Issues associated with interdependence: unequal flows in global systems

example of labour movement reducing geographical inequality between workers

eastern Europeans working in UK

example of labour movement addressing important skill and labour shortages

UK has recruited nurses from Asia-Pacific

some workers return to their country with…

new skills and ideas

what gap does the loss of skilled workers cause?

training gap

what is there a greater risk of with more labour movement?

disease pandemics

what is the de-multiplier effect?

unemployment means less spending in the local economy so service workers lose their jobs and services close down

why is de-industrialisation so detrimental?

often quite sudden - jobs lost and no retraining

what is a knock-on effect of the closure of manufacturing plants?

leads to the closure of local suppliers

what is structural unemployment?

skillset of local workers is no longer compatible as the jobs they have trained for have now moved abroad

they are ill-equipped for the new types of work in their local economy

what is needed to remedy structural unemployment?

high government investment to retrain workers

what are the two measures of inequality to consider in globalisation?

difference between countries and whether this is increasing or decreasing

inequality in incomes within each country and how globalisation affects this

how is globalisation reducing global inequality?

through the transfer of capital and income from richer to poorer countries

how is globalisation increasing inequality within countries?

richer members of societies cope better with the changes in jobs and technology

why is technology important in equality?

easier to upskill if you have internet access

the development continuum has become more…

condensed

how much has China’s GDP increased?

x25.9 between 1985 and 2014

how much has the USA’s GDP increased?

x3.0 between 1985 and 2014

what graph is the Gini coefficient based on?

Lorenz curve

what does the Lorenz curve show?

45 degree line represents equal distribution of income so the further the curve is away from the line, the more unequal the distribution

what is on the y axis of the Lorenz curve?

% of income

what is on the x axis of the Lorenz curve?

% of population

South Africa Gini coefficient

0.60

Sweden Gini coefficient

0.30

how has Sub-Saharan Africa’s Gini coefficient changed?

increased by 9% between 1993 and 2008

how has China’s Gini coefficient changed?

increased by 34% in the last 20 years

exception to the rising Gini coefficient

Latin America

how much higher do foreign TNCs pay locals than local firms?

40%

why does outsourcing increase inequality within countries?

unskilled workers, particularly in rural areas, tend not to have opportunities to be employed by TNCs

who wrote about the Golden Arches Theory of Conflict Prevention?

Thomas Friedman

what is the Golden Arches Theory of Conflict Prevention?

‘no two countries that both had McDonald’s had fought a war against each other since each got its McDonald’s’

what is an example of groups feeling a sense of injustice to the richer nations driving globalisation?

The Arab Spring, Tunisia 2010

what was the Arab Spring?

series of anti-government protests, uprisings and armed rebellions in response to corruption and economic stagnation

what hastens conflicts e.g. the Arab Spring?

rapid global communications e.g. it quickly spread from Tunisia across N. Africa and the Middle East

what is an example of trade being used as a weapon?

UN Security Council trade sanctions against Iran in 2006

why did the UN Security Council impose trade sanctions in Iran?

because of its refusal to suspend its uranium enrichment nuclear programme

what was the impact of the UN trade sanctions against Iran?

severely harmed Iran’s integration into the world economy