EQ2 GLOBALISATON Flashcards
What is the global shift? Why did it happen?
Occurred from the 1960s to the 1980s when manufacturing moved from Europe and the USA to many Asian countries.
Individual Asian countries began to allow investment into their markets (China’s open door policy), TNCs began to seek new areas for manufacturing (China) and services (India) and FDI began to flow into the emerging Asian countries.
Globalshift casestudy —> China
Mostly focused on manufacturing due to cheap labour. World’s largest recipient of FDI since 2000. Share in global trade rose from 3% in 2001 to 10% in 2013. Rapid industrialisation has led to rapid urbanisation.
Benefits of China’s global shift
-Improvement in infrastructure: by 2016 China developed the world’s largest highway road network, the railway system reached 100,000km in length and built 82 airports since 2000 (making 250 airports in total).
-Reductions in poverty: 300 million now considered middle class, between 1981 and 2010 the number of people living in poverty fell by 680 million, extreme poverty (less than $1 a day) fell from 80% in 1980 to 10% in 2016. BUT 20% still live on less than $2 a day but survive due to remittances.
CHANGES IN BUILT ENVIRONMENT: fewer farms due to construction of factories.
-Increase urban incomes: slowed growth of population means that companies must pay workers more to recruit more staff, urban incomes rise by 10% a year since 2005 and rural-urban divide is growing (disposable income in 2013 for 20% of poorest is $412 compared to $9000 for richest 20%.
CHANGES IN BUILT ENVIRONMENT: construction of factories in urban areas.
-Better education and training: 94% literacy rates in 2014 compared to 20% in 1950, 7.2 million graduates in 2014 (15x more than in 2000), skilled workforce created for service and knowledge sectors.
CHANGES IN BUILT ENVIRONMENT: construction of schools.
Costs of China’s global shift
- Loss of productive farmland (due to factories): 3 million hectares of land polluted with heavy metals, 12 million tonnes of grain polluted on 2014, water supply affected due to run-off from farmland rivers.
- Increase in unplanned settlements (due to factories): informal homes rising (expanded housing in villages on edge of cities + farmland owned by communism privately developed housing without permission), low quality of live due to no piped water and waste disposal.
- Over exploitation of resources and resource pressure: sourcing resources from Africa and Latin America to meet demands. Amazon forest cleared in Ecuador due to cattle ranting (high demand in beef as people get wealthier), Cerrado Savannah in Brazil converted to soy fields to feed cattle.
- Pollution and health (due to factories): 70% lakes and rivers polluted (Yangtze tributaries are too polluted for irrigation/household/industrial uses. 360 million don’t have access to save water as it contain 80 out of 101 of toxins forbidden by Chinese law. 1.6 million die every year due to pollution.
- Land degradation (due to factories): 40% of farmland degraded, fertile soils in north eroded and in south soils suffer acidification due to industrial emissions. Land clearance led to desertification and over-intense grazing.
- Loss of biodiversity: in 2015 WWF found that China’s terrestrial vertebrates had decreased by 50% since 1970 due to habitat loss and degradation of natural environments due to economic development.
Global shift case study —> India
Opened up to globalisation in 1991 due to economic liberalisation. Focused on outsourcing. Advantage due to English language. Large FDI in 2000s eg. Microsoft, British Airways. Early investment in Indian Institutes of Technology produced large pool of IT literate workers. In 2015 the Prime Minister launched a ‘Make India’ regime to encourage FDI.
Technology workers earned $10 a day. New Indian technology TNCs eg. Infosys had revenues of 9 billion dollars in 2015.
Inequality increased. Lack of proper bankruptcy laws.
Deindustrialisation and economic restructuring casestudy—> Detroit, USA
- Initial growth and economic success: 1st car industry established in 1899 ‘Motor City’. Population of 1.85 million in 1950 (America’s largest country) with 296,000 manufacturing jobs.
- Decline: lost 40% of its manufacturing jobs in the 1960s, population fell to 713,777, biggest US city to file for bankruptcy in 2013.
- Dereliction: 70,000 building and 31,000 homes abandoned, lost about 40% of residents between 2000-2010.
- Contamination: large industrial pollution sources (coal fired powered plants), corrosion of old lead water pipes, tap water averaged 110 parts per trillion of chromium 6 (toxic metal).
- Depopulation: urban sprawl and segregation, lowest population level in 100 years.
- Crime: racial conflict (80% Afro-American). 53 people killed in 5 days on rioting. Dozens of business destroyed. 2nd highest murder rate in US in 2014.
- High unemployment: 25% in 2008.
