GG: Global Systems

Question 1

What is interdependence?

Answer 1

The theory that nations depend on each other economically, politically, socially and environmentally. Many contemporary societies are now classed as interdependent as they rely heavily on the decisions of other countries, meaning they would struggle and be detrimentally affected without them

Question 2

What is economic interdependence?

Answer 2

Countries rely on each other for economic growth. Dependant on flows of labour, products and services entering the country in order for the economy to grow. Labour provides a workforce, products and services mean countries can develop and make more money.
- e.g. oil is produced by one group of countries, and consumed by another group. Consumers rely on producers to sell them oil and producers rely on consumers to buy the oil to get money.

Question 3

What is political interdependence?

Answer 3

Countries are dependant on each other to solve issues that cannot be addressed by just one country. Issues raised must have a unanimous decision from nations.
Countries rely on other countries to intervene if there is political unrest - e.g. many nations intervened when there was Serbian State sponsored ethnic cleansing of Kosovo Albanians, eventually leading to Kosovos independence

Question 4

What is social interdependence?

Answer 4

Greater connections between people living in different countries.
- migration has caused social interdependence as there are now diasporas (groups of migrants of the same origin living in another country) all over the world that are dependant on the place they live in
- countries rely on each other for leisure activities e.g. TV programmes produced in other countries

Question 5

What is environmental interdependence?

Answer 5

Every countries in the world is dependant on the rest of the world to look after the environment
- all nations are affected by another nations greenhouse gases, nuclear waste emissions, etc. meaning all countries rely on each other to protect the environment
- e.g. the nuclear fallout form the Chernobyl disaster in Ukraine reached the UK and France.

Question 6

What are the issues associated with interdependence?

Answer 6

It can cause issues for dependant countries due to unequal flows. Sometimes countries give more, sometimes countries receive more.

Question 7

What is unequal flows of people?

Answer 7

Globalisation enables workers to move more freely around the world. The main flows are from developing countries towards highly developed economies (HDEs). This can have some positive effects but can also cause inequalities, conflicts and injustices for people and places.

Question 8

What are the positive effects of unequal flows of people?

Answer 8

+ reduced unemployment in places where there is a lack of work because of opportunities to work elsewhere
+ addresses important skill and labour shortages in place
+ reduces some inequality as foreign workers earn higher wages in HDEs
+ remittances sent back to developing countries provide stability and opportunity for growth
+ migrant workers increase workforce, pay taxes and spend money, which promotes growth and reduces dependency in HDEs with ageing populations
+ some workers return to their country of origin equipped with new skills and ideas

Question 9

What are some of the negative effects of unequal flows of people?

Answer 9

• developing countries lose younger, more talented workers attracted by higher wages
• loss of skilled workers adversely impacts productivity, growth and development
• developing countries become over dependant on remittances
• migrant workers and families may put pressure on health and education services in HDEs: they may be treated differently in theses systems
• if only workers are allowed to settle, families may be separated with is unjust
• resentment towards migrants may lead to ethnic and cultural conflict
• greater movement of labour may contribute to the risk of disease and pandemic

Question 10

What are unequal flows of money?

Answer 10

• remittances - money sent home by migrants working overseas is an important source of income for developing countries
• loans - developing countries borrow from the world bank to fund projects, such as improving transport connectivity or health and education programmes that increase standards, access and inclusions. Loans for engineering for construction projects such as transport or energy. Most of the world banks lending was in 2020 was for COVID 19. Loans have to be paid back and this can only be done if money has been invested effectively, which is more difficult if the loan has been used for social rather and economic developments.
• inflows of FDI - investment from TNCs or govs in Europe, Japan and USA to developing countries has raised average incomes and reduced poverty. However this can create dependency - workers dependant on higher wages may be subject to poorer working conditions
• growth of TNCs - capital investment and taxes paid by successful global businesses to their host govs have stimulated economic growth. However, TNCs may pressure host govs to alleviate taxes or relax social and environmental laws
• loss of profits (‘leakages’) - the repatriation of profits by TNCs to their home country undermines the benefits gained form investment in developing countries.
• Foreign aid - aid will help low income countries in time of need, but it can reduce incentives for govs to help their own countries.

Question 11

What is unequal flows of ideas?

Answer 11

Ideas generally flow from wealthier HDEs to developing countries that want to emulate the success enjoyed by richer nations. Many of these ideas are associated with global capitalism. some of the ideas are: privatisation, deregulation, free trade and multiculturalism.

Question 12

What is some of the pros and cons of privatisation in unequal flows of ideas?

Answer 12

+ dismantling state ownership of corporations cans benefit consumers in LDEs by lowering prices
- profits are retained (rather than re-invested as is the case for nationalised industries), causing greater inequality and potentially inhibiting economic growth

Question 13

What are some of the pros and cons of deregulations with unequal flows of ideas?

Answer 13

+ reducing gov regulation and intervention can encourage enterprise
- deregulation can lead to more relaxed social environmental laws in LDEs, causing social injustices and environmental degradation

Question 14

What are some of the pros and cons of free trade with unequal flows of ideas?

Answer 14

+ allows global markets to develop and thrive and may help some LDEs to attract investment
- may not always be beneficial to some LDEs, they may be disadvantaged. LDE (infant) domestic industries may be outcompeted by free trade so some protection may be needed

Question 15

What are some of the pros and cons of multiculturalism with unequal flows of ideas?

Answer 15

+ enables developing countries to integrate into the global economy and to access markets
- citizens may see it as a dilution of their culture and even a threat to their national sovereignty and identity.

Question 16

What are the unequal flows of technology?

Answer 16

• info and date flows - access to mobile and internet services is transforming peoples lives in level developed countries. (E.g. the ‘village phones’ micro-finance model pioneered in Bangladesh is now being used in Uganda - supported by the world and uses wireless tech). Loans allow the purchase of smartphones, a car battery or solar charger to charge it and booster antennae to link to masts. Allows access to the internet even in remote rural areas, improving quality of life and enables small businesses to be established.
• technology manufacture - access to tech, such as computers and phones, in less developed countries is limited as unaffordable to many. This may be seen as unjust given the assembly of the products is often based in developing countries. Employees receive relatively low wages compared to the selling price of goods
• technology transfer - the transfer of labour saving tech from HDEs to developing countries can promote growth, but some techs may put many people out of work, leading to high unemployment and poverty. This has happened with agricultural technologies and in the textile industry in some developing countries such as India.

Question 17

How are unequal power relationships caused by interdependence?

Answer 17

In general, richer, more developed countries are the more powerful countries - as they have more money and more tech, as well as deeper relations with other countries, meaning they are able to influence global systems to their advantage. In contrast, lower income countries have lower tech and money, so less influence over geopolitical events. This is problematic as they rely on the decisions made by richer countries, and only have power to respond, rather than directly intervene.

Question 18

How is the environment an example of unequal power relations?

Answer 18

• all countries are interdependent in a way due to our reliance on others to protect the environment. Richer, more powerful countries (and NEEs) usually emit a lot of CO2.
• some rich countries may be less likely to agree to global environmental protection, even though they are likely to feel the affects of climate change less. Poorer, less powerful countries are frequently affected by climate change induced natural disasters and cannot do much to influence the ideas of these richer countries. -e.g. the USA has recently withdrawn from the Paris Climate agreement - which may cause less powerful countries to suffer

Question 19

How is trade an example of unequal power relations?

Answer 19

• richer countries generally control trade agreements, as those entering the agreements can benefit from the wealthier country, but the richer country will not get these same benefits.
• Richer countries have the upper hand and can pressure low income countries to more beneficial deals, as LICs may low taxes, reduce tariffs or set up Special Economic Zones (SEZs), etc, to encourage investment, which may lead to negative effects on the economy.
• HICs and TNCs can influence trade as they may create sanctions on other countries or refuse to trade with them in order to get their way.
• an example of this is the banana wars

Question 20

How is global financial institutions an example of unequal power relations?

Answer 20

The IMF and world bank can be seen as reinforcing the unequal power relations between countries, rather than providing a level playing field
- these institutions attach loan conditionalities, such as deregulation, privatisation, etc. this is usually without regards to the economies receiving the loan and can have negative effects such as less investment into education and healthcare sectors

Question 21

How is the WTO an example of unequal power relations?

Answer 21

It has been criticised for widening the gap between LICs and HICs, despite being the very organisation created to avoid this. In general, the WTO can be seen as biased to richer countries
- e.g. the maintenance of high import duties and quotas in HICs, which reduces imports form developing countries
- e.g. the protection of HIC agriculture, but the pressure for LICs to open their markets up to international produce
- e.g. developing countries are not represented as much in the WTO

Question 22

How has the volume of trade increased?

Answer 22

It has increased dramatically since the 1980s - its value increased by nearly 8 x between 1980 and 2008
- international trade is occurring more than ever before