examples - excludes debt + tourism

Massey’s view of globalisatoin

Pro-globalisation, Marxist

• as world becomes more interconnected distant placed don’t seem so far away

• world is shrinking

• time + space compression - improved communication + transport (however globalisation not 100% positive, will have social + environmental consequences e.g. own cars vs public transport)

Musk’s view on globalisation

Pro-globalisatoin

• massively invested in technology

• is built in many countries + sold around the world

Ogoni people, Niger Delta

Anti-globalisation

• role of TNCs (shell) oil spills

• money not going back into the area, poor working conditions

• bottom of globalisation chain

Which country is no.1 for invisible exports

USA

• In March 2025, US exports of services were recorded at $95.2 billion, according to the census.gov

LDCs

least developed countries

48 in the world according to the UN

MINT

Mexico

Indonesia

Nigeria (fastest growing economy)

Turkey

(often grouped together due to their strong growth potential, large populations, and significant global influence)

BRICS

Brazil

Russia

India

China

South Africa

Asian tigers

South Korea

Hong Kong

Taiwan

Singapore

India predicted annual trade growth

6.3% - more than twice global average

what 2 groups are expected to strengthen their trade groupings due to geopolitical shifts

India + ASEAN (ASEAN expected to grow overall as well as people want to rely less on China)

How much is Russia’s trade with China expected to grow by 2032?

$134 billion

Russia changing trade patterns

by 2032

• fall by $22bn with EU

• grow by $134bn with China

• grow by 26bn with India

Oil in Nigeria (trade)

Over -specialisation

• has a single product economy

• 80% of its national income is from fossil fuels

• 36bn barrels of known oil reserves and 28,000bn m3 of gas

• the rise of oil led to an overvalued Nigerian currency so that their manufacturing and agricultural products were too expensive to export, leading to their decline - a process known as Dutch disease

• this led to growing reliance on cheaper foreign imports

EU dairy products

Protectionism + tariffs

• The EU Common Agricultural Policy (CAP) sets substantial tariff rates on many agricultural markets

• the aim is to increase prices for domestic European farmers in order to increase their income

• 54 dairy products have tariff rates of more than 75%

Technology in Uganda

Transfer of technology

• since liberalising its ICT sector in 2010, Uganda has increased availability of its services to the population and simultaneously encouraged private investment

• regulatory frameworks revolve around telecommunications, postal and broadcasting services

• estimated that ICT sector growing at 25% annually, contributing to 2.5% of Uganda’s GDP in 2015 with a 53% increase in internet users in that year.

• due to three marine fibre optic cables

Umbrellas in China

Economies of scale, comparative advantage,

• Umbrellas were originally exported via the Silk Road to Asia, across Europe and were particularly popular in the Roman Empire

• 70% of the world’s umbrellas are still made in China

• Songxia in Shaoxing, is at the centre of production, with over 1,200 umbrella factories

• it retains its prominent position due specialisation and access to domestic and international market

Collum Coal Mining Industries, Zambia

Exploitive + labour intensive industries

• the coal mine supplies fuel to Zambia’s copper and cobalt mines

• in 2011, 11 African workers were shot by the operation’s Chinese managers during a protest against poor working conditions

• the following year a Chinese manager was killed during a pay dispute and the year after the mine was seized by the Zambian government and closed for 3 years, although there are recent plans to reopen it

China Nonferrous Metal mining, Zambia

Increased employment

• China’s economic growth has fuelled a rapid demand in metallic ores and China has invested heavily in Africa to extract these ores

• State owned China Nonferrous Metal mining has invested over 42bn in Zambian mines and created 10,000 jobs for Zambian locals in extractive industries in 2013

New Zealand lamb

product dumping

lamb more expensive in NZ than UK

Port of Rotterdam

Locational advantage

• Geographical proximity to the N. Sea + river Rhine, accessibility to EU trade

• Close to Germany, 3rd largest trade value country

• Deep enough to accommodate largest super tankers, due to its unparalleled depth, wide basins, minimal tides and the lack of locks ensure it is accessible 24/7 even to maximum size vessels

• 3rd flattest country in the world, this means that the port’s expansion is possible

• surface are of the port is 12,000 hectares

• 3rd largest exporter in EU, exports more than imports

• one of the most sustainable ports

• no extreme weather

UK wool + coal

Resource endowment

• 1800s Pennine mountain range - orographic effect combined with low pressure originating from the SW prevailing winds causing high levels of discharge required to turn the mills

• geology of the area meant Millstone grit and soft water (assisted the wool making process)

• wool and textile accounted for 61% of all exports

• Coal - energy source available, exports gave wealth to diversify (unlike Venezuela - overspecialised in oil)

China belt and road initiative

Creating locational advantage

• covers 3 continents - over 60 countries signed

• infrastructure project - invested in both maritime/road infrastructure

• Pakistan

  • Built a new port

  • corrupt - cant pay

  • 40yr lease

• Shri Lanka

  • 1.5bn new port

  • 2012 - couldn’t pay it back

  • China have control for 90 years

• Other countries inc.

  • Djibouti

  • Indonesia

  • Malaysia

• Ultimately will involve 68 countries and $8 trillion spent by China

• This adds up to 65% of the global population + 1/3 of global gdp

Niger Delta

-ve of resource endowment

• TNCs like shell have been exploiting the Niger Delta since 1950, leading to profit leakage and environmental degradation

• 80% of income comes from fossil fuels - currency became overvalued

• when oil prices dropped globally, Nigeria couldn’t afford to import the manufactured goods that the country needed

EU - Poland

• 330km of new express roads to be built

• project received funding from the cohesion fund and the European Regional Development fund

• will improve accessibility within Poland - facilitate international trade links + boost tourism

• will eliminate bottle necks in transport communication

EU - citrus fruits

• SA had cheap oranges - a lot of EU countries were buying them (major import)

• countries like Spain unhappy, 16% tariffs put on oranges from anywhere out of the EU

• Price rise for consumers, negative for countries out of the trade block
  

how many members does the WTO have

166 members, account for 98% of world trade

over 20 countries negotiating to join

WTO - US/China trade war

• ruled 2020, imposed 2018

• Ruled that the duties placed by the US on $200bn worth of Chinese goods breached regulations

• Described by USA as ‘completely inadequate’

• USA claimed that tariffs were justified as China were stealing intellectual property and forcing American companies to transfer technology for access to China’s markets

• WTO said duties broke trading rules because they applied only to China and were above the maximum rates previously agreed by the US gov and that Washington had not adequately explained by such measures were a justified exception

Peru - aid for trade

Before:

• econ relies on mainly its natural resources

• approx. 15% of its GDP depends on its extraction and export

• it’s one of the largest producers of copper, gold and zinc in the world

• explains why Peru needs to open up to the world for trade

After:

• they mapped the supply/value chains that link Peruvian producers to local, national, and global markets

• using a value chain analysis involves identifying which steps add greatest value and highlights areas where Peru might attract investment in higher value -added activities by improving efficiency of supply chain

• this was done for perishable agricultural products and it helped to identify the internal and external barriers to market access

• Peru also identified 3 areas in which AFT has been effective in raising trade capacity - export diversification, trade facilitation, trade policy analysis

El Salvador/Honduras - aid for trade

Before:

• El Amatillo border crossing between the countries is a border with one of the highest trade volumes in central America

• However, border clearance times are extremely slow, hindering trade volume

After:

• funded a USD 2 million project to improve border clearance times and procedures through an electronic system for managing the flow of goods in transit

• this was done by harmonising procedures and consolidating information and certificates into a single electronic document

• clearance times reduced from 62 mins - av. 8 mins

• success stimulated interest in neighbouring countries

• another USD 950,000 helped to extend the procedures to Costa Rica, Guatemala, Mexico, Nicaragua + Panama

Fiji - aid for trade

Before:

• Fiji’s main ports of Suva and Viti Levu built in 1963, were run down and failed to meet the modern standards and had insufficient space for container cargo

After:

• The port investment project figured prominently in both the government’s Strategic Development Plan 2003-05 and the subsequent AFT programme

• As a result, investment led to a decrease in turnaround times and productivity improved from 5.2 to 8 containers per vessel-hour

• moves of cranes per hour nearly doubled from 11 to 20 increasing trade efficiency and volume

When was protest against WTO and how big?

1999, 50,000 people in Seattle

(but over 20 still want to join - so must have positive aspects)

when did China join WTO?

2001

evidence for de-industrialisation in UK

2019

• Jaguar Land Rover cutting 4,500 jobs

• Honda will close Swindon plant (Closed 2021)

(Sector shift - trade deficit in HICs)

• but JLR building a new battery assembly centre in Hams Hall, Warwickshire

Ghana - UK colonialism

Ghana provided palm oil needed for machinery in Britain’s industrial revolution, reinforcing poor terms of trade with exported raw goods and imported manufactured goods

non fair trade vs fair trade banana

non fair trade - from Ecuador to UK

• Sold - 12p

• workers - 0.75p

• EU tariff - 1.5p

• Retailer - 1p

fair trade

• sold 25p

• workers - 1.4p

• EU tariff - same

• retailer - 10.25p

but no plantation owners, small farms instead

World Fair trade organisation (WFTO)

401 organisations

members in 76 countries

Fairtrade sugar

• valuable agricultural commodity

• 2013 global export trade worth $42bn

• 70% of value of Cuba’s exports, 40% Belize

can be hard to make money from

• EU +US prefer to buy from their own sugar beet growers

Fairtrade

• 77 producer organisations representing more than 36,700 sugar cane farmers in 18 countries

• $600 per tonne of sugar

• has increased food security for sugar cane farmers in Malawi

• increased productivity by 21% in Belize

how much more do fair trade certified cooperatives earn?

about 40% more

how much were fair trade farmers and workers paid in fair trade premiums?

over $220 million, invested almost 50% back into tools or services

what % of Fairtrade premiums were spent on education?

26%

what % of fair trade workers are women?

41%

fair trade on environment

over 60% of all fair trade certified products in the US are organic

52% of all fait trade certified farmers are organic certified

around 30% of fair trade producer organisations invest some of the premiums into environmental projects

but often sold abroad - environmental impact of shipping

fair trade on unsafe working conditions

certified organisations may not employ children under the age of 15 and working children below 18 must prioritise their education

SORWATHE Ltd, a Fairtrade Certified tea producer in Rwanda used its premium to increase number of workers with health insurance by 83%

what percentage of Americans sometimes make purchasing decisions based on a company’s ethics

70%

2019 study on farmers hired by fairtrade cooperatives

farmers who are part of the fairtrade cooperative benefit from improved wages etc. farmers they hire don’t

cost of fair trade certification

2006 around 6 cents/lb for coffee with an annual fee of 3 cents/lb

this was not much lower that the amount farmers received as the fairtrade premium

+time consuming - fill out application online

how much was given in aid in 2016

$140bn

2015 USA aid

gave away $31bn

$770 mill Pakistan

$250mill Mexico

however - only 0.17% of Gross National income - 2016

biggest aid donors in terms of GNI

Norway + Sweden - over 1%

UK, Luxembourg, Denmark, Germany

biggest aid recipients 2015

Afghanistan - $3.8bn

India - $3.1bn

China $1.8 bn (development aid, GBR + GER)

Haiti rice problem

2010 earthquake

• 70% of rice came from foreign suppliers

• rice not priority product at port - not enough rice coming in, knock on effect down the chain wholesaler, micro-wholesaler, street vendor

• + NGOs like Red cross giving out free rice

USAID/CARE food voucher programme (article 2017)

Direct aid

USA had learnt from mistakes in Iraq

why needed?

• susceptible to natural disaster

• poorest country in western hemisphere, ½ of population on less than $1.25 a day

• reliant on food imports - lack of suitability for agriculture

  • 1/5 of land suitable for agriculture

  • vulnerable to price spikes in global market

Initial successes

• allows most vulnerable to eat - provides more than 18,000 food insecure households with access to healthy food

• provides income for street vendors - nearly 1,000 participate in the programme

long term benefits

• street vendors earning more so can now afford to send their children to school

• strengthens market - economy can develop without the interference of free grain

• Become less dependent on aid - easier to transition to future without the policy

• if people are eating they are more able to find work

• women involved - groups offering financial training and access to small loans to improve businesses have 26,300 women

• other tools provided to help agriculture develop, not imported so cheaper for wholesaler

World bank in Haiti

quality primary education given to 240,000 children - 50% girls

so successful and effective system has been adopted by the gov + other donors

expanded access to electricity to over 233,000 people

all weather roads to over 2 million people

Peruga dam, Malaysia

• 1988

• Britain would provide aid in the amount of 20% of the value of arms sales from Britain to Malaysia, return of military aircraft

• aid would come in the form of a dam project agreed by Defence Sec

• ODA, + Foreign sec found that the dam would not be a cost efficient way of providing electricity but went through with it anyway

• authorised expenditure of £234 million in 1991

• World development movement called for a judicial review

• British High Court ruled in 1994 that the project was non of economic benefit to the Malaysian people, the deal linked aid directly to contracts and was unlawful

• UK has not given tied aid since 2002
  

China tied aid in Africa - recipient

• concessional aid more affordable than market rate (900 aid projects

• many have gone into education + healthcare etc

• creates some business opportunities for local businesses

BUT

• loss or rights to natural resources

  • Angola oil block ‘06 (in return for USD 4 bn)

  • DRC copper + cobalt ‘08

• Massive debt - $1.52bn

China tied aid in Africa - donor

• Chinese construction business given extra business

  70% goes to ‘approved’, mostly state owned Chinese businesses

• gained access to resources

  • Angola ‘06 oil block (in return for USD 4 bn)

  • DRC ‘08 cobalt and copper

BUT

• by 2025 given USD 1 trillion, national debt = 84%

HIPC (highly indebted poor countries) - postives

37 countries have received debt relief (31 in Africa)

Somalia

• completion point in DEC 2023

• achieved debt savings of $4.5bn

• Somalia’s external debt = 64%of GDP in 2018, less than 6% of GDP end of 2023

• can re-enter the global financial system after 20yrs of isolation

• attracting more private investment

Guyana

• 1970s combined effects of the decreased commodity prices and the oil price crisis led to a debt of $2.1bn

• as it stood Guyana couldn’t invest in social sector

• after reaching completion point was able to increase social spending by over 20% with free public healthcare available e.g. Georgetown Public Hospital

• investments also made in education

HIPC - negatives

• Bangladesh and Cambodia have lower GDPs than Ghana and have not been accepted while Ghana has

• Cost of going beyond HIPC initiative (27%) to provide 100% cancellation for these 22 countries will be $125 million for the World Bank and $287 million for the IMF, this could be done without impeding their ability to function