The New Economic Geography

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Presentation transcript:

The New Economic Geography What does it imply? Welcome everybody, today we want to talk about „The new economic geography“. We asked ourselves did the world change through the globalization and how? What were some significant changes and which drawbacks might be correlated with the globalization.

Table of Contents What is the message ? Comparison GDP per Capita Comparison Health Life expectancy at birth Infant mortality Comparison Population General Conclusion Consequences We divided our presentation into five main parts which includes the message given through the indicators. These messages is going to be supported by a comparison of the GDP per Capita, health (regarding to life expectancy at birth and infant mortality, a comparison of the population which for us is also an important indicator as well a a general conclusion in which we are trying to connect not just business but also the impacts of culture and history.

What is the message? National Globalization Economic Culture Health The world is becoming more and more global but there is still remaining a national diversity caused by culture and history. There is still the difference between the well-developed countries and developing countries. In general the globalization influenced the progress of these countries due to investment and outsourcing which makes it possible to improve the economy and their social systems. However a main indicator is still the population of especially of the developing countries. Population History Globalization

Comparison: GDP per capita The European countries have a constant increase in their GDP during the last 20 years and are among the high-income countries worldwide. Trade is less important than in Germany due to the fact that Germany is a leader in the export area. High GDP is an indicator of developed countries. After collapse of the USSR in 1991 and switching to market economy, Russia needed some time to get used to new settings. That is why GDP of Russia didn’t grow in 1990s. Moreover, in 1998 the financial crises happened in Russia. However, this crisis has brought some positive consequences for the economy of Russia: due to ruble’s devaluation prices for import goods in internal market have risen significantly while prices for Russian goods abroad have fallen that allowed Russia to increase export and forced development of the industry inside the country. These factors along with growing world prices for oil have led to stable growth of GDP in Russia since 1999. Nowadays, GDP of Russia grows much faster than GDP of developed European countries. Nevertheless, economy of Russia is dependent very much on export of raw materials which must be changed. In Pakistan the stable government and their policies attract foreign investments and thus increased exports. So GDP sustain from 6% to 7% for the last few years. Since the 1960s, South Korea has achieved an incredible record of growth and integration into the high-tech modern world economy. Four decades ago, GDP per capita was comparable with levels in the poorer countries of Africa and Asia. In 2004, South Korea joined the trillion dollar club of world economies. this success was achieved by a system of close government/business ties including directed credit, import restrictions, sponsorship of specific industries, and a strong labor effort. The government promoted the import of raw materials and technology at the expense of consumer goods and encouraged savings and investment over consumption. Since 1978 China started open economic policy and since 1980 China attracted a huge amount of foreign investments. China is also seen as a world factory.

Comparison: Health Life expectancy is quite important and infant mortality are quite slow for all the European countries, which indicates that the health care system in these countries is very efficient. People are getting social help as well as the attitude of the European society who concerns a lot about health related issues. Regarding to the life expectancy in Russia there is huge difference between female and male lifetime. Life expectancy of women is 72 years while life expectancy of men is only 59. In general life expectancy in Russia is less than in most developed European countries. The reasons for that are insufficient quality of health service, environment condition and unhealthy way of life. In Pakistan there is still a high rate of infant mortality which is caused by the high spending in the defense industry, thus there is nearly no money left for the health system. For South Korea the life expectancy and infant mortality is nearly on the same level than the European countries. This is due to the fact that by now South Korea is also a prosperous country. In contrary the health care system in China is incomplete, especially across the country side. This means that China has particularly to face the challenge of improving their health care system.

Comparison: Population The population in France and Germany is declining due to an attitude change. The young generation more concerns about career and their independency instead of giving birth. This is a main challenge for these countries as there are more old than young people remaining which destabilize the so called “generation contract”. The Swedish government reacted in this case in time by supporting families and especially women financially. Demographical situation in Russia is characterized by negative growth rate. The reasons for this are small birth rate and very high in comparison with European countries death rate. Nevertheless, some national projects aimed to stimulate birth rate were launched in Russia for the past several years. In the meanwhile the population of Pakistan is quite stable. This is because of a better education and higher living standards due to the higher direct investments in Pakistan. There was a sharply decrease of the Chinese population due to the Second World War. During the Cold War the Chinese government encourage to bear more children. This is one of the main reason why China has the highest population worldwide. Nowadays the birth rate is growing more slowly, especially because of the „one child policy“. Still China has the highest population in the world.

Main Issues Europe: demographic change Russia: dependent on natural resources Pakistan: education, health China: population and consumption In most of the European countries the demographic change is a main issue. Changing demographics is associated with an higher life expectancy, an aging population, retirement of the baby boomers, more immigrants,  changes in the ethnic make-up, and generational diversity. At this point the government should take Sweden as an example and support and encourage younger especially the younger generation to stop and turn around this change. The economy of Russia is growing nowadays. Nevertheless, it is derived mainly from high world prices for natural resources which Russia can export. If Russia is willing to have stable growth in a long run, it is necessary for it to focus on development of non-mining industry and services, to invest more money in innovative production and infrastructure improvement. Some improvements in social sphere are also essential. Although some national projects in such spheres as health and education were started in recent years. Pakistan benefits from the globalization as it gives a lot of investment opportunities. But still there are remaining problems, especially in the education and health system. China is fighting with their population and thus their consumption as well as their health system. It should be to point out that the population and health system are strongly correlated. It is definitely a challenge to offer a good health supply for millions of people, especially across the country side.

General Conclusion General improvements worldwide National differences & gaps Exploitation of developing countries Threats for the environment Threats for the different cultures With the globalization the world changed a lot. According to the figures and data provided there are improvements in economy, health systems, education worldwide. However there are still remaining national differences and gaps related to culture, history, religion as well as population. But the globalization also has his drawbacks e.g. the exploitation of developing countries by the so called rich countries as well as the increasing consumption of natural resources. What should be done? We think that the governments should cooperate more and that we should find a way to support the developing countries. Not only just financially but also in education and health care. Another important point is to find a balance for the population growth. Cooperation between governments Support of developing countries Balance of population growth rate

Thank you for your attention and have a nice weekend