Topic 7 - EQ2 - Superpowers

Question 1

What did the USA feel threatened by post-WW2?

Answer 1

Communism. Best way to combat this was to be economic development in Western Europe (Marshall Plan), Japan and wider Asia (enabling growth of Asian tigers). Promoting neoliberalism was America’s way of trying to reach financial stability and development for these countries. IMF, WTO and World Bank (Bretton Woods institutions) key IGOs in promoting neoliberal economic development.

Question 2

What are the Asian Tiger economies?

Answer 2

Hong Kong, Singapore, South korea and Taiwan. Saw rapid industrialisation with exceptionally high growth rates from early 60s to 90s.

Question 3

What is neoliberalism?

Answer 3

Political philosophy of free markets, free trade, privatisation and increasing the role of business in society (primacy of market over state). It is thought that by making trade easier, there will be more of it, generating wealth which will trickle down and reduce poverty.

Question 4

What are the Bretton Woods institutions?

Answer 4

The World Bank, IMF and WTO. Set up at a meeting of 43 countries in Bretton Woods, New Hampshire, USA in July 1944. Their aims were to help rebuild the shattered postwar economy and to promote international economic cooperation.

Question 5

What do the IMF do? How does it promote neoliberalism?

Answer 5

Maintain international financial stability. It loans money for development initiatives and the stabilisation of currencies (to maintain economic growth and stability of capitalism) in return for which countries have to privatise gov’t assets and cut gov’t spending (to generate wealth from investment), Privatisation is key to neoliberalism and stability incentivises the maintenance of capitalism (and keeps them within US sphere of influence).

Question 6

How have superpowers been able to exert their influence via the IMF?

Answer 6

The IMF operates with an American brand of neoliberalism (e.g. the type championed by Reagan). The USA dominates the IMF. USA holds 16.5% of voting rights.

Question 7

What have been the successes of the IMF?

Answer 7

-Since 2000 IMF has focused more on combatting global poverty and the MDGs (again to maintain global capitalist order) with the poverty reduction scheme
-IMF working with Haiti post-2016 Hurricane to make it an emerging economy by 2030 (stimulating growth)

Question 8

What have been the failures of the IMF?

Answer 8

-Austerity and cuts to public services (healthcare, education…) to receive loans is a harsh trade
-Poorer countries have historically been pressured to sell off assets to TNCs (self-serving)
-Greece failures. Greek debt was high post-2008 and the IMF forced Greece to privatise and cut back on gov’t expenditure leading to harsh austerity measures in the 2010s and civil unrest with the anti-austerity movement 2010-12 (it directed anger towards IMF presence in Greece)

Question 9

What do the World Bank do? How does it promote neoliberalism?

Answer 9

Finances economic development. Deposits in world’s wealthiest countries to provide loans for dev’t in countries that agree to terms of repayment and growth. Also been financing education (Global Partnership for Education est.2002 and over 30bn USD invested) and renewable energy with the Climate Change Action Plan (e.g. in India). Helps capitalism by function. Fosters the development that disincentivizes countries to move away from neoliberalism/capitalism.

Question 10

How have superpowers been able to exert their influence via the World Bank?

Answer 10

USA dominates. 16.5% of voting rights + all World Bank presidents have been American as of 2022.

Question 11

What have been the successes of the World Bank?

Answer 11

-Money to France post-WW2 stopped it becoming socialist
-2014 70mil USD loan to Philippines for poverty reduction
-2014 help to DRC for mega dam project

Question 12

What have been the failures of the World Bank?

Answer 12

Bad reputation in 70s and 80s for financing env’tally damaging projects (e.g. rainforest clearance) OR so costly that developing countries could not pay back loans

Question 13

What do the WTO do? How does it promote neoliberalism?

Answer 13

Advocates for trade liberalisation and free trade as a tool to promote greater int’l trade. All with goals to generate economic growth and reduce poverty in LICs. Promotes free trade (without barriers such as tariffs or subsidies) which is at the core of neoliberal economics. By creating positive view of int’l free trade, it disincentivises countries becoming communist.

Question 14

How have superpowers been able to exert their influence via the WTO?

Answer 14

It is actually a 1 vote 1 country system (most bargaining still favours USA and W Europe)

Question 15

What have been the successes of the WTO?

Answer 15

Enabled developing countries to become more active in world trade and benefited rich western markets

Question 16

What have been the failures of the WTO?

Answer 16

-Failed to stop rich areas like USA and EU from subsidising farmers and agri industry (protectionist, hypocritical and unfair to developing world who cannot trade on level playing field)
-Concerns of potentially exploitative trade links being formed (or env’tally damaging trade)

Question 17

What are 4 ways in which TNCs maximise profit?

Answer 17

-Accessing new (emerging markets) for products
-Taking advantage of cheap labour, tax breaks, lack of env’t restrictions… in other areas (offshoring)
-Owning every stage of production process (vertical integration)
-Buying up smaller competition

Question 18

Where are the top 3 biggest TNCs on Earth from (2015)?

Answer 18

-USA - Walmart (GDP equivalent to Sweden)
-China - Sinopec newly emerged as a top TNC post-2008
-UK/NL - Royal Dutch Shell

Question 19

How do TNCs operate differently in China vs USA? Is China unique?

Answer 19

USA (and West) - mostly public owned with shareholders who receive dividends from profits. Shareholders demand profit. Profit drives all.

China - state led and operate commercially but ALL profit returned to state. France also has hundreds of state owned enterprises, as well as Russia (e.g. Gazprom) - in the USA the gov’t even has a majority stake in General Motors but not quite same.

Question 20

What are the benefits of state owned TNCs?

Answer 20

Heavily supported by state giving protection in highly competitive modern economy (e.g. bailouts).

Question 21

How important are TNCs for the global economy?

Answer 21

The top 2000 companies account for 80% of world’s economic activity now + more than half of the world’s 100 biggest economies are now companies not countries.

As TNCs grow, global trade has increased per decade (85% in 2000s), in fact lots of this global trade is intra-company and there must be flows of trade across globe for GPNs.

Global shift of industry to Asia by TNCs has also led to rapid increases in exports from developing/emerging countries.

Question 22

How has top TNC ownership changed since 2008?

Answer 22

Asian countries like India, SK, Taiwan and China grown in ownership

Western countries like UK, Germany, France and Canada have dropped (USA still dominates)

Question 23

How do patents and intellectual property rights maintain wealth of superpower TNCs?

Answer 23

1995 WTO created need for patents to protect the ideas of inventors and researchers - to use their intellectual property royalties must be paid. All countries must enforce.

TNCs can spend more on research than anyone else and so can research any new technologies as their own. USA registered nearly 60k patents in 2015 alone and China nearly 30k.

If TNCs own patents then small businesses in less developed countries restricted by cost of royalties. Patents protect economic dominance of the TNCs of superpower countries.

Question 24

What is the problem with patents in medicine?

Answer 24

Patents by pharma TNCs make medicines unaffordable to poorer desperate countries (e.g. patents on new antiviral treatments for AIDs proven to be a barrier to HIV treatment in sub-saharan Africa)

Question 25

How do TNCs support superpower status economically? How else may they support superpower status?

Answer 25

TNCs allow superpowers to spread their economic influence globally via mergers, acquisitions, market dominance… they can control prices, affect trade, control tech via patents. Their investment in LICs and MICs can influence gov’t policies too. Large US or Chinese TNCs now have GDPs of small/medium countries and thus have the economic presence of them.

They also establish superpowers dominance in culture as many TNCs are easily recognisable, language free, global brands like Nike or McDonalds, or huge media TNCs like Disney - they cause spread of western culture globally.

Question 26

What is the role of culture in superpower status?

Answer 26

Culture = a mechanism of asserting soft power/influence on the global stage and so it is key to superpower status - in fact it is one of the pillars of superpower status.

Question 27

How does the top brands vs top TNCs list vary?

Answer 27

Most of the top brands by brand value in 2015 were American (8/10) e.g. Apple, Coca Cola, McDonalds.. - none of top 10 Chinese despite economic emergence of China. Means most recognisable brands are American = huge cultural power (brands and their advertising are key to our consumer societies) - USA becomes synonymous with these brands.

Question 28

Is cultural globalisation just westernisation?

Answer 28

US brands, media… dominate and have dominated the globe since the 1990s with US TNCs consumer icons globally. American brands are omnipresent - e.g. McDonalds has over 35k restaurants worldwide. English has also emerged as the global lingua-franca and capitalism as the established global economic system.

HOWEVER

US brands have adapted across globe - e.g…
-McDonalds caters to local populations the McArabia, no pork and no beef policy in some regions and more veggie options in India
-Barbie’s appearance has adapted across the globe
-Coca Cola adverts are different across the globe playing on different cultures (e.g. African music in African adverts and Bollywood stars in Indian ones)

Plus, there are flows of culture from elsewhere to the USA, e.g. Asian food, Anime/manga, Nintendo games…

Question 29

Are US dominated media TNCs spreading westernisation?

Answer 29

Films, news, TV… all dominated by global media TNCs, most from USA - e.g. 21stC Fox, Disney… enables USA to reinforce its culture and values across the globe (often in subtle way by becoming the ‘norm’). USA’s hollywood not only major film industry as Nollywood and Bollywood both bigger - however, they lack the global reach.

Online content providers such as Apple, Google and Amazon are also US dominated delivering ‘Western’ content across the world + royalties to content providers go into US economy (still paid for inventions decades ago).

Question 30

What is/are the global police?

Answer 30

Countries which can be trusted to be called upon in a crisis (natural disaster, coup d’état, threat of illegal invasion…) and regulate the international stage to guarantee peace across the globe.

Question 31

Who were the 4 policemen of 1946?

Answer 31

‘The Four Policemen” were set up in 1945 post-WW2, the four were: the USA, UK, USSR and China. In 1946, this became the UN Security Council.

Question 32

What criteria must global police tick off?

Answer 32

-Trusted to do right thing
-Global reach
-Money and tech available to help
-Able to ensure they will help guarantee global police

Question 33

What is the UN security council?

Answer 33

The UN Security Council now consists of 5 permanent members: China, France, Russia (formerly the Soviet Union), the United Kingdom, and the United States.

At any one time there are 10 non-permanent members who serve for two years, sixty countries have served over the last 7 years since the introduction.

Question 34

What are some criticisms of the UN Security Council?

Answer 34

• Any of the 5 superpowers can veto a decision
• USA, UK and France often vote as one against Russia and China – this means that there is regularly deadlock
• In the last 50 years the UK, USA and France have often tried to get an agreement between just those three and then take action themselves. This undermines the collective security the UN is trying to achieve.

Council is divided.

Question 35

What type of sanctions can the UN security council impose? How many countries have faced sanctions?

Answer 35

Since 1966, the Security Council has established sanctions on at least 30 regimes (e.g. South Africa, Iran, Yemen) sanctions can be…
- Diplomatic e.g. ordering embassy staff home
- Economic – banning trade
- Military – ban trade in weapons and military cooperation
- Sporting – ban a country taking part in global sporting events

Aim = to force a country back to the negotiating table without military force.

Question 36

Is the USA emerging as the global police? Examples of intervention?

Answer 36

Since the collapse of the USSR, and even before then, the USA has been the main interventionist power on the world stage. In last 40 years it has intervened…

• Through the security council (1994 Bosnian War, 1992 Somalia)
• With countries, outside the UN SC (2003 invasion of Iraq with UK, Aus… but not France, Russia or China)
• Unilaterally – with no support from other countries (1989 Panama invasion)

Question 37

What are 3 key military treaties for the USA? (+ some other minor ones)

Answer 37

NATO (North Atlantic Treaty Organisation) - a military alliance founded in 1949 by France, the UK and the USA at the beginning of the Cold War to protect the North Atlantic from Soviet expansionism. The 28 North Atlantic members of this alliance are committed to defending against military incursion into any member state - a military attack on one of these nations is considered an attack against them all. Each country contributes to the defence. Today, NATO together accounts for 70% of defence spending worldwide. Become increasingly important with Russian aggression in Ukraine (2014) and Georgia (2008) = more troops in Baltic and Poland (despite Trump questioning if it is a fair deal for the US as it contributes the most, and end of cold war, there is still a clear need for an alliance against Russian aggression). USA gets very strategic foothold in Europe.

ANZUS - Treaty between Australia, New Zealand and USA. Gives USA military foothold in Pacific and SE Asia (near China-Taiwan), but overshadowed by AUKUS now.

AUKUS - Treaty between Australia, UK and USA (UK and USA in 2023 shared nuclear secrets with Australia to help them develop nuclear submarines)

AND Mutual defence agreements with Japan, SK and Philippines

Question 38

Does the US military have global reach?

Answer 38

Yes. The US navy and air force have bases spread across the globe - navy spread over 100 int’l ports. The US has bases in 85 countries from Aus to Oman to Norway.

Question 39

What is an example of the USA’s humanitarian role across the globe?

Answer 39

US response to the 2004 Indian Ocean tsunami with Operation Unified Assistance (over 12k personnel deployed).

Question 40

How is China catching up in global policing?

Answer 40

-2023 China brokered a deal between Iran (Shia) and Saudi Arabia (Sunni) by hosting officials from both sides in China. This comes 7 years after Saudi Arabia cut ties with rival Iran after its embassy in Tehran was stormed after the Saudis executed a Shia Muslim cleric for terrorism and Yemen disagreements. USA has claimed it remains to be seen if it will be an effective de-escalation.
-China’s People’s Liberation Army built its first overseas military base in Djibouti at the mouth of the strategic Red Sea in 2016 - negotiations over one in Equatorial Guinea too
-Shanghai Cooperation Organisation (SCO) set up in 1996 between Kazakhstan, Kyrgyzstan, Russia, Tajikistan and Uzbekistan is becoming more strategic in Asia. It includes cooperation for security, cyber warfare, military matters and joint military exercises as well as some economic cooperation.
-China gave riot equipment to Venezuela to tackle protests BUT no direct interventions since Cold War

Question 41

What is a military alliance of geostrategic importance and importance in decision making?

Answer 41

NATO (or ANZUS)

Question 42

What is an economic alliance of geostrategic importance and importance in decision making? What is the alliance? Any threats?

Answer 42

28 members in one customs union with free trade between them, as well as the free movement of people. Plus, there are key EU funding initiatives which stimulator economic growth across Europe. Richer countries originally gained most, but new policies have helped reduce inequalities between richest and poorest countries (e.g. help offered to Greece or investment in Wales and Cornwall). One of the most significant trade blocs on earth.

UK leaving with 2016 referendum and swing to Eurosceptic parties across EU = uncertain future? Is it unfair to exclude European nations like Turkey, Serbia, Albania?

Question 43

What is an environmental alliance of geostrategic importance and importance in decision making? What is the alliance? Any threats?

Answer 43

The IPCC.

Established in 1988 by the UN. Produces reports which support the main international treaty on climate change known as the UN Framework Convention on Climate Change.
It doesn’t fund its own research. Instead it peer-reviews scientific, technical and social-economic publications, and assembles evidence, enabling UN members to understand the risk create by climate change, and its impact - really helps preparation, mitigation and climate based decision making. Its members represent over 120 countries.

Underestimates the pace and impacts of global warming (accused of being too conservative)?

Question 44

What is a political alliance of geostrategic importance and importance in decision making? What is the alliance? Any threats?

Answer 44

The UN Security Council.

It has 15 members - 5 permanent and 10 rotating on 2 year shifts. Active in peacekeeping since 1991 and has authorised military and peacekeeping missions in Kuwait in 1990, Bosnia 1994 and the DRC 2000.

5 permanent members benefit most BUT they are split into two camps which almost always disagree? Any of 5 can veto any resolution? Countries ruled against despite not representation? More than 50 UN members never been on council?

Question 45

Which countries benefit most from major alliances?

Answer 45

Residents of CORE countries in Frank’s model. These core countries DOMINATE the most important of these alliances - e.g. EU is dominated by the German and French agenda, certainly not the agendas of the Estonian, Maltese, Slovakian… people.

HOWEVER, do Estonia, Malta, Slovakia… actually proportionally BENEFIT MORE from the EU than Germany? Germany and France could likely have their current status and could nevertheless be high income countries even without the EU, yet the EU provides much needed investment and support to less developed parts of Europe really lending a helping hand. The same can be said for NATO. NATO arguably in real terms is more beneficial for countries like Estonia and Latvia in protecting them from the threat of Russian aggression than it actually is for the US which props up the alliance.

PERIPHERY countries EXCLUDED from regional trade blocs (econ alliances) lose most as they struggle to compete in regional or global markets - especially if blocs have protectionist policies like tariffs or subsidies (EU has tariffs on stuff like processed copper)

Question 46

What would happen if Russia and China became the global police?

Answer 46

Much more leniency towards new autocratic regimes across the globe and general opposition to current liberal democracies and neoliberal IGOs. There would be a shift of power away from Western Europe and North America towards Russia and Asia. Forceful interventions across the globe.

Question 47

What would happen if a SE Asian country became the global police?

Answer 47

There would be the loss of any sense of global policing as no South East Asian country has the resources or power to act outside of a regional capacity (not even Indonesia).

Question 48

What would happen if the EU became the global police?

Answer 48

An increased focus on human rights and climate change. Much less of a focus on military interventions to solve global challenges. Move away from neoliberalism in economic interventions towards the promotion of mixed economies?

Question 49

What is the global middle class?

Answer 49

People with disposable and discretionary income. They can spend this on consumer goods and perhaps holidays. The global middle class can be defined as anyone with an annual income of more than $10,000. Growth of this middle class in 20thC in Asia especially. 3.5bn people by 2017 - estimated to be 4.9bn by 2030.

Question 50

Has the middle class grown in Africa?

Answer 50

To some degree yes - but to a lesser extent than in Asia. Seen with increased domestic consumption in many countries. Sales of refrigerators, television sets, mobile phones, motors and automobiles have surged in virtually every African country in recent years. E.g. Possession of cars and motor cycles in Ghana has increased by 81% since 2006.

Question 51

What does growing middle class mean for food demand and rare earth elements demand?

Answer 51

-Increased meat demand with a growing middle class = leads to cattle ranches leading to deforestation (e.g. in Brazil where beef exports have increased by ten times) - forests are lungs of the world
-Rice consumption has grown steadily in the USA and EU because of increasing awareness of the value of a healthier fibre-based diet, so environmental problems may continue to spread as nature is turned into rice fields with dangerous fertiliser and chemical over-use
-Nutrition transition in East
-Land once used for grains will be converted to produce meat and dairy products to feed the middle class diet (=rising land prices) -Increasing wealth means a higher demand for high-tech goods. Many of these depend on ‘rare earth’ elements - new sources must be exploited

Question 52

Will the growing middle class lead to environmental costs?

Answer 52

Growth = more consumption of – food, water, electricity, rare earth metals, plastics etc - this puts huge pressure on the environment.

The group going to have the biggest global impact will be the fast growing Asian middle class set to grow to 3 billion by 2030, however, the UN notes that the new global middle class is likely to demand better environmental protection and more transparency in how government operates.

Question 53

Do superpowers set the example on environmental issues?

Answer 53

The actions of superpowers to reduce environmental degradation, in theory, sets the example for others to follow. However, some may resist self-imposed limitations if they feel it would damage their economy.

Therefore, achieving global agreements on environmental issues can be difficult and take a long time. Not as simple as setting example.

Question 54

How might BRICs countries tackle global environmental concerns?

Answer 54

China - agreements to cut down CO2 could limit China’s rapid economic growth. However, 2008 drew attention to poor global reputation for pollution. Measures to protect the environment have started to be applied, and Chinese companies are now some of the biggest clean-energy firms in the world, with heavy investment in the production of solar panels.
Russia - taken a lead in reducing emissions by using nanotechnologies, energy-efficiency laws and other mandatory changes to energy consumption and production. It has surplus carbon credits to trade in the global carbon emissions trading scheme. BUT the production and export of natural gas provide a source of political power in Russia, which has allowed it to manipulate countries on its border, including those in the EU. Carbon dioxide emissions limits may also reduce the movement of fossil fuels and further reduce Russia’s power (Russia uses its gas supply to hold reliant European countries like Germany to ransom). Russia desperate to cling on for sake of political power.

Question 55

Would emerging superpowers have a more positive effect on the environment than current superpowers?

Answer 55

No.

Russia relies on gas to maintain any sense of geopolitical power (e.g. over Germany) and so will likely never give up extracting gas.

China have demonstrated that they will consistently put their economic development over environmental protection (WHO puts the 2nd most polluted city on Earth in China).

EU has strong environmental framework and a Democrat run USA also has strong environmental framework.

Question 56

What are the top 3 superpowers for highest coal consumption?

Answer 56

-China
-USA
-India

Question 57

What are the top 3 superpowers for highest CO2 emissions?

Answer 57

-USA
-Russia
-China

Question 58

In which superpowers are CO2 emissions falling? What is happening in these superpowers?

Answer 58

USA falling since 2000 (tripled wind output 2005-15 BUT Trump’s climate scepticism led to USA withdrawing from Paris Climate Agreement…)

EU falling since the 1990s (EU has pushed hard for global climate change tackling with enforceable commitments to emission reductions - achieved some aims with Paris Climate Agreement 2015)

Question 59

In which superpowers are CO2 emissions rising? What is happening in these superpowers?

Answer 59

China rising fast since 2000 (emissions have hugely disproportionate effect on whole world due to the sheer size of the population and scale of heavy industry)

Russia minimal increase since 2000 (agreed to Paris Agreement 2015)

India minimal increase

Question 60

What is the Kyoto Protocol?

Answer 60

The Kyoto Protocol is an international agreement by the United Nations Convention on Climate Change that aims to reduce emissions of the six main greenhouse gases generated by the signatory members of the agreement. It also seeks to promote sustainable growth in developing countries. Approved in 1997 and was ratified in 2005 - it went into effect in 2008 when the first phase was implemented.

Question 61

Why was the Kyoto Protocol a failure?

Answer 61

Of the major emitters, only the European Union and Japan joined, while China and the United States decided not to (despite initially signing it), Russia joined later in 2005. The main criticism was that the Protocol only set emission reductions for rich countries, while not setting such commitments for the fast-growing emerging economies, e.g., China and India. The Bush administration argued that both groups of countries needed to reduce their emissions unilaterally. It could have created a scenario for the US where it’s main economic rival - China - was not limited by emissions whilst the US was which would hurt the US economy.

Scientists said that even if it was successful, it would do relatively little to slow the pace of global warming - gave American senior officials peace of mind in regards to their decision to not agree to the conditions of the Kyoto protocol.

As a result, USA has not cut emissions at the rate many would have liked, whilst due to the nature of the protocol China has been able to rapidly increase its emissions since the late 1990s whilst many other countries have cut down.