7.3 Emerging superpowers

Question 1

What were the two organisations that BRICs created to increase their influence around the world?

Answer 1

The New Development Bank (NDP) will compete with the IMF to finance infrastructure and other development projects with a budget of US$50 billion
As a rival to the world bank, US$100 billion will be made available through the ‘Contingent Reserve Arrangement’

Question 2

What do the two organisations created by the BRICs intend to do?

Answer 2

They try to meet the needs of developing countries that experience frustration having to implement pro-free market reforms before being allowed access to funds from the world bank.

Question 3

How are BRIC nations at risk?

Answer 3

Brazil and South Africa economies were both badly affected by the 2008 global recession and China’s economy is based on high levels of debt which could trigger economic collapse

Question 4

What is the influence of BRICs based on?

Answer 4

Their ability to purchase commodities and manufacture goods so that other countries are dependent on them

Question 5

Who are the MINT countries?

Answer 5

Mexico, Indonesia, Nigeria and Turkey

Question 6

What does the growth of BRICS and MINT suggest?

Answer 6

A multipolar world is developing

Question 7

What are emerging countries starting to have more influence and a say over

Answer 7

Global environmental governance through their contribution to the UN climate change conferences. At the 2015 COP in Paris, Russia and China were two of the countries to send the highest number of delegates

Question 8

How can BRICS influence the world economically?

Answer 8

They are the only $1trillion economies outside the OECD
However, growth rates have slowed since 2013 and consumer spending is still low due to their ageing population

Question 9

How is the G20 influential economically?

Answer 9

they have a minimal impact on financial markets because discussions about change happen over a longer time period
More money is available for the IMF to help tackle a global recession

Question 10

How is BRICS influential politically

Answer 10

China has become a mega trader which is larger than imperial Britain: commodity prices have soared while manufacturing prices have shrunk

Question 11

How is the G20 influential politically?

Answer 11

Newer members tend not to keep agreements, but countries have started to share financial information to fight tax evasion and agreed to monitor one another’s actions

Question 12

How is BRICS influential militarily?

Answer 12

They have an increased military expenditure with incursions into the South China Sea and NATO airspace, Ukraine and Georgia
Direct conflict with NATO would leave them outmatched

Question 13

How is the G20 influential militarily?

Answer 13

They were divided over military action in Syria- Russia and China led opposition against the USA
Some countries are engaged in unilateral military actions, for example in Yemen

Question 14

Is BRICs influential culturally?

Answer 14

No- cultural differences mean there is a lack of common understanding, which limits sharing of experience

Question 15

Is the G20 influential culturally?

Answer 15

Yes- Indirect support for globalisation

Question 16

Is BRICS influential demographically?

Answer 16

-large populations mean a huge labour market and flourishing unis with many science and engineering graduates
However, working age populations are shrinking and not all countries are creating enough jobs

Question 17

How is the G20 demographically influential?

Answer 17

They are focused on creating economic growth by encouraging private buisness to invest in infrastructure and this will help to tackle youth unemployment

Question 18

How is BRICs influential environmentally?

Answer 18

• three of the top 4 polluters are in BRICs
• However, they are starting to lead the world in renewable energy production, for example solar panel production in China

Question 19

Is the G20 influential environmentally?

Answer 19

-they agreed a post recession ‘green stimulus package’ worth $1.1 trillion and committed to removing fossil fuel subsidies
- Have agreed on the need to tackle climate change and global health issues, for example; Ebola, but without committing money or agreeing targets

Question 20

Who currently dominates the world economy?

Answer 20

The EU and the USA accounts for 46% of global GDP produced

Question 21

What is the future of the EU?

Answer 21

They are often considered a world superpower, but there are issues with this view:
-the 27 states rarely agree
-Their economies have been weak since the 2008 recession
-ageing population
- Brexit means the EU has lost one of its biggest powers (the UK held 17% of its GDP)
- France is now the only nuclear power
-Other nations like France are also considering leaving

Question 22

What was the combined GDP of BRICs in 2014?

Answer 22

US$16.4 trillion- about 8% less than the US

Question 23

Who accounts for most of BRIC’s GDP?

Answer 23

China accounts for about 60% of its GDP

Question 24

How influential is Brazil (economically, politically, militarily, culturally, demographically and environmentally)?

Answer 24

-produces half of South America’s GDP by relying on primary product exportation thanks to their level of natural resources
-second largest producer of biofuel and third largest of iron

-less stable politically in recent years due to corruption and protests

-It spends 60% of Latin America’s military budget but is the lest significant of the BRICs in this area

-Footballing nation- 2014 World Cup and 2016 Rio Olympics
-Brazil Carnival

-Contains half of all Latin America’s population
-the population is young

-Brazil’s biodiversity includes 13% of all known species, but deforestation and illegal poaching is becoming a greater issue

Question 25

How influential is Russia (economically, politically, militarily, culturally, demographically and environmentally)?

Answer 25

-ninth largest global economy, but very dependent on oil and gas and is vulnerable to global price fluctuations
- most unequal of the developed and emerging nations: 35% of its wealth is in the hands of just 110 people

‘Russian influence’ matters to Putin-shown by Ukraine War

Russian is spoken very little outside the USSR although, but its history is of global significance

Since 1991, the population has decreased almost every year and its natural increase is tiny

they have had a pollution legacy since between 1930 and 1960 due to industrialization

Question 26

How influential is India (economically, politically, militarily, culturally, demographically and environmentally)?

Answer 26

The Indian economy averaged 7% annual growth and quadrupled between 1997 and 2015
-Widespread use of English and well regarded unis
-infrastructure for energy, water and transport is bad

-largest democracy and was a part of founding the UN

-birthplace of 4 global religions
-Bollywood is the world’s largest film industry

-its 1.4 billion people make up the world’s largest population that are youthful

Rich in biodiversity, but has the world’s worst environmental problems as the third largest emitter of CO2

Question 27

How influential is China (economically, politically, militarily, culturally, demographically and environmentally)?

Answer 27

-very unequal
-in 2009, only 2% of adults had graduated uni, limiting design and research
-huge levels of debt
-big global player in investment

-authoritarian government that rarely gets involved in world crises

-world’s largest army but little global military reach

-former one child policy has created an ageing population
-it is isolated in terms of international migration even though workers may be needed in the future to make up the global workforce

-largest CO2 emitter, emissions rose 286% between 1990 and 2013

Question 28

What 3 theories can explain the changing balance of power?

Answer 28

Wallerstein’s world systems theory (aka core and periphery)
modernization theory
dependency theory

Question 29

What is Wallerstein’s world systems theory?

Answer 29

He identified two economic areas: core and periphery (plus semi -periphery) to explain how successful places maintain power and how new centres develop

Question 30

What happens in Wallerstein’s core countries?

Answer 30

They drive the world’s economy and grew during the 1800s to finance from a wealthy farming sector. The western core now owns and consumes 75% of goods and services
Core countries use semi periphery countries as cheap locations to manufacture goods. They then get a large return on the FDI they put into semi-periphery countries and they remain dominant as they own production lines and dictate who produces what

Question 31

What happens in Wallerstein’s periphery countries?

Answer 31

They rely on core regions to exploit their material and occurred as a result of colonialism.
Their economies are dominated by exports of primary products and imports of manufactured goods.

Question 32

What is Modernisation theory?

Answer 32

Countries develop in 5 stages
The theory took its name from the idea that to deliver capitalism, modern institutional reform is essential- for example through structured banking and legal system of currencies and investment loan

Question 33

Who came up with the Modernisation theory?

Answer 33

WW Rostow

Question 34

Why is reform essential in the Modernisation theory?

Answer 34

without reform:
-poverty would remain
-family traditions would hold economies back

Question 35

What conditions did Rostow say needed to be met in order for a country to become developed?

Answer 35

-export of raw material to generate income
-development of infrastructure
-technology
-education
-banking
-governance
Once these things have been secured, the growth of the secondary sector and urbanisation can begin

Question 36

What are the 5 stages of the modernisation theory?

Answer 36

1. traditional society
2. pre-take off stage
3. take off stage
4. drive to maturity
5. high mass consumption

Question 37

Who came up with the dependency theory?

Answer 37

Andre Gunder Frank

Question 38

How does modernization theory link to the prevention of the spreading of communism?

Answer 38

Investment in countries bordering China and the USSR could prevent communism spreading to Japan, Singapore, Taiwan etc.

Question 39

What does dependency theory argue?

Answer 39

Developing nations remain dependent on developed nations and this is the cause of poverty as developed countries controlled their development

Question 40

How do developed countries control the development of developing countries?

Answer 40

setting prices of commodities and tariffs
interfering in economies via the IMF and World Bank
Using economic and military aid to ‘buy’ the loyalty of satellite spaces

Question 41

What is the vicious cycle of development that the dependency theory refers to?

Answer 41

1. production of primary produce
2. goods exported in raw state
3. low value
4. low profits
5. low investment and so countries become trapped

Question 42

How can countries break free from the vicious cycle of development?

Answer 42

they would have to adopt a virtuous cycle by retaining their primary goods and investing in processing and manufacturing, adding value and employment

Question 43

Which countries have broken free from the dependency theory and why?

Answer 43

NICs have broken free - however Asian NICs received significant economic and political support from the US to help them to develop in order to stop the spread of communism