Global Systems & Governance - Global Systems Flashcards
What are global systems?
Refer to any organisations, groupings or activities that link different parts of the world. TNCs, for example operate in two or more countries, linking their economies. Such relations or activities may provide opportunities, impact on inequalities and have an effect on people and the environment.
What is Wallerstein’s Modern World System?
Involves adopting a country by country approach and looks at economic, social and political development. It treats the whole world as a single unit, meaning that it examines the interrelationship between different sets of countries.
What is economic interdependence?
Countries rely on eachother 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.
What is political interdependence?
Countries are dependent on eachother to solve issues that cannot be addressed by just one country e.g. in the 2015-16 European migrant crisis, the countries of Europe has to work together to support refugees from the conflict in Syria.
What is social interdependence?
Greater connections between people living in different countries creates social interdependence between the countries. E.g. in 2015 there were 244 million migrants worldwide who build new relationships and become interdependent with people from other countries.
What is environmental interdependence?
Every country in the world is dependent on the rest of the world to look after the environment, e.g. in 1986 a reactor at the Chernobyl nuclear plant in Ukraine exploded. Radiation from the explosion led to an increase in some cancers and birth defects in the Ukraine, Russia and Belarus, and possibly further afield.
How do unequal flows of people create benefits?
For sending countries = remittances from migrant workers can boost the economy and improve living standards
Receiving countries = can benefit from a skilled workforce, cultural diversity and a larger consumer base
How do unequal flows of people create inequalities?
- Inequalities - less developed countries suffer from ‘drain brain’, skilled people leave and take their knowledge with them and this reinforces exisiting inequalities between countries
- Conflict - low skilled migrants are often happier to work for less money than low skilled locals. By employing them, companies may depress wages for the local population, this can cause conflict between the local and migrant populations
- Injustice - migrant workers are sometimes made to work in dangerous conditions for little money
How does unequal flows of money cause inequalities?
Flows of money are unequal as money often flows from developed countries to less developed countries. Flows of money can bring benefits to countries as FDI allows foreign companies and countries to take advatnage of raw materials and low labour costs while the host country can benefit from foreign capital and expertise.
How do unequal flows of capital have negative impacts?
- Inequalities - foreign aid can create dependency, which gives governments little incentive to improve their 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.
What are remittances?
Money sent home by migrants working overseas.
How has globalisation led to unequal flows of technology ?
Technology mainly flows from developed to less developed countries. Concentration of technology in particular places can lead to rapid innovation that can cuase people all over the world. However, the unequal flows tend to increase inequalities and can lead to conflict adn injustice, Developed countries can afford the latest technology, whereas less developed countries can’t.
How has globalisation led to unequal power relations?
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. 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.
How does the International Monetary Fund (IMF) govern the global financial system?
The IMF monitors the global economy and advises governments on how they could improve their economic situation, it also gives loans to countries with economic problems.
How does the World Bank govern the global financial system?
The World Bank provides loans to less developed countries to invest in areas like health, education and infrastructure. The money from loans comes partly from subscriptions from its member countries, all members pay in but only those who need it can take money out.
What is the Gini Index?
The statistical measure that is usually used to indicate levels of inequality of income distribution within a country.
What is G7?
The ‘Group of Seven’ is an intergovernmental organisation made up of the world’s seven largest advanced IMF economies: Canada, France, Germany, Italy, Japan, the UK and the US
What is G20?
The G20 group is an international forum for the governments of 20 major economies. It includes the G7 countries and the EU as a single member. It was established in 1999 to give a voice to the major developing economies, this group includes China.
What is OECD?
The Organisation of Economic Cooperation and Development is a group of 34 of the richest and most influential countries globally.
What is sustainable development?
Development which meets the needs of the present without compromising the ability of future generations to meet their own needs.
What is a bilateral agreement?
An agreement on trade (or aid) that is negotiated between two countries or two groups of countries.
