Interdependence (6)

interdependence

= the theory that nations depend on each other economically, politically, socially, and environmentally

mutual dependence at a global level

... many contemporary societies are now classed as interdependent as they rely heavily on the decisions of other countries
=> means they would struggle and be detrimentally affected without them

political interdependence

- countries rely on other countries to intervene if there is political unrest

e,g., many nations intervened when there was Serbian state sponsored ethnic cleansing of Kosovo, Albania, which led to Kosovos independence

- international political issues require countries working together in order to solve them
=> issues raised must have a unanimous decision from nations

economic interdependence

countries are dependent on the flows of labour, products and services entering the country in order for the economy to grow

=> labour provides a workforce, products and services mean countries can develop and make money

social interdependence

migration has caused social interdependence as there are a number of diaspores (groups of migrants of the same origin living in another country) all over the world that are dependent on the place they live in

countries rely on each other for leisure activities
e.g., TV programmes produced in other countries

environmental interdependence

all nations are affected by other nations greenhouse gas emissions, nuclear waste emissions, etc.
... means all countries rely on each other to protect the environment
e.g.,
the nuclear fallout from the Chernobyl disaster in Ukraine reached the uk and France

issues associated with interdependence

= can cause issues for dependent countries due to unequal flows
... global flows of people (labour), money (capital), ideas, and technology are NOT EQUAL around the world

unequal flows benefit some countries as bring social + economic benefits
BUT
unequal flows cause inequalities and can lead to injustice and conflict

types on unequal flows

unequal flows of people
unequal flows of money
unequal flows in ideas
unequal flows of technology
unequal power relations

unequal flows of people

migration usually occurs from LICs to HICs

(more opportunities, better employment, more freedom)

... more people leave LICs than enter the LICs
.... more people enter HICs than leave HICs

benefits of unequal flows of people

- people migrating are mainly concerned with the workforce, can become intertwined with work faces and take jobs that myst be done but are "unwanted" by existing members of population
e.g., 44% of cleaning workforce = ethnic minorities in London

- large diaspora population often have strong geopolitical ties with diasporas country origin
....can strengthen relationships
e.g., Uk and India

- workers send remittances home, helping their economy to grow + benefiting origin country
e.g., over 2 million Indian migrants living in UAE send ~$15B home to India/year

- people fleeing from conflict and poor quality of life have better lives in country they have migrated to

problems of unequal flows of people

- disproportionately large flows if people = overpopulation
... pressure on services like healthcare, housing + tension with migrants "taking" jobs

- host country becomes too dependent on the migrant workers so struggle without migrants if situations change
e.g., reliance on polish immigrants on UK potato farms has caused issues with crops in Jesery

- origin country becomes dependent on remittances, so a change in circumstances may be detrimental to the economy
e.g., UK entered recession in 2009, building projects cancelled + migrants out of work, Estonia's economy shrank by 13%

- large amounts of emigration can cause unemployment and economic deterioration as areas become underpopulated
... skilled workers leave to work in HICs so only unskilled people are left to keep economy running
"BRAIN DRAIN"

- migrants may be vulnerable to exploitation
... poor working conditions, low wages
e.g.,
1200 migrant worker have died while building for 2022 World Cup in Qatar

- increased transmittance of diseases
e.g., covid19

unequal flows of money

majority of money flows are into LICs
=> FDI, Aid, remittances

flows of money into HICs = mainly repatriation of profits/sales

benefits of unequal flows of money

- country receiving money can improve quality of life from FDI
... provides an income usually higher than other employment in LICs

- aid and remittances can improve quality of life
... rebuilding after a disaster, mitigation and recovery
e.g., Haiti earthquake 2010, $6Billion in aid

- richer countries can take advantages of lower labour costs whilst sending money to LICs
... maximises profits
e.g., Primark

- emergence of a new global middle class

problems with unequal flows of money

- injustices towards people living in LICs

- companies in LICs can create dependencies for workers
... dependent on wages so have to subject themselves to dangerous conditions
e.g., sweatshops with poor conditions and low wages set up by TNCs
e.g., Primark, 2013
factory collapsed, killed 1134 people

- Foreign aid can reduce incentive for governments to help their own country
e.g., Haiti earthquake fund, corrupt government

- companies cam pressure governments to alleviate taxes/relax social and environmental laws so TNCs will invest

- TNCs profit too much and the amount of profit that stays in the country is very small

unequal flows of ideas

HICs usually dictate ideas of how countries should be run, how trade should be carried out, etc.

countries that have more money have more power over less developed countries

8 people in the world hold half of the worlds wealth

neoliberalism = HIC market orientated reform policies

benefits of unequal flows of ideas

- HICs introduced ideas of deregulation to developing countries and NEEs
... reduces state ownership has benefited developing counties
=> lower prices of products and services from competitive rates

- free trade created by deregulation has allowed global markets to thrive + decreased the risk of conflicts

- countries with successful strategies can educate LICs on how to create economic growth/remove social injustice
... LICs can improve + develop

problems of unequal flows of ideas

- DEREGULATION is occurring too quickly for LICs to keep up, this is not allowing the full benefits of the growth of the private sector to be achieved
... rapid flows of FDI and growth of global markets means some countries can't keep up
=> reform of regulations would work better

- PRIVATISATION allows large companies who buy originally state owned industries to grow
... profits are massively concentrated within these companies rather than nationalised industries
=> means LICs may not benefit from privatisation as isn't grouting their economy but funding the company instead

- DEREGULATION may lead to more relaxed social + environmental laws in LICs causing social injustices and environmental damage without proper government regulation

- ideas of MULTICULTURALISM and INTERDEPENDENCY may be disputed by some people
... may see as a threat to nations sovereignty

- LICs may feel FORCED to keep up with ideas of wealthier countries, even if ideas aren't the most beneficial to these countries
e.g., massive disadvantage to LICs to not join trade agreements but may not be able to keep up with demand
... PROTECTIONSIM

- Big TNCs can shirk responsibility due to outsourcing
(e.g., poor working conditions that they "aren't associated with"


- westernisation and the erosion of culture, leading to placelessness due to imposed western attitudes

unequal flows of technology

in past, majority of flows of technology were within HICs as visually no demand for technology in LICs

- now HICs and companies wish to invest in LICs due to benefits, so technology can make capital gain flows to LICs
(manufacturing equipment, components for assembly)
... only HICs wish to invest in LICs, not vice versa

- design + research occur in HICs

- consumer technology is manufactured in LICs and distributed in HICs
(phones, electronics, telecommunications)
... new higher demand for consumer technology in NEEs (china) is changing this

benefits of unequal flows of technology

- the economies of LICs can develop through tech investments
... open factories and increase employment
=> strengthens trade deals between HICs and LICs (allows LICs to benefit from exports)

- companies benefit from products being produced overseas, meaning they can maximise profits

- concentration of technology innovation in HICs has lead to development of beneficial technological advancements, leading to consumers getting better products
(e.g., China, NEE)

problems of unequal flows of technology

- HICs with developed markets have technological advantage over LICs as can afford to buy the technology
... people in LICs can't afford to purchase products that will advance their economy + improve quality of life
(HICs develop rapidly, LICs left behind)

- can be considered an injustice that the employees that manufacture and assemble consumer technology receive so little compared with what they are sold for
... companies make a large majority of profits whereas workers have little income + poor working conditions
e.g.,
china = biggest producer of smartphones, only 55% of pop. own a smartphone
(US = 77%)

- companies investing technology into LICs means that HIC manufacturing jobs are often lost, leaving skilled workers unemployed

- uneven distribution of technologies
e.g., 91% USA had access to internet in 2020 compared to only 30% of subsaharan African countries

- repressive governments used weaponised technologies from HICs to stop protests (Russia)

unequal power relations

richer more developed countries = more powerful
... have more money and technology
+
deeper relations with other countries
= more influence on global systems

LIC's lack money and technology
... have little influence over geopolitical events
=> rely on HICs decisions and only have the power to respond to the events rather than DIRECTLY INTERVENE

chinas belt and road initiative

= described at a 21st century silk road
Belt = overlapping corridors
Maritime = road of shipping lanes

...aims to build connectivity and co-operation across 6 main economic corridors

1. China plans on construction projects in 71 countries along these routes

2. From south-east Asia to eastern European and Africa, connects to the countries that account for half the world population and a quarter of global GDP

3. Expected to cost more than $1 trillion, estimated China has invested more than $210 billion (mainly is Asia)

4. Concerns that there might be more to it than just trade links and that China may want to use the initiative to combat excess population capacity

5. Concerns that more than 8 belt and road countries won't be able to repay their loans (e.g., Laos, Djibouti)

6. Worries that China will use a "debt-trap diplomacy" to their advantage, use it over territorial disputes in South China Sea or to dissolve human rights violations
...motivation to write off undisclosed debts comes from ulterior motives besides countries well being

7. Concerns that it is a form of economic and political imperialism that gives China leverage over other countries that are often smaller and poorer
described at a 21st century silk road

China's Belt and Road Initiative demonstrates issues of interdependence as...

1· China will have control over less vocal countries who have to do as it says because they are in debt to them

2· Allows China to write new rules in terms of the economic and financial world whilst controlling any news or possible legal allegations about them when it comes to violations of human rights, censorship, etc.

3· Means that poorer countries are dependent on the shipping routes that China are in charge of, and China decides when they can block these routes, therefore preventing any exports into these poorer countries

4· Gives China political and economic power over the easily influenced LIC countries who will not be able to support their economies without its help

5· Countries will become too reliant on China, and this may backfire on them when there's a hidden detriment or a concealed means of entrapment