3.4 the global shift: winners and losers

Question 1

what is and what causes the global shift?

Answer 1

the relocation of the worlds economic centre of gravity over time. since the 1960s, many industries have vanished from Europe and N America. the centre is tracking east now as China begins to regain its economic leadership. (China has been worlds largest recipient of FDI since 2000)

global shift stems from a combination of off-shoring, outsourcing and new business start-ups in emerging countries. in part it has been driven by TNCs seeking low-cost locations for their manufacturing and refining operations.

Question 2

benefits of global shift (C/S China)

Answer 2

1. infrastructure investment
 by 2016 China had 
  - longest highway network in the world
  - HSR system doubled in 10 years
  - has worlds fasted commercial train (30km in 8 minutes)

2. reduction in poverty
   - 300+ mill. are now middle class
   - from 1981- 2010: no. of people in poverty decreased by 680 mill.
   - extreme poverty rate (less than $1 a day) dropped from 84% (1980) - 10% (2016)
   WORLDWIDE: a billion people by 2030 will have been lifted out of poverty
3. increase in urban income
   - risen by 10% a year since 2005
   - now get paid holidays
4. better education
   - education is now free and compulsory between 6 and 15
   - 94% are literate
   - in 2014, 7.2 mill. graduated (15x higher than 2000)

Question 3

costs of global shift (C/S China)

Answer 3

1. loss of productive farmland/land degradation
   - 40% of Chinas farmland is suffering from degradation
   - 3 mill. hectares of arable farmland has been polluted with heavy metals
2. increase in unplanned settlements
   - rapid industrialisation causing urbanisation: desire caused unaffordable housing
   - slums develop on edge of cities as a result (eg Dharavi home to families who live on as little as £200 a month)
3. air pollution and health problems
   - 70% of rivers and lakes polluted
   - 360 mill. Chinese don’t have access to clean d. water
   - Beijing has frequent pollution alerts: calculated that pollution kills 1.6 mill. Chinese each year
4. over exploitation of resources
   - resources under pressure, cannot keep up with demand
   - Amazonian rainforest has been cleared in Ecuador for Cs consumption
5. loss in biodiversity
   - terristial vertebrates declined by. 50% since 1970 due to habitat loss by economic development

Question 4

characteristics of deindustrialised regions in developed countries

Answer 4

1. dereliction
   - caused by combo of manufacturing and industry closures, falling house prices and rising crime
   ( eg Sheffield suffered when steelworks closed, in Newcastle in the 70s population fell by 20% as a result)
   often derelict land becomes contaminated from dumping of chemical waste
2. depopulation
   - in inner city areas. caused by deindustrialisation (in America also caused by middle class leaving falling neighbourhoods for suburbs)
   - result of depopulation = collapse in housing prices, dereliction, racial tensions caused (eg UK and USA)
3. crime
   - derelict, depopulated areas have gained reputation for crime.
   - broken window scenario: at first small acts are tolerated, soon more serious issues become tolerated
   !when areas are switched off to legitimate global flows they often become switched on to illegal flows!
4. high unemployment
   caused by either depoulation: house prices are low ‘encouraging’ low incomes- unemployed can afford to move into these areas increasing rate of unemployment.
   or deindustrialisation: high loss of jobs = high unemployment rates (global shift meant in Detroit automobile industries disappeared losing large no. of jobs)

Question 5

inner-city spiral of deprivation

Answer 5

• old factories close and land becomes derelict
• jobs are lost and people leave the city
• fewer services are needed so shops and schools close
• more jobs are lost so more people leave
• people who stay are mainly elderly/ low income groups
• little money put into area: gets more run down
• crime and vandalism increase: quality of life gets worse

Question 6

C/S USA

Answer 6

• Detroit has lost 1 million residents since 1950 (result of global shift: domination of Asian factories)
• Baltimore has lost 1/3 of its population: 20,000 abandoned homes, some sold for $1
• depopulation in US cities has been linked with race: process of out-migration has left some districts populated mainly by African Americans.
  economic problems triggered by global shift over time have reignited racial tensions in cities such as Jackson.
• rising gun crime in USA, in some low- income districts life expectancy is 30 yrs lower than affluent ones

Question 7

services in India (C/S)

Answer 7

India opened up to globalisation in 1991 with PM Singh’s economic liberalisation

initial globalisation through outsourcing rather than manufacturing (advantage= India is english speaking!)

large TNC FDI in 2000s in call centres and back office functions by firms incl. Microsoft and HSBC (technology workers increase especially in regions like Bangalore)

:( inequality increases… !!!!India has more billionaires per capita than the UK and more people in extreme poverty than the whole of Africa!!!!