Global systems and Global Governance Case Studies

Palm Oil

Palm oil is a vegetable oil from oil palm trees, specifically African oil palms that originally came from South-West and West Africa, but they were introduced to Indonesia and Malaysia around 1900. Palm oil is used in almost half of the products we buy in supermarkets (anything from biscuits to shampoo)

Palm oil advantages

Palm oil is highly versatile, has a long shelf life, high melting point (better quality than other veg oils) and has the highest yield of any oil crop. Palm oil production provides rural farming communities in Indonesia and Malaysia (where 90% of global supply comes from) with employment, potentially alleviating poverty.

Palm Oil disadvantages part 1

Deforestation (palm oil is responsible for 8% of global deforestation from 1990 to 2008), via the slash and burn technique, of tropical rainforest has led to catastrophic biodiversity loss (e.g. orangutans, elephants and tigers). The loss and burning of tropical rainforest (a carbon sink) releases CO2 and exacerbates climate change.

Palm oil disadvantages part 2

Soil may be eroded and water polluted due to fertilisers and pesticides. Monoculture in tropical environments leads to soil deterioration as well as pests and disease. There have also been reports of children working on plantations for minimal wages and poor working conditions.

Solutions to palm oil part 1

Roundtable on sustainable palm oil (RSPO) aims to minimise environmental damage, ensuring labour rights and respecting indigenous rights. Many NGOs have raised awareness of the environmental effects of palm oil production, prompting many consumers to search for palm oil-free alternatives e.g. coconut oil.

Solutions to palm oil part 2

Governments may regulate their food industries to incentivise sustainable palm oil production. Firms can use innovative technologies to be more efficient and improve waste management.

Apple

A US tech TNC based in Cupertino, California. Apple is worth over $4tr and generates roughly $195bn profit annually. The iPhone makes up 50% of Apple's revenue (£200bn annually). Apple uses highly complex supply chains to source components of their products from 43 countries with the majority of assembly being in Taiwan (Foxconn) and China while most high-quality parts come from Europe and North America. Apple employs 170,000 full time staff with over 500 stores in 27 countries.

Apple Outsourcing

Apple assembles its products in Chinese and Taiwanese factories run by firms such as Foxconn. Workers often face 12 hour working days for an average wage of $1.70 an hour. Workers often work 50-60 hours a week. this low labour cost makes up just 1.8% (or $1.80) of a standard retail price of an iPhone ($549). Apple captures up to 60% of the value of an iPhone.

Benefits of Apple in China

The $1.70 average wage for Foxconn workers is higher than the rural average wage. China benefits from FDI and inward investment which generates jobs. Low labour costs keeps iPhones price competitive and profitable. Incentivises other firms to agglomerate in cities such as Shenzhen.

Disadvantages of Apple in China

Many workers have been poisoned by toxic chemicals during assembly of iPhones. Workers also face poor working conditions and theft allegations. Apple has been alleged pollute waterways with harmful chemicals. Poor health and safety to allow Apple to cut costs has endangered workers.

"Glocalisation" and trading patterns

Apple has led marketing campaigns to generate brand loyalty in places such as Japan, where 68% of the population has an iPhone. Apple adapts its branding and products to suit its cultural preferences. North America, Europe and Australia dominate Apple sales, while Africa remains very low in sales, and Asia (specifically China) has a growing consumerist middle class which has increased demand for iPhones.

Apple in Cork

Apple's European headquarters in Cork employs 6,000 people from 90 countries, although many of these workers are foreign national who remit their wages abroad rather than spend domestically in Ireland. A low corporation tax in Ireland of 12.5% is roughly half its European trading partners, this encourages agglomeration of firms in Ireland and higher retained profits leading to higher investment.

Antarctica overview

Antarctica is a global common, it has no sole ownership. It is the coldest, windiest, and driest continent. There is 98% ice cover, no permanent human habitation, and only scientific research is permitted (ban on mining and military use). Antarctica has many high mountains, highest in Mount Vinson (4892m), average height above sea level is 2,300m.

Antarctica climate

Antartica has warmed 3x faster than the rest of the planet, with a 6 degree rise in average winter temp on the Antarctica peninsula. Inland temp in the winter ranges from -40 to -70 degrees (partly due to katabatic winds) while coastal areas range from -20 to -30 degrees. Summer temp inland ranges from -20 to -35 degrees while the peninsula has a mean temp of 0 degrees. Most weather stations receive minimal rainfall (less than 1mm per month). Antarctic Convergence zone is where warmer water meets colder water in Southern Ocean, difference in temp is about 4 degrees.

Threats to Antarctica (sealing)

Extensive sealing, due to tragedy of the commons, in the 1800s (300,000 killed in 3 years) for pelt made the Antarctic fur seal commercially extinct. seals are now protected by an international agreement to ban sealing South of 60 degrees South.

Threats to Antarctica (whaling)

By 1910, the Southern Ocean provided half the world's whale catch, this over-whaling depleted whale stocks and made it less commercially viable, this lead to international attempts to regulate whaling, starting with the founding of the IWC in 1949, which gathered more authority when it fully protected Blue and Humpback whales and then extended protection to Fin and Sei whales in 1970s until a full ban on commercial whaling in 1986, now only scientific provisions are allowed.

Threats to Antarctica (fishing)

Fishing is the only large-scale commercial resource harvest in the Antarctic Treaty area after sealing and whaling has been banned. CCAMLR came into force in 1982 to regulate exploitation rather than an outright ban. Krill catch was 100,000 tonnes in 1999, this increased to 210,000 tonnes in 2010. Over-fishing of krill and cod has detrimental impacts on rest of the food web. Some unauthorised operators work outside the regulatory framework and illegally fish, this has led to the implementation of a catch documentation scheme by CCAMLR in 1999.

Threats to Antarctica (minerals)

Mineral mining is completely banned since 1998 under the Antarctic Treaty, agreement will end in 2048 and there are concerns that future mineral demand may undermine conservation efforts. Minerals are likely to be inaccessible or costly to extract under ice up to 2000m thick.

Threats to Antarctica (tourism)

In 2009, Antarctic treaty members agreed to new limits on tourism (only ships with fewer than 500 passengers allowed to dock, and max 100 passengers allowed on shore at any one time). Number of tourists rose from 7,413 in 1996/97 to 46,000 by 2007/08. Tourists are told to: leave no litter behind, be under supervision, not disturb wildlife, keep sewage on the ship, protect plant life, and keep away from off-limits areas.

NGOs in Antarctica

Antarctic and Southern Ocean Coalition (ASOC) is an umbrella organisation of over 30 NGOs, founded in 1978, raising awareness via campaigning. ASOC includes Greenpeace who campaigned non-violently against industry exploitation and for a "world park" that prohibits mineral, oil and gas extraction and protects 40% of Southern Ocean.

Antarctic Treaty

Signed by 12 countries in 1959, came into force in 1961. Includes ban on mining (until 2048 when the Madrid protocol can be re-negotiated) and military activity, and protections for marine wildlife. Fish remain vulnerable to over-exploitation from illegal fisheries who fish in protected areas and fail to report true extent of catches. The Antarctic Treaty system has issues with enforcement of rules and Antarctica's resources are strained by effects of climate change.

Union Glacier

Open seasonally to 350-400 people for 3 months of the year and only accessible by plane. Located in the Southern Ellsworth Mountains, on the broad expanse of Union Glacier where temp ranges from -24 degrees to -1 degree. 700m above sea level. 79 degrees 46' South and 82 degrees 52' West. Water usage, waste and food is sustainably managed and tents are insulated, however, use of aircraft, snowmobiles, snow ploughs, and 4x4 vans can be polluting.