Transcript File - AQA Geography

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Globalisation and
Development
Human
Updated April 2015
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Globalisation
The OECD defines globalization as:
“The geographic dispersion of industrial and service activities, for example research and
development, sourcing of inputs, production and distribution, and the cross-border networking
of companies, for example through joint ventures and the sharing of assets.”
51 of the largest economies in the world are corporations. The top 500 TNCs account for nearly
705 of world trade.
Globalisation is best defined as a process of deeper economic integration between countries
involving:
An expansion of trade in goods and services
An increase in transfers of financial capital including the expansion of foreign direct investment
(FDI) by trans-national companies (TNCs) and the rising influence of sovereign wealth funds
The development of global brands
Spatial division of labour– for example out-sourcing and off shoring of production and support
services as production supply-chains has become more international. As an example, the iPod is
part of a complicated global supply chain. The product was conceived and designed in Silicon
Valley; the software was enhanced by software engineers working in India. Most iPods are
assembled / manufactured in China and Taiwan by TNCs such as FoxConn
High levels of labour migration within and between countries
New nations joining the trading system. Russia joined the World Trade Organisation in July 2012
Development
• Development is a branch of geography which refers to the standard of living
and quality of life of inhabitants of a country or place. Development is a
process of change that affects people's lives. It may involve an improvement
in the quality of life as perceived by the people undergoing change.
• The main indicators of development are:
- GDP
-Infant mortality
-Birth Rate
-literacy Rates
- Human development index
- Source
Development Continuum
Asian Tiger Economies
Singapore
South Korea
Hong Kong
Taiwan
South East Asian Financial Crisis
Tiger Cubs
• Tax on imports
• Allowed primary industry to flourish
• Education of work force
• Investment in land
• Chinese influence
• High Income, Advance economy
• Rapid Growth
• Foreign Investment (loans)
• Export driven
Singapore
About 80% of Singaporeans perceive Singapore to be a land of opportunity for
achieving a high standard of living
GDP: $55,182 higher than
1998 - Singapore slips into recession for the first time in 13 years
USA
during Asian financial crisis.
FINANCE
75% Chinese Influence
Growth Rate up to 10%
Singapore has become a major
worldwide banking, ship
building and petroleum centre.
South Korea
1950: LEDC
1960-1990 Growth Rate: 9%
Growth Rate now: 8%
GDP: 35,485
MANURFACTURE
Daewoo Cars, LG, Samsung
I.T and Technology
Military threat from North
Korea
65% Chinese
Hong Kong
95% Chinese
FINANCE
EX – British Colony
1 July 1997
Alpha+ City
Communist
GDP: $38123
Hong Kong Special Administrative Region of the
People's Republic of China
Taiwan
GDP: $31900
98% Chinese
MANURFACTURE
I.T and Technology
Threat from China
Taiwan is an island which has for all practical purposes been independent since 1950,
but which China regards as a rebel region that must be reunited with the mainland - by
force if necessary.
China
By Berrelar and Emily
See separate Powerpoint
Consequences of Growth
Is it fair?
• East Grew Faster than west
• Famines in late 1950’s
• China has a rich energy potential.
• Electricity demand is higher than production.
• Urban Rural inequality
• Raising the living standards in rural areas.
Global Growth
A US intelligence portrait of the world in 2030 predicts that
China will be the largest economic power, climate change
will create instability by contributing to water and food
shortages, and there will be a "tectonic shift" with the rise of
a global middle class.
Demand for food, water, and energy will grow by
approximately 35, 40, and 50% respectively owing to an
increase in the global population and the consumption
patterns of an expanding middle class.
Global Factors
In 2001, China joined the world trade Organisation. TNCs now
invest in China to take advantage of low labour costs and the and
the special economic zones. Since 2000, china has been the
largest recipient of overseas investment and 53% of its exports are
produced by foreign owned companies or those in partnership
with Chinese companies. 60% of the increase in world trade
between 2006-07 was a result of Chinas industrialisation, and in
2007, china overtook the USA, consuming:
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67 million tonnes of meat (USA 39 million tonnes)
258 million tonnes of steel ( USA 104 million tonnes).
Before 2050, China will be consuming more oil and paper than the
world now produces.
Energy
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Since 1980 Chinas energy production has grown dramatically
80% of all power is generated from fossil fuel
17% from HEP stations
2% from nuclear energy.
China has a rich overall energy potential, but most sources have not yet
been developed
The geographical distribution of energy puts most of these resources
relatively far from their major industrial users: the industrialise regions
around Guangzhou and the lower Yangtze region around shanghai have
too little energy, while there is relatively little heavy industry located near
major energy resources in north-east, central and south-west china.
Although electricity generating capacity is growing rapidly, it still falls
considerably short of demand. This is partly because energy prices have
been fixed so low that industry has few incentives to conserve. In
addition, it has often been necessary to transport fuels great distances
from the mines to consumers.
Services
• Service Sector Ranks 7th in the World
• 2005: service Sector produced 40% of China’s GDP
• The biggest boost to this sector was when china hosted
the Olympic games in 2008
• Tourism is expected to grow by between 4% and 8% in the
next 5-10 years
• Worlds top tourism industry by 2020?
Tom and Lucia
India
• India is the second example of a NIC (newly industrialised country)
• India unlike china specialises in Human Products and tertiary services rather
than manufacture.
• Many TNCs have moved there HR and service centres to India due to the low
labour cost
India
Economic Growth
• 7% per year since 1997
• Focus on service sector/ Territory industry
• Attracted TNC’s
• Local companies support TNCs
• Focus on I.T/ Software/ Call Centrex
• Government focused on education
• Saving of £10 million for every 1000 jobs out sourced to India by TNCs
• 3 million graduates each year
• English speaking graduates
• Labour costs cheaper in India.
• Communications
India
Is it Fair ?
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NO ?
Money leaves the country to go to TNC HQ
Jobs only available to well educated middle class
In 2000 44% were on less than $1 a day (rural poverty)
75% of the population are still involved in agriculture
Mass migration from Rural to Urban ( hunt for jobs) has created slums.
Less pollution than China
2011 Service sector was work 56% of India GDP
LDC – Least developed Countries
What is a LDC???
The Development Continuum has lead to some
countries being classified as better developed
than others.
How to identify an LDC
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The UN classifies a LDCs as :
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Countries with the lowest incomes
Countries where there are limited
opportunities for development.
Countries where there is extreme vulnerability
to external factors such as natural disasters
and shifts in the global economy such as cost
of food and reductions in aid and trade
Usually countries are hard to get out of this level
of development and many of the current LDCs
are the same as those LDCs of 50 years ago.
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GNI per capita of under $900
Human asset index – this is made up of the
percentage of the population whom are
undernourished, the infant MR secondary
education rates and literacy rates.
Economic vulnerability index: the extent to
which a country would be affected by
unplanned shocks. Based on population size
remoteness and dependence in exports.
Where are the LDCs
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Latin America : 1 – Haiti
Africa: 33
Asia and Pacific: 15
Three Quarters of the 2.6 billion people living below the poverty line
live in rural areas. This number has hardly changed in 20 years
LDCs
Life at the bottom
World bank: 1.2 billion people live on less than $1.25 a day.
This leads to:
• Hunger
• illiteracy
• Unsafe water
• Low paid unskilled jobs
• Natural disaster
• Dependant on overseas aid.
Problems for LDCs
Poor quality of life, Due to:
• Rising food prices = high rates of
malnutrition
• Climate change = undermines
subsistence farming
• Diseases : preventable diseases kill 11
million infants per year
• 500000 women die during child birth /
year
• Lack of medical and transport as well
as sanitation infrastructure
Girls:
• Socially: less girls go to school this means
they marry younger and start families in their
teens.
• A girls life has more value at home than in
education
• Discrimination towards infant girls means
that mortality rates for girls are higher than
that of boys.
• Population growth is high due to high
fertility rates
• Life expectancy is low
• Infant MR is high
• HIV/AIDS has reduced the number of
well educated and so those professions
suffer – E.g. education.
DEBT just makes it worse!!!
Debt repayments take money away from things like health care and education
that would help real development.
Where did the debt come from?
• Oil prices in 1970s boosted OEC earnings
• These OECs invested in western banks, who lent money to LICs who spent
the money (which they couldn’t pay back) on development schemes.
• The interest rates went up in 1980 this increased the pay back cost to the
LICs
• Every year the amount increased and the debt burden got worse.
• To prevent a global collapse the IMF developed Structural Adjustment
packages
• Governments in LICs such as Uganda cut spending on health and education
= poorest people suffered.
HIPC
• For over 30 years African countries have been trying to recover from the
debts of the 1970s. The HIPC are a group of 38 of the worlds LDCs with the
greatest poverty and debt, and 29 of them are in Africa.
• Debt has become a world wide problem since 2008.
• In 2010 the debt of the UK and japan was over 400% of each countries GDP
• Debt restricts spending power and therefore restricts development
• Interest payments mean that debt is always growing.
CASE STUDY: LDC
Uganda
• Location: Africa
• History: Ex – BE colony: 9 October
1962
• GDP (PPP) 2012 estimate
- Total $50.439 billion
- Per capita $1,414
• HDI: 164th
• 75% without electricity
• Adult literacy rate: 73.6%
• Infants underweight: 20%
• Life expectancy: 51.9
• Population: 31.6 Million
UGANDA
Uganda is green and fertile with plenty of resources such as copper and cobalt.
Uganda should be a wealthy exporting country but this isn’t the case, WHY?
• Uganda depends on the exports of low value products such as tea and
coffee
• Receives limited tax revenues for its exports
• Idi Amin's Military rule of the 1970’s expelled the wealthy Asian community
• Huge loans were used to buy military weapons
• Ugandan debt reached $19bn in 1992
• HIV/ AIDS has reduced life expectancy ( babies born in 2007 had a 62%
chance of reaching 70!)
• 56% of the population is under 18 ! Fertility rate is 6.3 birth rate is 47.5
The future for Uganda
The cancellation of $1.5bn of its debt under the HIPC initiative is helping
Uganda to make progress:
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Free primary school education has been introduced = 5 million extra
children now attend school
• 10% more have access to clean water
• AIDS awareness and sex protection/ Education is a priority
• Improving transport and mobile phone infrastructures
• Wildlife parks = tourism
• Production of bio fuels and fair trade tea and coffee lead to better income
• Service sector jobs
Still a problem with the Women
Uganda’s female population remain its poorest
• Women rarely own land
• most work as labourers as and when needed
• Maternal and infant mortality rates are still high
• Have to gain respect by having children
Continue revising G+D
• NEXT POWER POINT