Existing superpower challenges Flashcards
What was the global financial crash in 2008?
The Global Financial Crisis was a stock-market crash and a series of bank failures, that in turn led to a global recession, business closures and rising unemployment.
The global financial crisis caused government debt levels to increase sharply as money was borrowed to do what?
Re-finance banks and other businesses facing collapse
Pay social service costs, such as unemployment benefits.
Pay for new infrastructure (road, bridges) in an effort to stimulate economic growth.
What was the debt level of the UK in 2016?
90% of GDP
Debt levels of countries were pushed up by what high social costs?
Structural unemployment
Economic restructuring
Ageing and care
How did structural unemployment push up levels of debt?
Loss of manufacturing jobs to emerging economies through globalisation.
This has led to a pool of middle-aged, low skilled, male workers without jobs.
Many rely on social security payments from government.
How did economic restructuring push up levels of debt?
The global shift to Asia has created deindustrialisation in the EU and USA.
There are high costs linked to regenerating former industrial areas.
In addition, the workforce needs retraining and re-skilling in tertiary sector jobs.
How did ageing and care push up levels of debt?
Rising life expectancy and low fertility rates mean an ageing population.
Care home, nursing care and pension costs are all rising.
This has to be paid for by a shrinking working-age population in many EU countries.
What does economic restructuring means?
The shift from manufacturing (secondary) to services (tertiary).`
How much does USA spend on defence and what power is this an example of?
3.3%
Hard power
How much does the UK spend on development assistance and what power is this an example of?
0.7%
Soft power
As a percentage of all of USA’s spending, how much is defence?
15%
How much do USA’s intelligence services cost annually?
$80 billion
How many Americans live in poverty?
13%
What are the three possible scenarios for the future balance of superpowers?
Uni-polar: The USA remains the single, dominant global hegemon.
Bi-polar: China draws level with the USA.
Multi-polar: The USA and EU decline relative to increasingly powerful BRICs.
What may the world look like by 2030 regarding superpowers?
A similar world to today, but the Chinese economy is likely to be similar in size to that of the USA.
Per capita incomes in China will be lower than the USA, and China will still be in the process of becoming a fully developed country.
China is unlikely to be a global political leader by 2030.
