Development and Globalisation

The demographic structure of an areas population, the nature of society with a move towards a more equal distribution of wealth, education, health care + opportunities for advancement, the culture of the society, with more education, greater levels of literacy + more equal rights for women etc.

Apart from people becoming better off in material terms what else may development involve change in?

The difference in the level of economic development between richer + poorer countries.

Define 'development gap'

A group of companies/ counties that restrict supply to control prices)

Define CARTEL

The value of all goods and services produced by a country during a year, in $US? Often given in GDP per capita (average for each person in the country). Total GDP is divided by no. People in country. Figures are further assured to account for purchasing power of money in each country rather than simply using exchange rates to covert local currency into $US.

Define GDP

A comparative measure of life expectancy, literacy, education + living standards. It's a standardised way to compare well being, especially child welfare, in different countries. Can be used to measure impact of economic policies on the quality of life of people in the country.

Define HDI

TNC= Transnational corporation. MNC= Multinational corporation At its simplest level this is a corporation that has production in at least 2 countries. However, some TNCs have grown so large that they have budgets that exceed those of many counties in which they operate.

Define TNC/ MNC

A process of social + economic advancement in terms of the quality of human life.

Define development

The growing inter connectedness between or within cultures, political (e.g. UN) systems, and economies (consumer goods + production). Not a new thing but more recognised now because of speed + degree is so much greater now.

Define globalisation

As the competition in the market has increased due to rapid globalisation, producers have to price their products competitively in order to remain in the market.

Describe decrease in prices of goods + services as an advantage of globalisation

Easier for people to move across borders to different parts of the world to acquire a better education (more open borders). This has resulted in some integration of cultures. People from less developed countries may move to developed countries to get better education. E.g. Many Indian students are travelling to countries like UK + USA to pursue higher education.

Describe education as an advantage of globalisation

Developed countries can take advantage of less developed countries weak regulatory laws in terms of environmental protection.

Describe environmental degradation as an disadvantage of globalisation

Decrease in the employment growth rate in some less developed economies, as companies move their production facilities from one place to another in search of cheaper labour once the workers in the previous country start demanding better wages. E.g. China moving some of their labour intensive industries to parts of Africa

Describe fall in employment growth rate as an disadvantage of globalisation

Information flows from one part of the world to the other immediately, resulting in the world being tied together. Vital information can be shared between individuals + corpora orations at a very fast rate. It has also facilitated increasing the ease at transporting people + goods.

Describe faster flow of information as an advantage of globalisation

86% of the world resources are said to be consumed by the richest 20% of the worlds population. This means that the poorer 80% only get to consume 14% of the worlds resources.

Describe growing disparity among the rich + the poor as an disadvantage of globalisation

An increase in free trade has opened doors for investors in developed countries to invest their money in developing countries. Big companies from developed countries have the freedom to operate in developing countries.

Describe increase free trade as an advantage of globalisation

As globalisation increases, more companies are setting up businesses in other countries, increasing the employment opportunities a place may have.

Describe increase in employment opportunities as an advantage of globalisation

Resulting from globalisation, people have access to the best quality of goods + services throughout the world. Companies have to strive to provide better quality goods + services to the consumer + the consumer has the liberty of choosing whichever product he thinks is best, allowing a person in America to wear clothes made in India + Mexico whilst watching a football match taking place in Eng on a TV made in China.

Describe increase in quality of goods + services as an advantage of globalisation

As people move from one country to another, barriers between various cultures tend to decrease. This has resulted in some increased tolerance + openness towards other cultures.

Describe reduction in cultural barriers as an advantage of globalisation

Small scale industries which are indigenous to a particular place face extinction as they don't have the resources or power that TNCs have. As a result, these small industries are unable to compete with bigger companies + go out of business.

Describe small scale industries face extinction as an disadvantage of globalisation

'Integrated and peaceful Africa'. United= strong trade + political Africa. Collective power Promoting research in all fields particularly science + technology.

Describe the aims of the African union

Traditional society Subsistence, barter, agriculture

Describe the dominant processes at stage 1 of the Rostow model

Preconditions for takeoff Industrilisation, growing investment, regional growth, political change

Describe the dominant processes at stage 2 of the Rostow model

Take off Specialisation, surpluses, infrastructure

Describe the dominant processes at stage 3 of the Rostow model

The drive for maturity Diversification, innovation, less reliance on imports, investment

Describe the dominant processes at stage 4 of the Rostow model

High mass consumption Consumer orientated, durable goods flourish, service sector becomes dominant.

Describe the dominant processes at stage 5 of the Rostow model

Lack of science + technology War, pestilence + famine Subsistence economy

Describe the economic, social + political changes at stage 1 of the Rostow model

Extractive industries develop e.g. Mining Surplus capital for development comes from agriculture Transport improves

Describe the economic, social + political changes at stage 2 of the Rostow model

Manufacturing industries grow rapidly Rapid expansion of infrastructure New groups of leaders wishing for change

Describe the economic, social + political changes at stage 3 of the Rostow model

Manufacturing moves into higher levels of technology Economic growth spreads throughout whole economy New industries arrive

Describe the economic, social + political changes at stage 4 of the Rostow model

The "third wave" of industrial growth (tertiary growth) Automation, green groups, welfare state

Describe the economic, social + political changes at stage 5 of the Rostow model

Deadly diseases e.g. Ebola or other communicable diseases can spread at a very fast pace via travellers or due time other means as a direct consequence of globalisation.

Describe the rapid spread of deadly diseases as an disadvantage of globalisation

Many TNCs have been accused of social injustice by exploiting labour in less developed in order to cut costs. Labourers are provided unhealthy working conditions leading to health hazards. Many large companies have also been accused of unsigned child labour in their factories in less developed countries.

Describe unfair working conditions as an disadvantage of globalisation

Many TNCs e.g. Microsoft, Google + Toyota Have their offices in India + many Indians work for these companies in India. Without globalisation, Indian people may have found it harder to work for such companies.

Give an example of how increase in employment opportunities resulted from globalisation.

In the 2000s, Japanese + European companies e.g. Kawasaki + Siemens started producing high speed trains in China. This helped Chinese firms gain knowledge about the production process + now Chinese companies e.g. China South Locomotive and Rolling Stock Corporation, are producing high speed trains of their own.

Give an example of how increased free trade resulted from globalisation.

The bamboo furniture making industry in Inida. The manufacturers work from their homes but these workers can't compete with large companies selling cheap plastic furniture and as a result their industry faces extinction.

Give an example of how small scale industries face extinction as an disadvantage of globalisation

Nike's use of child labour along with poor working conditions + low wages in their factories in Indonesia

Give an example of how unfair working conditions have resulted from globalisation.

Specially appointed experts appointed by WTO resulting with EU winning over US in 2002 trade dispute resulting in US $4 bill sanction.

Give an example of the WTO acting as an arbitrator

Some people hold that western development can be destructive to traditional cultures + ways of life. Some groups in areas such as mountain regions of Afghanistan + rainforests of Brazil suggest western style development is so damaging if necessary is ought to be resisted by armed conflict.

Give some arguments against the 'Western' form of development.

While the emergence of NICs seems to support Rostows claim, the effect of the Asian financial crisis (late 1990s) on them + rest of the world, shows he underestimated the effects of globalisation.

How does Rostow overemphasise the effect of the learning curve in his development model?

Trump doesn't like it- money positive but jobs negative= Impact of US election results- trump says he'll stop people outsourcing Mexico benefitted from most jobs (cheap labour) but USA lost jobs. Trump threatened impose a 35% tariff on Mexican imports.

How has NAAFTA recently been threatened?

1 Jan 1999 the euro launched by 11 of the 15 EU member states. This has since grown to 17 countries inc. Cyprus + Malta. All other EU member states, except Denmark + historically the UK, are legally bound to join the euro when the economic conditions are met. Public opinion in these countries though is often against joining.

How has the EU aimed and been successful in achieving a monetary union?

Aim if single market between member states. Involving the free circulation of goods, capital, people + services within the EU + the creation of customs unions with a common external tariff on all goods entering the market.

How has the EU aimed and been successful in achieving a single market?

164 members inc. Russia , China (2001) + Japan (2011) and 24 observer governments.

How many members does the World trade organisation (WTO) have inc. 2 names + joining dates.

28 member states aiming for cooperation rather than confrontation

How many members states are in the EU?

Outdated + oversimplified Incorrectly assumes all countries start off at same level Model underestimates extent development of some countries in past was at expense of others e.g. Colonisation + imperialism Predicts too short a timescale between beginning of growth + time when country becomes self reliant. Over emphasises effect of the learning curve Too Eurocentric- doesn't seem to be a universal sequence

How useful is the Rostow model?

South Africa is a G20 nation despite being in the 'poor south'

Is the north, south divide still valid? No- G20 expand

All countries in South America have a HDI of above 0.800 development despite being in the 'poor south'. Inc. Mexico. Chile has one of the highest states of peace globally with more peace than France + UK.

Is the north, south divide still valid? No- HDI expand

USA has over 1,000,000 people living with HIV/ AIDs (one of the highest in world). But HIV/ AIDS doesn't seem to take account of the north south divide.

Is the north, south divide still valid? No- HIV/ AIDs expand

North south divide doesn't consider emerging economies (caught in South but doesn't show levels of development)

Is the north, south divide still valid? No- emerging economies expand

Russia has very low peace on the global peace index.

Is the north, south divide still valid? No- global peace index expand

Russia one of highest number of murders per 100,000 inhabitants

Is the north, south divide still valid? No- number of murders expand

Russia unhappy + South America happy.

Is the north, south divide still valid? No- world happiness expand

G20 nations (rich economies) mostly in northern countries with exception if Sweden + Spain which are left out.

Is the north, south divide still valid? Yes- G20 nations expand

Canada one of highest (peaceful) as are Spain, Southern Ireland, Denmark, Sweden (among other countries)

Is the north, south divide still valid? Yes- Global peace index expand

HDI (human development index) highest in North America, France, Australia, Denmark, Sweden + Norway (0.950 and over). HDI lowest in mid African countries

Is the north, south divide still valid? Yes- HDI expand

Eastern coast of Africa over 1,000,000 people living with HIV/ AIDs

Is the north, south divide still valid? Yes- HIV/ AIDs expand

Western Europe some of the lowest number of murders per 100,000 inhabitants

Is the north, south divide still valid? Yes- number of murders expand

Northern countries tend to have lower levels of corruption than south WITH EXCEPTION OF EASTERN EUROPE + RUSSIA (the further east you go the higher the level of perceived corruption.)

Is the north, south divide still valid? Yes- perceived corruption expand

Gross domestic product (GDP) and Human development Index (HDI)

Name 2 ways of classifying development levels

Environmental degradation, unfair working conditions, fall in employment growth rate, growing disparity among rich + poor, small scale industries face extinction + rapid spread of deadly diseases.

Name 6 disadvantages of globalisation

Increase in employment opportunities, free trade+ quality of goods + services. Education. Faster flow of info Decrease in prices of goods + services Reduction in cultural barriers

Name 7 advantages of globalisation

Single market, monetary union, agriculture, infrastructure, regional development, European development fund + environment

Name 7 aims of the EU

USA has increased its exports from $142 bill to $517 bill. USA has connection to oil from Mexico + Canada, reducing reliance on oil imports from Middle East + Venezuela Created 5 mill US jobs 73,000 foreign professionals entered IS through agreement

Name some USA successes of NAAFTA

WTO, OPEC, NAAFTA, EU

Name some economic groupings

EU

Name some political groupings

African Union, EU, Arab League

Name some social groupings

Canadian exports to US increased from £110 bill to £346 bill

Name some successes of NAAFTA for Canada

Free trade agreement helps Mexico develop + limits illegal immigration from Mexico to USA. Medicos manufacturing industry has grown 4.7%

Name some successes of NAAFTA for Mexico

Largest free trade area of $20 trill GDP Quadrupled its trade= lower consumer prices.

Name some successes of NAAFTA for all countries

A belief in progress, the inevitability of material growth, the solution to problems by the application of science + technology, + the assumption of human dominance over nature.

Some people would argue development implies a dominant western world view. What elements may this involve?

Increased free trade + communication between nations, along with increased access to technology, media, education, healthcare + consumer goods.

Summarise the advantages of globalisation

Exploitation of developing countries, reduction in cultural diversity, + adverse effects on local economies + the environment.

Summarise the disadvantages of globalisation

Facilitate cross border movement of goods + services. Increased investment opportunities + fair competition Protection + enforcement of intellectual property rights Procedure for resolution of trade disputes Keep US competing with EU + emergence of China. Liberalised Mexico's protectionist economy

What are the functions/ reasons for NAAFTA grouping?

Economic reasons: Ensures trade flows freely. Social + economic reasons: Monitors trade communications between countries. Procedure settling disputes between countries (acts as an arbitrator).

What are the reasons for the grouping of nations into the WTO?

Economic unions allow richer, bigger members to exploit poorer members e.g. Cheap labour. For example in EU, Germany + France benefit most

What do economic unions allow richer countries to do inc. example.

North American Free Trade Agreement

What does NAAFTA stand for?

Resolved past election conflicts e.g. Siero Leon Routinely sends representatives to overseas elections to see uncorrupt elections. Intervene in conflicts e.g. Somalia + Darfur Don't accept help from UN Currently trying to tackle issue inc. HIV/AIDs, and working standards.

What does the African Union currently do?

Potential United States of Afria. Intra-Africa trade= a common currency by 2023 + open borders (Agenda 63= within 50years sustainable development + a common currency)

What future plans does the African Union have?

Through media + advertisement, technology advances (e.g. Internet + air travel), people, money, political intervention (e.g. UN after WW2), colonisation + independence (e.g. Tikka Masala Britain's favourite dish and lamb burgers in Macdonalds in India), international event (sponsors e.g. Coca Cola at olympics)

What has allowed globalisation to occur?

The development gap to place greater emphasis on closing evident gap between rich and poor countries

What has the north south divide more recently been changed to and why?

The time taken for a country to develop diminishes as countries learn from others that are already developed.

What is the 'learning curve'?

Line roughly circling world at 30oN, passing between North + Central America, north of Africa, India +China, but dipping south to include Australia + New Zealand in the 'North'. Developed by chancellor of west Germany in 1970s

What is the Brant line?

NAAFTA (founded 1993)

What is the Union of North American countries called and when was it founded?

'The Brant line'

What is the north, south divide sometimes referred to as?

How do you measure perceived corruption?!

What is the problem of perceived corruption as a north south divide measure?

Not all countries can be neatly categorised in their way instead they form a continuum of development and countries can change- as shown by the Asian Tigers and NICs e.g. Countries can be economically poor but very highly developed culturally.

What is the problem with terms such as the north and the south, first, second and third world countries, developed and less developed and more economically developed and less economically developed?

People have a volatile nature + happiness is hard to measure. Also small cohort may be unrepresentative of whole population.

What is the problem with world happiness as a measure of if the north south divide is still valid?

Operates as a CARTEL to monitor sale + prices of oil + gas. And ensure constant supply, preventing a complete cut off of oil supply.

What role does OPEC play

Cultural + Social grouping

What type of grouping is the African Union?

Set up after WWI to integrate economies of the main European powers so a further war became impossible.

What was the main original aim of the EU?

1973 oil crisis. OPEC restricted supply + put prices up. UK + other countries said they wouldn't pay= rationed petrol supply and in end UK etc. Paid.

When have OPEC been successful in achieving their aims?

UK: 1750 USA: 1800 Japan: 1880

When was UK, USA + Japan at stage 2 of Rostows development model?

UK: 1820 USA: 1850 Japan: 1900

When was UK, USA + Japan at stage 3 of Rostows development model?

UK: 1850 USA: 1920 Japan: 1930

When was UK, USA + Japan at stage 4 of Rostows development model?

UK: 1940 USA: 1950 Japan: 1950

When was UK, USA + Japan at stage 5 of Rostows development model?

2001

When was the African Union established?

Set up 1956 with 6 member states as 'Benelux'

When was the EU set up and as what?

USA, Canada + Mexico

Who are member states of NAAFTA?

1960 Rostow model showing stages of development/ growth

Who developed a model for development in 1960?

All African countries (54 countries) except Morocco

Who is included in the African Union?