Global Systems - Interdependence Flashcards
What is interdependence?
Globalisation makes countries and people interdependent - they rely on each
other
What are the key features of interdependence?
Economic Interdependence
Social - economic Interdependence
Political Interdependence
Environmental Interdependence
What is economic interdependence?
through trade e.g. HICs exporting manufactured goods to an
LIC and importing raw materials in return. E.g. Oil produced by one group of countries and consumed by other groups 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 socio-economic interdependence?
occurs where economic migrants provide labour in a country and, on their return, bring newly acquired skills, ideas and values to their home country.
E.g. in 2015 there were 244 million migrants globally – migrants build new relationships and become interdependent with people from other countries.
What is political interdependence?
Increasingly countries are becoming interdependent in their
effects on the global environment and in their political relationships. They work together to solve issues e.g. 2015-16 European migrant crisis; European countries worked together to support refugees from the conflict in Syria.
What is environmental interdependence?
every country in the world is dependent on the rest of the world to look after the environment.
E.g. 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. Climate change and marine plastic pollution are
other examples.
How does interdependence lead to inequality?
Interdependence creates inequalities both between countries and between people within the same country.
It tends to bring more benefits e.g. increased wealth and more power to HICs rather than LICs – and to richer people rather than poorer people. This is because the flows of people, money, ideas
and technology are unequal.
How can unequal flows of people create problems?
Inequality - LICs may suffer from “brain drain” - skilled people move and take their knowledge with them. This reinforces existing inequalities between countries
How do unequal flows of people create conflict?
Low-skilled migrants are often prepared 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 local and migrant populations.
How do unequal flows of people create injustice?
Migrant workers are sometimes made to work in dangerous conditions for little money eg) Qatar, several thousand migrants have died building facilities for the 2022 FIFA World Cup
How do unequal flows of people create benefits?
People tend to move to countries with more jobs eg) HICS
Immigrants can create economic growth eg) may do jobs a country’s citizens can’t or don’t want to do eg) dangerous jobs like mining or poorly paid jobs.
Many migrants send money back to families or home communities - creates economic growth as locals spend more
How do unequal flows of money bring benefits?
Allow foreign companies and countries to take advantage of cheap raw materials and low labour costs, while the host country can benefit from foreign capital and expertise.
Foreign aid can be used to improve living standards after a natural disaster.
How does unequal flows of capital / money create inequalities?
Foreign aid can create dependency, gives governments little incentive to improve their own countries.
FDI can force out local businesses as TNCs make products more efficiently
How can unequal flows of capital / money create conflict?
FDI can cause conflict between foreign companies and local people e.g.
FDI in farming can lead to peasant farmers being evicted to create larger
plantations.
How can unequal flows of capital / money create injustice?
Companies may pressurise governments of LICs to pass laws that make it
cheaper to invest there e.g. by cutting environmental regulation/legislation
or weakening laws on working conditions.
How do unequal flows of ideas create benefits?
in 1980s HICs thought the economy would work better without state intervention (neo-liberalism.)
Neo-liberal ideas have increased free trade which has led to more development within countries and less conflict between countries.
How has unequal flows of ideas created inequalities?
Neo-liberalism started in HICs and has spread globally. Tends to concentrate wealth in the hands of a few eg) large TNCs based in HICs
How has unequal flows of ideas created conflict?
If private companies and feee trade in LIC are threatened by decision of the country’s government, HICs may believe that their intervention is justified - can lead to conflict.
How has unequal flows of ideas created injustice?
Governments and TNCs may argue that free trade and privatisation are
the best way to help a country to develop and that this justifies poor
working conditions and environmental degradation in the LIC
What is the benefit of unequal flows of technology?
Concentration of technology in particular places can lead to rapid innovation that can help people all over the world e.g. technology companies in Silicon Valley, USA, have developed innovations in communications and healthcare.
How can unequal flows of technology lead to inequality?
HICs can afford latest technology whereas LICs can’t.
Countries with latest technology can make products more cheaply and have better access to information and services due to better communication.
HICs have an advantage over LICs
How can unequal flows of technology lead to conflict and injustice?
Repressive governments in LICs have used weapons` technology sold to them by HICs to stop protests from their own people.
How does globalisation make some counties more powerful than others?
Unequal flows (people, technology, ideas etc) created unequal power relations between countries, with some having much more power than others eg) USA
HICs, NEEs and TNCs with a lot of money and technology able to drive global systems to own advantage.
Countries and companies have a lot of control over the global economy and political events.
Many LICs lack money and technology. These countries have limited power – so they do not control events, can only respond to them.
What is the power relations and climate change example?
Many of the biggest contributors to climate change are also the richest countries
can be reluctant to agree to a proposal to limit climate change as they think it may harm their economy e.g) loss of jobs in fossil fuel industry and higher energy price
some of the countries most affected by climate change are also the poorest.
E.g) countries like Bangladesh and Tuvalu are likely to be impacted by rising sea levels, but find it difficult to influence other countries to reduce greenhouse gas emissions, because they lack power.
What is neo-liberalism?
A political approach that involves less government control of the economy.
Involves removal of trade barriers, privatisation and cuts in government spending.
It has increased free trade.
What is sovereignty?
The right of a country to govern itself.
What is the role of the international momentary fund (IMF)?
support the structure of the world’s economic and financial order by regulating and acting as intermediaries (links) in the flow of international capital.
established together with World Bank at the end of the Second World War, in attempt to steady the global economy and provide financial stability.
Acts as a regulator of financial flows and a stabiliser of the system.
Monitors the global economy and advises governments on how they could improve their economic situation.
It gives loans to countries with economic problems.
