Global systems Flashcards
How does globalization make countries and people interdependent- rely on each other? economic, social, political, environmental
Economic- countries rely on each other for economic growth e.g. oil is produced by one group of countries and consumed by another group of countries. Consumers rely on producers to sell them oil, while producers rely on the money the consumers give them when they buy the oil.
Political- countries are dependent on each other to solve issues that cannot be addressed by just one country e.g. in the 2015-16 European migrant crisis, the countries of Europe had to work together to support refugees from the conflict in Syria.
Social- greater connections between people living in different countries create social interdependence between the countries. e.g. in 2015, there were 244 million migrants worldwide- migrants build new relationships and become interdependent with people from other countries.
Environmental- every country in the world is dependent on the rest of the world to look after the environment.
How do unequal flows of PEOPLE create benefits?
1) People tend to move from countries where there are few jobs (normally less developed countries) to countries with plenty (normally more developed countries)
2) People also leave countries to escape war, famine, or persecution. These refugees often try to get to the nearest safe country.
3) The people who move for economic reasons are not usually the poorest in society- money is needed to pay for a visa, transport, and living expenses in the destination country.
4) Flows of people bring benefits- e.g. immigrants can create economic growth, as they do jobs that a country’s citizens can’t do (skilled jobs like engineering) or don’t want to do (dangerous jobs like logging or mining).
5) many migrants send money back to their families- this is called remittance. Brings in a flow of money to less developed countries.
How do unequal flows of PEOPLE create problems?
Inequalities- less developed countries suffer from ‘brain drain’ - skilled people leave and take their knowledge with them.
Conflict- Low-skilled migrants are often happy to work for less money than low-skilled locals. By employing them, companies ay depress wages for the local population. This can cause conflict between locals and migrants.
Injustice- Migrant workers are often made to work in dangerous conditions e.g. in Qatar, several thousand migrants have died building facilities for the 2022 world cup.
How do unequal flows of MONEY cause inequalities?
1) Flows of money can include remittances, foreign aid (money given to less developed countries to increase development), foreign direct investment, and income from trade.
2) Flows of money are unequal- more developed countries mainly invest towards less developed countries, whilst less developed countries rarely have the capital to give back.
3) Foreign aid can be used to improve living standards or to rebuild local infrastructure after a disaster.
How do unequal flows of MONEY have negative impacts?
Inequalities- Foreign aid can create dependency, which gives governments a little incentive to improve their own countries.
Conflict- Foreign aid can find its way to armed groups and help to fund conflict. FDI can cause conflict between foreign companies and local people e.g. FDI in agriculture can lead to peasant farmers being evacuated to create larger plantations.
Injustice- Companies may pressure governments of less developed countries to pass laws that make investing cheaper, e.g. by cutting environmental regulations or weakening laws on working conditions.
Ideas about how the work works are dominated by DEVELOPED COUNTRIES
Before the 1980s, most national governments took responsibility for providing welfare for their citizens and controlling imports through trade barriers to protect their national industries.
However in the 1980s, many developed countries began to think that the economy would work better without state intervention- maximum economic growth would only occur If barriers to trade were removed, state-owned companies were privatised and government spending was cut. This is known as neoliberalism.
Neo-liberal ideas have increased free trade, which has led to more development within countries and less conflict between some countries.
However, other people argue that it has increased inequalities, conflict and injustices.:
> Inequalities- Neo-liberalism started in developed countries and has spread globally. It tends to concentrate wealth in the hands of a few, e.g. large, wealthy businesses based in developed countries.
> Conflict- If private companies and free trade in a less developed country are threatened by the decisions of that country’s government, developed countries may believe that their intervention is justified. This may lead to conflict.
> Injustice- Governments and TNCs may argue that free trade and privatisation are the best way to help a country develop and that this justifies poor working conditions and environmental degradation in the less developed country.
Most TECHNOLOGY is owned by DEVELOPED COUNTRIES
1) Globalisation has led to unequal flows of technology- it mainly flows from developed to less developed countries.
How can unequal flows of TECHNOLOGY tend to increase inequalities and lead to conflict and injustice?
Inequalities- Developed countries can afford the latest technology, while less developed can. Countries that have the latest technology can make products more cheaply and have better access to information and services, due to better communications infrastructure. This gives developed countries an advantage over less developed countries.
Conflict and injustice- Repressive governments of less developed countries have used weapons technology sold to them by developed countries to stop protests from their own people.
Globalisation makes some countries more powerful than others
1) The unequal flows of people, money ideas and technology have created unequal power relations between countries, with some countries having much more power than others.
2) Developed or emerging countries with a lot of money and technology are able to drive global systems to their own advantage. These countries have a lot of control over the global economy and political events.
3) Many less developed countries lack money and technology. These countries have limited power- rather than controlling the global economy and political events, they are only able to respond to events.
EXAMPLE; power relations and climate change
> Many of the biggest contributors to climate change are also the richest countries
> Some of the countries that are most affected by climate change, are also the poorest countries.
How can global institutions increase unequal power relations between countries?
1) The international monetary fund (IMF) and the World Bank control the global financial system:
> The IMF monitors the global economy and advises governments on how they could improve their economic situation.
> The world bank provides loans to less developed countries to invest in areas such as health, education and infrastructure. The money from the loans comes partly from subscriptions from its member countries- all members pay in, but only those who need it can take money out.
This means funds are redistributed from developed countries to less developed countries. However, less developed countries are expected to pay back the loans.
2) People think that global financial institutions, such as the IMF and World Bank, are reinforcing unequal power relations between different countries:
> The IMF and the world bank are both based in the USA and are led by the USA and other developed countries. Less developed countries ( who are most likely to require a loan) therefore have less influence over the decisions of the organisations.
> The IMF and world bank loans are conditional- the less developed country has to make changes in order to receive the loan.
> The world trade organisation generally works to reduce trade barriers between countries- however, many developed countries have kept trade barriers in place, reducing imports from less developed countries. This tends to boost 6he economies of developed countries at the expense of less developed countries.
