2.1 Case studies Flashcards
How did joining the WTO affect Pakistan’s fishing industry?
- before there was a 200 mile exclusion zone around its coast so only Pakistan’s fishing boats could fish there
- in 1995 Pakistan joined the WTO
- after this, TNC-owned deep sea trawlers were allowed to fish in Pakistan’s waters
- TNCs catch most of fish so Pakistan’s fishing communities left in poverty
- in 2013, charity ActionAid found that Pakistan’s fish stocks were falling dangerously low
Gains from Ghana’s role in cocoa trade
- one of world’ largest cocoa producers
- since its independence in 1957, the British government no longer set the price farmers would receive
- food prices down because of increased imports
- futures market ensures that products will be bought in the future
Losses from Ghana’s role in cocoa trade
- TNCs can also get cocoa from other growers (e.g. Ivory Coast), which puts downward pressure on prices
- EU sets tariffs of processes cocoa but not raw cocoa; Ghana could gain more money but tariffs drive up the price for buyers
- ghana joined WTO in 1995; before this Ghana subsidised cocoa growers but WTO does not allow this; this has caused farmer to fall into poverty or give up farming
Globalisation in India
- sweeping reforms took place in 1991
- India’s TNCs have grown in size and influence
- until 2013, foreign retailers could only open by agreeing to form a partnership with a local Indian business
- these rules have deterred other foreign retailers
- 90% of India’s businesses are family owned
Issues with cotton farming in India
- Indian farmers mainly grow cotton
- 2/3 of the crops were ruined by worms
- Farmers now have to spray pesticides which is harmful to the farmers
Impacts of use of pesticides in Indian cotton farms (7)
- People end up dying from the pesticide poisoning
- Farmers go into debt from buying the pesticides
- 7,000 farmers committed suicide by drinking the pesticides
- Workers life expectancy is 35 years
- symptoms = constant headaches, always feeling nauseous, cant breath properly
- Organic cotton will decrease all of this bad impacts
- However companies do not want to invest in it as it is more expensive
China before the 1978 Open door policy
- prior to 1978, China was poor, politically isolated, and not in the global economy
- under mao, millions died from famine and most lived rurally in poverty
China’s 1978 Open Door Policy
- in 1978, Xiaoping began ‘open door’ reforms where China embraced globalisation under one party rule
- reforms included: controls of number of children, allowing farmers to make profit
Next 30 years after China’s 1978 open door policy (5)
- 300 million people left rural areas for cities
- registration system called hukou prevented rural villages from emptying
- 200 more cities with more than 1mil inhabitants
- urban mega region of 120mil people in cities in the Pearl River Delta
- urbanisation led to the growth of low-wage factories
long-term impacts of China’s 1978 open door policy
- by the 1990s, 50% of China’s GDP was generated in SEZs
- by 2015 - many workers were making $40/day or making high quality goods
- today China is the world’s largest economy, and 400million people have escaped poverty since reforms began
Why is North Korea a switched-off place?
- autocracy run by a single family
- no underseas data cables connecting North Korea to anywhere else
- 100% literacy rate
- <0.1% of people have internet access
- 178th on political freedom index
- big divide between elite + ordinary people
- $78.8m net official development assistance
The Sahel Region location
- Dry grasslands located south of the Sahara (West Africa)
- e.g. Chad, Burkina Faso, Mali
Why is the Sahel Region a ‘Switched off place’
- mismanagement of natural resources
- colonial history
- landlocked countries
- struggle to attract FDI
- extreme environmental conditions increase cost of infrastructure
Globalisation in the Sahel region
- global links are shallow
- subsistence farmers often dependent on food aid
- some grow cash crops for TNCs but wages are very low
- so global brands don’t view these places as viable markets
- change may come soon as there is rapid economic growth in neighbouring countries; e.g. Mali’s folk music has gained a following on YouTube
Describe the global shift to China
- 1970s+80s, manufacturing began to move from Europe/USA to Asia
- changes in economic policy allowed for this
- cities like Shenzhen offered low-wage labour
- since 2000, China has been largest recipient of FDI
- China’s global trade increased from 3% (2001) to 10% (2013)
- 2015, over 150 cities with populations over 1million
Global shift China - benefits
- Investment in infrastructure; by 2016 China has an advanced railway system, 250 airports
- reduction in poverty; between 1981 and 2010, people in poverty reduced by 680m and extreme poverty reduced from 84% to 10%
- increases in urban incomes
- better education & training; 94% of over 15s are literate (compared to 20% in 1950), big rural-urban divide in education spending
Global shift China - costs
- loss of productive farmland; industrialisation caused over 3mil hectares of land to be polluted with heavy metals
- increase in unplanned settlements; increased demand for urban housing, land prices increased, forced to build on farmland
- pollution and health problems; air and water pollution, extreme water shortages, respiratory problems
- 40% of China’s farmland suffering land degradation (erosion, acidification, deforestation, intense grazing)
- over-exploitation of resources; China has to import from Africa and Latin America
- loss of biodiversity
Deindustrialisation in Manchester
- deindustrialisation after WW2
- 1971-81 lost 50,000 of full time jobs and 17.5% of population
- area described as empty; social exclusion, crime, deteriorating living conditions
- uneven development driven by globalisation and facilitated by UK government
- late 1970s government stopped trying to spread growth among UK cities
- 1986 ‘Big Bang’ deregulated London’s financial markets to establish it as a financial centre