4.5 Switched on and Switched off worlds Flashcards
What are the two different types of approaches countries can take to globalisation and what is the effect of this?
-Those in favour of globalisation claim an increased connectedness- i.e. becoming ‘switched on’- improves many countries’ economic development, which in turns leads to higher living standards for their citizens
- Those against globalisation argue that it leads to corrupt practices, and also that some countries and people are left behind- i.e. are left ‘switched off’.
Globalisation thus creates a two speed world
What are some of the indicators used to measure globalisation?
-flows (trade, migration, FDI etc.)
-technologies - leads to greater flows of information
-movements (e.g. increased international air traffic)
-media (spread of global advertising, publishing, music, TV and film)
What are the two different measures used for globalisation?
A T Kearney index
KOF index
According to the KOF index, what are the top three most globalised countries?
Ireland: 91.3
Netherlands: 91.24
Belgium: 91
According to the KOF index, what are the top three least globalised countries?
Solomon islands: 25.26
Somalia: 25.39
Kiribati: 26
What is the KOF index?
Produced by the Swiss Economic Institute, it works out a score for each country based on their interactions with other countries in the following categories:
Economic globalisation
Social globalisation
Political globalisation
What is the KOF index referring to in its measurements through economic, social and political globalisation?
economic- e.g. cross border transactions and the volume of FDI
social- e.g. cross-border contacts and information flows. It also measures the presence of McDonald’s and Ikeas as a measurement of ‘global affinity
political- e.g. the number of foreign embassies in a country, the country’s membership of different international organisations, such as the WTO and its participation in UN peacekeeping activities
How does a value come about under the KOF index?
Each set of different indicators in each group is scaled, because some indicators are more significant than others. The three sets of indicators are then aggregated into one value, which are ranked. The index rankings and scores represent the final average rank for all three interactions
What can be noticed when looking at the top 15 countries on the KOF index?
13 of the top 15 are European, which contrasts with tables of GDP (where USA leads) or manufacturing output (where China leads).
The KOF index measures international interactions
European countries are small compared to China and the USA- so every country has its own embassies, internet systems and investments- all recorded as transactions
By contrast, China and the USA have large domestic economic markets, so internal connections are important, but the KOF index doesn’t measure these values.
What is the A T Kearney index?
A ‘think-tank’ that measures globalization by looking at four main indicators.
Political engagement
Technological connectivity
Personal contact
Economic integration
How is the KOF index different to the A T Kearney index?
The A T Kearney index is slightly different because it uses more holistic indicators and also volumes of trade as well as FDI.
It also includes countries that are players on the political stage, so the participation of UK and Ireland in international treaties is recognised.
How is the final score for the A T Kearney figured out?
The overall ranking is worked out using a complex points and weighting system for the four individual indicator rankings
What are the top three most globalised countries under the A T Kearney Index?
Singapore
Switzerland
USA
What are the advantages of the KOF index?
More detailed and contemporary
Clearly shows the top globalised countries
What are the advantages of the A T Kearney index?
More holistic indicators
Uses more indicators than the KOF so could be seen as more accurate
What are the disadvantages of the A T Kearney index?
Working it out is complex
More complicated to read off a chart
Adds triple weighting to FDI and double weighting to trade volumes to judge flow. Tends to cater more to America clients
What are the disadvantages of the KOF index?
Some indicators are viewed as more significant than others so may not be accurate
Contradicting or insignificant data sets e.g. possession of a TV and globalisation?
In what ways is North Korea switched off?
For nearly 70 years, North Korea has been ruled as an autocracy by a single family. They have chosen to remain politically isolated from the rest of the world
-Ordinary citizens don’t have any access to the internet or social media
-There are no under sea data cables connecting North Korea with anywhere else
-A visiting journalist observed it was the only country he had ever travelled to where nobody knew the song Yesterday by the Beatles
How does south Korea differ to North Korea on their approach to globalisation?
South Korea has become a developed country which is home to samsung and other global brands
What is one example of a barrier that sub-Saharan Africa face?
Mobile connections are growing rapidly, but the costs of 3G and 4G connections make internet usage more expensive than just sending a mobile text.
What us Zambia the world’s eighth largest producer of?
raw and part-processed copper
What are the consequences of Zambia being a land locked country?
It relies on good political relations with its neighbours to access ports on the Tanzanian or Angolan Coasts
What are some of Zambia’s recent rail developments that have allowed it to gain access to ports?
-In the 1970s, a 1860km rail link (the TanZam railway)- developed using Chinese investment- took Zambia’s copper to the Tanzanian coast. Although by 2000 this rail link was in poor repair, further Chinese investment has now upgraded it- and as a result copper exports have risen since 2008
-The recently developed Benguela rail link, also paid by the Chinese, now carries copper for export to the Angolan coast.
How is Zambia increasingly growing as an economy in globalisation.
Since 2000, privatisation and debt cancellation have reduced Zambia’s debt, and US$20 billion has been invested into the copper industry, so it can part process the ore and add value to it- increasing the country’s income.
Expanding copper towns like Kwite, have started a process of helping localities in Africa to ‘switch on’ - and Zambia’s development indicators have improved as result
What are some examples of development indicators improving in Zambia?
External debt (% of GNI)
2004=159
2014=31
GDP (US$ billions)
2004=7.3
2014=27.07
What is some context to Tanzania?
the country has very fertile volcanic soils, and 80% of its working population is employed in agriculture.
How has Tanzania been influenced by the production of cotton?
Between 2006 and 2016, the global market price of cotton fluctuated from $0.40 per pound weight to $2.00.
When prices are high, Tanzanian farmers feel encouraged to grown cotton. However, due to global overproduction, cotton prices frequently fall. When this happens, the country is less able to pay for imported manufactured goods. There is no guarantee of income and GDP fluctuates, so Tanzania is struggling to switch on
What economic activity has enabled Tanzania to become more switched on?
-Until 2001, Tanzania has serious debt problems. Then the Heavily Indebted Poor Countries initiative led to the cancellation of many of its debts. Now the income gained can be invested into education and healthcare
-Tanzania also has growing investment links with India and China, Japan and UAE, in order to export its farm produce and mineral resources.
What are some examples of development indicators improving in Tanzania?
GDP
2004=12.1 billion
2014=49.2 billion
Life expectancy
2004=46
2014=61
What is the copper industry in Zambia like today?
Copper remains Zambia’s biggest export, although its value has fallen in recent years as fibre-optic cables increasingly replace it in telecommunications
