Superpowers
Cultural Homogenisation
the creation of one unified global culture. This refers to the reduction in cultural diversity through the popularization and diffusion of a wide array of cultural symbols — not only physical objects but customs, ideas and values.
Cultural imperialism
the dominance of one more powerful culture over another.
Superpower
A superpower is a state with a leading position in the international system and the ability to influence events and its own interests on a worldwide scale. It is a dominant global force, with hegemony over others.
1. How Do Superpowers Maintain Their Status?
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10. How Can Superpower's Exert Power Through Aid?
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11. How do Superpowers Exert their Influence Through Culture?
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12. Assess the global environmental, socio-economic and geopolitical implications of the rise of the BRICs
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2. How did Britain become a superpower?
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3. Why did the USSR develop as a superpower?
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4. Why did the USA develop as a superpower?
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5. How has China risen as a superpower?
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6. How do different theories Contribute To An Understanding of Changing Patterns of Global Power?
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7. Using named examples, discuss how the balance between direct versus indirect superpower influence has changed over time.
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8. Evaluate the Role of International Decision Making in Maintaining Superpower Status
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9. Evaluate the Role of Trade in Maintaining Superpower Status
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How do resources help prevent superpower status?
A lack of resources can be offset by a strong economy, which allows countries to import resources from resource rich countries. E.g. Japan
Role of NATO
A military alliance between European countries and the USA. Recent new members include Poland.
Role of OECD
Analysis of economic development. Forecasting and researching development issues. Most developed-world countries are members.
Indirect power more important in terms of superpower influence.
As a result of changing attitudes towards colonialism and the growth of nationalist movements within colonies, the balance between direct and indirect influence has significantly changed. Indirect influence is now more commonplace, and military power (the traditional source of direct power) is becoming decreasingly important. Conventional military conflict is much less common and even when it does occur, guerilla warfare has often been able to undermine the capabilities of such large armies e.g. America in Vietnam. Instead, powers maintain influence through indirect mechanisms such as cultural hegemony, in particularly the United States, with the McDonaldisation phenomenon, where they have used globalisations to spread western ideals and cultural trends. Increasingly, matters are being discussed and negotiated in political organisation such as the UN, which has therefore made military capabilities less important in defining superpower status. Now, the political power of a country to influence decisions in these international bodies, to create a network of alliances such as NATO, and to be able to negotiate strongly with other countries have arguably become more important. Furthermore indirect influence is seen through neo-colonialism. e.g. China in Africa. This shows the shift from direct influence as seen in the British Empire to more indirect power, as Chinese interests are economic rather than territorially based.
Assess the environmental implications of the rise of the BRICs (Growing environmental responsibility)
BRIC nations have taken greater responsibility for the negative environmental impacts that accompany their economic growth. The BRIC nations have all taken steps to limit the quantity of emissions they produce by accepting global environmental agreements such as the Kyoto Protocol. However, they have not yet committed to specific targets of emission reduction. Domestically, China has also altered its environmental policy to reduce the negative effects of its industrial activity. In 2013, the Chinese government announced a five-year, US$277 billion plan to address environmental issues. Northern China will receive particular attention, as the government aims to reduce air emissions by 25% by 2017, compared with 2012 levels. China has also invested heavily in Carbon Capture technologies to stem the impacts of its coal based energy generation, which accounts for 70% of all energy produced in China.
Dependency Theory
Based on colonialism, A.G. Frank's theory regards the world as having an economically developed core and an underdeveloped periphery. The capitalist core deliberately keeps the periphery in a state of under-development by exploiting its cheap resources, taking its most skilled workers and selling it manufactured goods. Therefore, the developing world perpetuates a cycle in which the developed world benefits, thereby maintaining a gap between rich and poor nations - the development of underdevelopment. Moreover, as the periphery remains underdeveloped, its most skilled people move to the developed world, further draining it of any chance to develop. The rise of NIC's such as the Asian tigers seems to refute the notion posited by dependency theory. However, these economies grew off the back of large USA support as a way of containing Communist China.
The Angola Model
Beijing provides low-interest loans to countries with low credit ratings, and in turn receives favourable rights to develop oil and mining projects.
How did Britain become a superpower through technological and industrial superiority?
Britain was the first nation to industrialise, being the first to experience the proliferation of high quality, mass-produced goods which dominated markets around the world. This created a technology gap that gave it an advantage of non-European nations. Effective weaponry, advanced communication systems and medical resources provided the relatively small and outstretched British armed forces with unparalleled advantages over larger armies. e.g. Precision-made muskets, rifles, machine guns, train locomotives, steam ships. Whilst Britain was not the only nation to enjoy a technological advantage over non-European nations, its combination of industrial might and maritime power gave it a peculiar advantage lasting until the development of guerrilla warfare in the twentieth century.
How did declining worth of Empire lead to the British Empire Decline?
Changing attitudes led to a decline in support for British Imperialism. Public less enthusiastic about Imperialistic pride. American anti-colonial stance influenced British decisions given need for economic assistance during wartime. Attlee labour government against colonial repression.
China's Environmental problems
China suffers from severe environmental problems stemming from its rapid rate of industrialisation. Much of the environmental problems are linked to the level of energy consumption in China. 16 of the 20 most polluted cities in the world are in China. 70% of Chinese cities can not meet their air quality requirements and only 1% of the country's 560 million city dwellers breathe air considered safe by the European Union. The burning of coal is the main cause of air pollution in China, but transport and construction are also contributing factors 400,000 Chinese citizens die every year from respiratory diseases. The city of Linfen, Shanxi Province provides an example of the manifestation of China's lack of environmental concerns. The combined impacts of Climate change and local pollution are causing devastating ramifications on a local scale. Linfen is, according to the World Bank, one of the most polluted cities in the world. Breathing the air in Linfen for one day equates to smoking 3 packs of cigarettes. Permanent toxic smog hovers over the city. Linfen is a basin therefore the polluted air doesn't disperse, exacerbating the pollution problem. The water supply has suffered as a result of the over-extraction of groundwater. Illnesses contracted as a result of high pollution levels include stomach and lung cancer. Elderly people develop heart cancer. In 2006, China produced 1,200 mtoe (million tonnes of oil equivalent), compared with 595 in the USA.
Evaluate the Role of Trade in Maintaining Superpower Status Case Study: China, trade and the scramble for Africa
China took advantage of the fact that Africa did not seem to have been a diplomatic and economic priority with the USA, Europe and Japan. In 2009, China surpassed the United States as Africa's largest trade partner (WSJ). According to the Chinese Ministry of Commerce, Sino-African trade reached $126.9 billion for 2010. China's most controversial energy relationship is with the Sudan. Whilst most other major countries sought to impose UN sanctions on Sudan because of the government's 'support' for the genocide in Darfur, China strongly opposed Security Council actions. China has invested $3bn in Sudan's oil and gas industry. There are claims that 4,000 Chinese troops are guarding Sudanese oil pipelines.
How Can Superpower's Exert Power Through Aid? Case Study: Chinese Investment in Africa
China's search for oil and mineral resources has focues on Africa. Chinese companies are investing heavily in Africa, primarily in oil exploration and projects and infrastructure to help exploit and export raw materials. Around 30% of all oil used in China comes from Africa. In 2007, Chinese investment into Africa totalled US$30bn China has invested $8bn into oil pipelines in Sudan. Critics argue that all China wants from Africa is its resources, and has no interest in African development. Most investment goes to African governments, TNC's and Chinese companies, not to ordinary people. In many cases, large Chinese funded infrastructure are built by Chinese workers not local labour. In general, mining and quarrying bring few skilled jobs and pay low wages. Thus, the problem continues as Africa's resources leave the continent as cheap raw materials rather than expensive manufactured goods.
How has neo-colonialism helped maintain superpower status?
Colonialism without force. SAPs don't require an army or a police force - just a financial way to exert power and change the way the country and economic functions. The main elements of the SAPS were their classical/neoliberal features. This is often called the "Washington consensus." This opened the countries to the privatization of industries and thus encourage expansion of TNC's into these countries. This stood to benefit more developed countries such as the US which have these TNC's, and increase economic leakage out of these HIPC's. The Washington Consensus paid insufficient attention to the social aspects of development and the institutional weakness of developing countries. It simply attempted to apply a model which works for Western developed economies onto some of the poorest economies in the world. Some see the Washington Consensus as an apolitical, overly economic approach, characterised by excessive conditionality as well as the absence of genuine ownership by the countries concerned.
How do superpowers maintain their status through trade blocs?
Countries also gain power through their association in monetary unions and trade blocs. NAFTA for example, empowers member countries namely the USA, Canada and Mexico to enjoy free trade between the nations and also have the security to know that other products have tariffs. The EU also gives countries power by giving them significant influence within the monetary union. Leading countries such as Germany and France have carry a strong weight of influence. Furthermore, trade blocs can consolidate alliances, which in turn, can improve a country's ability to obtain support in situations where hard power is needed.
Trade Blocs & Monetary Unions
Countries also gain power through their association in monetary unions and trade blocs. This can allow them to maintain superpower status by preserving economic strength and political influence. NAFTA for example, empowers member countries, the USA, Canada and Mexico to enjoy free trade between the nations and also have the security to know that other imports have tariffs. Furthermore, the EU gives leading countries such as Germany and France power as they have the ability to exercise a strong weight of influence over smaller countries within the EU, such as Greece and Portugal. For example, Angela Merkel has a leading influence in Europe, imposing German values and austerity on feebler client nations through bailing out southern European countries. This can be seen explicitly in the Greek eurozone crisis, whereby the Greek government was essentially forced to accept the austerity packages offered by Germany. As the leading economy in the union, Germany carries significant economic power. Thus, the German paradigm exemplifies how the role of countries in international organisations can be utilised as a conduit for economic power.
Negative impacts of cultural dominance
Cultural Dilution: The infiltration of TNCs and the spread of cultural values have in some cases resulted in the loss of cultural diversity, with some cultures merging into one global culture. E.g. McDonaldisation has encouraged global food tastes. Economic Superiority: The spread of a global culture often serves to reinforce economic trends. For example, the proliferation of TNCs may result in the flow of capital towards superpowers, often discouraging the development of local businesses.
Individual Websites - Cultural Imperialism Bingo:
Cultural Imperialism Bingo is an example of an individual attempt to protest against the spread of American culture. This website aims to expose the problems of westernisation through satirical methods. The bingo card emphasises the lack of understanding of westerns of the problems of cultural dominance by giving examples of common, and often naive perceptions of the impacts of westernisation.
How does cultural power help prevent superpower status?
Cultural power on its own is not an effective means of exerting influence. Soft power must be buttressed by hard power in the form of economic strength and military force. Such hard power lends a culture a sense of legitimacy, increasing a country's ability to exert influence through forces of attraction. In particular, economic power can help spread cultural power, through an attractive economic model and a successful array of multinational corporations.
How did WW2 lead to the British Empire Decline?
Decimated British industrial capacity with bombing. Massive loans from the USA and wartime expenditure bankrupted Britain, exacerbated by debt to India. Capital needed for post-war reconstruction and for impending welfare reforms, which gathered support during war. No money left to afford the means of control of colonies.
Assess the socio-economic implications of the rise of the BRICs (Poverty Reductions)
Despite a widening gap between the richest and the poorest in rapidly developing countries, the rise of the BRIC's has contributed vastly to a reduction in poverty in these countries. In 2000, about ⅓ of Brazil's population languished beneath the international poverty line, at 2$ a day. Due to vast economic growth between 2000 and 2010, 40 million Brazilians moved from poverty to middle class whilst per capita household income increased 27%. India has been the biggest contributor to poverty reduction between 2008 and 2011, with around 140 million or so lifted out of absolute poverty.
How did nationalism lead to the British Empire Decline?
Growing nationalism in British colonies made it more difficult to maintain control. These nationalist groups became better organised and more educated. Gandhi in India, the Boers in South Africa are example of strong nationalist movements which made keeping hold of the British Empire increasingly difficult
How is direct power still of some importance in terms of superpower influence?
However, despite this transition towards the use of indirect power, direct power remains a constant and important feature of geopolitics. The United States, the world's most dominant superpower, continues to use direct power. The invasion of Afghanistan 2001, Iraq 2003 and Libya 2011 all demonstrate the use of military force to achieve American goals. Whilst China has developed economically, and used indirect control to gain power and influence, it has still developed the largest army in the world, consisting of 2.3 million troops, demonstrating the continued importance of military power in today's world.
China's Environmental Policy
However, the negative environmental consequences of China's industrialisation is partly offset by investment in these countries in Carbon Capture Technology and renewable energy sources. In 2013, the Chinese government announced a five-year, US$277 billion plan to address environmental issues. Northern China will receive particular attention, as the government aims to reduce air emissions by 25% by 2017, compared with 2012 levels. In 2014, China spent more than $80bn in new renewables; higher than the EU ($46bn); Japan ($37bn) and the USA ($34bn). China has also invested heavily in Carbon Capture technologies to stem the impacts of its coal based energy generation, which accounts for 70% of all energy produced in China.
Chinese investment in Africa (Case Study)
If China can rise to a position where it exerts major control over essential economic elements such as the utilities sector and telecommunications in African countries, then it also holds considerable political influence in those nations. It has offered resource-backed development loans to oil and mineral-rich nations like Angola, and developed special trade and economic cooperation zones in several states, including Nigeria, Ethiopia, and Zambia. In 2008, the China Railway Group used the same model to gain the mining rights to copper and cobalt mines in the Democratic Republic of the Congo (DRC)
Russia increasing links with China
In 2005, Russia said it would build two natural gas pipelines to China and become one of the country's biggest gas suppliers within the next decade. Russia's importance as an international energy supplier has increased significantly over the last decade and it will become even more critical in the future. This may even return Russia to superpower status. This importance will give the country greater economic and political power. There is growing concern about how this power will be used as the energy security of many parts of Europe could be threatened.
How Can Superpower's Exert Power Through Aid? Analysis
In her book, Dr. Moyo makes the case that an estimated $1 trillion worth of so-called development aid to Africa in the last five decades has dismally failed to create long-term, sustainable development on the African continent. $600 billion given to Africa in aid over the past four decades has resulted in zero growth. China in particular has invested heavily in Zambia, creating jobs and new infrastructure. Census date suggests about 100,000 Chinese live in the country, and about 500 firms are active in sectors across the economy. On the flipside, labour relations at Chinese-owned firms have sometimes been tense, and some Zambians complain of being exploited. U.S. foreign assistance has always had the twofold purpose of furthering America's interests while improving lives in the developing world. USAID carries out U.S. foreign policy by promoting broad-scale human progress at the same time it expands stable, free societies, creates markets and trade partners for the United States, and fosters good will abroad. USAID has an on-the-ground presence and strong ties with country governments to support collaboration with local partners around shared plans and priorities The United States has provided close to $4 billion to support the country's economic, political and social development and to respond to major crises, such as HIV/AIDS, malaria and periodic droughts Much of the aid given to African countries still comes tied to the donor's agenda. Foreign countries give without much thought to what would really benefit the majority of the recipient's population. An experienced writer on the aid debate, he adds: "Rich countries need to overhaul the rules on international property rights and foreign investment. They should act on climate change and invest more in transferable technology. They should better regulate an arms trade which is causing turmoil in Africa, among many other things. "By constantly focusing on aid, we are letting developed country governments off the hook on these issues, all of which are more important for poverty reduction and democracy in Africa." Incompetent governments cannot be held accountable to their populations if they are buoyed by a steady stream of foreign aid. They have no need to ensure the people are employed if they have no need to tax them. If the elite doesn't need its people then it has no need to build roads, schools or hospitals for them.
How has OPEC price rises caused an accumulation of Debt in Less Developed Countries
In the 1970's, OPEC raised the price of petroleum twice - massively increasing the earnings of its members. The OPEC countries banked their earnings in Western banks. The banks then lent this money to developing countries for huge infrastructure projects such as dams and power stations. By the 1980s, global interest rates had more than doubled - increasing the repayments on the loans made in the 1970s. Developing nations became crippled by debt. Some could not meet their repayments. To prevent a collapse of the world's banking system, because of the developing countries could not repay their loans, the IMF constructed a solution called Structural Adjustment Packages. It rescheduled the loans to make them more affordable, but in return imposed government spending cuts, making it harder for the countries to develop and come out of debt.
Example of economic power affecting superpower status in a bad way.
In the Cold War, the USSR came to an end because its stagnant economy could not keep pace with the USA.
Direct power more important in terms of superpower influence.
In the first half of the century, there was a considerable imbalance between direct and indirect influence, with direct influence key to maintaining superpower status. The British Empire, which had control of ¼ of global land area at peak, used mechanisms of military force and naval power to maintain control of colonies such as India. The balance was such towards direct influence partly because the lack of technology meant that Britain needed to have men on the ground and real military presence in order to maintain control and loyalty throughout its Empire. For example, the 1858 Mutiny repressed through British military force. Andrei Kunderfrank also demonstrates Britain's direct influence, exploiting the raw materials of colonies, keeping them dependent and submissive. E.g. Ugandan Cotton and Indian Tea.
International Organisations Maintaining Military Power
International organisations, in particular NATO, can help superpowers maintain power and influence by giving them increased military capabilities. NATO is committed to the peaceful resolution of disputes. However, If diplomatic efforts fail, it has the military capacity needed to undertake crisis-management operations, either alone or in cooperation with other countries. For example, In response to a Turkish request for assistance to meet the threat posed by Iraq during the first Gulf Crisis/War, NATO deployed the ACE Mobile Force (Air) and air defence packages to Turkey.
How does military power prevent superpower status?
It can be said that military factors are becoming decreasingly important in today's world. Conventional military conflict is becoming much less common, and even when it does occur, guerilla warfare has been able to undermine the capabilities of such large armies e.g. Vietnam in America. Increasing, matters are being discussed and negotiated in political organisation such as the UN, which has therefore made military capabilities less important in defining superpower status. Now, the political power of a country, to influence decisions in these international bodies, to create a network of alliances such as NATO, and to be able to negotiate strongly with other countries have arguably become more important.
Difference of trade between MDCs and LDCs
MEDC's and LEDC's have different export and import patterns. MEDCs most export machinery, transport equipment, chemicals, agricultural products and services. Their range of imports is similar. By contrast, LEDCs have a much smaller range of exports. These are mostly agricultural products and raw materials. The range of imports is similar to that of MEDC's, but it likely to be cheaper and less sophisticated.
Mackinder's Heartland Theory
Mackinder believed that whoever controlled Europe and Asia - the biggest landmass - would control the world. He believed in a heartland, extending from Eastern Europe into Russia, at the centre of which was the pivot. Whoever owned the pivot would command the heartland, whoever ruled the heartland would command the world island and whoever controlled the world island would rule the world. In theory, the further away from the heartland a country was, the less influence it would have. Mackinder believed Russia ought to be the global power, because its location and resources gave it advantages. However, it was encumbered by the fact that it had few all year round ports, weak government and borders that meant it could be attacked from many directions. He also believed that Britain should lie outside the heartland, but its industrialisation and efficient government, owing to its naval strength and economic power, had moved the heartland Westwards. These enabled the UK to project global influence from Western Europe to the pacific and Eurasian land mass - and become the pivot.
China and foreign TNCs in Africa
Major mining TNCs are becoming increasingly concerned that China is freezing them out of many African countries as China is negotiating more and more comprehensive agreements with African countries. The mining companies are finding it difficult to compete with the incentives China is offering - China has spent more than $10 billion on infrastructure projects in Africa in 2006 according to the World Bank.
International Organisations Maintaining Political Power
Membership of international organisations can increase political power by giving countries the opportunity to influence policy on a global scale. By being part of an international organisation, countries can contribute to the discussion on global issues and in some cases, such as the UN, countries can independently prevent policies from going ahead by exercising their veto or voting on policies. A country's membership to international governmental organisations therefore serves to enhance its status, since its membership is indicative of the country's ability to influence global affairs. Countries that already hold significant economic power can also further their political interests through such organisations, by creating a reliance of the organisation on their resources. For example, owing to the US's significant contribution to NATO, this organisation in some cases tends to act in the favour of the US, allowing the US to pursue foreign policy objectives. Countries can also engineer policies through international organisations in order to increase their economic and political power in the future. For example, creating loan agreements, such as Structural Adjustment Programs, that maintain dependency of less developed countries on more developed countries, ensuring the economic superiority of the more developed world.
Why did the USSR develop as a superpower?
Military Power: The USSR had a strong military presence, stemming from its large military expenditure and technological development. This enabled it to obtain control of surrounding states. Political Stability: The USSR was a one party state dominated by Stalin. Individuals did not have the choice to choose alternative politicians in free elections; industry and agriculture was owned by the state. Focus on Heavy Industrialisation: In the 1930s, Stalin had transformed the USSR into a modern industrial state through the Five Year Plans, Collectivisation and the Purges. This gave it significant economic power. Policies: Having experienced foreign invasion in the First World War, during the Civil War 1918-1921 and the Second World War, Stalin believed that the USA's long-term ambition was to destroy communism, therefore he adopted cautionary policies to prevent the rise of potential threats.
How do superpowers maintain their status through military power?
Military capability enables a country to repel and exert hard power on other countries, therefore preventing the development of potential threats to their global influence. America has the greatest military power, possessing the capacity to achieve full spectrum dominance - the US military expenditure is equivalent to the next 10 largest military spenders, with a defence budget exceeding US$600 billion - 37% of global military expenditure. America has used its preeminence in the field of aircraft carriers to project its military presence in areas of strategic importance, thereby preventing certain countries from accumulating significant hard power through the use of force. For example, the USA's monopoly on strategic choke points across the globe, such as the Straits of Malacca and the Suez Canal, gives the US unprecedented power to control the distribution of power through the ability to enforce sanctions and intervene militarily. Similarly, China has recently attempted to implement the foundations for enhanced military influence in the South-Asian Sea through the construction of a military base. The possession of nuclear weapons can also further military power, which can in turn, enhance a country's ability to maintain its influence. Such weapons gives countries a mechanism to repel significant hard power influencing through possessing the potential to exert significant force. USA, Russia, India, France, Pakistan, Israel, UK all have nuclear power.
Occupy Wall Street:
Occupy Wall Street (OWS) is the name given to a protest movement that began on September 17, 2011, in Zuccotti Park, located in New York City's. Wall Street financial district, receiving global attention and spawning the Occupy movement against social and economic inequality worldwide. Essentially, this represented a backlash against the excesses of capitalism, and thus against the culture of the United states, the homeland of capitalism.
Assess the environmental implications of the rise of the BRICs (Increased greenhouse emissions)
One negative environmental implication of the rise of the BRIC countries is the increased amount of carbon emissions released into the atmosphere. This accelerates the greenhouse effect, contributing to global warming. The negative implications of this include rising sea levels which can cause floods, the increased frequency of TRS's and increased frequency of drought and famine. The rising wealth in these countries will lead to increased carbon emissions from domestic consumption and transport, whilst the construction of infrastructure and buildings to accompany the rapid industrialisation is also a carbon intensive process. 16 of the 20 most polluted cities in the world are in China. This shows the negative environmental implications of the rise of the BRICs, which have developed at a rapid rate, making it difficult to control carbon emissions. It is also difficult for established superpowers to enforce environmental restrictions on these countries because these superpowers like the USA and Britain developed off the back of resources such as coal and gas. Moreover, the sheer population size of the BRIC countries, namely India and China, means that supplying the people with enough energy will vastly increase carbon emissions. This is especially harmful as the most common fuel for power generation in China is coal. In 2006, China produced 1,200 mtoe (million tonnes of oil equivalent), compared with 595 in the USA. However, whilst the rise of the BRIC countries does lead to increased carbon emissions, this is partly offset by investment in these countries in Carbon Capture Technology and renewable energy sources. In 2014, China spent more than $80bn in new renewables; higher than the EU ($46bn); Japan ($37bn) and the USA ($34bn).
Why did the USA develop as a superpower?
Political System: The USA was a democratic state, with free elections, freedom of speech and a capitalist economic system. This was seen as an attractive model and provided a stable political system. This gave the USA soft power as well as allowed it to flourish economically. Second World War: After the Second World War, the USA had a greatly enhanced status and power. The Great Depression of the 1930s had been replaced by an economy stimulated by wartime production. Unlike Europe, the USA did not suffer from wrecked infrastructure. US involvement in the Second World War: The large-scale air and land campaigns in Europe and the 'island-hopping' war against Japan in the Pacific — set a precedent for the global projection of US military strength. Technological Advancement: The USA had by far the world's largest and most technologically advanced fleet of warplanes, ships, tanks and artillery systems. This gave it dominance over air, sea and land. Control of space and information were, and still are, key aspects of US military strategy for the 21st century. Overseas bases, ships and aircraft have allowed the USA to apply force to any part of the globe, supply weapons and military training to a wide range of countries, and create a network of listening posts which gather and disseminate vital information. International Politics: The USA encouraged the establishment of international institutions and international law. The United Nations headquarters were located in New York, and the World Bank and International Monetary Fund were based in Washington. Despite their international status, the US had greater access and influence over them. After WW2, the USA and the USSR sought to increase their global dominance, starting a long period of hostile relations. The USA, a capitalist country, was strong militarily and industrially. It had been a creditor for countries weakened through war. Both countries build up arsenals and nuclear weapons. The USSR, a communist country, had a state-controlled economy. The USA's post-war policy was to contain the spread of Soviet influence. In the past, power was in the form of control, such as colonies, whereas nowadays it is economic, in the form of trade, capital flows and resources.
Role of Trade Barriers (Protectionism) in Maintaining Superpower Status
Protectionism in the form of trade barriers can be an effective means of maintaining superpower status. By disadvantaging foreign competition, countries can boost their domestic economy and prevent economic leakage. Trade barriers can help superpowers develop their economic power by reducing the competition from other countries. Trade barriers protect specific industries within various countries. Tariff is a tax or duty paid on a particular class of imports or exports, which raise the price of goods coming into a country. Quota is a physical limits placed on the number of goods that can be produced, exported, or imported into a country. Subsidy is a sum of money granted by the state or a public body to help an industry or business keep the price of a commodity or service low. There also exist non-tariff barriers such as regulations and legislation that make it difficult for foreign competitors to sell goods into another country.
How does modernisation theory contribute to an understanding of changing pattern of global power?
Rostow's Modernisation Theory proposes that the economies of developed countries move through five stages of development: traditional society, precondition for takeoff, the takeoff process, the drive to maturity, and high mass consumption society. Rostows Modernization theory can be exemplified with Singapore. When it became independent in 1965, it did not seem to have any exceptional prospects for growth. However, it industrialized early, developing profitable manufacturing and high-tech industries. Singapore is now highly urbanized, with 100% of the population considered "urban." It is one of the most sought-after trade partners in the international market, with a higher per-capita income than many European countries. This model is useful for explaining the past dominance of the British empire and the continued dominance of the USA, which were the first nations to experience the Industrial Revolution, giving them an initial advantage over non industrialised countries and regions. This model provides reasons for the changing patterns of power in the past, attributing such changes to the level of a country's early economic development. Therefore, one can use this theory to predict the rise of countries in future through the status of their economy.
Modernisation Theory
Rostow's modernisation theory was first used to explain the dominance of the British empire and the USA. Rostow was a strong believer in free trade and in a Western model of democracy and capitalism. Rostow believed that economies of developed countries moved through five stages of economic development: traditional society, precondition for takeoff, the takeoff process, the drive to maturity, and high mass consumption society. According to this exposition, Rostow has found a possible solution for the promotion of Third World modernization. The Marshall Plan and the Alliance for Progress in Latin America, are examples of programs which were influenced by Rostow's political theories. Rostow's model was influential and led to many developing countries attempting to create the preconditions for take-off by investing in key infrastructure and industries. Some of these countries, such as the Asian tigers, succeeded, whilst it left other countries burdened by debts. One of the principal applications of the modernization theory has been the economic field related to public policy decisions.
Evaluate the Role of Trade in Maintaining Superpower Status Case Study: Russia and Natural Gas
Russia vies with the USA as the world's number one gas producer. Both countries account for about ⅕ of global production. Disputes over the price and supply of Russian gas have raised EU fears about its increasing reliance on energy supplies from Russia. Critics argue that Russia has a habit of manipulating gas and oil supplies for political purposes. Gas supplies by state-owned Gazprom account for 23% of the gas consumption in the EU. The largest buyer of gas is Germany, followed by the Ukraine. The disputes illustrated that Europe's energy sources needed to be more diverse. The EU is therefore looking to build interconnecting pipelines and power lines and to diversify supplies.
How do SAPs help maintain superpower status
SAP's are economic policies for developing countries that have been promoted by the World Bank and the IMF since the early 1980s by the provisions of loans conditional on the adoption of such policies. SAP's were a response by the IMF and the USA as a result of debt in the developing world. SAP's implemented loans conditional that the country implemented the desired economic changes. SAPs policies reflect the neo-liberal ideology that drives globalization. They aim to achieve long term accelerated economic growth and reducing government intervention - to open countries to privatization and thus encourage expansion of TNC's into these countries. SAPS policies include currency devaluation, managed balance of payments, reduction of government services through public cuts, reducing tax on higher earners - essentially a more liberal economic policy. Governments are also encouraged or forced to reduce their role in the economy by privatizing state-owned industries, including the health sector, and opening up their economies to foreign competition. SAPs have had a negative impact on the social sectors of countries. In health, SAPS affect both the supply on health services and the demand for health services. Studies have shown that SAPs policies have slowed down improvements in, or worsened, the health status of people in countries implementing them.
Example of economic power affecting superpower status in a good way.
Since WW2, the American dollar has dominated the world market. Over 80% of all financial transactions worldwide are conducted in dollars. This faith in America's currency and overall economic stability, means that the U.S. economy remains increasingly powerful.
How do resources help achieve superpower status?................
Some resources are critical to economic development e.g. oil or metals. Iron ore is the basis of a steel industry, while energy sources such as oil, gas and coal are used to generate most electricity or provide fuel for industrial processing. However, reserves of resources do not guarantee economic development or superpower status Many reserves are in the hands of TNCs from wealthier overseas countries e.g. Shell and BP earn profits from Nigeria's oilfields Australia has huge reserves of iron ore, but it exports almost all of it and gains little of the value added by manufacturing. When countries withhold production to create shortages, there resource reserves can provide a means of influence In the past, countries in the Middle East have threatened to withhold oil supplies the price per barrel increases
Positive impacts of cultural dominance
Social Responsibility: American corporations are taking steps to be socially and culturally sensitive to the environments in which they participate, turning a new lead for the Americanization of global culture. Wal Mart for example, sells indigenous crafts via 94 Walmart superstores and all proceeds go back directly to the Mexican community from which they were generated. Introduce Positive Cultural Values: The redeeming qualities of American are tangible enhancements like economic diversity, democracy and human rights, transitioning a society from mere subsistence to prosperity; these are signs of modernisation.
How did Britain become a superpower through strategic imperatives?
Strategic initiatives enabled Britain to ensure the Empire's protection from potential threats. New colonies were being added in order to defend existing colonies and borders. To maintain India as part of the British colony, Britain acquired a number of colonies on the routes to and from the Subcontinent. For example, the British were keen to take control of the Cape Colony from the Dutch during the Napoleonic Wars to secure the main sea route to India. Furthermore, industrialists were fiercely supportive of colonial government policy and so the Empire was supported financially. British manufacturers saw colonialism as a way of obtaining cheap raw materials and markets for their products. When the Suez Canal was opened in the 1869, British took a controlling interest in the Suez Canal Company and became involved in controlling the Egyptian administration itself.
How does dependency theory contribute to an understanding of changing pattern of global power?
The Dependency Theory, based on the work of economic historian A. G. Frank, divides the world into an economically developed core and an underdeveloped periphery. According to the theory, the developed core keeps the periphery in a constant state of under-development by exploiting its cheap resources, taking its skilled workforces in addition to selling to it manufactured goods. For example, the SAPS can be seen as an example of dependency theory. The main elements of the SAPS were their classical/neoliberal features. This is often called the "Washington consensus." This opened the countries to the privatization of industries and thus encourage expansion of TNC's into these countries. This stood to benefit more developed countries such as the US (the core) which have these TNC's, and increase economic leakage out of these HIPC's (the periphery). Despite its over-simplistic two-tier system, this theory is particularly useful as the cycle of exploitation perpetuated by the developed world explains the continual growth of more developed countries - Frank refers to this as 'the development of underdevelopment'. In this sense, this theory is essentially a critique of the uneven distribution of global power in the modern world as a result of the capitalist system, giving the impression that power is unfairly concentrated in the developed core. This theory can also be used to predict the growth of the develop gap in the future - according to this theory, the gap between these two groupings will be maintained if not lengthened in the future. A further use of this theory in understanding patterns of power is that it's ideas of exploitation can be used disprove theories such as the modernisation theory, which suggest that all countries can undergo modernisation simultaneously. This ultimately allows for more accurate predictions on future global power.
Role of G8
The Group of Eight (G8) refers to the group of eight highly industrialized nations—France, Germany, Italy, the United Kingdom, Japan, the United States, Canada, and Russia—that hold an annual meeting to foster consensus on global issues like economic growth and crisis management, global security, energy, and terrorism.
International Organisations Maintaining Economic Power
The IMF gives the United States substantial economic power, especially through their 17% share of the votes available. For example, the SAP's propagated by the IMF gave the USA significant economic power over HIPCs in Africa. The main elements of the SAPS were their classical/neoliberal features. This is often called the "Washington consensus." This opened the countries to the privatization of industries and thus encourage expansion of TNC's into these countries. This stood to benefit more developed countries such as the US which have these TNC's, and increase economic leakage out of these HIPC. The U.S also carries great influence in the WTO, which supervises and aims to liberalise international trade. For example, Developing countries are called to undertake yet another round of aggressive tariff reduction, yet the US adopted their Farm Bill in May 2002, increasing subsidies by 63 per cent. This shows especially how the USA is able to exert control on the global trade system through significant influence in the WTO, as well as being able to leverage countries through having a large voting share in the IMF which gives loans to indebted countries.
How did Britain become a Superpower?
The Industrial revolution allowed Britain to be in a strong position to obtain colonies from underdeveloped countries in Africa or India, where there would be little resistance. The military dominance Britain enjoyed allowed the British to be able to hold off other European countries to maintain their colonial advances. Once the British empire gained colonies, the military strength meant there were in a strong position to maintain it and in some instances obtain further power.
Assess the socio-economic implications of the rise of the BRICs (inequality)
The Rise of BRIC nations, and other similar developing countries could have great implications on the levels of inequality in the world. On the one hand, the rise of developing countries will reduce inequality between countries on a global scale, for example between countries such as the USA and India. The move towards a multipolar world will also decrease levels of inequality between superpowers as wealth and power move from West to East. Despite this, rapid development in countries such as Brazil and China has been achieved at a social cost, which has resulted in vast levels of inequality existing within countries, gaining, on average, more than 2 percentage points in terms of the Gini coefficient between 1990 and 2010. Despite having, by some measures, the largest economy in the world, 20% of China's population live on less than US$1 a day. In 2010, China's Gini-coefficient - a measure of how wealth is distributed in a society - stood at 0.47 - generally regarded as the international warning level for dangerous levels of inequality. Thus, the rise of the BRIC countries will affect inequality both on an international and intranational scale. Whilst it will decrease levels of inequality between countries, it has so far resulted in increasing levels of inequality in these developing countries, especially between urban and rural areas.
How do Superpowers Exert their Influence Through Culture? Case Study: McDonaldisation
The USA is seen as the most powerful force in cultural globalisation, and the process is often referred to as 'Americanisation.' 30 million customers a day are served at 20,000 McDonald's restaurants in more than 100 countries around the world. Starting out in USA and Canada, McDonald's spread to Europe, Australia and Japan during the early 1970s, before spreading to New Zealand and South America by the end of the decade. The 1980s saw expansion in South America, Mexico, Europe and South-east Asia. China Russia and parts of the Arab world were reached in the 1990s. McDonald's has been localised, indigenised and incorporated into traditional cultural forms and practices. In Beijing, McDonald's has become a middle-class consumption place, somewhere appropriate for a special family outing. McDonald's has donated over $180 million to McDonald's Children Charities and claims to donate more money than any other commercial enterprise in the USA, over $50 million annually. However, McDonald's has been at the centre of anti-capitalism, animal rights and environmental rights protests. Protesters argue that the company is merely a profit-making organisation, which values money above all else. E.g. Critics point to McDonald's neglect of environmental concerns, producing over 1 million tonnes of packaging to be used within the space of a few minutes.
Role of Davos Group
The World Economic Forum is a Swiss-based non-profit making foundation. Numerous business, government and civil society leaders consider the major global issues of the day and brainstorm solutions to address these challenges.
How does world systems theory contribute to an understanding of changing pattern of global power?
The World Systems Theory also contributes to a greater understanding of changing patterns of global power. Countries such as the Asian Tigers have managed to 'break' the dependency mould and as a result many people argue that World Systems theory is of greater use to understanding changing patterns of world power. Wallerstein's WS theory is a more dynamic model of the rigid, two tier dependency theory. WS theory depicts a three tier world, with the core, semiperiphery and periphery. This is useful as it caters for developing countries such as Mexico or Brazil, who display some characteristics of core countries (high levels of FDI) but are not quite there yet. This theory is more representative of the current global situation, as the semiperiphery accounts for the rapid development of countries such as China and India, which have rendered the Dependency Theory too simplistic. Therefore, this theory useful for predicting how global power will shift to emerging powers. The World Systems Theory, like the Dependency Theory, also promulgates the idea that more developed countries benefit from the exploitation of less developed countries, which is a concept that has underpinned changes in global power in the past, such as the rise of US power as a result of capitalising on cheap labour in less developed countries. This model is therefore useful for understanding past power change.
Economic implications of increased demand for resources (due to rising powers) on core regions.
The rise of these countries will have a negative impact environmentally by greatly increasing demand for energy and other resources. For example, China's demand for raw materials to feed its growing economy is so great that it has accounted for 90% of the global increase in sea traffic so far this century. The report found that China's growing affluence has made it the world's largest consumer of primary materials (such as construction minerals, metal ores,fossil fuels and biomass), with domestic material consumption levels four times that of the USA. This can cause the price of resources to rise, such as with Oil in 2007-8, partly owing to increased demand from developing countries like Brazil and China. Thus, there is a large challenge created by the rise of the BRIC nations in that their rapid industrial development will cause a global strain on energy and resources, with the potential to rising prices and shortages in vital food and energy resources.
How does cultural power help achieve superpower status?
The ability of a country to shape the preferences of others through appeal and cultural attraction as a result of soft power is important in maintaining superpower status. Attractive cultural values can be used as a device to persuade countries to act in a desired manner. In many cases, this can be more effective than hard power techniques, as such forces of attraction produces a longer-lasting willingness to follow certain values and support a superpower's actions. In contrast, the use of coercion often leads to a superficial sense of support which is more short-lasting, and could evaporate when the exertion of hard power ceases. Holding soft power also enables countries to form beneficial relationships with countries who hold similar values. By aligning a country's views with others, it can be easier to maintain specific values or ideals. With the support of allies through soft power, a superpower can also exert greater hard power influence. Today, the US continues to exert an enormous cultural influence through media and commerce, and maintains strong international relations with other countries through its involvement in world affairs. TNC's provide a large source of cultural power which are pervasive in other countries. e.g. Coca-Cola, McDonald's, Apple. One key facet of soft power is innovation. The innovation in the US has allowed it to buttress its cultural values. e.g. iPhones, MacBooks and xboxes are invented, patented and sold by US companies.
How do superpowers maintain their status through cultural dominance?
The ability of a country to shape the preferences of others through appeal and cultural attraction as a result of soft power is important in maintaining superpower status. Attractive cultural values can be used as a device to persuade countries to act in a desired manner. In many cases, this can be more effective than hard power techniques, as such forces of attraction produces a longer-lasting willingness to follow certain values and support a superpower's actions. In contrast, the use of coercion often leads to a superficial sense of support which is more short-lasting, and could evaporate when the exertion of hard power ceases. Holding soft power also enables countries to form beneficial relationships with countries who hold similar values. By aligning a country's views with others, it can be easier to maintain specific values or ideals. With the support of allies through soft power, a superpower can also exert greater hard power influence. Today, the US continues to exert an enormous cultural influence through media and commerce, and maintains strong international relations with other countries through its involvement in world affairs. TNC's provide a large source of cultural power which are pervasive in other countries. e.g. Coca-Cola, McDonald's, Apple. One key facet of soft power is innovation. The innovation in the US has allowed it to buttress its cultural values. e.g. iPhones, MacBooks and xboxes are invented, patented and sold by US companies.
Cultural backlash against the world's major superpower
The cultural backlash against the world's major superpower is complex. Anti-Americanism rose in the aftermath of the invasion of Iraq and Bush proved an unpopular president. The anti-globalisation movement is often linked with anti-American sentiment became many global culture icons, such as Coca-cola and Macdonalds, originate in the USA.
How do Superpowers Exert their Influence Through Culture? Analysis
The dominance of the USA as the unrivalled superpower since 1990, plus the growing power of the EU, has led some people to identify a global culture. It is difficult to define what exactly this global culture is, but some characteristics include a culture of consumerism, capitalism, english, anglo-saxon culture, and blend of local and western culture. The expanding global economy has led to a global culture, spread by information culture. Electronic colonialism has emerged, spread via multi-media TNC's such as Disney, CNN and Apple. These companies operate a hegemony, in that they dominate global culture. The American culture is pervasive in almost every walk of life thanks to global entrepreneurship and the internet. Countless U.S. companies have left an impression on the world, redeeming and otherwise. The acceleration of cultural imperialism is attributed to technological advances such as the telephone, television, world-wide media, and the internet. One might argue that Americanization is the byproduct of European and British imperialism. China in particular has established a new foreign policy including trade agreements with Latin American countries and lines of credit in the billions of dollars to African nations.
How did Britain become a superpower through maritime advantages?
The impressive capabilities of the Royal Navy gave Britain dominance over the sea, making imperialism easier to implement. The battle of Trafalgar in 1805 was a defining naval battle giving Britain access to the seas off the coast of Spain. For the rest of the nineteenth century, no maritime power was able to challenge Britain's domination of maritime communications and trade routes. For example, maritime power enabled Britain to overpower the French, Spanish and Dutch colonies in the remainder of the Napoleonic Wars and guarantee the safety of these isolated outposts from maritime threats.
How does military power help achieve superpower status?
The military capability of a country reflects its ability to repel and exert hard power and therefore is an important indicator of superpower status. America has the greatest military power, possessing the capacity to achieve full spectrum dominance (control of land, air, sea and cyberspace). The US military expenditure is equivalent to the next 10 largest military spenders, with a defence budget exceeding US$600 billion - 37% of global military expenditure. America's preeminence in the field of aircraft carriers allows it to project its force beyond its borders and across the face of the globe. As a result, it has a significant military presence in strategic areas such as East Asia with an American aircraft carrier stationed near Yokosuka, Japan. China's military power is experiencing significant growth despite its military expenditure being a 1/3 of the USA's, at nearly $130 billion China is second it biggest military spender significantly ahead of Russia. China's defence spending has been increasing by at least 10% per year for the last 20 years. China also boasts the highest manpower of any one nation at 2.3 million soldiers BRIC nations rank in the top 12 in military expenditure. Nuclear weapons are now a prerequisite for superpower status as it gives countries a mechanism to repel significant hard power influencing through possessing the potential to exert significant force. USA, Russia, India, France, Pakistan, Israel, UK all have nuclear power.
Assess the geopolitical implications of the rise of the BRICs (Multipolar World)
The rapid growth of the BRIC countries looks likely to encourage a transition from what is currently a unipolar world dominated by the United States, to a multipolar world, in which countries such as China and Russia also compete for control. China's rapid economic growth has enabled it to overtake the USA as the country with the highest GDP when PPP is considered. With a growth rate of around 7%, accompanied by recent military expansion, such as the construction of a military base in the South-Asian Sea, China's increasing ability to exert hard power influence could elevate it to superpower status. The emergence of a multipolar world may also be accompanied by a military shift, resulting in greater instances of conflict. China's recent military venture raised tensions between itself and Southeast Asian nations such as the Philippines, and also the United States Similarly, Russia's growing influence since the collapse of the Soviet Union has also led to growing instability in Eastern-Europe. For example, the 2014 Ukraine Conflict, stimulated by Russian aggression. Despite this, the shift to a multipower world is not a wholly negative consequence. It can result in a shared responsibility and increased co-operation for international issues, as well as in fact contributing to a more stable world order as multiple different powers balance each other out.
Geopolitical implications of a multipolar world (due to rising powers) on core regions.
The rapid growth of the BRIC countries looks likely to encourage a transition from what is currently a unipolar world dominated by the United States, to a multipolar world, in which countries such as China and Russia also compete for control. China's rapid economic growth has enabled it to overtake the USA as the country with the highest GDP when PPP is considered. With a growth rate of around 7%, accompanied by recent military expansion, such as the construction of a military base in the South-Asian Sea, China's increasing ability to exert hard power influence could elevate it to superpower status. The emergence of a multipolar world may also be accompanied by a military shift, resulting in greater instances of conflict. China's recent military venture raised tensions between itself and Southeast Asian nations such as the Philippines, and also the United States Similarly, Russia's growing influence since the collapse of the Soviet Union has also led to growing instability in Eastern-Europe. For example, the 2014 Ukraine Conflict, stimulated by Russian aggression. Despite this, the shift to a multipower world is not a wholly negative consequence. It can result in a shared responsibility and increased co-operation for international issues, as well as in fact contributing to a more stable world order as multiple different powers balance each other out.
The balance between direct and indirect power in terms of superpower influence.
The reliance on direct influence is also evident in the USSR dominance of Eastern Europe after WWII, relying on military presence and military Coups to ensure control and support. However, the situation in Eastern Europe highlights a shift in balance from direct or indirect influence, as the rising technology and renewed attitudes towards intervention following WWII meant that direct influence was condemned by emerging organisations such as the United Nations. For example, the UN's condemnation of Soviet Interference in Hungary in 1956, citing that Soviet occupation was in violation of the human rights of the Hungarian people. Today, it could be argued that Russia still has indirect influence over ex-Soviet States. Russia wields political power it Ukraine as it supplies it with 70% of its energy needs.
Assess the geopolitical implications of the rise of the BRICs (International Organisations)
The rise of the BRIC nations could also lead to changes in the composition of international organisations. As a result of multipolarity, BRIC nations could take more influential roles in certain organisations. For example, the G8 could lose its influence to a more inclusive G20, which would result in a more democratic and representative way of tackling key global issues such as international terrorism. Similarly, certain nations such as India or Brazil may be submitted into more influential positions in organisations such as the UN Security Council. Thus, the Rise of the BRICs will result in a very different geopolitical world order arising, with more power dispersed between countries and many other countries apart from the USA beginning to take an increased responsibility in global issues, which could be reflected in IGO membership and power shifts.
Geopolitical implications of international organisations (due to rising powers) on core regions.
The rise of the BRIC nations could also lead to changes in the composition of international organisations. As a result of multipolarity, BRIC nations could take more influential roles in certain organisations. For example, the G8 could lose its influence to a more inclusive G20, which would result in a more democratic and representative way of tackling key global issues such as international terrorism. Similarly, certain nations such as India or Brazil may be submitted into more influential positions in organisations such as the UN Security Council. Thus, the Rise of the BRICs will result in a very different geopolitical world order arising, with more power dispersed between countries and many other countries apart from the USA beginning to take an increased responsibility in global issues, which could be reflected in IGO membership and power shifts.
Assess the environmental implications of the rise of the BRICs (Increased demand for resources)
The rise of these countries will have a negative impact environmentally by greatly increasing demand for energy and other resources. For example, China's demand for raw materials to feed its growing economy is so great that it has accounted for 90% of the global increase in sea traffic so far this century. The report found that China's growing affluence has made it the world's largest consumer of primary materials (such as construction minerals, metal ores,fossil fuels and biomass), with domestic material consumption levels four times that of the USA. This can cause the price of resources to rise, such as with Oil in 2007-8, partly owing to increased demand from developing countries like Brazil and China. Thus, there is a large challenge created by the rise of the BRIC nations in that their rapid industrial development will cause a global strain on energy and resources, with the potential to rising prices and shortages in vital food and energy resources.
Role of innovation and technology in Maintaining Superpower Status
The superpower economies also control innovation and technology. New inventions such as drugs, microchips and engines are patented, and users must pay a royalty of license fee to use the technology. 75% of these gees go to the USA and the EU, which is just another way in which the superpowers and developed economies control both trade and the availability of technology and innovation.
Role of resources in Maintaining Superpower Status
The trade of vital resources from one country to another can give countries large amounts of power and influence over the country that it exports to. This is especially relevant for countries which do not have a very diverse supply of trading partners. Russia is able to exert a large amount of political leverage through their energy resources. Russia's importance as an international energy supplier has increased significantly over the last decade, which could even see Russia return to superpower status, as its gas reserves give it greater economic and political power. Energy resources contributes a large amount to Russia's economy - providing income, infrastructure and employment for Russia. 1/5th of the Russian economy directly relates to sales of gas to Europe.
What must countries do to exert economic power? Example.
They need to open themselves up to international markets, embracing the free market, profit motive and financial investment. China is marching towards superpower status due to its embrace of the free market in 1979.
Role of patterns of trade in Maintaining Superpower Status
Through the development of large-scale trading networks, which increase the dependency of countries on a superpower, superpowers can enhance their ability to exert effective economic sanctions, and thereby increase their influence in global affairs. The patterns of trade reflect not only trading blocs but also the power maintenance of the larger countries, using trade as a conduit to impose neo-colonial dominance. The terms of trade are skewed in favour of superpowers through control of commodity prices and production of high value-added goods. For example, the US, Germany and China have the highest level of trade, trading with a large network of different countries. This gives them large amounts of trade leverage. Both China and the USA appear to export on a global scale which therefore increases their leverage over the WTO and many countries which rely on their manufactured goods.
Role of World Bank
To give advice, loans and grants for the reduction of poverty and the promotion economic development.
Role of IMF
To monitor the economic and financial development of countries and to lend money when countries are facing financial difficulty.
Role of United Nations
To prevent war and to arbitrate on international disputes. It has since developed a wide range of specialist agencies dealing with matters such as health and refugees.
How do superpowers maintain their status through trade?
Trade is important as it is often seen as the engine of growth; terms of trade tend to be skewed in favour of superpowers through control of commodity prices and production of high value-added goods. Trade can be a tool for Superpowers to maintain their status as it can increase their influence and control in other regions of the world.
Role of trade organisations/trade groups in Maintaining Superpower Status
Trade organisations also help superpowers maintain their power. Critics of these organisations argue that these groups were made by the major powers, for the major powers. For example, the experience of Ghana in the WTO serves to highlight the way in which international organisations can maintain superpower status. Case Study: Ghana joined the WTO in 1995, in an attempt to increase its global trade. Until then, the Ghanaian government had subsidised its farmers, however the WTO forced Ghana to remove subsidies on their farmers, despite other countries subsidising their farmers. As a result, farmers in Ghana now suffer greatly from imports of heavily subsidised foreign food. E.g. Ghanaian farmers find it hard to sell tomatoes as EU tomatoes are cheaper, whilst Ghana's rice growers have been overwhelmed by cheap imported rice from the USA. In addition, Countries which aren't involved lose out and struggle compete due to protectionist measures which are implemented for countries outside the trade groups such as NAFTA.
Role of WTO
Trade policy, agreements and settling disputes. It promotes global free trade, formally known as GATT.
How has China risen as a superpower?
Trade: China's rise to power stems from its gigantic productive capacity: trade and investment is governed by a policy of strict non-interference in the internal relations of its trading partners. This has enabled it to grow through trading capacity (accelerated by a globalising world). Over time, China's economic strength - given the size of its population - will be gigantic, far greater than that of the US at its zenith. China is already the main trading partner of a multitude of countries around the world, and with economic power will come commensurate political power and influence. Export led growth Foreign Investment: China has replaced the European controlled international finance organisations (IMF, World Bank) as the principal lender in Latin America. China continues to lead as the prime investor in African energy and mineral resources. China has replaced the US as the principal market for Saudi Arabian, Sudanese and Iranian petroleum and it will soon replace the US as the principal market for Venezuelan petroleum products. Raw Materials: In order to maintain its dynamic industries, China has required huge influxes of raw materials, resulting in large scale overseas investments and trade agreements with agro-mineral export countries in Africa and Latin America. Opening Markets: Beginning in 1980, the Chinese government (Deng Xiaoping) initiated a dramatic shift in its economic strategy: Over the next three decades, it opened the country to large scale foreign investment and privatised thousands of industries. The 'hybrid economy.' Military: China has a large army (2.3m), however the army has not really been used in global defense at all. The Military allows China to maintain stability within the country, important for delivering growth, as well as contributing to its growing status as a regional superpower. This has been recently bolstered by the establishment of a military base in the South Asian Sea.
How did competition lead to the British Empire Decline?
Unable to maintain pace with emerging superpowers such as USA and USSR. Reflected by Suez Canal incident.
World Systems Theory
Wallerstein's World Systems theory is a more dynamic model of the rigid, two tier dependency theory. World Systems theory depicts a three tier world, with the core, semiperiphery and periphery, with some countries entering the semi-periphery and even emerging to be part of the core. Wallerstein takes the view that industrial capitalism was born in Europe and that the rise of China and India simply represents another stage in the growth and spread of the global economy. This model does not however, take into account the fact that many countries remain isolated, such as in the case of North Korea.
How does economic power help achieve superpower status?
Wealth allows superpowers to export their power around the world, buy resources and influence trade patterns It allows them to invest in other countries, which can increase their influence and control in other regions of the world.
Zambia Debt case study
Zambia's overall International debt stands at 12% of GDP. Zambia was very reliant on copper exports for source of income (domestic industries as well as government export earnings and tax.) However when commodity prices collapsed in the 80's Zambia needed to borrow money to keep liquidity in the economy. This meant borrowing from banks in the western world who were reckless in lending. This therefore meant that Zambia had in the early twentieth century close to $7 billion of debt, mostly owed to Western banks. In 1983 the UN lent money to Zambia under SAP's but Zambia had to reform its economy and liberate market forces; this was set up to benefit Zambia but was in effect a way of the western world controlling the way in which the Zambian economy was run, further increasing its dependence on the Western world. These included large cuts in spending on public services, trade liberalisation and privatization. Combined with high debt repayments and falling copper prices, these free market conditions made the Zambian economy shrink for most of the 1980s and 1990s. Increased external borrowing may lift Zambia's annual debt-servicing costs to about $500 million, from $150 million. These repayments are insignificant for richer countries in the West, but typify the neo-colonialism that is exerted on HIPC like Zambia; keeping them poor and thus reliant on the western world. There is a danger that Zambia's increased reliance on external funding will place too great a burden on state finances. The IMF for example has urged the government to avoid "excessive" foreign debt. Zambia's aid troubles are compounded by the depreciation of its currency, the recent slump in the kwacha, Zambia's currency, has made servicing foreign debt more expensive.