3.2.1.2 Global Systems Flashcards
Unequal flows of people
- People tend to move from countries where there are few jobs eg. LICs to HICS
- People also leave countries to escape war, famine or persecution.
- The people who move for economic reasons are not usually the poorest in society – money may be needed for a visa, transport and living expenses in the destination country. Countries may also only allow people with certain skills – so migrants are often more educated.
- It is easier for people from HICs to migrate than people from LICs
- Flows of people bring benefits e.g. immigrants can create economic growth e.g. may do jobs that a country
s citizens cant do e.g. engineering, or don`t want to do e.g. dangerous jobs like mining or poorly paid jobs - Many migrants send Remittances back to families, these can increase the amount of capital flowing in to LICs – can create economic growth in the home country as local people can spend more, boosting loca
Inequalities created by unequal flows of people
“Brain Drain” -> skilled people move and take knowledge with them, reinforces existing inequalities between countries
Unequal flows of people conflict
Low-skilled migrants are often prepared to work for less money than low- skilled locals. By employing them, companies may depress wages for the local population. This can cause conflict between local and migrants populations.
Unequal flows of people injustice
Migrant workers are sometimes made to work in dangerous conditions for little money e.g. Qatar, several thousand migrants have died building facilities for the 2022 FIFA World Cup
Benefits of unequal flows of money
- Flows of money can include remittances, foreign aid- increases development/ helps in a crisis, foreign direct investment (FDI) and income from trade.
2 Flows of money are unequal – money often flows from HICs to LICs e.g. governments and companies from HICs may invest in infrastructure or the extraction of minerals in LICs. LICs rarely have the capital to invest in other countries.
3 Flows of money can bring benefits e.g. FDI allows foreign companies and countries to take advantage of cheap raw materials and low labour costs, while the host country can benefit from foreign capital and expertise. Foreign aid can be used to improve living stands or to build local infrastructure after a disaster.
Inequalities with unequal flows of money
Foreign aid can create dependency, which gives governments little incentive to improve their own countries. FDI can force out local businesses as TNCs can make products more efficiently.
Conflict with unequal flows of money
Foreign aid can find its way to armed groups and can help to fund conflict. FDI can cause conflict between foreign companies and local people e.g. FDI in farming can lead to peasant farmers being evicted to create larger plantations.
Injustice unequal flows of money
Companies may pressurise governments of LICs to pass laws that make it cheaper to invest there e.g. by cutting environmental regulation/legislation or weakening laws on working conditions.
Unequal flows of ideas
1 Before the 1980s most national governments took responsibility for providing welfare for their citizens and controlling imports through trade barriers to protect their national industries.
2 However, in the 1980s many HICs thought that the economy would work better without state intervention – maximum economic growth would only occur if trade barriers were removed, state- owned companies were privatised and government spending was cut.
What is neo liberalism
maximum economic growth would only occur if trade barriers were removed, state- owned companies were privatised and government spending was cut.
What have neo-liberalist ideas done?
Increased free trade which has led to more development within countries and less conflict between countries
Inequalities with flows of ideas
Neo-liberalism started in HICs and has spread globally. It tends to concentrate wealth in the hands of a few e.g. large TNCs based in HICs.
conflict unequal flows of ideas
If private companies and free trade in an LIC are threatened by the decision of that country`s government, HICs may believe that their intervention is justified. This can lead to conflict.
Injustice unequal flows of ideas
Governments and TNCs may argue that free trade and privatisation are the best way to help a country to develop and that this justifies poor working conditions and environmental degradation in the LIC
What has led to unequal flows of technology?
- Globalisation has led to unequal flows of technology- mainly from HICS-LICS
- Concentration of technology in particular places can lead to rapid innovation thay can help people all over the world
Example of unequal flows of technology
Silicon Valley USA have developed innovations in communications and healthcare
Inequalities in unequal flows of technology
HICs can afford the latest technology, whereas LICs cant. Countries with the latest technology can make products more cheaply and have better access to information and services due to better communication infrastructure e.g. 2016 97% of Netherlands citizens had access to the Internet, compared to 20% in Myanmar. This gives HICs an advantage over LICs.
Unequal flows of ideas conflict and injustice
Repressive governments in LICs have used weapons` technology sold to them by HICs to stop protests from their own people
How has globalisation made some countries more powerful than others ?
Unequal flows of people, money ideas and technology have created unequal power relations between countries with some countries having more power than others eg. USA
HICs, NEEs and TNCs with a lot of money and technology are able to drive global systems to their own advantage. These countries and companies have a lot of control over the global economy and political events.
3 Many LICs lack money and technology. These countries have limited power – so they do not control events, they can only respond to them.
Power relations and climate change
Wealthy countries, major contributors to climate change, often resist emission limits due to economic concerns like job losses and higher energy costs. Meanwhile, poorer nations, like Bangladesh and Tuvalu, face severe climate impacts but struggle to influence global policies due to their limited power.
Components of international trade of states who drive global systems
Its patterns of trade, trade partners and trade agreements
Membership of trading blocs.
States who respond to global systems components of international trade
Its patterns of trade, trade partners and trade agreements
Membership of trading blocs
Role of IMF
Regulator of financial flows and stabiliser of the system, it monitors the global economy and advises governments on how they could improve their economic situation. It also gives loans to countries with economic problems.
Role of the world bank ?
It supports less developed countries by providing loans to reduce poverty and invest in health, education, and infrastructure. Funded by member contributions, money is redistributed from developed to less developed countries, which must repay the loans.
Features of IMF
Oversees the global financial system
Offers financial and technical assistance to its members
Provides loans if it will prevent a global economic crisis – last resort
Provides loans to help members tackle balance of payments
How many members are in the IMF
2,300 staff
185 member countries
Characterises of world bank
Promotes economic development in developing countries
Provides long term investment loans to reduce poverty
Encourages start up private enterprises in developing countries
Acquires financial resources by borrowing
Is a larger organisation with 7000 staff from 185 countries and always has an American president
Unequal power relations relations with IMF and world bank
The IMF and world bank are both based in the USA and are led by the USA and other HICs
The IMF and World Bank’s loans are conditional
