Superpowers 2

Influences of super powers over the global economy

Much of the influence is through IGOs

• Free trade

• Capitalism

World Bank

Provides finance, advice and research to developing nations to aid their economic advancement

• funded from weathly nations

• acts to reduce poverty by increasing economic growth

• funds projects that otherwise wouldn't happen because the cost is too high for developing countrie

World trade organisations

164 countries have signed the agreement to ensure that producers of goods and services are protected and help manage their businesses

• aims to reduce barriers and promote free trade between countries whilst ensuring trading nations keep to the agreed international trade rules

international monetary fund

• purpose was to bring about financial stability

• main aim is to allow the currency to be exchanged freely and easily between 190 global member countries

• IMF is funded by quota subscriptions- member pay according to the size of their economy

WEF - world economic Forum

• It promotes free trade and is in favour of TNCs

• It aims to bring businesses and governments together, encouraging public and private co-operation

TNCs

• TNCs involve themselves in all economic sectors and impact the global economy 

  • The largest TNCs representing the biggest percentage of total global production

• TNCs directly invest in one country and later expand to other nations (usually developing countries) to take advantage of lower labour costs and incentives

Patents

Intellectual property rights that prevent other people from using an invention unless they pay a fee to the inventor

• used by TNCs to protect their technology and innovations 

Trade patterns

• Developed countries have greater participation in international trade than developing countries as a result of TNCs

Global cultural influence

• Western TNCs were globally dominant until recently

• Of the ten best known global brands seven are from the USA

• This increased the spread of Western culture - the ideas, customs, and social behaviour of western society

This is a soft power

superpowers influence on global actions

• Crisis response

• Conflict response

• Climate change

Crisis response

• During times of crisis such as floods or earthquakes countries provide help to other countries 

  • Superpowers and emerging nations pay a leading role in this

  • The aid can be in the form of finance, building materials and other resources

• turkey-syria earthquake 2023- NATO deployed temporary housing to accommodate 4,000 people, USA sent a disaster response team of 200 people and pledged $185 million in aid

Conflict response

Interventions have occurred in many incidences of growing tensions and conflicts around the world

• NATO military intervention in Libya in 2011

climate change response

• Global warming and climate change require an international response because it affects the entire globe

• Superpowers and emerging nations have a significant role to play in the response

What alliances are focussed on

• Military

• Economic- taxes, tariffs, quotas

• Environmental

• Justice and peacekeeping- UN

Superpower resources demands

• As the world population increases so does the demand on resources

• Superpowers and emerging superpowers place the greatest demands on resources and have the largest environmental footprint

• water, food, fossil fuels, minerals, environmental degradation, carbon emissions

water

• Over 2.7 billion people suffer water scarcity for at least one month each year

• Both India and China are suffering increasing water scarcity due to:

  • Increasing industry and agricultural demand

  • Increasing population

  • Pollution of fresh water sources by industry, agricultural and domestic waste water

Foods

• The demand for food increases as a result of:

  • Population increase

  • Increased calorie intake

Fossil fuels

As countries develop, their energy requirements increase as:

• More energy is used in factories and industry

• Domestic demand increases as people have more technology - washing machines, TVs, fridges

Minerals

• Energy - fossil fuels used to produce energy, components for renewable energy (solar panels, turbines)

• Industry - all products from mobile phones to cars use minerals in their manufacture from oil to copper

• Construction - materials to make concrete, bricks

• Metals

variation in the willingness to act on environmental issues

• There are significant differences between nations in their willingness to act to reduce carbon emissions and reach global agreements

future growth in emerging superpowers

• Global consumption has increased due to growing wealth particularly in emerging countries which leads to increased disposable income

• Increased demand will cause: 

  • Rising prices 

  • Reduced availability as supplies of non-renewable supplies are used up

• Impacts of increased consumption and resource include:

  • Water pollution

  • Air pollution

  • Soil contamination

  • Visual pollution

  • Deforestation