3.13. UN vs TNCs Flashcards
UN- Finland
- One of the most sustainable scoring high in education, social protection and environmental sustainability- reducing co2 emissions + increased renewable energy sources, health and gender equalities, good health + well-being
- Only 4.8% of population affected with food insecurity
- Low infant mortality rate of 2.3 per 1000 births
- 93% of pop aged 25-64 has completed at least upper secondary education
- 47.7% female representation in Parliament
- In 2020, 40.4% of Finland’s energy consumption came from renewable sources
UN: LIC Ethiopia
- One of fastest growing economies, made improvements in areas like poverty reduction, quality education + clean energy
- Grand Ethiopian Resistance Dam
- Increase in Primary School enrollment
- Literacy rate increased from 28% in 1994 to 51.5% in 2020
- Poverty rate dropped from 44% in 2000 to 23.5% in 2020
- 9.5 million Ethiopians rely on food aid
- 90% of children attending school
- 38% of seats held in Parliament by women
- 33% in 2000 to 57% in 2019
- Committed to reducing greenhouse gas emissions by 64% by 2030
UN: NEE Brazil
- Climate action, poverty reduction, quality education
- People living in poverty is 5.3%
- Adult literacy rate has reached 93.2% in 2020
- 98% of primary school age children enrolled
- Undernourishment decreased from 6.5% in 2000 to 2.6% in 2020
- 83% of pop has access to clean drinking water
- Over 40% employed in informal sector
UN: LIC Yemen
- Conflict destroys infrastructure, diverts resources, disrupted food production
- Over 80% of population requires humanitarian assistance - poverty
- Healthcare system has collapsed- malnutrition and disease, including cholera
- Conflict prevents establishment of effective governance, rule of law + peace
- UN estimates 16 million are food insecure
- Around 50% of pop living in extreme poverty
- Over 2 million children out of school
- Adult literacy rate low- men = 70% and women = 50%
- Women hold 1% of seats in parliament
- Over 80% of pop lack reliable access to safe water and sanitation
- Unemployment rate is 30%
Summary of how the UN promotes growth and stability
Particularly through its economic, social and peacekeeping initiatives
3 ways UN promotes growth and stability
- Economic growth
- Political and social stability
- Environmental stability and disaster relief
How does the UN promote economic growth?
Through agencies like the United Nations Development Programme (UNDP) and initiatives like the Sustainable Development Goals (SDGs)
Example of UN economic growth: Bangladesh
UNDP and Poverty Reduction in Bangladesh
- Has supported Bangladesh in reducing poverty, improving literacy rates, and increasing employment opps
- The Microfinance Initiative (through partnerships with the World Bank and NGOs) has helped small scale entrepreneurs, particularly women, leading to economic growth.
- Bangladesh has seen a rise in GDP and human development indicators as a result
Example of UN economic growth: UNCTAD and Trade in Africa
- The United Nations Conference on Trade and Development supports developing nations by improving trade infrastructure.
- In Ethiopia, UNCTAD helped establish special economic zones and improved trade regulations, boosting exports and foreign investment.
How does the UN promote political and social sustainability?
Through peacekeeping missions, conflict resolution and human rights protection via agencies such as the United Nations Peacekeeping Force (UNPKF) and the United Nations Human Rights Council (UNHRC)
Example of UN political and social sustainability: UN Peacekeeping in the Democratic Republic of the Congo
- The UN has deployed peacekeeping troops to maintain security and assist in rebuilding governance structures.
- This has helped reduce armed conflict, improve law enforcement and support humanitarian aid efforts.
- The presence of UN peacekeepers has prevented large scale civil war
Example of political and social sustainability: UNHCR and Refugee Support in Syria
- The UNHCR provides shelter, medical aid and food to displaced people in Syria and neighbouring countries
- Prevents humanitarian crises, stabilises regions affected by conflict and supports long term resettlement programmes
How does the UN promote stability and disaster relief?
Plays a critical role in responding to environmental challenges through climate agreements and disaster relief
Example of UN environmental stability and disaster relief: Paris Agreement and Climate Change Mitigation
- UN Framework Convention on Climate Change led to the Paris Agreement which commits countries to reducing greenhouse gas emissions
- Nations like the UK and Germany have implemented policies to transition to renewable energy, promoting sustainable economic growth while reducing environmental instability
Example of UN environmental stability and disaster relief: UN response to natural disasters
- After 2010 Haiti earthquake, the UN provided emergency aid, rebuilding efforts and disease control.
- The UN’s WFP and WHO delivered food, medical supplies and vaccines to prevent outbreaks like cholera
- Helped restore basic services and stabilise country after disaster
Summary of TNCs promoting growth and stability
Play a significant role in economic growth and political/ social stability, particularly in developing countries,
- Through FDI, job creation, technology transfer and infrastructure development, TNCs contribute to both economic prosperity and global stability.
4 areas of TNCs that promote growth and stability
- Economic growth
- Infrastructure Development
- Stability through Supply Chain resilience
- Social Stability and Corporate Social Responsibility
How do TNCS drive economic growth?
Through job creation, industrial development and increased exports
Economic growth case study: Apple in China
- Employment: Apple’s partnership with Foxconn in China has created over 1 million jobs in assembly plants
- FDI and exports: Apple’s supply chain contributes billions to China’s economy through high value exports
- Technological advancement: Apple has helped develop R&D facilities, increasing China’s role in high tech industries
Impact of Apple on economic growth
- China has become the world’s largest electronics exporter, fuelling its economic growth
- Local suppliers and subcontractors benefit from Apple’s investment, leading to economic multiplier effects
How has Coca Cola promoted growth?
5by20-> male 5 million females entrepreneurs by 2020, empowering women
However, they used a large water supply
How have TNCs driven infrastructure development
- TNCs often invest in infrastructure, benefitting local economies
Infrastructure development case study: Shell in Nigeria
- Investment in energy: Shell has invested over $15 billion in Nigeria’s oil sector
- Infrastructure: Roads, pipelines and electricity networks have been improved due to Shell’s presence
- Employment: Provides over 6000 direct jobs and many more in related industries
Impact of Shell
- The oil sector contributes 9% of Nigeria’s GDP
- Local businesses gain access to improved transportation and energy supply
Problems with Shell
Also caused environmental damage and local protests, showing that TNCs don’t always lead to sustainable growth
How do TNCs drive stability through supply chain resilience?
TNCs can stabilise economies by providing consistent employment and integrating countries into global supply chains
TNC stability through supply chain resilience case study: Toyota in South Africa
- Automobile exports: Toyota’s investment has made South Africa a key car exporter, reducing economic volatility
- Job creation: The Durban plant employs 8000+ people, stabilising local communities
- Supplier networks: Toyota supports local parts manufacturers, ensuring long term economic resilience
Impact of Toyota in South Africa
- South Africa’s automobile industry contributes 7% to GDP, reducing reliance on mining
- Strengthened economic ties with Japan and the EU, improving trade stability
How TNCs drive social stability and corporate social responsibility?
Many TNCs engage in CSR initiatives, which enhance education, healthcare and local business development
TNC social stability and corporate social responsibility case study: Unilever’s Sustainable Living Plan
- Sustainability: aims to cut carbon emissions and promote ethical sourcing
- Hygiene and health: provides sanitation products in developing nations, reducing disease rates
Impact of Unilever’s sustainable living plan
- Unilever’s projects reach 1 bn people, improving global health outcomes
- Supports economic growth and poverty reduction in rural areas
General problems with TNCs
- Unfair wages
- Poor working conditions
- TNCs can move whenever, uprooting people
- Difficult to leave jobs
- Rana Plaza
- TNCs look to benefit themselves
