Please enable JavaScript.
Coggle requires JavaScript to display documents.
Global Systems 2 (GLOBAL INTERDEPENDENCE- countries are reliant on others…
Global Systems 2
GLOBAL INTERDEPENDENCE- countries are reliant on others due to laws/ regulations (opposite to self-sufficient)
SOCIAL
- migration
- tourism
- languages
- shared goods
ECONOMIC
- trade
- common currency
- bilateral aid (agreement between 2 countries)
- multilateral aid (World Trade Organisation, IMF and World Bank)
ENVIRONMENTAL
- climate change (Paris summit)
- global commons
- deforestation
POLITICAL
- war
- brexit
- trading
- united nations
-
-
FEUDALISM- predominant social system in Europe in the Middle Ages which involved the nobility holding land from the crown in return for military service whilst peasants living on the lords' lands were required to pay a share (Wallerstein)
Wallerstein assumed each country was autonomous (more interdependent) so was economically and politically free and he assumed each country would follow the same pathway to development
Flows
CAPITAL
- from periphery countries to core countries
- more money circulates within the core economy and remittance payments can be made
- inflation in core economy and lower GDP in periphery
LABOUR
- towards core countries
- cheaper labour and better work opportunities for periphery
- jobs taken from core, people move away from their families
PRODUCTS AND SERVICES
- towards core countries
- cheaper products for core and more money for periphery
- de-industrialisation in core, poor working conditions and low wages for periphery
INFORMATION
- mostly away from core countries
- more communication for core and periphery gain knowledge and develop
- core may get no gain and periphery become less independent and more vulnerable
WTO
-
-
-
-
-
1986-1994- Uruguay Rounds which reduced barriers to trade
2001- Quatar- Doha development agenda- reforming trade on agricultural produce
- Doha talks in Geneva 2008- tariffs reduces by 30%- reductions made in subsidies
problems:
- USA, EU, Japan insisted larger trading nations of developing countries e.g China and India would open their markets
- Emerging countries insisted on larger cuts in farm subsidies and tariffs
- Doha collapsed in Geneva due to disagreements mainly between USA, China and India
- USA would not allow India and China to use their 'safeguard clause'
successes:
- a year later in Geneva a separate agreement between EU and Latin America about trade in bananas gave hope for Doha
- 2013, Bali, first multilateral agreement in 20 years (Bali Package) to speed up movement of traded goods to reduce costs
unequal flows of labour
Qatar- highest proportion of migrant workers to domestic population in the world. 90% of the 2 million population are immigrants for 2022 Football World Cup
many migrants have borrowed money to afford the transport to find themselves indebted as they have to pay their loans back at a rate of over 35%
-
3000 North Koreans working in Qatar and The North Korean typically takes 70% of the earnings and once fees, food and accommodation are paid, the labourers may receive 10% of the earnings
-
World Bank
Gabon Urban Development Project in Africa is attempting a more bottom-up approach to reduce poverty and poor employment opportunities by improving infrastructure including water and sanitation systems
-
promoted economic development in developing countries and provides long-term loans for development projects to reduce poverty. They encourage start-up private enterprises in developing countries by providing interest-free loans with low per capita incomes
criticised as conditions for loans have not always had an affect in reducing poverty and has a top down approach
OUTSOURCING- cost saving strategy used by companies who arrange for goods or services to be produced or provided by other companies, usually at a location where costs are lower
UNEMPLOYMENT AND THE DE-MULTIPLIER EFFECT- loss of jobs, less spending in the local economy so service workers e.g shopworkers loose their jobs when services close down
DE-INDUSTRIALISATION- closure of manufacturing due to outsourcing leads to closure in local suppliers and areas go into decline with derelict factories
STRUCTURAL UNEMPLOYMENT- skill set of local workers is no longer compatible as the jobs they have been trained for have moved abroad and they are ill equipped for new types of work
REASONS:
- cheap labour
- less laws and legislation
- cheaper land for factories
- better transport
International Monetary Fund (IMF) and World Bank and WTO are organisations that intend to oversee and support the global financial system
IMF and World Bank are important in regulating the flow of international capital so have the ability to reduce inequalities
establishes at the end of the second world war and have both been criticised for their neoliberal approach (no Gov. control) and their top down approach
IMF
oversees the global financial system and offers financial and technical assistance to it's members. They only provide loans to prevent a global economic crisis (international 'lender of last resort'). They help members tackle payment problems and stabilise their economies
-
wealth is usually distributed unequally within a country and there is no country where each individual has an equal amount of money. If so it would be a situation of PERFECT EQUALITY. the further away from this, the less equal the distribution
Lorenz Curve. 45 degree line shows perfect equality and the further away, the greater amount of inequality
The distance between the curve can be plotted and represented as the Gini Coefficient. 0 indicates perfect inequality and 1 equals absolute inequality
tells us the situation at any given time and doesn't give any reasons. Does not tells you the gaps or the trends so it may be misleading
TOP DOWN- decision to undertake projects or developments is made by a Central Authority e.g the Government
-
GDP- Gross Domestic Product- measure of the market value of all the goods and services produced in a period of time
-
trade on an international scale involves many different countries. If one country dominates an area which trade passes, it may have a disproportionate influence over the amount of trade that takes place e.g China wants to control the South China Sea where Russia trades through