Transcript Topic 3 * The Challenges of Globalization

GS 1 – Introduction to Global Studies
Professor: Dr. Jean-Paul Rodrigue
Topic 3 – The Challenges of Globalization
A – Economic Development
B – Inequalities
C – War, Conflicts and Terrorism
D – The Environment
Hofstra University, Department of Global Studies & Geography
A – ECONOMIC DEVELOPMENT
The Notion of Development
Themes of Development
Waves of Development
© Dr. Jean-Paul Rodrigue
The Notion of Development
■ What is development?
• Development is a process; a mean towards an end.
• Improvement of the welfare of the population:
• Development is about people, not necessarily the economy.
• Create an enabling environment for people; economic opportunities.
• Long term process; takes place over decades.
• Different societies can have different development goals:
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Promote private accumulation of wealth.
National and collective interests.
Reducing national inequalities.
“Hard” (e.g. infrastructure) versus “soft” (e.g. education) approaches.
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The Notion of Development
■ Development goals
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Adequate food and water supplies.
Healthcare system.
Sanitation and disease control.
Providing transport and communication infrastructure.
Employment opportunities.
Educational opportunities.
Rule of law and protection of rights and private property.
Access to housing.
Low environmental impact of society.
■ Conditions
• Appropriate social, political, legal and economic conditions.
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The Notion of Development
Physical Capital
• Infrastructures and resources that can be used in a productive manner.
• Public utilities:
• Energy, telecommunications, water supply and waste disposal.
• Public works:
• Roads, dams, irrigation canals.
• Transport infrastructures:
• Ports, airports, railways, public transit systems.
Human Capital
• The total population and its qualification level.
• Development of human capital:
• Supported by education systems.
• Reproduce and improve the productivity of the labor force.
• Information economy:
• Human capital a resource that differentiates nations.
• Not always because of wage differences, but because of differences in
capabilities.
© Dr. Jean-Paul Rodrigue
The Notion of Development
Explain the main conditions and outcomes of
economic development
Conditions
Outcomes
Social
Political
-Health
-Education
-Quality of life
-Rights
-Equity
-Rule of law
Physical capital
Economic
Human Capital
-Employment
-Surplus
Development
© Dr. Jean-Paul Rodrigue
The Notion of Development
■ Human Development Index (HDI)
• Composite indicator developed in 1990 by the United Nations
Program for Development (UNPD).
• Comparative measure of development.
• Ranges from 0 to 1:
• The country having the highest score for a variable has a value of 1 and
other countries are graded from how far they are from this best score.
• Three major sets of variables:
• GNI (Gross National Income) per capita.
• Health index.
• Education index.
© Dr. Jean-Paul Rodrigue
Components of the Human Development Index
GNI per capita
• Reflective of the standard of living.
• GNI per capita adjusted to take account of the purchasing power parity.
• Purchasing power parity considers the cost of living in each country and
adjusts the GDP accordingly.
Health index
• Life expectancy at birth.
• A good health system is likely to improve the life expectancy significantly
in a nation.
Education index
• Mean years of schooling.
© Dr. Jean-Paul Rodrigue
Share of the World GDP, 2014 (Current USD)
United States
23%
Rest of the world
37%
Japan
7%
China
13%
Other G8
15%
Germany
5%
© Dr. Jean-Paul Rodrigue
© Dr. Jean-Paul Rodrigue
Share of the World GDP, 2014 (PPP)
United States
16%
Japan
4%
Rest of the world
48%
China
16%
Other G8
12%
Germany
4%
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Human Development Index, 2013
Very High
High
Medium
Low
Data unavailable
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Measuring Development: Social Indicators
Definition
Globalization
Life expectancy
Number of years a person is expected to
live. Based on current death rates.
Positive impacts (increase)
Fertility
Number of live births per female of
reproductive age (15-49). Indicates
population change over a long period of
time.
Positive impacts (lower)
Infant mortality
Numbers of deaths of infants (below 5
years) year per 1000 live births of the
same year. Reflects the quality of the
health system.
Positive impacts (lower)
Adult literacy
People above 15 years able to read
standard instructions.
Positive impacts (increase)
Child labor
Economically active children under the
age of 14. Can combine work and
education.
Mitigated impacts
Explain three social indicators of development
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Life Expectancy
Era
Life expectancy
Neanderthal (350,000 – 25,000 BC)
20
Upper Paleolithic (40,000 – 10,000 BC)
33
Neolithic (8,500 – 3,500 BC)
20
Bronze Age (3,500 – 1,200 BC)
18
Classical Greece and Rome (500 BC – 400 AD)
28
Medieval Britain (400 – 1500 AD)
33
Late 19th Century in Western Europe
37
Average Global Life Expectancy (2014)
71
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World Average Life Expectancy, 1950-2013
90
80
70
60
50
World
European Union
40
Sub-Saharan Africa
30
20
10
0
1950
1960
1970
1980
1990
2000
2010
© Dr. Jean-Paul Rodrigue
Life Expectancy at Birth, Selected Countries (Average for both
sexes)
India
Russia
Brazil
China
2010
United States
1950
1820
United Kingdom
Germany
Japan
France
0
10
20
30
40
50
60
70
80
90
© Dr. Jean-Paul Rodrigue
Total Fertility Rate, Selected Countries, 1995-2014
0
1
2
3
4
5
6
7
8
Yemen
4.2
Niger
7.6
Mexico
2.2
Brazil
1.8
1995
USA
1.9
2000
2005
Russia
1.7
Italy
Replacement rate (2.1)
2010
2014
1.4
World
2.5
© Dr. Jean-Paul Rodrigue
TFR among Developed Countries, 2005-2014
1.21
South Korea
2014
1.39
Italy
2010
1.42
Japan
2005
1.39
Germany
1.27
Spain
1.61
Canada
1.83
United Kingdom
1.68
Netherlands
1.89
Sweden
1.86
Australia
1.99
France
1.86
United States
0
0.5
1
1.5
2
2.5
© Dr. Jean-Paul Rodrigue
Infant Mortality Rate, 2008
© Dr. Jean-Paul Rodrigue
Adult Literacy Rate (% above 15 years), 2002
Turkey
Thailand
Philippines
Pakistan
Nigeria
Myanmar
Mexico
Females
Malaysia
Males
Indonesia
India
Haiti
China
Cambodia
Brazil
Bangladesh
0
20
40
60
80
100
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Percentage of Economically Active Children Aged 7-14
Portugal
Mexico
Brazil
Senegal
Bengladesh
India
Cambodia
Philippines
0
10
20
Females
30
40
50
60
Males
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Waves of Development
Steam
Rail
Steel
Cotton
Electricity
Chemicals
Internal combustion engine
Petrochemicals
Electronics
Aerospace
Digital networks
Software
New Media
Biotechnology
Pace of innovation
Water power
Textiles
Iron
Mechanization
Commerce
1st Wave
1785
60 years
2nd Wave
1845
55 years
3rd Wave
1900
50 years
4th Wave
1950
40 years
5th Wave
1990
30 years (?)
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The Five Waves of Development
First wave (1785-1845)
Beginning of the industrial revolution (England).
Agricultural surpluses, savings and investment.
Productivity growth in agriculture and in new industrial activities.
Textiles, iron and water power.
Second wave (18451900)
Acceleration in the generation of surpluses.
Growth in the investment level (5 to 10% of the national income).
Coal, steam and railways.
Third wave (1900-1950)
Phase of maturity as investment levels reach 20% of national
income.
Electricity, chemicals and internal combustion engine.
Fourth wave (19501990)
Mass consumption society (surpluses, savings and investment).
Tertiary sector taking a growing share of the economy.
Petrochemicals, electronics and aviation.
Fifth wave (1990-2020?) Technology and information are the driving forces.
De-industrialization of several developed countries.
© Dr. Jean-Paul Rodrigue
U.S. Goods and Services Related Jobs, 1950-2014
120
90%
110
85%
100
90
75%
Millions of Jobs
80
70
70%
60
65%
50
60%
40
55%
30
Share of Service-Producing
80%
50%
20
10
45%
0
40%
Good-Producing
Service-Producing
Share of Service-Producing
© Dr. Jean-Paul Rodrigue
Male Labor Force per Economic Sector, Selected Countries,
2000-2004
United States
Russian Federation
Philippines
Pakistan
Mexico
Agriculture
Japan
Industry
Services
Indonesia
Cambodia
Brazil
Argentina
0%
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
© Dr. Jean-Paul Rodrigue
The Laws of Unintended Consequences
Socialism
Fundamentalism
Protectionism
Environmentalism
Concept
Redistribution of
wealth through a
variety of programs.
Retrenchment to
religious beliefs.
Characteristic of many
religions. Mostly
associated with Islam.
Belief that the
national economy is
harmed by trade or
foreign interests.
Identification and
mitigation of
environmental issues.
Issue
Forced redistribution
and the emergence of
dependent class.
“Looters and
moochers”
Refuse (sometimes
violently) different
forms of globalization
(products or culture).
Impose higher
duties or restriction
on trade.
Dogmatism.
Consequ
ences
Lead to growing
involvement of the
government in the
economy.
Misallocations.
Promotes isolation,
economic and
technological
backwardness and a
lack of skills.
Higher costs and
limited
opportunities.
Constraining
legislation and
regulation of activities.
Some policies can have unintended consequences on development. Explain.
© Dr. Jean-Paul Rodrigue
Globalization and Economic Development
How can globalization be a factor for economic
development? Can globalization prevent development?
© Dr. Jean-Paul Rodrigue