3b: Influence of Global Connections + Globalisation

how does de-industrialization affect structural economic change?

• globalisation: shift on manufacture to LIDC/EDC → low labour costs

• tech advancements: + automation reduced need for manual labour in traditional industries

• impacted regions: areas reliant on manufacture (Rust Belt in USA) experienced econ decline, job loss

how does rise of the service industry affect structural economic change?

• economic transition: economies shift to service-based industries e.g finance, healthcare, education, tech

• gloal networks: service industries benefit from global networks + digital connectivity

• urban centres: cities like London/New York became global service hubs → attract inverstment + skilled labour

impact on structural economic change- opportunities

• job creation: growth in service industries creates new employment

• urban revitalization: cities adapt to service econs → experience revitalisation, more investment + better infrastructure

impact on structural economic change- inequality

• skill gap: demand for high-skilled workers = widens income gap between advanced education and those without

• regional disparities: areas fail to transition effectively = persistent unemployment + social decline

impact on cyclical economic change: booms

• increased opportunities: lead to job creation, higher income, increased social mobility

• investment in public spaces: high tax revenue → more gov. spending on services → improves social welfare

impact of cyclical economic change: recessions

• job losses: econ downturn → job loss, affects low-skill workers + vulnerable industries

• cutbacks in services: gov. budget constraints during recession → cutback on essential services → increase social inequalities

role of UK gov in reducing inequality: spending on education

• access to quality ed: investment improves access to quality ed for all → reduce long-term social inequality

• skill development programs: gov-funded training programs help workers transition to new industries

role of UK gov in reducing inequality: healthcare

• universal healthcare: NHS provides healthcare acces to all citizens → reduces health inequalities

role of UK gov in reducing inequality: infrastructure

• public transport: investment improves access to employment opportunities + services

• urban-development: gov-funded urban renewal projects revitalise econ-depressed areas

role of UK gov in reinforcing inequality: austerity measures

• service cuts: gov spending cuts → reduce availability + quality of ed, healthcare + services

• welfare reductions: cuts increase poverty + limit social mobility

role of UK gov in reinforcing inequality: uneual investment

• regional disparities: unequal investment increase inequalities e.g more investment in London → widens regional econ gap

role of UK gov in creating inequality: policy decisions

• tax policies: regressive tax policies affect low-income people

• planning + zoning laws: policies favouring areas for development → spatial inequalities