EQ3- What are the consequences of of globalisation for global development + the physical environment + how should different players respond to its challenges`?

Development

An improvement in several different characteristics of a population or society.

Economic measures of development

Income per capita: the average income of a group of people. Aggregate source of income/population size

+good indicator as higher incomes = higher QoL

-misleading where there’s high income inequality

GDP: The total value of goods + services produced within a nations borders.

+simple to calculate + compare to other countries

-doesn’t account for informal economy(underestimates LIDC’s)

Social measures of development

Human development index(HDI): combination of life expectancy, income, and years in education.

+compares change over time with other countries, as most data is available

-only reflects long term changes in these aspects of development, no measures of inequality

Gender Inequality Index(GII): Combines the reproductive health of women, their participation in the workforce + empowerment(through representation in parliament).

+highlights gaps in access to resources + opportunities for the genders.

-lack of info on employment + quality of jobs(difficult to collect)

Environmental measures of development

Environmental performance index(EPI): Looks at pollution outdoors + air quality indoors.

+ranks countries across a wide range of environmental issues

-only a recent way of measuring environmental quality: can’t compare data from the past

How can inequality be measured?

Lorenze curve- Distribution of income+wealth on a graph, showing wealth inequality.

Top 3 countries with high levels of inequality

1. South Africa- 63

2. Namibia- 59

3. Colombia- 55

Lorenze curve diagram

Gini coefficient

The closer the curve to the line of equality, the less inequality there is.

The graph shows the poorest 20% of households have 5% of the nation’s income.

Gini coefficient: area A / (area A + B)

• another measure of inequality; a number from 0-100

  -the higher the value, the greater the degree of income inequality.

Reasons for inequality increasing + decreasing

Increasing

Exploitation by TNC’s- labour conditions, wages

TNC profits leaking back to AC’s

Decreasing

FDI from TNC’s help kick start economies, especially alongside infrastructure + technology transfer.

Millenium Development Goals of 2000 reduced absolute poverty globally.

Widening development gap between nations

Average incomes have risen in all continents since 1950s, but only very slowly in the poorest parts of Africa. Greatest gains in Europe + N. America.

-world’s richest 1% have seen share of global wealth increase from 44% in 2009 to 99% in 2016.

Widening development gap within nations- China

Relative poverty has risen bc the avg per capita levels of wealth rises, so rich get richer, the poor stay the same. e.g. China

Top 1% of China’s population have 1/3 of their wealth.

An east-west divide exists in China: incomes decline further inland/ westwards.

-this is bc almost all industrial zones + major cities are located on the coast

Winners and losers of globalisation

WINNERS

Factor + call centre workers in Asia have a better, more reliable income due to outsourcing + offshoring jobs.

There are 1800 billionaires globally in 2016, most made their wealth through ownership of TNC’s.

Developed countries are good at maintaining wealth, despite rise of emerging countries e.g. China.

LOSERS

Isolated, rural populations in Asia + Sub-Saharan Africa where subsistence farming dominance exists + few global connections.

Many workers in industrial cities within developed countries have lost jobs as manufacturing relocated. e.g. Detroit

Workers in sweatshops are exploited + forced to work in poor conditions for low pay.

Contrasting trends between economic development + environmental management

• Sweden’s income per person has risen rapidly, however ecological footprint has not (8 hectares per person in 1972 and 2012)

  • have successfully maintained biodiversity, water and air quality.

• China’s income per person has risen, and so has ecological footprint(1-3 hectares from 1972-2012)

  • industrial industry has caused higher air pollution

Open borders

A situation where restrictions are eliminated/ significantly reduced on movement of people across international borders.

Diaspora

A large group of people who share a cultural + regional origin but are living away from their traditional homeland.

Extremism

The holding of extreme political or religious views.

Deregulation

Removal of regulations or restrictions especially in a particular industry.

Censorship

The suppression of speech, public communication, or other communication.

Trade protectionism

Government policies + actions taken to restrict/limit international trade to protect domestic industries from foreign competition.

Factors influencing growing diversity + culturally mixed society in London

Open borders: enabled free movement of people within the EU since 1995, e.g. eastern European Nations diasporas settle in London, shops to cater them developed in these areas.

Deregulation: Foreign businesses set up in UK + bring overseas workers with it. e.g. Credit Suisse in London from Switzerland due to 1980s deregulation of financial markets

FDI: London attracted 35% of all companies who moved their European HQ’s to the UK.

Nationalist

A person who strongly identifies with their own nation.

How has open borders, deregulation + FDI created tension in Europe + Asia?

Extremism

2015 France: staff from Charlie Hebdo magazine were killed from gunmen of Algerian descent as their Islamic Faith had been mocked.

France’s National rally: Nationalist party that opposes immigration + reject multiculturalism.

Trans-boundary water conflicts in SE Asia

China+Thailand- damming the Mekong river will generate HEP to encourage economic development(China), power for industrial development+rural investment for to stem flow of migrants(Thailand).

Cambodia+Vietnam- damming the river reduces river flow(Vietnam) + displaces villagers from fertile land(Cambodia)

How can the spread of globalisation be controlled?

Censorship

Internet censorship to try hide what happened at Tiananmen Square when students tried protesting against communism.

‘Great Firewall of China’ stops users accessing Youtube, Twitter, Whatsapp.

-dark web makes it difficult to control online info

Limiting immigration

UK attempted to use points based immigration system: awards points based on education, skills, language, etc, to match country’s needs.

-illegal immigrants can’t be prevented from entering, only legal ones

-UDHR(Universal Declaration of Human Rights) states European countries are obliged to take in asylum seekers

Trade protectionism

India restricts foreign companies from investing in retail sector to protect small shopkeepers from competition.

-illegal smuggling of legal+illegal commodities can be hard to control. e.g. $300 billion global illegal drug sales in 2014.

Resource nationalism

(3.8c)

A growing tendency for state governments to take measures ensuring that domestic industries + consumers have priority access to the national resources found within their borders.

How have countries retained control over physical resources?(example)

Canadian company ‘First Quantum’ was forced to hand over 65% ownership of a US$50 million copper mining project in the Democratic Republic of Congo to the country’s government.

How have countries retained cultural identity: First Nations Canada + concerns

Group of 6 indigenous groups

• After decades of being taught to be 'Canadian' in boarding schools, modern First Nation schools teach native languages and traditions.

• Within Indian Reservation territories, bands are largely self-governing allowing them to make key decisions about their future.

• Festivals and other meetings help preserve the First Nations tradition of oral histories and other traditions.

Concerns:

Effects of alcohol and drugs(brought by oil workers) on behaviour of young indigenous people

Death of trout+other fish in oil-polluted lakes, due to their lifestyle based around subsistence fishing+hunting which is fundamental to cultural identity

2 ways to increase sustainability as a response to globalisation

Local sourcing

Transition towns

Local sourcing

Buying products from local suppliers as opposed to buying from TNC’s that are likely to have travelled very long distances.

Transition town

A community project that seeks to build resilience and raise awareness of sustainable living. Totnes was the first transition town.

Totnes initiatives to improve sustainability(social, economic, environmental)

Mentoring+ wellbeing support: offer support to active individuals to build resilience in them.

REconomy centre: shared office spaces for start-up enterprises + community projects

Emerging ‘The great Local Rewild’ project: surveys how they can meet international targets of protecting 30% of land+sea by 2030.

Benefits + costs of local sourcing

BENEFITS

Lower transportation distance+air miles cut down air pollution + use of fossil fuels

Money spent on local businesses more likely to stay+be spent again in local economy(multiplier effect) rather than going to TNC’s

Easier for face to face communication between buyer+supplier building trust + business relationships.

COSTS

Local suppliers that are smaller businesses may be less efficient with restricted economies of scale

Reduces demand for TNC goods made in LEDC’s(harms their employment+economic growth)

2 ways to reduce environmental degredation

Ethical consumption

Fairtrade foundation

Ethical consumption

Consumers reduce the inequality of trade + improving the working conditions of disadvantaged groups by buying from ethical companies.

-increased from £11bn-£36bn overall.

+Large firms starting to prohibit worker exploitation in their own foreign factories. e.g. Nike, Gap

+helps reduce pollution + protect biodiversity

-buying organic destroys more forests- less use of fertilisers + pesticides means more land is needed to produce the same amount.

Fair trade foundation

Supports 1.7 million farmers+workers in 28 countries.

Sets minimum prices to provide a safety net for producers.

€188.8 million in Fairtrade premium paid to producers in 2017.

+reduction in child labour+safe working conditions

-difficult to attract big companies due to prices being up to 30% higher.

-fees: pay a fee to be part of foundation

Ecological footprint

Measures the area of land or water required to provide a person with the energy, food + resources needed to live.

Recycling in managing resource consumption + ecological footprint

Local authorities: Use the circular economy- a system based on the reuse + regeneration of materials.

Initiatives part of the circular economy include:

1. Municipal kerbside collection+recycling facilities.

2. Clothes collection banks, second hand shops

NGO ‘Keep Britain Tidy Organisation’: addresses problem of litter within society.

-9 billion fewer single use bags

Runs projects/ campaigns: education(schools), government/ businesses(charges on plastic bags), clean spaces(parks, beaches)

+reduces waste going to landfill

+reduces need to use new/ raw resources

-energy is needed to treat/ separate recycled materials

-low-income countries don’t have facilities/ infrastructure to correctly recycle