Measuring global interactions
Set up in 2002
37% - economic
39% - social
25% - political
Given to perceived importance.
actual flows -> Trade, FDI (measured through % of GDP)
Restrictions -> Import barriers, tariffs
Data on personal contact -> Telecoms traffic, international tourism, international letters
Data on information flows -> Internet and TV users
Data on cultural proximity -> number of IKEAs and McDonald's.
membership in organisations: e.g. EU
participation in the UN security council
Scale 1-100. 100 being most globalised
Singapore is in 14th position on the overall globalisation index but ranks first for economic globalisation, 7th for social globalisation and only 125th for political globalisation.
The USA ranks 9th for political globalisation, 56th for social and 59th for economic and overall is placed 38th.
Lowest levels of globalisation are in Africa, the Middle East, South and South-East Asia and Latin America.
Needs update on measurements
many flows and so is difficult to measure and observe
Consists purely on international flows
A.T. Kearney index
Scored 0-1. Highest given 1.
Global core and periphery
World-systems theory by Wallerstein
Small number of core states transformed a much larger external area into a periphery
Semi-periphery is an economic condition to which parts of the periphery may rise or parts of the core may fall
an approach to world history and social change that suggests there is a world economic system in which some countries benefit while others are exploited.
Core countries are industrial producers and peripheral areas are agricultural and produce other raw materials.
Trade in favor of the core
too high a level of eurocentricity by underrating sophistication of other early trading systems.
Too great a degree of simplicity in assuming a universal one way flow of resources from the periphery to the core.
Fails to recognize the high level of competition between core nations
How sectors of employment change
Over time the manufacturing base widens in order to support the increasing number of industries and demands of a more affluent population and a growing range of services is required. Leading to the expansion of the tertiary employment.
The USA and Canada
Australia and New Zealand
Debate over South Korea, Israel and oil rich arab states
The organisation for economic cooperation and development (OECD)
Support sustainable economic growth
Raise living standards
Maintain financial stability
Assist other countries' economic development.
Contribute to growth in world trade.
Considering membership from other nations, such as Russia, Brazil, Israel, China, Indonesia and South Africa,
Global city - an important nodal point in the global economic system. E.g. New York and London
Global cities index - 24 measures over five areas:
City of London:
$1359 billion foreign exchange turnover each day (34% of global share)
75% of the world's largest 500 companies located in London, most in the City.
53% of the global foreign equity market (stocks and shares)
population of 2.7 million of which 40% live in the capital
35 out of every 100 people live in poverty.
Primary product dependent - collapse of mining revenues as a result of the global financial crisis has caused problems
The periphery and the global financial crisis
Significant falls in investment, production and trade are undermining the progress made to lift people out of poverty
The world bank estimates in 2009 that over 2 million children could die
The IMF said the world's poorest 22 countries will need $25 billion additionally in 2009 to cope.
Globalization is conceptualized as a processes that erodes national boundaries, integrates national economies, cultures, technologies and governance and produces complex relations of mutual independence
Issues in measuring globalisation
informal remittances and illegal immigrants not accounted for
TNCs may hide the movement of profits
unknown content of private information
criminal + illegal flows
complexities in tracking economic data
people may be watching local or global TV and other media
Changing space - the shrinking world