends, social group, partnership status,
sexual orientation, etc.

Example: 1. Etta has always gotten along better with adults than children her own age. She
has trouble fitting in with the other children in her class as she seems to be very rule focused and
reminds others of expectations—which tends to get on other children’s nerves. 2. Rick likes to
spend time with people, be tends to be nervous about what other people are thinking about him and
gets overwhelmed with their facial responses and non‐verbal communication. This is why he prefers
on‐line interactions with people he doesn’t know very well. He feels more confident and he enjoys
communicating with others a lot more if he doesn’t have to do it face‐to‐face.

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  Verbal Communication Style

Culturally impacted verbal and non‐verbal communication styles—like call and response,
looking at people in the eyes when they are talking, the teenage rolling of the eyes, means of
conveying conflict or conflict avoidance, tone of voice, posture and means of expressing one‐ self
verbally and non‐verbally.

Example: 1. A girl grew up going to church with her grandma in Minneapolis, she often
participates in the “call and response” process when in school. When her teacher says something
that she agrees with she nods her head and verbally says “mmmhmm” which caught her teacher off
guard until she talked to her about it. She said that she felt shamed that her teacher told her to stop
doing that—she didn’t even realize she was doing it. 2. Rick, as he often feels nervous in front of
people, tends to look at the ground when people are talking and doesn’t speak very loudly. He says
that he feels much more confident when typing/talking than speaking—especially in public.

 Locus of Control-They feel like they are in control of their environment—their own choices
or the world push them from one another.
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Example: 1. A girl who is only 10, feels like most things get decided by other people and
then they impact her life—like moving around or her parents getting divorced. Adults make decisions
and they impact her and she doesn’t like it. 2. Rick feels like a lot of what is going on for him is out
of his control. He can’t find a job because the job market is horrible. He can’t take his driver’s license
test because the evaluator seems judgmental and scary. It all seems out of his hands.

 Spiritual Beliefs- Religious or other forms of spiritual beliefs that influence culture.

Example: 1. The family attends St. Mary’s Catholic Church and has a good relationship with
Father Jim Albert. Etta reported that God looks out for her and that her future was in God’s hands. 2.
Rick grew up going to an Lutheran church and used to be quite active. For the past year, he hasn’t
wanted to attend and he refuses to explain what changed.

 Health Beliefs and the Endorsement of or Engagement in Culturally Specific Healing

practices

A man’s philosophy behind their symptoms or mental health situation. Have they gone to
culturally specific providers such as a religious provider, Shaman, psychic, etc?

Example: Ella believes that she has troubles because her parents divorced and then her dad
went to Afghanistan. She was doing just fine before that all happened. She thinks that church helps
her in overcoming these emotions.

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 MODULE 13: Philippine Popular Culture and the Present Economy

Excerpt from “The globalisation experience and its challenges for the Philippine economy” by Diwa C
Guinigundo.

Globalisation trends in the Philippines

The Philippine economy, like that of most other EMEs, has become increasingly integrated
with the global economy. This is evident in the general increase in trade in goods and labour
migration. There is also greater integration in finance, albeit at a relatively moderate pace. Trade
openness From the 1990s to the 2000s, trade openness in the Philippines improved from 88.1% to
101.0% of the country’s gross domestic product (GDP). Contributing to this increase were the
country’s efforts towards a more open trade policy starting in the 1980s. This trade openness also
reflected declining transport costs and improved information and communications technology that
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supported the development of complex GVCs, particularly in electronics and electrical components,
allowing companies to manage their production more efficiently (Dudley (2017)).

Another factor is rapid growth in the information and communications technology-business process
outsourcing (ICT-BPO) services in the country. Based on data on earnings from IT-BPO, the industry
recorded above 50% annual growth from 2006 to 2008, this growth remaining in double digits until
2016. The Philippines has also established itself as one of the two major BPO industry centres in
Asia, along with India. With the country’s continued openness to globalisation, the total trade of the
Philippines increased further, to 101.4% of GDP in the 2010s. The pickup in global trade starting in
2017 has, in fact, helped in offsetting the weak global demand that lingered after the GFC. Financial
openness In terms of financial openness, globalisation came in at a more moderate pace. The
country’s total capital flows increased from 3.1% of GDP in the 1990s to 3.4% of GDP in the 2000s.
While the Philippines started to liberalise the foreign exchange (FX) regulatory system in the 1990s,
capital inflows were dampened by the Tequila (Mexican peso) financial crisis in 1995 and the Asian
financial crisis in 1997–98 (Tetangco (2005)). In the 2010s, however, total capital flows rose to 4.6%
of GDP. This could be attributed in part to the nine waves of FX liberalisation reforms undertaken by
the BSP starting in 2007. Another important reform undertaken to promote financial openness was the
further liberalisation of foreign bank entry in 2014. Notwithstanding this, the 4.6% average ratio of
capital flows to GDP from 2010 to the 262 BIS Papers No 100 first three quarters of 2017 indicates
that there is still scope for the country to liberalise further.

The composition of the economy’s external liabilities has shown its increasing exposure to both
portfolio and direct investments, signifying not merely foreign investors’ search for yield but growing
confidence in the country’s macroeconomic fundamentals. From end-December 1999 to end-
September 2017, the stock of foreign direct investments (FDI) increased by 816.9%.4 As a share of
GDP, FDI has increased from 9.6% at end-1999 to 23.5% at end-September 2017. Relative to GDP,
FPI has increased from 18.7% at end-December 1999 to 25.8% at end-September 2017. Moreover,
external assets show a sustained increase in foreign exchange reserves from 18.2% of GDP at end-
December 1999 to 26.2% of GDP at end-September 2017, reflecting large and stable structural flows
coming from overseas Filipino remittances and IT-BPO receipts. Notable also is the substantial
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 increase in residents’ direct investments abroad, from only 0.8% of GDP at end-December 1999 to
14.9% of GDP at end-September 2017. Residents’ portfolio investments in other countries likewise
increased from 1.5% of GDP in end-December 1999 to 5.2% at end September 2017, signifying the
rising internationalisation of domestic corporates and investors.

Based on IMF (2017), while the Philippines made a significant progress in liberalising capital flows in
the past 10 years, foreign exchange market development and interbank market in the country are still
below potential. 4 The cited figure is the computed growth rate of the stock of FDI in end-September
2017 from end December 1999. The data are based on International Investment Position, a stock
statistic. External liabilities, 1999–Q3 2017 Graph 2 External assets, 1999–Q3 2017 Graph 3 (% of
GDP, end-period) (% of GDP, end-period) Note:

Migration

International migration from the Philippines increased further as data from the United Nations indicate
that the ratio of Filipino migrants to the country’s total population went up from 3.5% in 1995 to 5.4%
in 2017,5 and the ratio of the stock of overseas Filipinos to the country’s total population increased
from 9.4% in 1997 to 10.4% in 2013.
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The Philippines has been open to labour mobility since the 1970s, and this has provided the country
with decades of experience as a source of international migrants. The primary reason for Filipinos’
continued emigration has been to seek employment overseas. While the Philippine economy has
been steadily improving in recent years, with unemployment rate declining from 7.5% in 2009 to 5.0%
in 2017, the country’s unemployment situation is still commonly cited as one of the main reasons why
Filipinos continue to search for work abroad.8 Employment opportunities in other countries, regardless
of the type of job, are perceived to offer higher salaries/compensation, and better income and lifestyle
packages (eg health benefits, insurance).

Another set of factors that promoted greater labour mobility pertains to global events that enhanced
the international migration opportunities of Filipinos, particularly in extending their workplace to a
global scale. For instance, the adoption of more liberal immigration policies in the 1970s; the oil crisis
of 1973 that facilitated the emergence of the Gulf region as a destination for temporary migrant
workers; the rise of the new industrialised countries in East and Southeast Asia that spurred additional
demand for migrant labour in the 1980s; and globalisation have all led to global demand for skilled
and professional workers. Lastly, labour migration has been explained by so-called contagious
migration. This refers to the widespread interest in migration that has resulted from the influence of
the growing number of migrants. This seems to have become a social construct that is now ingrained
in Philippine culture. For instance, migration seems to be transmitted within families from one
generation to the next.

According to the Department of Labor and Employment (DOLE), the unemployment problem in the
country is not just about the lack of jobs, but also includes the mismatch between the human capital
portfolio of job applicants and the requirements of the labour market. The business process
outsourcing (BPO) sector, for instance, is having difficulties in finding qualified workers.

The motivation to improve the family’s welfare and status led either parents or their children to migrate
abroad – for parents, it is to provide a better future for their children, whereas for the children,
migration is seen as a means of providing a comfortable life for their parents. There is a dissemination
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 and sharing of information that encourages migration. The tendency for migration to spread from 264
BIS Papers No 100 Based on the latest estimate from the Commission on Filipinos Overseas,
overseas Filipinos (OFs) are now scattered more geographically, from the traditional destinations,
comprising mostly the advanced economies, to EMEs, which have been increasingly tapping OF
services and skills.10 The profile of Filipino migrants has also changed from mostly middle and lower
skilled workers (1970s) to professional workers (1990s) as well as services (2000s and 2010s) and
production workers (2010s) (Ang et al (2009)). As a result, the remittances sent by OFs have
substantially increased, from 2.5% of GDP in 1990 to 9.2% of GDP in the first three quarters of 2017.
The Philippines was the third highest recipient country for remittances in 2017 and has been in the top
10 since 1994 (World Bank (2017a)). In recent years, the BSP and the banks themselves have
adopted various measures to encourage OFs to channel remittances through the financial system,
following improvements in international money transfer technology (Bayangos (2012)). 3.
Macroeconomic and distributional impacts of globalisation in the Philippines While the foregoing
trends show continuing trade, migration, and financial integration of the Philippines, an unintended
consequence is the greater exposure of the country’s domestic economy to migrant returns and
volatility spillovers from other countries’ equity markets. However, the country’s participation in the
globalised world of trade, finance and migration has resulted in tangible benefits, including low and
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stable inflation, a low unemployment rate, more than adequate gross international reserves, and a
sound and fundamentally strong banking system. 3.1 Economic growth and employment Evidence
suggests that globalisation has a positive effect on the country’s economic growth and employment. In
particular, trade openness and foreign portfolio flows have contributed to higher per capita GDP
growth in the Philippines, following the implementation of FX liberalisation reforms. A significant
increase in OF remittances has raised consumption, investment, labour productivity and economic
growth. These OF remittances have also supported the Philippine economy during normal times and
crisis situations in the past, and this is expected to continue in the future (Ang et al (2009)). Moreover,
FDI increases employment growth and gross value added, not just in the manufacturing sector itself
but in other sectors as well, including construction, one municipality to a neighbouring one exhibits the
spillover effects of information. The aspirations of youngsters are moulded by the examples of
migrants, especially in areas where poverty and conflict are present (Abrigo and Desierto (2011)). 10
While the United States still holds the largest share of total resident OFs, its share of the total has
declined from 37.2% in 2005 to 34.5% in 2013. The OF population in the Middle East grew from a
share of total stock of 23.5% in 2005 to 24.3% in 2013. BIS Papers No 100 265 financial
intermediation, and transport, storage, and communication.11, 12 Also, the sustained growth in
employment and salaries obtained from the global offshore ITenabled services industry over the years
has greatly increased household spending and investments (Del Prado (2015)). 3.2 Inflation In
addition to the country’s credible and efficient implementation of inflation targeting (Guinigundo
(2017)), globalisation is also considered as one of the factors for the observed decline in the
sensitivity of inflation in the Philippines to changes in real economic activity or the flattening of the
Phillips curve. On the one hand, a flatter Phillips curve implies that demand shocks and policy errors
will not translate into large inflation movements. On the other hand, this means that, if inflation is
above target, bringing it down to the target level would entail a greater sacrifice of output, giving
greater weight to the central bank’s commitment to its primary responsibility for price stability
(Guinigundo (2017)). This attribution is based on three observations of Iakova (2007). First, strong
international competition constrains businesses from increasing prices when demand rises. Second,
increased trade and investment flows have made prices less responsive to domestic demand
pressures. Third, global migration, which has intensified in recent years, has caused wages and prices
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 to become less sensitive to domestic demand shifts. These apply to the Philippines’ exports or
imports, which have become less concentrated (concentration index declined from 0.36 in 1995 to
0.29 in 2016, with 1 as highly concentrated) and the country has also reduced its divergence from
world trade patterns (diversification index dropped from 0.62 in 1995 to 0.56 in 2016, with 1 as greatly
divergent).13 The former indicates the presence of more diversified products, and more competition in
the domestic market, while the latter implies that the export/import structure of the Philippines is
becoming less different from that of world trade.14 3.3 Poverty alleviation and income inequality A
recurring concern related to increasing globalisation is its impact on poverty alleviation and income
inequality. Preliminary estimates show that an increase in trade openness contributes to reduction in
income inequality in the Philippines, such that a 1 unit increase in the trade-to-GDP ratio can reduce
the Gini coefficient by 0.04 unit.15 By contrast, OF remittances contribute to higher income inequality
as for every 11 Based on Granger causality test between manufacturing FDI growth and sectoral
employment growth for the period Q1 2006–Q4 2016 (Santos and Oliva (2018)). 12 FDI likewise has a
long-run relationship with employment growth and gross value added growth in almost all sectors. 13
Based on the United Nations Conference on Trade and Development (UNCTAD) data from 1995 to
2015. 14 With the country’s increasing import volumes, this also means global developments exert a
greater influence on the domestic market. As in Cacnio (2013), in fact, trade openness has
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contributed considerably to the flattening of the Phillip’s curve (ie more than migration has). 15
Bayangos (2015). 266 BIS Papers No 100 1 unit increase in the ratio OF remittances to GDP, the Gini
coefficient increases by 3.3 units. Estimates also show that trade openness has no significant impact
on poverty, although OF remittances can help reduce poverty.16 It is worth noting that, while there is
evidence that higher rates of growth can reduce poverty (Dollar et al (2013)), if GDP growth is
accompanied by an increase in inequality, this could still worsen poverty. According to Bourguignon
(2004), both growth and inequality changes play a major role in generating changes in poverty. He
explains that, over the medium run, distributional changes may be responsible for sizeable changes in
poverty and in some instances, these changes may even offset the favourable effects of growth. This
was supported by a study conducted in the Philippines by Reyes and Tabuga (2011), in which they
found that, while the rate of growth matters a lot in poverty reduction, the redistribution of income also
matters.17 This implies that the nature of economic growth matters. While globalisation has no direct
impact on poverty, globalisation can affect poverty indirectly through its impact on economic growth
and income inequality.

4. Challenges of increasing globalisation

While globalisation has reportedly strengthened the global economy and improved welfare in general,
the literature indicates that the distribution of its benefits in many countries has been uneven18 and
some acknowledge its potential role in fuelling the rising trend towards income inequality.19 In the
case of the Philippines, no substantial evidence for the impact of globalisation on inequality and
poverty has so far been found. Nevertheless, there are winners and losers in globalisation, which
could affect the country’s economic and social development. Moreover, the country faces challenges
from uncertain global factors exacerbated by the possible revival of protectionism. These events could
lead to greater volatility and risk-averse attitudes among the country’s trade and investment partners.

4.1 Firms, labour market and distribution of gains for growth In particular, industries that are less able
to compete and workers whose skills have become less relevant may be adversely affected and will
have difficulty in adjusting due to globalisation. According to Sibal (2005), firms that were among the
losers in the globalisation process in the Philippines were mostly in the small and medium categories
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 in agriculture (eg producers of vegetables, palay, corn and poultry), sunset industries and labour-
intensive firms (eg garments and apparel). The share of agriculture to GDP declined from 16.4% in
1980 to 8.5% in 2017 while that of industry fell from 41.6% in 1980 to 34.1% in 2017. In the industrial
sector, the shares to GDP 16 As in the poverty regression model in Bayangos (2015).

Other central banks, however, conclude that trade liberalisation reduced earnings discrepancies, while
others stress that skill-biased technological change, and not trade globalisation per se, is responsible
for divergence. BIS Papers No 100 267 of textile manufactures and wearing apparel declined from
1.3% and 1.4%, respectively, in 1998 to 0.3% and 0.4%, respectively, in 2017. These firms need to
upgrade their technologies and improve production efficiency and productivity to be able to compete.
On the other hand, emigration can be a catalyst for improvement in the quality of the labour force in
the short term as it can push individuals to improve their skills so that they can eventually emigrate.20
This could also lead eventually to “brain gain,” where OF workers bring the knowledge they learned
abroad back to their home country.

4.2 Greater exposure to external shocks and policies Another challenge posed by globalisation is
greater economic exposure to destabilising external forces due to greater financial openness. Unless
sufficient safeguards are in place, financial openness accompanied by poor regulation can threaten
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financial stability (BIS (2017c)). Based on a 2015 IMF report, an abrupt shift in market expectations
could expose the Philippines to a spike in interest rates, with negative feedback effects on the real
economy. Moreover, the IMF observes that the country’s local currency government bond yields are
strongly influenced by global factors. Since these serve as benchmarks for pricing corporate bonds,
they could have a wide-ranging impact on the country’s real economy. Meanwhile, due to the
Philippines’ high degree of trade integration and significant role in international migration, the country
is likely to be affected by external noise mainly through OF remittances, offshoring/outsourcing, and
trade channels. For instance, if we are to consider the current concerns about US policies regarding
globalisation, and if the United States pursues deglobalisation policies that could result in a lower US
GDP growth rate by 1 percentage point, this is expected to reduce the Philippine real GDP growth rate
by 0.06 percentage points in the first year and by 0.07 percentage points in the second year. The
country’s inflation rate would decline by an estimated 0.01 percentage points in the first year and by
0.03 percentage points in the second year.

Meanwhile, if deglobalisation policies were to require the United States to increase its Federal Funds
rate, a 1 percentage point hike would have no estimated effect on the Philippine’s economic growth in
the first year but it would lead to a 0.02 percentage point reduction in the second year. But it would
result in an estimated 0.02 percentage point increase in the Philippine inflation rate in the first year
and a 0.11 percentage point increase in the following year.

The Philippines has also been affected by other countries’ policies through the remittance channel.
OF remittances have recently been affected by de-risking activities or stricter regulatory measures
enforced by various countries in compliance with the Financial Action Task Force – Guidance on the
Risk-Based Approach for Money Services Businesses (FATF-RBA). These de-risking activities of
international banks, particularly in reference to the Anti-Money Laundering and Countering the
Financing of Terrorism Act, have led to the closure of bank accounts maintained with 20
OECD/Scalabrini Migration Center (2017).

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 Based on estimates of the Department of Economic Research of the Bangko Sentral ng Pilipinas. 268
BIS Papers No 100 international banks by both bank-owned and stand-alone remittance
companies/money transfer operators (MTOs) in the Philippines in the past two years. It may be noted
that five of the 14 countries affected by de-risking in 2015 showed declines in remittances in US
dollars. The decline, however, may not be attributed solely to the effect of de-risking, but also to other
factors such as currency depreciation. In the case of the Philippines, the decline in remittances in the
original currency of the host countries may be an indication of the impact of de-risking in these
countries.

5. Policy responses to the challenges The solution to the challenges brought by globalisation is not a
rollback of globalisation arising from protectionism since this could lead only to greater challenges
resulting from other costs and distortions, such as lower economic growth, a higher inflation rate, and
disruption in GVCs and job losses.

Instead, more inclusive policies will help cushion the negative consequences of globalisation and
facilitate the adjustment in narrowing the gap between the winners and losers. Workers need some
retooling to help them find new well-paying jobs and for producers to be more productive and
internationally competitive.
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For the Philippines, the National Government could work with the private sector and civil society
groups on local initiatives that provide technology and skills to disadvantaged groups such as in
barangays within and outside the cities (Roldan (2010)). In the case of Filipino migrants, there is a
need to protect their rights and well-being as well as to facilitate their participation in the country’s
development, particularly during reintegration. Like other central banks, the BSP needs to better
understand the implications of globalisation on the performance of the economy, inflation and financial
stability.

5.1 The BSP’s contribution

5.1.1 Promote low and stable inflation For its part, the BSP has helped to maintain stable and low
inflation, which supports domestic economic stability, encouraging investments and business
expansion, which, in turn, fuels employment growth. From August 2015 to October 2017, inflation for
the bottom 30% of households by income was lower, in general, than inflation for all income
households or headline inflation. The BSP has likewise ensured that the country’s domestic liquidity
conditions, external position, and financial system and creditworthiness remain healthy with the aim of
further raising investor confidence. 22 Austria, France, New Zealand, the United Kingdom and the
United States. This is based on the analysis of the Department of Economic Statistics of the Bangko
Sentral ng Pilipinas. The 14 countries that are being monitored by the Anti-Money Laundering
Steering Group include the United States, Singapore, the United Kingdom, Canada, Hong Kong SAR,
Australia, New Zealand, Italy, Papua New Guinea, Brunei, Austria, Cyprus, Saipan and France. 23
BIS (2017b). 24 Dudley (2017). 25 BIS (2017b). BIS Papers No 100 269 However, in the Philippines,
the majority of the population do not have access to formal finance. Thus, a large segment of the
population has no access to credit. The key challenge, therefore, is to develop mechanisms that
would allow the poor access to formal finance and credit, enabling them to finance productive
activities and investments, and thus participate in and contribute to economic growth. 5.1.2 Promote
financial inclusion The BSP has been deeply involved in initiatives that promote financial inclusion to
ensure that appropriate financial products and services are accessible to a great majority of the

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 population. For instance, in 2008, the BSP developed the Credit Surety Fund Program (CSF), which
has helped micro, small and medium-sized enterprises (MSMEs) grow their business. As of end-
December 2017, there were 51 operating CSFs in the country with loans approved amounting to
about PHP 4.6 billion. The BSP likewise allowed the establishment of micro banking offices (MBOs) in
2010, which have increased outreach in areas that are unbanked from 251 MBOs in 2011 to 839 in
the third quarter of 2017. The BSP has also promoted the offering of microfinance loans, micro
agricultural loans, microfinance housing loans, micro-deposits and micro-insurance. As of the third
quarter of 2017, there were 164 banks with microfinance operations serving more than 1.8 million
clients with a loan portfolio amounting to PHP 14.8 billion. In 2013, the BSP allowed non-bank agents
(such as pawn shops, grocery stores, and drug stores) to perform electronic money (e-money)
transactions, such as remittances and payments. The National Financial Inclusion Strategy was
launched in July 2015, which highlights the importance of technology in facilitating fund transfers and
expanding the reach of financial institutions to unserved and underserved areas. Also in 2015, the
BSP launched the National Retail Payment System (NRPS) with the goal of developing a seamless
payments and settlements highway. As of end-September 2017, there were 26,028 e-money agents
in the country, or a 195% growth from 8,819 e-money agents in end-December 2010. A nationwide
Economic and Financial Learning Program aims to educate OFs and their families about the
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importance of using remittances to build up savings and directing these into investments in financial
products and/or business ventures. The BSP continues to create a supportive policy environment for
financial inclusion by harnessing technology towards digital financial inclusion. While significant gains
in the area of financial inclusion have been achieved over the years, the challenge is to further scale
up the reach of financial services to cover an even greater number of people, with the expectation that
this will help reduce poverty and income inequality, and further promote economic growth. 5.1.3
Cooperation in global efforts to further strengthen rules-based international transactions Meanwhile,
countries should also work together to further strengthen the global rules-based system (eg trade
facilitation agreements, level playing field in trade and tax), the joint regulatory approach to properly
manage global financial risks, and international cooperation and regional integration, particularly for
issues like climate 270 BIS Papers No 100 change and cyber-security. There is also a need for
international cooperation in helping migrants become socially integrated in host countries and to help
reduce remittance costs. 26 International policy coordination is needed on the implementation of
AML/CFT rules consistent with global standards to facilitate the development of collective regulatory
expectations or possible arrangements for cross-border recognition of AML/CFT compliance. For this
case, the BSP has raised the issue with the Alliance for Financial Inclusion, the Global Partnership for
Financial Inclusion (GPFI) of the G20, the Financial Stability Board, the World Bank and the United
States Treasury

MODULE 14: Trends in Popular Culture

Cultural trends changing how Filipinos behave

By: Chiqui Escareal-Go, Josiah Go - @inquirerdotnet
Philippine Daily Inquirer / 05:10 AM September 01, 2017

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 It’s the season for planning in the marketing industry once again and it is good to remind stakeholders
that contrary to popular belief, when consumers make a choice, they do not decide based on just the
product, place, promo and price.
There are other factors that affect buying behavior: Cultural (culture, sub-culture, social class), social
(reference groups, roles and status, family), personal (age and lifecycle, occupation, economic situation,
lifestyle, personality and self-concept) and psychological (motivation, perception, learning, belief and
attitudes).
Below is a list of cultural, social, personal and psychological factors observed in the Philippines that may
change the course of your marketing plans in 2018. They are included in our forthcoming book
“Principles and Practices in Marketing,” which is set for release before the end of 2017.

Home
The absence of parents in a third of homes and the increasing role of schools in instilling values.
The social disorders associated with the increasing absence of parents in the lives of their children
(drugs, child sex abuse, teen pregnancy, among others).
The change in the boundaries and sequence of love, marriage, sex and family.
The rise in the number of single parents.
The trend towards late marriages and smaller families.
The upgraded role of music as surrogate companion.
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The rise of “adultescents” (a play of the words adult and adolescent). They are also called the Peter Pan
generation, or the 30-something adults who are still single and without kids, mortgages and
responsibilities.
The rise of stay-at-home “housebands” looking after children and house needs.
More men becoming purchase decision-makers of grocery products (the mansumers).
The increasing ratio of people 40 years old and above wanting to take control of their health.
Work
The desire to migrate and the rise of middle class among overseas Filipino workers (OFW).
The expanding number of call center workers and their odd working hours to conform to working time
abroad.
The vanishing breed known as househelps.
The desire of senior citizens to have second careers.
Women
The increasing role of women in the workforce due to better education and social equality.
The increasing number of millennial women who do not know how to cook nor cook as well as their
moms.
Women have become more liberal when it comes to their sexual and relationship behaviors (including
promiscuity).
Communication
The emergence of cheap smartphones.
People relying more and more on free texting via apps such as Line and Messenger.
The reemergence of voice calls, thanks to features from apps like Whatsapp and Viber.
The continuing shift of advertising from traditional to digital.
Owning multiple mobile phones.
We have become more accepting of foreign cultures (American music, Korean pop and television
shows, Indian yoga, Chinese feng shui, Japanese anime).
The swelling number of netizens and their reliance on online tools to keep in touch.
Opinions are shaped not just by watchdogs, but also by strangers in social media.
The openness to talk to strangers and fellow customers.
The emerging consciousness of people to self-organize and help others in times of natural disasters.
Technology
The increasing reliance on tech-based solutions to manage personal life and work.
The rise of omnichannel.
More online activists are creating noise.
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 The rise of virtual reality and augmented reality.
Shopping
The increasing influence of online celebrities like bloggers.
The middle and upper class condemning non-environment friendly products and practices.
“Tingi” (small portions), sachets, “lista” (credit) and “four-gives” installment style of payment will always
be popular.
Value brands and private labels are becoming patronized. These include SM Bonus, National Book
Store’s Best Buy, HBC’s personal care products.
The openness to try new brands, including generic drugs or alternative health remedies.
The continued growth of microfinancing options.
Channel
Relying more on deliveries (for food, medicine, car batteries, LPG, etc).
The increasing preference for smaller store formats.
Convenience stores as go-to for fast food.
The growing popularity of multilevel marketing.
Lifestyle
The demanding lifestyle of the working class leading to stress and lack of sleep.
The growing consciousness for planning discretionary time.
The desire to buy new gadgets and spend on travel.
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The frequent visit to malls as instant escape.

The increasing dominance of point-of-purchase activities (packaging, display, sampling, etc).
Expansive food knowledge, instead of owning expensive cars, as a sign of sophistication.
The use of visual communication like emojis and memes.
Buying preferences
Shifting priorities—from ownership to access (like car sharing).
Knowing the importance of skin care, not just owning good cosmetics.
For the complete trend list, please visit www.josiahgo.com.
We hope the list above (which will keep growing) can help trigger new insights and allow you to spot and
exploit the next big opportunities in the marketplace.—CONTRIBUTED

Trends of Philippine Pop Culture

Creative agency We Are Social and Hootsuite’s survey hailed Filipinos as the world’s top social
media users for spending an average of 4 hours and 12 minutes per day. This comes as no surprise
because social media’s influence is palpable. In fact, it has shaped the Filipino popular culture. While
there are a lot of things going on in the country, here are a few trends that dominate Philippine pop
culture.

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Hugot is Life

Hugot pertains to the practice of coming up with the sad lines out of the mundane. It’s commonly
drawn from heartbreaks. Other than failed relationships, hugots are also drawn from bitter
experiences with adulting and work.
Memes spurred the trend, helping the latter achieve its optimal effect by giving context and illustration.
Tagalog (major language in the capital) is often used but also comes with a mix of English or other
dialects.

Bundok. Minsan lugar. Madalas…

Translation: Mountain. Sometimes a place. Usually…

COMMITMENT ang costume ko sa Halloween. Dun ka takot, di ba?

Translation: I’ll dress up as COMMITMENT on Halloween. You’re afraid of that, right?
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 Pagsisid. Minsan parang pag-ibig. Kung kailan lumalalim, saka lumalamig.
Translation: Diving is like love. The moment you get deeper, it gets colder.

Before the term hugot was coined, there were puns, and pick-up lines. Many consider them as
precursors. Famous linefrom popular Filipino movies also helped lay the foundation of this widespread
practice.
How the hugot exactly began is unclear (like some relationships). But one thing is for sure: it’s here to
stay (unlike some relationships).
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Milk Tea is the New Coffee

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 Businesses utilize social media to attract more customers, enticing them with their Instagrammable
posts of their menus, drinks, services, or products. Followers are then translated to customers.
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Customers then post their experiences with the food or products. Chances are their followers become
the next set of customers.

The milk tea fad, for instance, became widespread thanks to social media. Plenty of shops have been
operating but it’s only recently that they gained so much popularity. Revamping their brands and the
hype brought by social media posts account for their new-found popularity.

Milk tea entrepreneurs also come up with the catchiest names to stand out. In Iloilo City (where our
VMAs are based) alone, shops like MLKT, arTeahan, OMT (Oh My Tea), LynTea, and Humanitea
established their social media presence thanks to their witty brand names.

Daily Dose of Teleserye

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 Many people criticize the seemingly endless storyline of the primetime TV series Ang Probinsyano
(which can be streamed on Netflix under the title Brothers). The series is now running on its 970th
episode since it premiered in 2015. Add to that is the invincible main character who continually cheats
death after countless near-death experiences. Ironically, the same people continue to watch it.
Perhaps anticipating to take part in its historic ending.

Just recently, memes of an afternoon drama antagonist broke the cyberspace. While all made-up in a
glamorous red dress, expensive bag and heels, and pulling a matching red luggage, Daniella (the
character) walks through a poor area apparently searching for a place to stay. While the “where” is yet
to be revealed in the series’ upcoming season, Filipinos have already taken her around the world. 
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Popular culture comes and goes along with the shifting of activities and beliefs. But thanks to social
media, people are always updated with the most recent trend. They’re technically inessential but they
give color to the ordinary.

Fashion designers[edit]
Filipino Designers are considered as the best fashion designers in Asia having designers reach the
international fashion scene. Notable Filipino fashion designers include Pitoy Moreno (the "Fashion
Czar in Asia"), Inno Sotto, Rajo Laurel, Kermit Tesoro, Beatriz Tesoro, Christian Espiritu, Auggie
Cordero, Monique Lhuillier, Ezra Santos, Mich Dulce, Francis Libiran, Oliver Tolentino, Josie Natori,
and Michael Cinco. Moreno was known to design and create dresses for Philippine First Ladies, other
famous women in the Philippines, Asia, the United States and Europe.[7]

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 Popular Brands
Filipino brands
Philippine brand clothing that are popular in and outside the Philippines include
1. Bench
2. Onesimus
3. Penshoppe
4. Loalde
5. Kamiseta
6. Maldita
7. Bayo
International brands
Brands from abroad that are popular in the Philippines include 
1. Giordano
2. Levi's
3.  Nike
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4. The Gap
5. Banana Republic 
6. Guess.

 First tier includes top designer's labels that are not common to average Filipinos,
including Hermès, Bottega Veneta, Louis Vuitton, Givenchy, Burberry, Prada, Gucci.
 Second tier showcases brands that are affordable to average Filipinos which include Ralph
Lauren, Balenciaga, Michael Kors, Nine West, Kate Spade, Longchamp and Fendi.
 Third tier are the high street brands that are a bit expensive for average Filipinos,
including Comme des Garcons, Lacoste, Diesel, Marks & Spencer, Tommy Hilfiger, Kenneth Cole.
 Fourth tier are affordable brands that are good quality, which includes, Uniqlo, Mango, Zara,
and Aldo".
 Fifth tier are brands that are very much affordable to an average Filipino and usually of a lower
quality, Forever 21, H&M, and Guess.

Fresh Lifestyle Business Trends in the Philippines

1. Video First!

 The last couple of years were characterized by the Mobile First strategy, the dominance of
Social Media like Facebook and Micro Blogging platforms like Instagram.
 People have been talking about video for years also, but this 2018 and beyond you need to
have a Video First communication strategy for three key reasons:
 — With all the fake news around, video cannot lie because you communicate with non-verbal
cues and people will pick up if you are not sincere.
 — The Gen Z generation (born 2000 up), who grew up with YouTube for their content or
having an App for anything, are now starting to dominate the lifestyle scene, overtaking the
Millennials.
 — With zero organic reach environment for Facebook and Instagram, it is more strategic in the
long term to talk to your audience directly via video.

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 2. The Coming of Age of Zentennials

 We learned a lot from the first event we organized in Manila focusing on Generation Z.
 Zentennials or Gen Z refers to the generation of children born at the turn of the century. They
represent 30% of the population and are quickly becoming the dominant changemakers in the
digital age.
 Our friend Jo Mag of Potato Corner revealed that it’s the Generation Z kids that are the secret
behind the growing success of their business.
 
3. MICHELIN Stars in Manila finally?

 Do you feel that the restaurant scene in Manila is a foodie bore?

 There are still a lot of restaurants that open but also close fast (within 6 months) if they don’t
work. Did you notice how most food parks are struggling now? I’m actually glad that this
hipster trend is finally over.
 We expect Michelin to be in Manila by 2020.
 Michelin is rapidly expanding in Asia and they are present in most foodie destinations already
with their recent launch in Bangkok. They usually partner with the Tourism Boards so that
there is no inherent conflicts of interest with restaurants and chefs. Also, I think this will be the
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last year of Madrid Fusion in Manila, so the tourism board can allocate budget for the Michelin
endeavor.
 Now is the time that chefs are repositioning themselves (like Gallery Vask). Foreign Chefs
from Hong Kong, Shanghai, or Japan are even flying in to establish a Manila base to prepare
for the eventual Michelin Guide and awarding of those coveted Stars.

4. ALIBABA vs. AMAZON (vs. SM) in Manila!

 It’s so exciting that we are about to see Alibaba, the e-Commerce behemoth from China, go
head to head with Amazon, the biggest online retailer in the US, right here in Manila. Just
imagine, you can buy any of the products from the US or China at the most competitive pricing.
 As our internet penetration hits 58%, we are seeing the start of the e-commerce boom in
Manila, and mega-retail stores are scared.
 Our economy is continuing to grow, we are one of two countries in the world with a young
population with an average age of 24, and we are sick and tired of traffic.
 SM has the biggest motivation to play in the e-commerce space and they partnered with 2Go
to provide delivery service so that you can buy any products from the mall and have it
delivered to your home.

5. If it’s not Made by God, it’s probably Made in China

 A wise Chinese once said, there are only two things in this world–Made by God (the natural
wonders), and Made by China (all man-made products).
 Doing business with China is a big trend and I’ve never imagined it to happen this fast because
of our big brother friendship with the Chinese government.
 We recently finished a project with Ctrip–the biggest Online Travel Agency in China (even
bigger than Agoda and Booking combined).
 All our contracts are in Chinese, although they can communicate in English through email.
They can only pay in Yuan that they can bring outside of China. And they work fast.

6. Content is a Commoditized King, Coaching is in!

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  Yes, we are overloaded with information. It’s estimated that there are 2 billion pieces of content
generated on social media, blogs, and video hosting sites each day. You can find any
information, good or bad, about any subject and meet any content needs online.
 We are forever newbies because of new technologies coming in, new ways to do things, and
paradigm shifts in the way we do business.
 Even for me, I started blogging in 2005 and quit my day job in 2008. This is my 10th year
professionally blogging here in Manila, yet I’m overwhelmed with how to engage in new
platforms like Pinterest, LinkedIn, and YouTube. I needed coaching to help me learn from the
best practices quickly, and have a tailor-fit solution for my context and situation.

7. Filipinos as the Dominant Lifestyle Consumer Segment

I believe that the Filipinos will rule the internet and be a dominant consumer segment in the food and
travel space in 10 years time.
The world is aging with countries like Japan, Singapore, the US, and in Europe with an average age of
45 and up.
Most couples in developed countries don’t want to have kids anymore, which is sad and detrimental to
their economy in the long term.
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Understanding and investing in the Filipino consumer starts now. Companies abroad cannot ignore
the Filipino demographic anymore and in fact, most of them are opening companies in Manila.
We are considered a minority today, but the Filipino as a consumer brand will be influential as we
continue to be the social media capital of the world, emerge as a food capital in Asia, and be a
dominant segment in the travel industry.
 
8. Restaurant 4.0…Are you ready?

I like how he painted the picture of the new era of restaurants with crisp and clear concepts and
memorable tag lines that both restaurateurs and the dining public would agree on:
 1). Restaurants do not have a wooden door but a digital door where the customer experience
starts from booking a reservation, moves to the actual dining experience, and ends past the
social chatter after.
 2). Diners eat with a fork, spoon, and a mobile phone.
 3). In the new era, the best tip is not cash, but digital tips based on reviews, mentions, and
sharing online.
 4). Delivery is an extension of the restaurant experience, with drivers as mobile waiters.
 5). Focus on your restaurant’s Gastronomic DNA online based on what people talk about,
review, and rave about your restaurant.

9. The Sustainable Me

Are you sustainable in terms of your food and travel choices? The challenge of sustainability begins
with ourselves.
Forecasts show that there won’t be enough beef, chicken, and fish to feed the growing population of
the planet. 
Most of our natural resources are being wasted and all tourist spots are being abused. The
documentary “A Plastic Ocean” on Netflix is a big eye-opener on how plastic waste destroys our
oceans, the sea creatures, and our environment.
It may seem that the sustainability issue isn’t urgent, but in fact, it’s exponentially building up to be
irreversible at some point. It’s a massive problem that we need to address now.
 

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MODULE 15: Technology and Culture

Technology is changing every aspect of our lives. The benefits provided by new digital approaches
are having a huge impact on our societies. However, one of the greatest business challenges is not
about the devices, software or solutions – it is about how we manage the process of cultural change.

At the beginning of this year, I took charge of a new region – one with hugely varying and
diverse cultures – and I have quickly seen for myself how technology is adopted in different
ways and how countries are digitally divided by access and availability.

Many facets of global communications today are influenced by cultural differences – be it

email, Skype, social media or the telephone. In my experience, regardless of your
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preferences, the key to communicating successfully is understanding and respecting all of our
differences to enable a positive impact.

The human touch

We humans are social animals. Technology can’t replace human interaction. We need to
combine the human and digital elements to communicate across our borders.

Between 70 and 80 percent of our communication is often non-verbal, which is why we

believe in the importance of the human touch in digital transformation. Body language can be
a powerful tool in business communications.

In offices, meeting rooms are branded with the slogan "communication makes magic." By
this, it means face-to-face communication. Despite all the technological marvels we have
today you can still achieve much by actually talking to each other in person. This underlines
how we can combine digital transformation and personal communication and put the "human"
into technology.

Technology Shapes Culture

Technology influences everyday life and has a strong influence on culture. Find out how the people
within different cultures choose to incorporate technologies.
Today and since the dawn of homo sapiens, technology is embeded in peoples lives. In the 21st
century technology is integral because not only is there the technology of lights and computers used
in everyday life, but also our bodies are physically altered through vaccines and the medicine people
take daily. Technology is imperative. So, technology is incorporated in all aspects of culture including
travel, food, government, and art.
Technology shapes different cultures and differentiates one from another. It allows us to intermix.
Through technology of computers and teleconferencing, a specialized learner can access knowledge
through a conference halfway across the world without leaving that persons’ home. Technology does
allow for every opportunity to be afforded, but creates more opportunity than in the past. This
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 technological advancement allows the opportunities previously separated by socioeconomic status to
be taken away. Allowing a person from the U.S. with a lower income to have access to travel across
the world to France to access the cultural differences and similarities and vice versa.
 The U.S. and France treat the consumption of food differently which is seen through the technology
used to distribute food. The U.S. views meals as a means to an end. Typically in the U.S., meals are
eaten in a short time span and on the go. Americans have the goal of traveling from point A to point B
as quickly as possible. This differentiates the U.S. from France, where the individuals within French
culture view meals as a social time to be enjoyed, savored, and valued. This can be seen through the
technology of automobiles and fast food. The U.S. has drive through lanes for fast food, this
technology of speaking through a speaker and receiving food through a window into a car creates a
different culture and relationship with food in the U.S. Often, food is eaten quickly so the next project
or activity can commence. Whereas, in France, fast food is accessible, but rarely are there drive
through lanes within the fast food restaurants. Many French people will sit in a cafe or restaurant for
hours eating food and socializing.  The technology of having freezers with premade food and then
being able to serve the food hot in minutes has shaped current culture. The technology of having a
drive through lane is accessible to the people and culture within France. However, France chooses
not to integrate the technology into their way of life, showing how people choose what technology to
access thus shaping technology differently within each culture.
In the U.S., technology built the foundation for a democratic society. To show what a culture and
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democracy values can be seen through the window of education and how school systems are
organized. Kranzberg, a scholar of technology, sheds light on how technology has helped “…
democratizing education and the intellectual realm of the the arts and humanities” (Kranzberg p.10).
Democratisation of education in the U.S. has rendered children of all social statuses able to attend
school and receive an education. Without the technological skill of forming a democratic system and
communication devices, the democratisation of education would not have occurred.
Through the technology of art, values can be seen within a culture. Art is the culmination of cultivated
technological skills by a person. The technology of art can be explained by scholar David Nye’s idea
of how technology is not just objects but skills. In France, art has been an extremely valued part of
French culture for thousands of years. This is seen through King Louis XIV building the ornate palace
of Versaille to the current French government promoting art museums. French students receive
culture passes allowing them to have free or extremely discounted access to museums across the
country. This opportunity from the government and cities shows how art is valued to the French
people. The technology of art shapes the French culture.
There is an interconnected relationship between humans and technology that exists. If humans are
alive, technology is alive. Flowing through our veins and manipulated by our hands. Through people’s
use of technology, technology has contributed to shaping and differentiating cultures.

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 MODULE 16: Globalizing Philippine Popular Culture

Cultural globalization refers to the transmission of ideas, meanings, and values around the

world in such a way as to extend and intensify social relations. This process is marked by the
common consumption of cultures that have been diffused by the Internet, popular
culture media, and international travel. This has added to processes of commodity
exchange and colonization which have a longer history of carrying cultural meaning around
the globe. The circulation of cultures enables individuals to partake in extended social
relations that cross national and regional borders. The creation and expansion of such social
relations is not merely observed on a material level. Cultural globalization involves the
formation of shared norms and knowledge with which people associate their individual and
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collective cultural identities. It brings increasing interconnectedness among overview

The Basics of Cultural Globalization

 Diffusion of ideas and cultures amongst all of the civilizations of the world.
 Trend that will eventually make all of human experience and customs the same since all cultures
are coming together into one
 Occurs in everyday life, through wireless communication, electronic commerce, popular culture,
and international trade
 Attempt to promote a Western lifestyle and possibly Americanize the world.
Contributing factors

 New technology and forms of communication around the world help to integrate different cultures
into each other
 Transportation technologies and services along with mass migration and individual travel
contribute to this form of globalization allowing for cross-cultural exchanges
 Infrastructures and institutionalization embedded change (e.g. teaching languages such as
English across the world through educational systems and training of teachers)
Benefits

 Allows for profits to companies and nations

 Offers opportunities for development and advancement in economics, technology, and information
and usually impacts developed countries
 Creates a more homogeneous world
 Generates interdependent companies amongst companies

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 Phases of Cultural Globalization
Pre-modern phase: early civilizations to 1500
 Early human migration (facilitation of trade and creation of social networks amongst other nations)
 Emergence of world religions
 Development of trans-regional trade networks (long-distance trade, many centered in China and
India. Early forms of globalization, especially with the Silk Road)
Modern phase
 European imperialism (rise of the West. European expansionism, especially with Columbus’
encounter with the New World which allowed goods and people to cross the Atlantic)
 Emerging international economy
 International migration and developments outside of the West
 Spread of modernity
 Medical advancement that helped many
 Rise of the nation-state (a development of freedom of movement and cultural diffusion)
 Industrialization (demand for raw materials to supply industries. Science grew immensely with
electronic shipping, railways, and new forms of communication, such as cable technology)
Contemporary phase:
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 Struggle after the cold war led to a slow but steady increase in cultural flows with the immigration
of peoples, ideas, goods, symbols, and images.
 Represented global cultural interconnectedness, which eventually led to developments in
transport and transport infrastructures such as jet airlines, construction of road and rail networks.
This allowed for more tourism and shifting patterns of global migration.
 Marshall McLuhan introduced the term “global village” in the 1960s stating that it was the ability to
connect and trade ideas instantly amongst the nations of the world
 The term “globalization” became popular in the 1980s

Cultural globalization integrates scholars from several disciplines, such as anthropology,

sociology, communication, cultural studies, geography, political science and international
relations. The field is notably broad as there are several concepts which may be perceived as
cultural or transnational.
A visible aspect of the cultural globalization is the diffusion of certain cuisines such as
American fast food chains. The two most successful global food and beverage
outlets, McDonald's and Starbucks, are American companies often cited as examples of
globalization, with over 36,000 and 24,000 locations operating worldwide respectively as of
2015. The Big Mac Index is an informal measure of purchasing power parity among world
currencies.
Cultural globalization is one of the three main dimensions of globalization commonly found in
academic literature, with the two other being economic globalization and political
globalization. However, unlike economic and political globalization, cultural globalization has
not been the subject of extensive research.

Impacts on Cultural Globalization

The pattern of cultural globalization is a way of spreading theories and ideas from one place
to another. Although globalization has affected us economically and politically, it has also

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 affected us socially on a wider scale. With the inequalities issues, such as race, ethnic and
class systems, social inequalities play a part within those categories.
The past half-century has witnessed a trend towards globalization. Within the media and pop
culture, it has shaped individuals to have certain attitudes that involve race issues thus
leading to stereotypes.
Technology is an impact that created a bridge that diffused the globalization of culture. It
brings together globalization, urbanization and migration and how it has affected today's
trends. Before urban centers had developed, the idea of globalization after the second world
war was that globalization took place due to the lifting of state restrictions by different nations.
There were national boundaries for the flow of goods and services, concepts and ideas.

Globalization Perspectives
Hybridization
Many writers suggest that cultural globalization is a long-term historical process of bringing
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different cultures into interrelation. Jan Pieterse suggested that cultural globalization involves
human integration and hybridization, arguing that it is possible to detect cultural mixing across
continents and regions going back many centuries.  They refer, for example, to the
[9]

movement of religious practices, language and culture brought by Spanish colonization of the
Americas. The Indian experience, to take another example, reveals both the pluralization of
the impact of cultural globalization and its long-term history.  The work of such cultural
[10]

historians qualifies the lineage of writers—predominantly economists and sociologists—who

trace the origins of globalization to recent capitalism, facilitated through technological
advances.
Homogenization
An alternative perspective on cultural globalization emphasizes the transfiguration of
worldwide diversity into a pandemic of Westernized consumer culture.  Some critics argue
that the dominance of American culture influencing the entire world will ultimately result in the
end of cultural diversity. Such cultural globalization may lead to a human monoculture. This
process, understood as cultural imperialism, is associated with the destruction of cultural
identities, dominated by a homogenized and westernized, consumer culture. The global
influence of American products, businesses and culture in other countries around the world
has been referred to as Americanization. This influence is represented through that of
American-based television programs which are rebroadcast throughout the world. Major
American companies such as McDonald's and Coca-Cola have played a major role in the
spread of American culture around the globe. Terms such as Coca-colonization have been
coined to refer to the dominance of American products in foreign countries, which some
critics of globalization view as a threat to the cultural identity of these nations.
Conflict intensification
Another alternative perspective argues that in reaction to the process of cultural globalization,
a "Clash of Civilizations" might appear. Indeed, Samuel Huntington emphasizes the fact that
while the world is becoming smaller and interconnected, the interactions between peoples of
different cultures enhance the civilization consciousness that in turn invigorate differences.
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 Indeed, rather than reaching a global cultural community, the differences in culture sharpened
by this very process of cultural globalization will be a source of conflict. While not many
commentators agree that this should be characterized as a 'Clash of Civilizations', there is
general concurrence that cultural globalization is an ambivalent process bringing an intense
sense of local difference and ideological contestation.
Alternatively, Benjamin Barber in his book Jihad vs. McWorld argues for a different "cultural
division" of the world. In his book the McWorld represents a world of globalization and global
connectivity and interdependence, looking to create a "commercially homogeneous global
network". This global network is divided into four imperatives; Market, Resource, Information-
Technology and the Ecological imperative. On the other hand, "Jihad" represents
traditionalism and maintaining one's identity. Whereas "Clash of Civilizations" portrays a
world with five coalitions of nation-states, "Jihad vs. McWorld" shows a world where struggles
take place on a sub-national level. Although most of the western nations are capitalist and
can be seen as "McWorld" countries, societies within these nations might be considered
"Jihad" and vice versa.
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