Glob 2 Flashcards
Spec part 2
Form and nature of interdependence in the contemporary world
Econ glob: long distance flows of goods, capital, services, reliance on nations for econ growth, e.g consumers rely oil producers to sell, producers rely on consumers’ money to extract oil
Enviro glob: govt + NGOs tackling climate change, crisis e.g 1986 Chernobyl cancers + birth defects beyond Ukraine, in Russia etc
Social glob: ideas, info, images, people e.g 2014 244 mil migrant workers
Political glob: govt policy influencing globe, rely on each to solve issues e.g European migrant crisis, european nations worked together to support Syrian refugees
Unequal flows in interdependence creates inequality
Key organisations (political IAs)
World Bank - finance
International Monetary Fund (IMF) - finance
WTO - oversees rules of international trade
International Panel on Climate Change (IPCC) - coordinates global response to cc
Unequal flows: people :)
Reduces unemployment
Reduces geographical inequality e.g eastern Europeans in UK
Addresses skill + labour shortage e.g UK recruit Far Eastern nurses
Some return to host with skills and new ideas
Immigrants create econ growth
Remittances increase flow of cap to help LICs - boosting spending and eco growth
Unequal flows of money
Often flows from HIC to LIC, e.g govt FDI in infrastructure or oil extraction in LICs
LICs rarely have capital to invest overseas
Pos:
FDI allows HICs to take advantage of cheap raw materials + low labour costs, while hosts benefit from capital + expertise
Foreign aid improves SOL etc (post disasters)
Negs:
Inequality - dependency, force out local businesses
Conflict - foreign aid funds conflict, FDI in agric leads to peasant farmer eviction
Injustice - pressure LIC govts to low price of investment e.g by cutting laws on environmental regulations or weakening laws on work conditions
Unequal flows of ideas
TNCs: Offshoring + outsourcing - to cut costs or be closer to market
DIS for country of origin
- Deindustrialization - structural unemployment -downward multiplier
Recipient DIS
- costs on training locals if not provided
- neoliberalism focuses wealth in HICs (origin)
- TNCs argue free trade + privatisation allow development, justifying poor working conditions etc
Post 1980s: neoliberalism increased free trade + more development + less conflict
Outsourcing
Subcontracting part of firms business to another country in order to save costs
Offshoring
Relocating some part of firms activity to another country
Unequal flows of tech
ICT allows rapid development of both outsourcing (to low wage economies like India + China) + offshoring
Offshoring widens tech gap
Silicon Valley, US developing innovative communication and healthcare
Inequalities - HICs afford tech, LICs can’t
Latest tech + access to info (via gd communication infrastructure) saves production costs - e.g 2016: Netherlands 97% access to internet, Myanmar 20%
Repressive LICs govts bought weapon tech from HICs to prevent protests
Inequalities within countries
Deindustrialization within HICs - UK N/S divide
China + Sub Saharan reducing
Globally increasing poverty gaps, except L. Americans e.g Mexico
Rich cope better with changes in skills + tech - less disadvantaged in job market (transferable skills? Graduate degrees?)
Inequalities between countries
Transfer of capital + income from HIC to LIC reducing global inequality
Development continuum more condensed
Some v poor still lag behind e.g Chad
Fastest growing econs: sub Saharans + Asia
Majoroty of Africa still v poor
Unequal power
Globalisation…
View 1: economic integration decreased likelihood of conflict
View 2: marginalisation of poor remains
Global communication spread conflict e.g Arab Springs of 2010 to N. Africa + Middle East
Trading powers in conflict e.g USA + EU against for conflict with Ukraine
