EQ2- What are the impacts of superpowers on the global economy, political systems+physical environment?

How do superpowers influence the global economy?

International governmental organisations (IGO’S)- World Bank, IMF, WTO, World Economic Forum

-these promote: free trade + capitalism

World Bank

Provides finance, advice, + research to developing nations + their economic advancement. e.g. promoting health + education, infrastructure investments.

-funded from wealthy nations (as sponsors of the project) + interest from loans

International monetary fund (IMF)

Main aim is to allow the currency to exchanged freely + easily between member countries

-funded by quota subscriptions: members pay according to size of economy, with voting rights based on quotas

-quotas ensure members always have enough foreign exchange to continue doing business with other countries.

World Trade Organisation (WTO)

Aims to reduce trade barriers + promote free trade between countries whilst ensuring trading nations keep to trade rules thorugh sanctions.

-avg tariff is 1/10 of what they were in 1947

-mediate + settle trade disputes

World Economic Forum (WEF)

Aims to bring businesses + governments together on one platform, encouraging public + private cooperation.

-promotes free trade + in favour of TNC’s

-discuss global issues such as ongoing conflicts, climate change, economic systems

TNC ownership

Most TNC’s are publicly owned corporations owned by private shareholders. e.g. Nike, Amazon

-pay dividends to shareholders

Some TNC’s are state-owned e.g. Gazprom (Russia), EDF (France)

-profits are reinvested into the TNC

How do TNC’s extert infleunce?

Have global reach + influence

Huge profits = power to extert political pressure + influence

Have the money to invest in developing new technology

How do TNC’s influence trade patterns?

Control over supply chains: source raw materials from one country, manufacture in a low labour cost region, sell in another, influencing flow of goods across borders.

Investment: invest in countries with favourable conditions e.g. low labour cost, low tax policies. This leads to an increase in exports of goods + services from these countries.

Shaping consumer demand: through marketing strategies, TNC’s create demand, leading to the import of goods+services e.g. Apple + Samsung

How do TNC’s maintain power through patents?

They are intellectual property systems used to prevent technology + medicines from being copied.

-protect the wealth from which the TNC usually originates from.

• Favour developed countries + mean new technologies + medicines are unavailable to developing nations. e.g. patents on HIV treatment have made these drugs unaffordable in many developing countries where the disease is most prevalent.

Culture as an aspect of power

Cultural influence is linked to economic influence+ development and spread of technology.

Westernisation: the adoption of Western culture and values:

• food- fast food TNC’s McDonalds’s, KFC

• the importance of having the latest technology, + the idea that technology can solve problems e.g. smartphones, AI

• individual freedom+rights

• TV, film, fashion

Superpowers in crisis response

Provided through: finance, building materials, etc

Aid is provided through NGO’s + IGO’s:

Turkey + Syria 2023 earthquake

• USA sent disaster response team of 200 ppl + $185M in aid

• NATO deployed housing to accomodate 4k ppl

• EU sent 31 rescue teams + 5 medical teams

Superpowers in conflict response

In 1942, President Roosevelt proposed the global ‘4 policemen’: UK, USA, China + USSR in maintaining global peace, although this did not work out.

USA + emerging powers often act as ‘global police’:

NATO military intervention in Libya 2011

2001 USA + support from UK, Canada, France, Australia led military intervention in Afghanistan to remove Taliban’s control

Superpowers in climate change response

Requires international response as it affects the entire globe.

1988 Intergovernmental panel on climate change (IPCC) set up to assess risks of human-induced climate change.

-followed by: Kyoto Protocol 1997, Paris agreement 2015

• USA withdrawal from Paris agreement in 2020 was seen to be detrimental to their superpower status- rejoined in 2021 by Biden.

2 military alliances

NATO

ANZUS

NATO

Adopts the principle that an attack on 1 nation is an attack on all.

-members carry out regular military exercises on each other

-NATO’s influence diminished after cold war, however Russia’s military activity in Ukraine + Crimea 2014 has brought it up again- coordinate delivery of aid

ANZUS

Co-operate on military matters in Pacific + beyond.

-has helped USA to maintain its military presence in Pacific, and Australia + NZ to provide military forces for Afghanistan.

3 economic alliances

EU (european union)

NAFTA (north american free trade agreement)

ASEAN

EU

Principle that economic strength insures against poverty, adopts a policy of convergence to reduce inequalities between countries in the EU.

• more power in trade negotiations, greater access to markets, greater protection for EU businesses + industries

• Euro currency used by 19 members

• allows for free movement of people + goods

• also a political alliance with supranational (power across border)+ intergovernmental decision making

-UK left in 2021- affected UK + other members of the EU

NAFTA

• free trade zone between Canada, USA + Mexico- lower labour costs in Mexico for USA’s benefit

• 2008 all tariffs+quotas abolished on US imports to Mexico+Canada

-Trump vowed to tear agreement due to fear of losing employment for US workers

ASEAN

• accelerate economic growth, social progress + cultural development between them

• promote regional peace+stability

• promote collaboration between nations

Environmental alliance- IPCC

• established by UN 1988

• created to provide members with regular reports on knowledge + understanding of climate change, impacts, future risks + possible options for mitigation and adaptation via techincal, scientific publications

• 195 members

UN (united nations)

Aims to maintain peace, promote human rights + social and economic development.

• founded by 51 countries after WW2

• includes many of the world’s most powerful+influentical IGO’s e.g. WTO, UNICEF, WTO, UNFCCC

• made of 6 principle divisions

UN security council

Resonsible for maintaining peace + preventing conflict. Achieved through peacekeeping missions.

5 permanent members: USA, UK, France, Russia, China

• UK, USA, France have advantage as China + Russia often vote together

• 5 members have veto- can reject any proposal

Peacekeeping missions

Promote sustainable peace such as:

• Lebanon as a result of Israeli invasion (1978)

• Sudanese civil war 2005-2011

UN international court of justice

• role is to settle legal disputes + disputes between countries, + giving advisory opinions on legal questions

• 15 judges who represent global regions

UN climate change conference

• Assesses effects of past measures that have been introduced to limit climate change

• reach agreement + set out future plan to limit CC

  - Paris agreement 2015 was negotiated: set out how to reduce emissions, make money available to adapt, limit global warming to below 2 degrees.

What are the three superpower resource demands?

1. Food

   • increasing as a result of pop. increase + increased calorie intake

2. Fossil fuels

   • as countries develop, more energy used in factories+industry, domestic use

   • emerging countries rely on fossil fuels as they’re cheaper e.g. Indonesia 81% electricity generated by fossil fuels

   • China has used more coal than the rest of the world combined

3. Minerals

   • minerals used in industry for mobile phones, energy turbines + solar panels, construction materials

   • graphite projected demand for technology to be 494%

How does resources degrade the environment?

Oil spills: Deepwater Horizon 2010 Gulf of Mexico- 450M litres of oil released, chemicals damaged marine life

Acid rain: 30% Chinese cities affected by acid rain, chemical weathering of materials causing deadly landslides

Deforestation(for food): Brazil 80% forest loss was due to cattle ranching.

How do superpowers contribute to global warming?

UN reported that the top 20 major economies (G20) are resonsible for 78% of GHG.

China’s approach to reducing carbon emissions

In 2016, China pledged to reach a peak of CO2 emissions in 2030, then to be carbon neutral in 2060.

Russia’s approach to reduce carbon emissions

Agreed to reduce emissions to 70% relative to 1990 level by 2030.

EU agreed to achieve net zero by 2050.

USA’s approach to reduce carbon emissions

Signed up to Paris agreement 2015 under Obama, left, and rejoined.

target is now a 50-52% reduction from 2005 emissions by 2050.

How does middle-class consumption affect the physical environment?

Over 43% of global middle-class will live in India or China:

• more mining, oil drilling+deforestation to access raw materials

• disposing of consumer waste in landfill sites- middle class spending to increase by $30 trillion

• polluted waste water

How will middle-class spending put pressure on resources?

Food

↑ due to nutrition transition+demand for new foods

land once used for staple food grains will be converted to produce meat + dairy

Water

↑ due to existing water supply problems, where 60% will face water scarcity

Energy

Oil produced per day is likely to rise by 30%.

Meeting demand could lead to price rises, supply shortages + a volatile market

Countries with domestic supply(Brazil) in a more stronger postition than those replying on imports (China)

Minerals

supply shortages of basic metals for LCD screens, tech

high demand for lithium-based materials