4.2 - Global Networks And Flows Flashcards
Who accounts for the bulk of global merchandise
Asia, Europe and North America continue to account for the bulk of the merchandise, although the share in merchandise exports from emerging economies increased from 33 per cent in 2005 to over 40 per cent in 2015 (Figure 4.11).
In which economies is trade increasing
Moreover, the trade between emerging economies
increased from just over 40 per cent to over 50 per cent of their global trade between 2005 and 2015
Who is merchenise trading dominated by and how much is it worth
Merchandise trade was worth over $16 trillion in 2015, and was dominated by China, the USA, Germany, France, the UK and the Netherlands (Figure 4.13). The top 10 trading nations accounted for over half of the world’s trade in 2015, and emerging economies accounted for over 40 per cent of the world’s trade in merchandise.
Who accounts for one third of trade
emerging economies accounted for just over one-third of the trade in services in 2015. Countries that had trade in services worth over $50 billion included the BRICs, the USA and Canada, Australia and a number of European countries
Why was there a slow down in trade is 2015
The slowdown in trade in 2015 was put down to a number of factors, including an economic slowdown in China, a recession in Brazil, falling commodity prices, including oil, and changes in exchange rates. Asia contributed more than any other region to the recovery of world trade after the financial crisis of 2008-09.
What shares in manufactured goods have increased and which have decreased
Merchandise - increase
Fuels and mining - decrease
Who are the worlds largest importers and exporters
In 2015, China remained the world’s leading exporter and the USA the world’s leading importer. China, the USA, Germany and Japan were the most important exporters and importers. China’s exports in 2015 were valued at $2.17 trillion, followed by the USA at $1.5 trillion. The USA’s imports were valued at $2.31 trillion, followed by China’s, at $1.68 trillion.
What affected the merchandise exports in a number of LICs
Merchandise exports from a number of LICs were badly affected by the falling prices for energy and mining products. Many LICs depend to a large extent on the export of fuels and mining products. For the first time since 2005, the share of LICs merchandise exports fell to below 1 per cent of the global total.
What is the goal for aid for trade
The Aid for Trade initiative attempts to help poor countries use trade as a means of achieving economic growth and reducing poverty. It plans to increase market access for poor countries. In 2014, over $50 billion was made available for Aid for Trade projects. Asia and Africa remain the main recipients.
What are some different types of aid
- emergency relief
- development aid
- short term aid
- long term aid
- top down and bottown up development
What is top down development
- Usually large in scale.
- Carried out by governments, international organizations and “experts”.
- Done by people from outside the area.
- Imposed upon the area or people by outside organizations.
- Often well funded and quickly responsive to disasters.
- Does not involve local people in the decision-making process.
- Emergency relief can be considered top-down.
What is bottom up development
- Small in scale.
- Labour intensive.
- Involves local communities and local areas.
- Run by locals for locals.
- Limited funding available.
- Involves local people in the decision-making process.
- Common projects include building earthen dams, creating cottage industries.
When is aid effective
- It provides humanitarian relief.
- It provides external resources for investment and finance projects that could not be undertaken with commercial capital.
- Project assistance helps expand much-needed infrastructure.
- It contributes to personnel training and builds technical expertise.
- It can support better economic and social policies.
When is aid ineffective
- It might allow countries to postpone improving economic management and mobilization of domestic resources.
- It replaces domestic saving, direct foreign investment and commercial capital as the main sources of investment and technology development.
- It might promote dependency rather than self-reliance.
- Some countries have allowed food aid to depress agricultural prices, resulting in greater poverty in rural areas and a dependence on food imports. It has also increased the risk of famine in the future.
- Aid is sometimes turned on and off in response to the political and strategic agenda of the donor country, making funds unpredictable, which can result in interruptions in development programmes.
- The provision of aid might result in the transfer of inappropriate technologies or the funding of environmentally unsound projects.
- Emergency aid does not solve the long-term economic development problems of a country.
- Too much aid is tied to the purchase of goods and services from the donor country, which might not be the best or the most economical.
- Corruption may mean that a lot of aid does not reach those who need it - that is, the poorest people in the poorest countries
Since when has Bangladesh relied on aid and why
Since its independence in 1971, Bangladesh has relied on foreign aid as a major source of foreign earnings.
How much aid has Bangladesh received and where is it from
Bangladesh received over $54.5 billion, much of it from the World Bank and IMF, on the condition that Bangladesh commit to several reforms.
What reform did Bangladesh have to commit to
One was that Bangladesh privatize state-owned enterprises (SOEs). Between 2000 and 2014, 38 SOEs were privatized, but by 2014, 20 of these had closed. Levels of workers’ compensation, job security, access to trade unions and leave entitlement are much lower in privatized companies compared with SOEs. Annual wage increases were smaller in the privatized firms compared with SOEs, and daily wages for casual workers were less than in SOES.
What is a loan
Many countries provide loans for developing countries. The definition of a loan is that it is a transfer of money or skills that require repayment over a set time,
What is the main pattern of loans
The main pattern of loans is a transfer from richer countries to poorer countries. In many poor countries, economic and social infrastructure - such as electricity, gas, transportation and communications services - is underdeveloped. In addition, there may be issues related to population growth, environmental degradation, disease and conflict,
What target did the official development assistance adopt
In 1970 the OECD adopted the target for donors to spend 0.7 per cent of their GNI on ODA, but by 2012 only five donors had met this target.
Donors in the Development Assistance Committee (DAC), the body through which the OECD deals with matters related to cooperation with poor countries, achieved only 0.29 per cent of their GNI. The ODA is the largest international resource flow for over 40 countries and over 250 million people living in poverty. For example, ODA to Liberia in 2011 exceeded government expenditure, and in Rwanda it was equal to 80 per cent of government spending.
Who received the highest portion of their ODA
Sub-Saharan Africa receives the highest proportion of ODA, around 35 per cent, followed by South Asia (17 per cent). Afghanistan was the largest individual recipient, followed by the Democratic Republic of the Congo.
How has the most debt throughout the world
Sub-Saharan Africa includes most of the 42 countries classified as heavily indebted, and 25 of the 32 countries rated as severely indebted.
In 1962 sub-Saharan Africa owed $3 billion (£1.8 billion). Twenty years later it owed $142 billion. Today its debt is about $235 billion. The most heavily indebted countries are Nigeria ($35 billion), Côte d’Ivoire ($19 billion) and Sudan $18 billion).
