SECTION 3 Flashcards
what can we observe from the elephant curve
there is a poverty trap out there emergence of the new global middle class Canadian middle class (dev. Country) no growth/decline High income growth for the top elites Are poorer countries catching up (i.e., international convergence)? Are the poorer countries able to catch up the wealthy country ? Yes coming from the new global middle class (the back of the elephant)
What are the causal factor of the financial crisis
-Easy credit conditions, sub-prime lending, sub prime market conditions, sub prime mortgage -Increased debt burden (credit lines and card maxed out, car debt) , diminished savings -Deregulation of banks, financial institutions (↑ risk taking) -Growing imbalances in world trade (precarious trade deficit because 2007) -Commodity bubble (oil: 50$/barrel 2007, 150$ 2008)
Freer trade in agricultural commodities would lead to ______ but _____
lower food prices at the cost of food security and sovereignty
What are the factors that determine history and geography of nature commodification
- technological and scientific knowledge ( example : new discoveries may allow us to exploit natural resource we couldn’t before , uranium as a mineral was not valued before nuclear activity development, solar panel allow to use different kinds of energy) 2. economic circumstances (example: tar sands- in early 1990s, we knew they were there but we knew it was feasible to extract it, up until the price rose (37 dollars), the tar sands remained in the ground) 3. location of raw materials (located in particular places) 4. post-extraction geographies (resource characteristics after they are extracted; is the material perishable ?what is the cost of shipping diamonds? ) 5. investment requirements, role of government (is government gonna provide tax substities to help build infrastructure?)
Describe the stock market post 1970, what did it reflect
Post-1970s: globalization of financial system (with post-fordism, end of Bretton woods era) -↑ deregulation of financial activities, ↑ competition between stock exchanges (stock exchange become corporation, they are business for profit) -↑ MNCs more cross-listings on foreign exchanges (to tap into new pools of capital and increase visibility/presence) -New financial instruments (you can invest a company or in larger vehicle), new technologies and ‘virtual trading floors’ (with creates a new speed) ; difficult for regulatory framework to keep-up (previously done by national regulation agencies but when the package themselves includes stocks implicated across boundaries, things get more complex) -Magnitude and Velocity of transaction have increased a lot -New context: hyper-mobility of capital flows! -24h circulation of capital and within various cities, investment houses themselves have different shifts of people watching those exchanges (24 hour around the clock)
Trading at commodity exchanges can be for _______ or _______ (explain them)
immediate purchases (i.e. ‘spot trades’) :cash trade, buyers and sellers agree there and then on the price futures: future deliveries at guaranteed price, buyers and sellers agree today on the price of something delivered 6 months from now (ex: Costco tangerines, airplane supply)
Define the Rain forest Peasant
Two groups : Amerindians and folk (Metis) peoples -Live along Amazon and its tributaries -Traditional agricultural and forest harvesting practices but sell products in markets -people could give some clues as to how to develop more sustainable paths -poor in income and assets -Guarding of the forest
Explain what happened in Brazil in 1990s-2000s
-Export-oriented deforestation: shift from national producer to international producer of cattle and soybean
in post-Fordism, “_______ are integral to recent restructuring of world economy”
innovations in corporate services and finance
Cities are ranked according to overall ________ , i.e. global connectedness in terms of _________
“world-cityness” different types of corporate services
What are the consequences of Income Volatility in resource curse
-Cycles of economic boom and bust -Government spending is cyclical -Borrowing money during boom times -Bust
The resource curse can be defined by ________, the symptoms are ________ (6)
super abundance of resource cause inflation and lack of investment in other sectors Symptoms: resources wealth, slow growth, high poverty, poor governance, weak states, revolution and conflict
Depict Glocalization and why does it relate to world cities
definition = describes dialectical movement of globalization and localization Tension between two opposing forces (local, global): Greater concentreation vs greater expansion With glocolization, we have this notion that rescaling has taken space, we should spend more time figuring out global scale and intra scale - this is where cities comes in as a focus (metro-level activity) World economy organized primarily around these nodes (citites) Connection betweenez cities more important than connection between countries Remember, NIS are not isolated! Rather, mosaic (archipelago) of large world cities which constitute principal structural networks (nodes) of new global economy
What is international inequality VS global inequality
International inequality: inequality between nations, i.e., differences BETWEEN mean incomes of nations (GDP/capita for eg and how it deviates from country to the next) Global (aka world) inequality: inequality between individuals in the world regardless of their nation (i.e., where they live); as if the entire world were one country (national boundaries does not matter and come up with one huge distribution of income) BETWEEN VS WITHIN
Why are big land acquisition frustrating for small farmers
*buying up the very best land, leaving the marginal land to everybody else) - poor follow through, put the fence and just sit there which is WRONG is the peasant ethos (land is life) so locked up land is so wrong
At the state level ________ in housing prices - geography is ____________
large variation playing out in terms of the distribution very significant difference at the city level (big cities, sunny cities)
Depict concept 1 of inequality through time
tracking fairly slow progression up until WW2- ( then boom increase ) since the 1950 (fordism) = fairly equals between countries, and declining in terms of GINI The great compression (1950-1970) : difference in inequality is stable and compressing But then after 1970 it picks up, due to globalization ?
______ just kept going but other countries have lived the arc of forest transition
Haiti
Depict the concept 1 of inequality
Concept 1: unweighted international inequality -Welfare concept: GDI (gross domestic income) per capita -Unit of observation: country level •Does not account for each country’s population (assuming all GDI are equal, no emphasis on the weight of single country (eg China) ) -Data: national accounts -Currency conversion: PPP (so not currency fluctuation) -Ignores within-country inequality
What is the GaWC
Globalization and World Cities Research Network (1990s, Loughborough University, UK) - produce very large scale comparative analysis of world cities Construction of very detailed inventory of world cities using unprecedented means to gather data and measure extent of networks linking different cities across the globe Able to do it because sources of informations - compelling from multiple forces (ads in economist for example)
Define the political economy of rent seeking
- want to tap into the stream of wealth generated by oil - regular market is stifle- political economy is centred only on rent capture, which creates corruption
What can we observe on a global level during the recession
a large amount of countries in recession , some of the verge and outliers that are still growing (China, India, South-East Asia countries- still growing but lower rate)
Describe the challenge of dietary change
-Livestock consume about 55% of grains and 75% of land -If shifted to direct consumption , we could feed an extra 4 billion people - but the world is going the other way -We would need to double the area of crop land in the world to feed 9 billion people having a western diet
Describe the first myth of the forest peasant (generalist)
-Backwood people :peasant -“Do a little bit of everything” -Livelihood : mix of agriculture, fishing, hunting, forest product extraction Reality BUT On average, there is specialization at the village level, we also find household specialties -households and communities specialize in distinct market products -Use of natural resources and economic reliance highly heterogeneous -Specialization is geographically contingent and reflection of high environmental diversity -Need for careful targeting of conservation & development -Problematic to think that they are generalist - would mean lack of targeting (workshop for example) -Specialization depends on geography and reflect environment diversity -Need for careful targeting of conversation and development
How do we place a value on environmental degradation?
How? 1. Markets for trading emission credits 2. Growth of certification programs in resources industries
explain trade diversion vs trade creation
Trade creation is an economic term related to international economics in which trade flows are redirected due to the formation of a free trade area or a customs union Trade diversion is an economic term related to international economics in which trade is diverted from a more efficient exporter towards a less efficient one by the formation of a free trade agreement or a customs union.
Foreign buys land from farmer and lends it to them - which is expected to __________
give a bigger income to farmer
The cattle ranching resulted in ________ +explain the interesting case
in massive deforestation despite the fact that cattle was a marginal economic activity- you don’t make money from dairy or meat- you make money by capturing all the rents provide than the land (tax break, mineral potential, road investment)- having cattle on land isn’t about cattle, its about the speculations on that land
Countries want to ______ their agricultural market
protect
Explain the rise Opening of the Amazon
1960s-80s -Before that- few cattle, fewer than all south America, no refine breed, deceased cattle, major importer not exporter of beef , very isolated unappealing cattle -military government come to power (after a coup) and realize they need establish legitimacy their governance while facing economic problems inflation - needing to promote growth and agro-industry so they turned to the amazon -“Land without people, for people without land” -providing a new space for Brazilian to thrive -Gave to massive road building program and cattle production policy *roads leads to deforestation regardless*
What is the inequality transition
The “Inequality Transition”: -19th century boom (industrial revolution that allows certain country to gather a lot of wealth while others don’t) led to increased inequality across nations (rich vs.poor countries) -Late 20th century, several emerging economies are industrializing faster than rich countries
What the classic drivers of issues according to environmental explanation perspective
The Classic Drivers (rose in the 80s, still seen today): -population (growing population cut down forest to fulfill their needs so more people = less forest) -inappropriate technologies (slash and burn agriculture as wasteful and destructive for eg) -Il-defined property rights (arises because open access forest, free for all) -Incomplete markets (market for good that comes to the rainforest are incomplete- costs bared not reflected in the value of the timber bought- many externalities) -Weak institutions (no sufficient structures to protect the forest)
Describe the GATT
- All together we agree to reduce trade barriers and tariffs on the export and imports of various gods, by acting collectively as a group, we are moving away from bilateral to multilateral (all the countries that sign agree that no one single country will be able to raise tariffs without the agreement of all the other GATT countries) -Not official agreement, the countries will negotiate together where review and reduce tariffs, they are binded, they also agree to administrative reforms General Agreement on Tariffs and Trade (GATT, 1947): -countries (i) reduce trade barriers through multilateral negotiations and (ii) agree not to raise them unilaterally -operates through rounds of negotiations, setting an agenda in terms of binding tariffs (towards trade liberalization) and administrative reforms -Pre-1960s, GATT focused on trade between developed countries. With development of UNCTAD (UN conference on trade and development) (1964), focus on developing country access. -This shift from developed to developing have also geopolitical considerations (i.e. most-favored nation status as a barrier to communism, certain developing countries are invited to join the GATT to block the red curtain)
Almost ___ of deforestation is happening in __ countries and ____ of loss is standing forest
80% 3 1/2
Define environmental and political economy explanations
-Environmental (perspective very popular in North-America and Europe- it looks at our relationship with nature, nature “out there” as something outside of us that we interact with, impact assessment, interactions between us and nature, flows of nutrient, cycles, systems and so on) -Political economy explanations ( our relationship with nature is not Interaction , its Inner-action, society is completely around nature, nature is socially contrasted and bounded, nature is socially appropriated , social and power influence how we think and use the environment)
What are the two latest trade agreements, discuss them
Comprehensive Economic and Trade Agreement (CETA): FTA between Canada and European Union (idea to diversity the client basis (europre) because dependence on USA is not great) -Negotiations: 2004-August 2014 (signed Oct. 2016) •Came into force Sept. 2017 -98% of tariffs between Canada and EU to be eliminated -Would surpass NAFTA -Trans-Pacific Partnership (TPP): includes 12 Pacific Rim countries Negotiations: began in 2008, signed Feb. 2016 Lower trade and investment barriers, create dispute-settlement mechanism for member countries Would be world’s largest FTA (40% of world trade)(buffer for Chinese influence) Post-November 2016: Trump’s impact (US pulled-out)? -Ongoing TTP countries but without the US, it changes significantly
What are the causes of the resource curse
income volatility, rent seeking, patronage, and living off the land, Dutch disease
Depict the new sector in 1990s-2000s Brazil
( Soybean , usually grown in the south but moves northward, which pushed cattle further in the forest, why soybean ? benefited form a collapse of fishery in Peru and a shift to animal product to plant based food for animals in Europe because mad cow disease, so demand for soy increases- soy is everywhere often displacing corn in many farms -explosive growth supported by government investment, by 2005 Brazil is number 1 exporter, 25% of deforestation due to soy industry, displacing cattle which then increases deforestation)
What are the concerns with current global rush
-Rich Countries capture land from poor and vulnerable people (very small share of land owned by actual small farmers AND disposition of small farmers) -Food security in food-insecure regions (food security of these countries at risk) -Employment opportunities limited for the people pushed off the land (highly mechanized , no need for people unless very skilled ) -Loss of smallholder farming -Water “grabbing” with land ( getting land but also locking up water)
What is the great compression
The great compression (1950-1970) : difference in inequality is stable and compressing
Explain the commodity chain analysis approach
Supply side are natural resources and their extraction led to negative externalities, they are then manufactured with also lead to negative externalities, then they become goods which their consumption will eventually lead to negative externalities +GRAPH
Land scale can be seen as “good” for development because
maybe agriculture in development countries can be kickstarted by the land acquisition which would increase productivity and revenue
Explanations for Forest Transition
-depopulation due to disease -depopulation due to urban migration -worth/highest return of the land in tourism rather than in agriculture
Depict concept 3 of inequality
Concept 3: global (world) inequality Welfare concept: disposable income (after taxes and programs cost- what do these individuals have left in their pocket to spend ) Not looking at GDI Unit of observation: individual or household (micro-unit) Data: household survey (eg: in Canada, every 5 years, census of population- short form mandatory + 20% long form) *Issue = different in data quality from country to country Big advance = able to look at within country patterns of Inequality Eg in Canada= cities have higher levels of inequality vs rural areas Currency conversion: PPP Controls for within-country inequality
What are sub-prime mortgage
predatory lending practices adopted by financial institutions where consumer who would not normally meet loans standards are given easier access to capital in order to purchase their own , bolstered by teaser rates (first sign up with short term mortgage and get a preferential rate so you can get more mortgage than you would usually but when you renegotiate, these rates are going to quadruple, interest are high, people are hooked and are under pressure)
What is the boom dynamic
the non-boom sector is not doing well because people what to work in the oil sector
Define Stock Market
here stocks (i.e., shares) are sold and bought -function: “establish the value of corporate shares” -can be located , it can have a physical location, a trading floor is associated (example wall street) but also it doesn’t have to have a facade (example Toronto, since 1997 the Toronto stock exchange doesn’t have a trading floor, it moved to a virtual trading systems through computers) Stocks = certain kind of security, investors buying shares of companies , different types of stocks
What is different in the current land rush compares to the long colonial legacy of foreign crop production
-size and frequency (large and rapid rise in the number) -new players (china, Malaysia..) -Disillusionment with smallholder farming (hard to promote and work with smallholders because huge transition costs at small scale) -Rising enthusiasm for large scale agricultural -Vertical integration of agribusinessiness (farming) with the production and marketing, moving further up the supply chain to have secure supply of food + reliability + Land as Strategic asset -New crops (biofuels and carbon forest (forest of the carbon they contain and keep out of atmosphere, pay people to reforest land, not cutting down, leaving them standing or reforest) both good for economy of scale)
Was the GATT efficient?
significance impact, it achieved a reduction of the tariffs, from 40% to 5-6%
What are the concerns of climate change on agriculture
(adverse effect of food prod and availability temperatures (warmer will decrease prod of crops, rise will be bad for wheat and corn), crop damaging weather events, reduced H2O, shortened growing seasons)
What is an example of the downfall of a boom economy
Case of Amazon rubber boom (huge boom until the price of rubber falls, the economy around the sector - 3 decades of development vanish away)
Describe dietary transition
income increase, middle increase leads to shift from tubers (sweet potato) and coarse grains to cereals + shift from plant based to animal products
_________ in 1930s, nation-states respond with __________
Econ depression protectionist policies that worsen the slowdown
What are the consequences of food price spikes
-Undernourishment and impoverishment (angels law=spending is constant but in poorest community this spending represents maybe 40% of income spending) -Food riots and revolt (creates unrest, a politician nightmare- correlation between wheat prices are social unrest, Haiti, Madagascar, Bread in Arab Spring. ) -Greater policy attention (investing in agriculture)
When trying to help (in Amazonia for example) our ________
our understanding of how people make their living there matters much
For the past ____ years, the amazon is seeking for ______
25 years path for sustainable developpement
Understand the specialization of peasant is very important in terms of
targeting of conversation and development
What is the dow jones average
Dow Jones Industrial Average: average index which Reflex the value of the 30 largest companies traded in the new-work stock exchange , ways to pick up on the overall trend shaping the exchanges
Less than_____ of food flows through trade because ______
20% (bulky and hard to move around AND limited by tariffs by quotas and quality standards)
Who are the main actors in land acquisition
-nationals (urban elites+ diaspora): press tends to overlooked them but very important, they have citizenship (perhaps left the land might use remittences) in the country and participate in different ways to purchase land, very large share of the number of acquisition but not HUGE areas -Regional foreign investors (china purchasing in south-east Asia, Africa, gulf sates for example- primarily out of concern for food security as they are very reliant on food exports and have an expansing population, they know that food prices disrupt, they need to ensure cheap prices -Global foreign investors : reaching well beyond their territory -private companies, sovereign, wealth funds, pension funds, hedge funds ( top 10 buyers, USA, Malaysia, Arab Emirates, Uk, India, Singapore….) (top 10 bought in Africa, papua new , Indonesia, south sudan)
Describe the 4th myth (safety net)
Myth : Rain Forest as primary safety net “Protecting the rain forest protects forest peoples” Adversity and forest as safety net : - sustenance + income smoothing Case : Ucayali and Maranon rivers Peru -But not natural to turn to the forest, they turn to the river -Why: fish migration much larger during big floods, easier to catch fish than hunt Reality -type of shock important for coping strategy for coping strategy used -Along tropical forest rivers : rivers not forest as forest as safety net -two solitudes : forestry and fisheries research and policy -Link is very strong between the two solitudes (in terms of environment and livelihood)
How was the GaWc data gathered Describe the ranking system
Data gathered via trade directories, magazines, newspapers, WWW, etc. Prime or alpha (5 + firms, 3 points) Major or beta (3-4 firms, 2 points) Minor or gamma (1-2 firms, 1 points)
Rise in global acquisition of land (land oversea) took off at the same as ________ in ______
food price peak 2008
Classical drivers of environmental problems defined from the perspective so the _______ decides of the ______
diagnosis solution
What are the twin geographical forces
Local / regional processes Economic activities cluster to benefit from agglomeration economies (Marshall) Key clusters as localized industrial production complexes (i.e. New Industrial Spaces) (high concentration of firms in particular space) Global processes •TNCs, multinational trend financial flows, trade flows (much more expansive), new institutions
What are the sources of growth in terms of food supply
- New land (extensification) -Input intensification (more controlled example fertilizers) (example: Green Revolution) -Increased total factor productivity, more efficient farming (ratio of total commodity output to total inputs used production, example: precision farming, intimate knowledge of the land)
In terms of the financial crisis, In contrast to hyper-globalizers who think that _______, economic geographers argue that _______
the world is “flat” and friction-less we need to look at the geographical dimension of the crisis
Define Forest Transition
Shift from net deforestation to net reforestation- overtime you notice than forest cover falls, reaches a point and then reforestation is more important
larger mouth of land purchased where there is the ______________
weakest land government
Africa as focus for land acquisition for large scale acquisitions (describe each with %)
-Food prod (34%) -Non-food crop (cotton?) (26%) -flex crop (biofuels ?) (23%) -multiple uses (17%)
Define the second myth (egalitarian myth)
-view that while different inevitable , communities are generally egalitarian -Small communities, few local authorities, no obvious class or status distinction - peasant ethos (we’re all poor together) -Limited or no market for land, about or other inputs -Cases : Land, Labor, Crop seeds Reality LAND: -act of planting crop= act of claiming the land -Land can be highly unequally distributed -we expect market to create inequality BUT they are other mechanisms - such as land -Land can be highly unequally distributed in a village where land markets are absent -Land inequality driven by differences in initial endowments and access to labour for clearing -Land inequality decreased by land diversification and land transfers (gifting and inheritance) LABOR: -sources :household, wage labor, cooperative labour -wage labour: limited and very unequal -Cooperative labour (minga) : work groups, food and drink, reciprocity -labor access (key from claiming land) is very unequally distributed SEEDS: key to : agricultural productivity, substance security, market specialization, agrobiodiversity -A serious constrain in the tropical forest -Also creates unequality
Describe the 6th myth (vulnerability)
-Policy discourse over climate change and mitigation -Rain Forest poor are vulnerable: physically, economically and socially -Disasters impact the poorest most and recover reassert prior inequalities -Case: hurricane Mitch (1998), Tawahka Sumu, Honduras (following up on people after foreign relief aid) Reality -Poor’s land holdings increases 250% and land distribution more equal -Re-establishement of agricultural production and income diversification -Endogenous institutional change : - land tenor reform hybrid “blazing” system (in the discussion on redistributing land, the poor were able to negotiate more land, consensus developed for equal land)- bottom up/viral (system developed on their own, self organizing in spontaneous way) Outcome : -land inequality reduced -Deforestation rate lowered -Resilience to future hurricanes increased -All the assistance did not really get at (thankfully) land distribution -really bad obviously but also opportunity for change that might empower poor people -environment shocks windows of opportunity for the poor - provides a moment of requestionment for the society -ruptures in trajectory
Why shift to mega farms
-machinery use ( more efficient) -quick processing (more quickly) -demanding product standards (more easily) -farming is expensive when you become bigger, it is easier to meet standards have more market power -this is why bio struggles -easier to access credit and insurance (half the rate of local in Argentina) -New crops are expensive to get going (gmo eg) -Lack of local available labor (move to mechanization) -Public policy bias towards large farm (state prefers to deal with ONE large firm than a BUNCH of times) - political power is greater the more land you have, policies to provide cheap land and capital, r and d becomes substitute, whole systems turns to large farms
What are the different types (2) of food waste
Developing (post harvest losses- on farms or transport can be as much as 50% of the crop) vs industrialized countries (it is the consumers who waste food)
Why Cattle in Brazil ?
Cattle is very convenient they enable you to secure your frontier, paws on a chessboard, showing you are occupying the land, in inflationary time= investing in land and cattle = owning land. Integrate region to provide food for the urban sector, need to provide non-traditional exports (shift from coffee and sugar cane), vent for surplus (somewhere to invest and the frontier was wide open)
Explain Growth of certification programs in resources
-encourage GREEN techniques -industries goal is to demonstrate environmentally-friendly nature of certain products -examples: Forest Stewardship Council (FSC, 1993), products are labeled as coming from well-managed forest! Big in Canada and now spreading across and being adopted by companies all over the world
Explain the concept of the value of nature
a price is set for units of a given natural material through market exchange (laws of supply and demand, buyers and sellers get together at market then exchange , which will yield a price. Seen as effective mechanism, markets adjust, they are flexible)
Forest loss is difficult to ______ but ______ is an exception
keep track of Brazil
What are the 6 realities of life and livelihood in the forest
- Rain forest peasants are market product specialists. 2. Rain forest communities are inegalitarian, ‘naturally’. 3. Traditional forest use is not necessarily sustainable. 4. Rivers more important than rain forest as safety net. 5. Human imprint on landscape can be substantial. 6. Environmental change poses risks but also opportunities for positive change for the poorest
Major cause of deforestation (globally) =
agriculture (commercial , subsistence)
Primary cause in South America , ______ is second cause but its contribution is quite small
-cattle ranching, which is a very extensive land use -Crop production
Describe NAFTA
NAFTA guided by principle of national treatment, i.e. governments cannot discriminate on the basis of a firm’s nationality- all firms, domestic or international must be treated equally Other provisions include: -elimination of tariffs in a 5 year window by 1999 -national treatment to foreign investment(facilitated capital flow between the countries) -trade restrictions are “grandfathered” (exception, certain sectors have protection- soft wood lumber or cultural industries for example-) or have “sunset” (expire on a longer time, more than 5 year period) clauses -some goods remain subject to non-tariff trade restrictions (such as cultural industries in Canada, to protect language and content) Under NAFTA’s dispute settlement mechanism, the imposition of countervailing duties and antidumping duties/laws must be subject to a review panel made up of experts from all three countries
Deforestation is ______
geographical contigent
Common solutions offered from environmental perspective
policies will address classic drivers directly (for example: population control, ban slash and burn agri, park and reserves, workshop and education, privatize land or establish communal observes, improving market to incorporate externalities, strength the ministry of forest/institutions)
Describe common market
iii. Common market: customs union that also has free movement of labour and capital among its members -All of the above + more, not only about trade, its the free movement of labor, capital, common currency- countries are bound together by monetary policy (targets, dept, inflation) -The European Union (EU) is the world’s largest and most successful common market
What are the 2 critics of conventional economic approaches in terms of environment
- anything that is not quantifiable is neglected or underplayed (e.g., loss of species habitat);how do we put a cost to environment consequences ? 2. economy is seen as separate from the natural world only has meaning when it affects economic processes, i.e. treating nature as object (decoupling of economic activities and environment) -Nature seen as exogenous to the economy
he yield increases are starting to _____, that is why we try to use_____
taper off GMOS
Depict the 2 main measure to depict inequality
Gini coefficient: 0 < Gini < 1 (or 100%) -0 : all individuals have same income -1: one individual has all income -More sensitive to middle of distribution Theil index: measure of entropy -0: perfect equality -No upper bound but larger values mean greater inequality (it can take on vary large values) -More sensitive to tails of distribution (movement in bottom or higher part of inequality)
What are the government provided incentives in terms of cattle ranching in Brazil in 1960-1980
-tax exemptions on agricultural income -Land grants -Subsidies (credit for agriculture production)
Cattle were ________- deeper cause was the _______ laid out by the government
instrumental to state owner political structure
why are stocks issued by companies , why is it advantageous
Stocks issued by companies to raise capital (to expand) -contrary to debt (must be repaid), capital collected via issuance of stocks does not have to be returned
What is Smoot-Hawley Tariff Act in US (1930)
tariffs raised on over (jacked up Tariffs for goods) 20,000 imported goods → retaliation by trading partners!!
What is the world city hypothesis in 1966 and what does it look at
Concept first introduced by Hall (1966): Why do certain urban centers represent disproportionately large segments (more important hubs) of the world economy? Looking at : Trade flows Political influence Hubs of knowledge creation and innovation
Describe the 3rd myth ( sustainable)
-Indigenous practices as models for sustainable development and forestry + path out of poverty -Low input, simple technology, indigenous knowledge, stewardship ethic, and poor people -Cases: charcoal vs. Chambira palm -Charcoal was quite sustainable but palm was not Reality (Non-timber forest products) Sustainability are not dues on tradition but on : the type of product being harvested Circumstances of harvesting (price, supply, tenure) Circumstances of harvesters -Conversation and development initiatives need to focus on mifcrofoundational “logic” of resource use
Economy places two sets of demand on nature which are …
- nature as provider of inputs 2. nature as receiver of outputs
using the dow jones index we can find ______ , discus a few
-booms and contractions –growth during the 80s and 90s - tech bubble (fibre optic for example) -When the tech bubble burst in 2001 and 9/11 further precipitate the fall in the Dow Jones but then pick up again until 2007 -Great financial crisis 2007-2009, the dow jones looses about half of its value (second worst reduction, being 1929)
Describe Bretton Woods
-BW sets institutional basis of postwar global era -1944 -Principal objectives = stabilize international financial situation and rebuild war-damaged economies (fixed exchange rate, US dollar as currency backed by gold) -2 main institutions established: International Bank for Reconstruction and Development (later the World Bank) - providing loans to rebuild infrastructure needed to economic and social International Monetary Fund- monetary policies, overseeing them, regulatory frameworks, expertise + International Trade Institution (which unfortunately never sees the light of day, never took flight) so another group of countries agree upon : -GATT signed in 1947 (Geneva, Switzerland) initially 23 countries
What is the current concerns regarding the current stock market
wonder about where the current prosperity is coming from, nervous that we are due for a correction again
Discuss Global Forest cover change :
forest loss and forest return - globally far more forest returning than loss BUT the tropics are something else because they are very unique and very biodiverse
the general trend is that
we are moving from model 1-2 to model 3-4 to privatization of resources
What are the other types of markets (2)
-Also bond market (important for mortgages), which function with a similar exchange mechanism -Derivative markets- instance when purchase insurances for market activity to henge volatility (example airline company buy fuel in advance)
describe the differences in national banking structures
differences in national banking structures (which matter): -branch banking systems (national branch banking in UK, not the case in Europe its more local, both in NA and USA) -mortgage finance systems (In US, sub-prime is present, not in Canada) -regulatory regimes and arrangements (how are banks controlled ? In Canada its very regulate, less so in the US)
What are measure that contribute to the fall of deforestation rates ( 5)
-Democracy and the rise of civil society -Greenpeace is now able to persuade a soy and beed moratorium= key suppliers of these commodity had to ensure they were deforestation free - putting pressure on the forest falling frontier -Also governments try to create new programs (Norways climate and forest initiative which offers to pay 100$/hector to avoid deforestation) -Bolsto Foresta : government Conditional cash transfer = money every month if no deforestation -Creating Indigenous Territory and Parks (half of the amazon under some protective status)
So far, what is the response to the crisis?
•i. US: effective nationalization of failing financial institutions and ‘shotgun marriages’ (Fannie Mae, AIG, Bear Stearns) •ii. US: bailout (Troubled Asset Relief Plan) designed to take ‘toxic’ loans off balance sheets •iii. European Central Bank and ‘Eurocrisis’ bailout packages! Post-Brexit?
We usually think of deforestation as a_____________ but forest come and go for different reasons
one way street (no dev = forest, no forest=dev)
Why is norway an exceptional case
small coutures, strong democracy, low corruption, media scrutiny, strong legal system and accountable bureaucracy
Describe customs union
ii. Customs union: a FTA area in which the member countries agree to establish a common trade policy with the rest of the world -As FTA allow other countries to negotiate on their own terms, in CU, countries decide as a block -An example is Mercosur, linking Argentina, Brazil, Paraguay, and Uruguay
the banking structures are very _______ so they ______
different across countries and geographies matter
Why does inequality matters at the national level (4)
Negative effects on economic growth? (no imperial consensus, the momentum gaining more ground= regions within countries that have larger inequality see negative impacts on future economic growth/prospect. Important temporal dimension :In the short term = positive relationship, growth but on the Long term = negative impacts of inequality on growth Inequality leads to political instability? (Eg: Brexit increasingly tied to the fact that the country is increasingly divided. Other eg: populism in the US. Higher levels of inequality lead to instability Negative health and social outcomes (e.g. crime)? Inequality associate with negative health outcome People are inequality-averse?
What are the two ways of valuing nature
Two ways of valuing nature based on use values (food, shelter, if barter system these goods are traded) or exchange values (assigned monetary values, value set by market mechanism)
The resource curse makes the economy ____________
more and more vulnerable to the price of the resource
What are the two largest dow jones contractions (how much does it looses during the second one)
- 1929 -2007 - it looses half of its values
reasons for countries to protect their agricultural markets
food security of sovereignty , do not want to compete or depend or an other countries , and social policy of protect farming sector + want to stabilize markets
What are the causes of the yield gap
techno constrains (knowledge, access to seeds), marketing, risks of failure (to poor to try higher yields because more risk of fail), price regulation, geographical factors (gotta compare in the same land)
What are the most 3 most important round of gatt negotiations
3 most important round : Kennedy round (1960-1): up until that point commodity -commodity basis of negotiations but from Kennedy round onwards, countries agreed to reduce tariffs of blocks, aggregates Tokyo rounds (1973-9) : discussion on non tariffs barriers (subsidies, Uruguay (1986-94): GATT evolved from provisional agreement to the WTO
Protection of agricultural sectors leads to
-Enormous subsidizing of domestic agriculture in industrialized countries (over production) -Underinvestment in developing countries
What are foreclosure rates
by 2008 when the mortgage are out there, 12 million household find themselves in negative equity, where the value of your mortgage is larger than the value of your house price are dropping yet you’re stuck with a high mortgage
While commodity exchanges are efficient at seeking price for value of commodity they ________________
do not account for broader environmental impacts of extracting and using a resource! ⇒ most environmental costs are left out!
Describe the stock market before 1970, what did it reflect
Until 1970s: mostly national and oligo-/mono-polistic stock exchanges, large and domestic in scale (recall Fordism),
_____ are coming back in the place of natural forest, which means that _______
Novel forest the forest that are coming back are not coming back where they disappear necessarily and they are different kinds of forest (mono-crops/plantation/not natural forests)
Corporate services = key economic activities: ___________ , Vs. ________
Dispersion of production Concentration of advanced producer services necessary to manage and organize the above dispersion
What is the new reality of inequality
Convergence between countries but the other side of the coin- within country inequalities are actually growing
The problem of resource abundance is not in its ________, its in ________
presence/quantity the RENTS generated by the richness
Explain Markets for trading emission credits
International efforts = -Kyoto Protocol(1997): first attempt to establish a global carbon credit trading system (reduce GHG), various targets were set, various amendments -Paris Agreement (2015): reduce GHGs, global warming (was going okay until USA pulled out) -National gov’ts allocate emission permits (ERUs) to companies, the surplus of which can be sold to others exceeding allocations- policies put in place to encourage companies Built in incentives encouraging companies to invest in less polluting processes -EU’s Emissions Trading System (ETS) is most advanced market
Explain the difference between GATT and WTO
-At the end of the Uruguay Round in 1994, GATT succeeded by the World Trade Organization (WTO) -How different is the WTO from the GATT? -The WTO:is a full-fledged international organization (formal institution) (vs.GATT = provisional agreement) -includes rules on trade in services (from merchandise trade majority to a growing share of services ) -defines intellectual property rights (TRIPs) -has a formal ‘dispute settlement’ mechanism (tribunal)- if countries are claiming that other competitors are Taking upon unfair practices, they can bring up to the tribunal (eg: bombardier vs Brazil’s embrayor but they established that BOTH countries were providing unfair subsidies so it balanced it out)
Describe a free trade agreement
i. Free trade area (FTA): least comprehensive of three -Allows for tariff-free trade among member countries, but leaves each country free to design its own policy with respect to non-member countries (flexibility) -The North American Free Trade Agreement (NAFTA) is the world’s largest free-trade area (1994); just recently re- negotiated (NAFTA 2.0)!
Returning forest is offsetting ____ of the reforestation BUT ________
2/3 not same kind of forest (monocrops for example, from natural forest to anthropogenic forest) and not in the same area
Nature needs to become _______ to economy, that would mean that _________
Endogenous causality of both of these realms come together (nature impacts Econ and Econ impacts nature)
What happened to the rates of deforestation since 2000s in Brazil ?
-They have started to fall, the rise of cattle and soy was explosive but also exposed them to pressure from NGOS which then put on the Brazilian government -Brazilian government very good at monitoring deforestation by space innovation
What are Norway’s strategy to avoid the resource curse
Sovereign wealth fund (one of the most important fund to this day- used to set aside the oil generated resources, this money can not be in vested in anything but oil activities) High taxations of oil profits (78% tax rate, State very involved in oil- it delays the development of oil field) Collective and transparent wage negotiations via government ( determining wage rates) Protection of manufacturing sector ( invested in the manufacturing sector related to oil- invest in people who can help oil extortion, became a world leader in explorations)
What are the 5 challenges for Global Agriculture
1.Crop Yield and Closing the yield gap 2. Climate Change and crop yields 3. Dietary Change 4.Food Waste 5. World Agricultural trade
What is the trigger of the 2007 recession and why
the collapse of the housing market , sub-prime market conditions
Resource allocation effect and Spending effect cause _________
deform the economy around the boom sector (both private and state capital)
Depict fordism and globalization
new spatial configurations are emerging.The ‘local’ is more important than ever! Local dimension of work economic activities is very relevant.
What is the DOHA round
-Negotiations begin in 2001. Most contentious issue to emerge = agriculture. (brought about by the developing thinking that subsidies needed to be reduced to its more fair for developing countries to compete on international markets) -Goal: reduce government support of agricultural products (mainly in developed economies) -In addition to disputes between governments, NGOs and other civil society actors get involved seeking to influence the decisions made by the WTO (labour standards, env’tal issues, patents) -Cancun (2003 WTO negotiations), Doha round “deal” breaks down and again in 2008 (Geneva), developed countries backtrack on their pledges -Bali Package (2013): ↓ trade barriers. Stay tuned!
What are the options for Nigeria
sovereign wealth fund (state being very mad because “poverty” is urgent, need for the fund to be out of the hands of the politicians because if not it will be spent- need to set aside AND protect ) Transparency and accountability (extractive industries transparency initiative, EITI —> knowing about the flow of money to have a certain level of accountability , but its really hard to get the government and companies to release- facts may not be enough) Direct distribution mechanism (Oil2Cash- money distributed to the population and taxable, politicians who tax you are available to you) - Unconditional vs condition cash transfers - it is hard to do while it the political dynamic started
What are the political ecologic factor of deforestation in Brazil ( 7)
-Socio-political structure of society -Distribution of wealth in the country -Opportunities for capital accumulation -Role of the State (military logic vs democracy) -Prevailing cost-price environment (currency devaluation) -International context, connections and markets -Rise of civil society (came with democracy which enabled NGOs to work transnational to put pressure on government and suppliers )
What is the resource situation in Nigeria
oil sectors brings massive wealth but the average person gets little and less through time- poverty incidence increased as more money came into the country
What are the two paired factors in rent seeking, patronage, and living off the land Define them
-Overconsumption (living off the oil capital, spending the generated oil capital) -Underinvestment (In human capital, no school built, spending only to maintain position of power because wealth does not come from educated people)
Explain the International land coalitions “land matrix”
NGO website- matrix that tries to track land holding and transactions, major focus in the debate whether land acquisition is good or not, matter of transparency)
What can be done globally to improve inequality?
-Change international trading system as it is biased against poor countries? Is there room to make things a little bit fairer ? Is there a bias in the trading system , can we reduce it ? (Stanley Fischer) -Remove agricultural subsidies, allow for free trade in key sectors so dev. Country can compete for easily (e.g. clothing, textiles, steel) -Change recent WTO rules: less emphasis on intellectual property rights and financial liberalization -Move from loans to grants (World bank and IMF) - -Special program for Africa (AIDS, export help) -Global taxes and transfers - can we talk about a global tax and income transfer - richer countries paying higher taxes to be redistributed, who would deal with that ? (Piketty, 2014)?
Important forest loss in (5)
Brazil, Argentina, Paraguay , Nicaragua, Venezuela
Where does the term “dutch disease” comes from
In the 1960, Netherlands discovered gas but then the economy did not benefit (manufacturing and agri sector declining)
Explain local vs. global commodity markets
Local = jean-talon, cattle auction -Key global commodity exchanges: Agricultural products: Chicago Mercantile Exchange =where things like price for grains, wheat, meat, are set. Its the largest in North-America, which has global implication , Dalian Commodity Exchange in China =global prices for soybean, palm oil Metals: London Metal Exchange = industrial metal [cooper, arionor used in steel, auto, computer] Energy: New York Mercantile Exchange (NYMEX) = where crude price for oil is set, also important for precious metal [gold, silver, bronze]
Big cause of forest loss in central america (Honduras for example)
Narco/Cocaine money laudriyng through land purchase
Why is land good investment
-traditionally a hedge against inflation (ahead of it) -Land provides incomes + appreciation value -Returns not correlated with equity market (stock bouncing but price of land is steady) -Farmland price rising (America doubled, South-Am. 5-7 times) (appreciating rates have exceeded the one of residential and commercial) Why ? Low risk activity, people attracted to areas with large potential for growth
What are the four models of resource ownership
1.communal access : deals with rights that allow individuals to use resources but not to own them (e.g: fisheries) 2. state ownership and state exploitation: benefits of extraction are going to be shared (as government revenue) by all citizens (e.g: Hydro-Quebec) 3. state ownership and private exploitation: corporations will typically pay licensing fees in order to extract a publicly owned resource ( e.g: Irving, private family owned company that runs oil company and pulp and paper, Irving does not own the land they extract the trees but pays long terms rent to extract) 4. private ownership and private exploitation: farmers own and operate their own harvesting operations , cultivate their crops and reap the profit of their activity
Long ______ of crop production in the south for the north for example ___________
(colonial) legacy ( sugar, tea, coffee)
more forest is returning than being deforested in ________
Cuba, Mexico, Costa Rica
Prior to WWII, most trade agreements_________
bilateral (each country would negotiate its own trade agreements in regard to its tariff, country to country basis)
What are the drivers of the global rush
-High food prices (agriculture is more attractive because promise of higher returns) -Competing land use and land scarcity (people are worried global land is becoming scarce - biofuels, reserves, rubber.. maybe we should buy farm land now and not wait ?) protect food supply + strategic asset -Low returns on other investments ( low banking interests, stock volatility, “what am I gonna invest it?” Turns out that land is solid investment)
land grab is mostly done by _______ regardless of conception of _______
nationals “north grabbing the south”
Discuss the new growth and regulations
We can see there had been significant amount of growth which has been surrounded by regulations Bail out packages had conditions Financial institution were nationalized Bail out programs (to take off toxic mortgage) Who absorbs that ? Government, tax payment
Explain why the housing collapse is a trigger (why is it different) , what is the difference in models
the collapse of the housing market is really the trigger : the volatility/housing bubble is not new but the magnitude of volatility is what makes it different and it involves more countries Differences in model, from local funds to delocalized funding of mortgages, they come from global packages which is what facilitated the culture of high risk banks Money comes from a global pool of capital
Globally _____ of our food is lost
30-40%
What are the leading world stock markets
World Leading Markets ): -New York SE (US blue chip firms - that have been around for a long time) -NASDAQ (tech specialized stock exchange) -TOKYO -Euronext (recent one with countries Paris,Amsterdam, Bruxelles, Lisbon) _ -London -Hong kong (fastest growing) -Shanghai (fastest growing)
Describe a regional trade agreement (+ 3 types)
-international framework provided by WTO but agreements will emerge on a regional level -Attempts to liberalize trade over smaller groups of countries (i.e. preferential trade agreements) include: i. free-trade agreements ii. customs unions iii. common markets
Estimates of a city’s global service capacity (i.e., office networks) in 4 corporate services:
1) Accountancy services 2)Advertising agencies 3) Banking/financial services 4) Legal services (how many offices of these world firms services located in the city?)
What is the key to the geographical argument
the tension between -1. local financial circuits ‘delocalized’ (stretched) & -2. global financial circuits ‘localized’ (geog. compressed) Capital raised local is stretched and dispersed in different place and these global markets of capital invested in specific locals
What are the 3 causes of Income Volatility in resource curse
-commodity price variation -rate of extraction (very high and then taper off through time) -Timing of receipt ( government payments modes varying)
What is glocalization
local and global processes become inextricably interwoven, i.e., dialectical movement of globalization (e.g., financial markets) and localization (e.g., housing / mortgage bubbles)
what is market capitalization
total value of the stocks traded
Describe the 5th myth (human impact)
-Corollary of traditional resource use as sustainable -“The pristine myth” : - archeological evidence in landscape -anthropogenic forest and terra preta soils -Case: Ucayali River , Peru — how did the river widened ? How did the channel expand? A group of guys got together with shovel and machete to clear the path to accelerate the erosion is the meander neck channel, they wanted to make a short cut, which caused the change in this river, small group of people working with nature with small means to make big change in the environment -which put into question whether or not the forest is actually “pristine” Reality -they are forest that have been used and reshaped for a long time -more and more evident traces of human - How natural is the Amazonia actually ? Forest , soils, river ways -Maybe people in prehistory were able to manipulate nature -poses a huge challenge to conservative discourses
What is to be done about the global land rush
-Land purchases restriction (but sometimes doesn’t acknowledge the nationals grabbing) -Strengthen land governance and better manage land-investments (land need to be registered which is long and expensive, maps are often poor, no reporting sales BUT will be tracked in the future block chain solution -Guideline for best practices (ethical guidelines) -Level playing field for family farms (still need room for small farmers if not cities are going to explode, but very challenging because people don’t believe in it anymore)
What are the impact of Smoot-Hawley Tariff Act
-This actually worsen the economy and perhaps deepen the great depression, why ? Because most other countries also jacked up their tariffs which led to a trade war - protectionist territory, lower trade)
2 countries that are really good in precision increased productivity
China and Brazil
Depict Friedmann and Wolff (1982; 1986) approach of the world city hypothesis
Identify world cities based on their “degree of enmeshment” into world economic activities (i.e. how they are linked to the global economy) •recall notions of extensity, intensity and velocity! MNCs key agents of change ⇒world cities are seen as command and control centers of the global economy Freeman and Wolff argue that we need to look at the role of MNCs as actors First ranking of world cities (small sample of 30 cities)!- developing inventories of the different facilities Only 30 cities because process is still very tedious
What are the causes of Food price spikes
Oil prices: they are both related because agri is an oil intensive industry (tech fuelled by food) + oil needed to transport food, also as oil prices increases, farmers will focus on biofuels so farmers are shifting away from cereals to corn and sugar cane + they affect the competition for land Adverse Weather (example: frost in Florida) Trade shocks (export bans because all is scared of running out of food, hoarding, panic buying) - when food prices rise, a panic takes place
______________ seen as highly efficient price setting mechanisms
Commodity exchanges (i.e. markets)
Why does inequality matters at the global level (2)
Greater awareness of differences in incomes across countries (possible conflicts?) Migration (much easier in today’s global economy) People want to move to areas with better opportunities, migration flows linked to growing levels of inequality
What is a yield gap
difference the yield you are getting and the potential yields you could get (gaps are very significant, example Mekong yield are 10 times greater than Africa for rice BUT That yield gap should only be determined for specific locations) average yield gap = huge losses
In PPP terms, top ____ of world population controls ____ of world income; make in 2 days what poorest ___ make in year
5% 1/3 5%
Tropical forest are repository of : (5)
biodiversity, climate regulation, indigenous cultures, and wealth in land, become a focus for exploitation
Because of climate change, we see a ______ of production because of _____ and_____ productivity because of _____
decrease - heat stress increase - Co2 (plants need CO2 to grow)
Explain the difference between media reports vs. Inventories
(press overestimates the mouth of land that is actually transacted- hard to have a good estimate of actual land purchased (time frame shifting, not clear about what land, minimum size restrictions varying, offer different than deal)
Depict concept 2 of inequality
Concept 2: weighted international inequality -Welfare concept: GDI per capita -Unit of observation: country KEY DIFFERENCE = Takes into consideration each country’s population (e.g. China’s weight is approx. 20%) -Data: national accounts -Currency conversion: PPP -Ignores within-country inequality
-Canada is not yet a ______ in global land rush
major player
Define proximate and underlying causes
proximate causes = most immediately linked to deforestation - example: chainsaw and the guy cutting the tree underlying causes = structural forces- example: why is the guy in the forest?, capital investment in speculated land
How is recession defined by economist
two consecutive quarter of negative GDP growth
Depict concept 2 of inequality through time
Profile is quite different post WW2 We don’t see much of a decline nor an increase in 1970 Why? Because of rapid economic growth of developing countries (China, India are seeing growth and emergence of middle class) *if we take China, we are back at something that looks mostly like concept 1
What are the symptoms of dutch disease
-Booming resource sector -Inflation and Currency appreciation (overvalued) -Withering manufacturing/agricultural sector
Describe Income inequality
Income inequality: “measures disparity between % of population and % of income received by that population. Inequality increases as the disparity increases.” (Galbraith 2004) -When distribution of national income grows a little more unequal = income Inequality increases Maximum inequality →one person holds all income Minimum inequality → all persons hold the same % of income
What are some alpha world cities
London, Paris, New-York, Tokyo
What are the economic causes of the dutch disease
-boom vs non-boom sector -Tradable vs nontradeables (?) -Resource allocation effect (Shifting of capital and labor into the boom sector ) -Spending effect ( arises because there is more money so people buy more but are investing on import, not the helping the local economy
Describe changes in food retailing
advent of supermarkets (example of South-America) = increase in quality, availability of course and a decrease in the price (especially for less nutritious food), 60% of food in South-America flows through supermarkets (which happened very quickly) - which leads concerns for health- excess weight does not mean wealth anymore, it is caused by cheap junk food amongst other things
Depict the cattle sector in 1990s-2000s Brazil
(from domestic to international market - beef takes off, improves breed, resolves disease, lowered currency, access to Asian markets, the number of cattle doubles, Brazil= larger importer in the world , 1/3 of deforestation is due directly to cattle ranching)
Was nafta effective ?
By and large, NAFTA worked out as expected by its supporters. Industry has restructured in the direction of greater export orientation in all three countries, and trade creation has occurred All three countries are exporting more to and importing more from each other But, impacts in terms of wages and job displacement? Relationship between trade activity and the rise of Inequality ? (ex: Ontario relocating in cheap labor Mexico) some studies do see a relationship ?
