1. Geography 372: Global Shift in the 21st Century - The Global Village.
Welcome.
This is
Geography 372: Global Shift in the 21st Century - The Global Village.
If you are in the wrong room, please leave.
If I am in the wrong room, please tell me to leave.
The show will start shortly.

2. Geography 372 Global Shift in the 21st Century - the Global Village.
Divergent Trends in Territory and Function
Spatial fragmentation
Socio-economic integration
Together they have created a global village in terms of the number of territorial entities that now exist, and the ease with which almost everyone is affected by almost everyone else.
The result has been the recent resurgence of populism that threatens to upend it all using discredited “zombie” economics and the politics of fear.
THIS IS ANOTHER COURSE ABOUT GLOBALISATION. BUT I HOPE IT IS A DIFFERENT COURSE INSOFAR AS IT RANGES FAR AND WIDE ACROSS ISSUES AND SPACE, AND ACROSS HOW WHAT WAS GOT US TO WHAT IS.
Divergent Trends -Territory and Function
Spatial fragmentation
Socio-economic integration
Theme of the course is the paradox between economic globalization on the one hand and territorial fragmentation on the other, one homogenizing societies while the other diversifies them.

3. Theme of the course is the paradox between territorial fragmentation on the one hand and social, cultural and economic integration on the other, the former diversifying societies while the latter homogenizes them.
The former tries to build borders while the latter tries to circumvent them.
And, taken to its logical extreme, we are seeing the rise of a new tribalism fed by the politics of fear and fearmongering politicians.
Theme of the course is the paradox between economic globalization on the one hand and territorial fragmentation on the other, one homogenizing societies while the other diversifies them.

4. Environmental Problems
Bottom Line?
The things that increasingly influence our lives don’t, won’t, or can’t respect political/social boundaries:
Financial Systems
Corporations
Technology
Environmental Problems
People and Power
Poverty and Profits
National Interests
Disease and Health
Conflict and Terror
Social Change
This course looks at all of these topics within the changing post WW2 territorial framework.

5. Explaining the ‘Now’ – Past and Present
Perhaps a better title for this course would be:
The New Tribalism - How Globalism Spawned Populism and Evidence Succumbed in the Process.
Our basis for exploration of the topics is the same one used in science and law – provide the evidence to support the argument.
This stands in stark contrast to the current political environment that is based on little more than dogma and opinion.
You will be seeing a considerable amount of data to support the story being told about the past five decades, and the next five – your five.
There is another paradox in a sense, one of time. We live in the “now” –today is our reality - but what we do today depends a great deal on what has happened to us (as individuals and as a collective “we”)in the past, and what we can expect in our future. I believe that what we see happening today is a direct result of the fragmentation and integration of the past 50 years and our fears of the next 50 – stoked by the current political environment.

6. GEOGRAPHY 372 COURSE MECHANICS
What, Who, Where, When.
Expectations.

7. WHAT, WHO, WHERE
Geography 372 Global Shift in the 21st Century Dr. Philip Coppack Jorgenson 609
INTRODUCTION TO THE COURSE
Gyorgy Kepes, The New Landscape in Art and Science, pp18-22, 1956.
"We make a map of our experience patterns, an inner model of the outer world, and we use this to organise our lives“
This course is a bit strange, and not a lot like the geography you are probably used to. It deals with the concept of environment, but not the interpretation you probably have of it. It deals with behaviour - yours and others and why you do what you do. It deals with perception - how you view the world, and how these perceptions shape city environments. Most of all, it deals with relativism: how we can all witness the same event, but have differing views of it depending on the many filters through which we view those events. Furthermore, it deals with how we use those perceptions, most times unknowingly, to make decisions - large and small - that comprise our lives and affect other people's lives.
The world is comprised of a multitude of environments that exist at different scales. These scales range from personal space to neighbourhoods, communities (both towns and cities), regions, nations and the world itself. These environments are in turn shaped by people's behaviour, and this behaviour is in turn governed by the decisions made by individuals and groups of individuals (populations). The types of decisions people make are dictated by their cultural, economic, political, social, gender, sexual, and religious backgrounds, as well as their relative intellectual abilities to make decisions and the quantity and quality of information at their disposal. These differing backgrounds give rise to differing perceptions of similar events, issues and environments - indeed of life itself. In turn, these differing perceptions generate different interpretations of, and actions toward, environments, that in turn impact how these environments appear (both perceptually and physically).
In this course we will be examining many aspects of this complex web of relative processes. Our goal is to peel back the many layers of the city environment, to demonstrate that it is actually comprised of many environmental interpretations. Some of these are obvious, others not so obvious. But even though it may be obvious how something looks, it is often not obvious how it got to look that way - as you will find out.
If you could peel back the layers of the city, they would be countless, arranged and conceived of by each of us according to our perceptions, from each of us according to our cognitive processes, to each of us according to the way others view us. None are wrong interpretations and none are right; they are just different. Some of the layers affect us all of the time and all of the layers affect us some of the time. Each of itself can be conceived of clearly when it is slipped from the deck and played out. But together, the stack of layers (Figure I) creates the game we call the city that is pregnant with permutations.
The following pages suggest the structure of the course and the types of material at which we will be looking. Figure II summarises and connects many of the concepts dealt with in the course. This figure should become your "road map" for the course. Refer back to it often. Because it is a road map, you can start anywhere and move in any direction. While you may not understand it all at first, you will by the end of the course.
Your geography - the spaces you occupy - is your primary reference point for locating yourself and your activities relative to all other happenings. As an infant you learned about geographic space by manipulating objects directly, by playing, by sucking on things, by screaming and assessing the reactions of other people. Gradually you learn that you are not the whole universe; for example, your parent doesn't feed you when you scream and you learn that they are not you. You learn your room and home are "like this", and are located "here" in relationship to other rooms and structures. As you grow, your space expands through direct experience to include other homes, your neighbourhood, other neighbourhoods, large areas of your city, town or region and a few select places your family visits. Through indirect experiences (family, friends, books, newspapers, magazine, radio, television, the Internet, etc) you learn about parts of your city, region, province, country, continent, globe and universe you have never visited. All of these views are partial and incomplete .
FIGURE 1: THE LAYERED CITY
By now you rarely think directly about geography. Yet you are constantly making geographical decisions and acting upon them. Where will I sit in this class? in the movies? at temple? Which stores and malls will I visit to buy a winter coat? a VCR? a car? Which clubs will I hang out in? Where in the club will I sit, stand or hang? Will I walk, blade, bike, take the TTC or take the car to shop? to travel to (Ryerson (RPU)? to travel to recreation? You are constantly behaving spatially, that is you act upon geographic decisions. And without realizing it you know a lot experientially about the concepts in this course.
In order to show up for the first class you understood relative location, distance and direction from your starting place (eg home) to the classroom. You consulted your mental maps of the city and the campus, and transportation options ( especially in relationship to trip time). You might have noticed something new and revised those maps. You may have taken a longer path to avoid an undesirable area (e.g. construction zone, unsafe place, undesirable people). While on the subway and in class you use front country behaviour which indicates you understand the unwritten, as well as the written, rules of behaviour of those particular behavioural settings. While in the subway, for example, you follow the unwritten rules of (not) invading people's personal space (microterritory) by averting your eyes and apologizing for bumping into someone, and feel uncomfortable and anxious when others invade your personal space. As you moved through locations, they had meaning for you, or in geographic jargon possessed sense of place. Places on your journey had certain attractiveness drawing you to them (if only in memory, eg the Starbucks where you had that lovely latte with that amazing person eliciting topophilic daydreams). Others elicited topophobic avoidance due to their unattractiveness as crime sites, the apartment of your ex-lover or whatever. Your negotiation across these spaces as you move through your day created your time-space path for the day.
Your ability to achieve these interactions across space depended, in part, upon your constraints : cognitive (eg. what options you knew about), capability (eg. your ability to access transportation), coupling (eg. the need to be at RPU in a specific room at a specific time) and authority (eg. the need for a TTC token). In addition, the attractiveness of various options and the friction of distance influenced these interactions, for example, influencing how early you left home and where you went for lunch between classes. The first seven chapters focus on these concepts, asking you (in particular, in the TRY THIS exercises) to investigate how they relate to your own life.
Your geography focuses on “you” and “yours”. We all are, thus, egocentric, and as groups we are ethnocentric, nationalistic, human-centred. In so far as your geography focusses on YOU and your experiences (direct and indirect), your perception of the environment is strongly influenced by cognitive filters related to you (your attitudes, values, preferences, needs and desires and the reasons for being in that environment) and "yours" (i.e. the various sub-groups of society that your belong to and are relevant for the purpose at hand). Thus, your evaluation of experiences and environments are relative to your frame of reference and display distance decay with respect to both physical and cultural distance. Thus closeness, rather than breeding contempt, may lead to acceptance and a suggestion that this is how things should be, while physically and culturally distant environments are "exotic", the people are "ethnic", their clothes are "costumes", they speak with "accents", their culture is "under- or un-developed", their relative lack of (our) technological toys is "backward", and they are in general judged by us as "inferior".
The spatial decisions of all the past and present people in the city jointly create the tangible, phenomenal (physical and built environments) and the less tangible, hidden (socioeconomic environments) spaces and places in the city. The existing phenomenal environment (ie things) is perceived of, and responded to, by individuals in response to their needs and desires in relationship to their individual personal environments and their understanding of the various contextual environments (ie sub-groups of society) that have influenced, and continue to influence, them. These responses in turn create new phenomenal and socioeconomic environments. The last five chapters discuss our attempts to understand and interpret internal city structure - neighbourhoods, the pattern of urban land uses, quality of life, and changes in those patterns - from both our understanding of the spatial behaviours discussed in the first seven chapters and our understanding of more macro processes operating in the urban environment.
This book has three components : the text, READINGS and TRY THIS exercises. The text presents the major concepts covered in this course. The READINGS present additional related material, generally in the form of short stories and poems that illustrate particular concepts. The READINGS are referred to in the text (and often in TRY THIS exercises) and are for the whole text are found after Chapter 12. The titles of the TRY THIS exercises are inserted into the text in a box. The complete set of TRY THIS exercises is found after the set of READINGS forming the last section of this book.
FIGURE I : THE LAYERED TORONTO

8. Lectures take place in the here and now.
Who, Where, What, When, How
Course material at:
!! THIS IS NOT A D2L SITE !!
Lectures take place in the here and now.

9. WHEN
MON
TUES
WED
THURS
FRI
9-10
10-11
11-12
12-1
1-2
2-3
3-4
GEO 372
ENGLG13
4-5
5-6
Let’s talk timing.
Class supposed to last 3*50 minutes or 2:30, with a break so about 2:15.
But…

10. F is Forever Friday, November 17th.
WHEN
F is Forever Friday, November 17th.
Final date to withdraw from an undergraduate program (OR COURSE) for the Fall 2017 term in good Academic Standing (no refund of 2017 fees but no ‘F’ either).

11. If you miss the test, you will lose the grade for it – no exceptions.
COURSE EVALUATION:
Essay ( words) 50% (due dates see schedule below)
Quizzes (5MCx30Q) 50% (dates see schedule below)
Final exam NONE – DON’T MISS THE QUIZZES. 
NOTE: Test will be run in the first 30 minutes of the class hour and will be comprised of 30 multiple choice questions..
If you miss the test, you will lose the grade for it – no exceptions.
A note on essays:
I don’t write your essays – you do. The grade you get reflects your effort at writing not mine at reading. And remember: there are those who put in much work and get a lower than expected grade and vice versa. But these are the exceptions to the essay rule that you usually get what your essay deserves.

12. The (of!) Course Outline…

13. … is there for a reason – to inform you.
Read it ALL.
I will not answer any questions that are answered on the outline or in the PowerPoints.

14. Weeks 1 to 6 of the Course Outline
Who, Where, What, When, How.
Weeks 1 to 6 of the Course Outline
WEEK
Week of
LECTURE NUMBER & TOPIC 1
Sept 4
Essay Topics Distributed
1. Introduction to the Course.
Introduction and course mechanics. Babel and Contagion: the paradox of territorial fragmentation and social economic integration. Globalization, global systems, and the global village. 2
Sept 11
2. Regions, Nations and the Global Community.
History of globalization and the global village, global change, colonialism, nation states, regions, territory, global inventory. 3
Sept 18
3. Global Population Growth and Demographics.
Global population dynamics and demographics, human capital, migration, overpopulation? 4
Sept 25
Quiz #1 on
Lectures 1,2&3
5. Economic, History, Trade, Growth and Development.
Growth versus development, global trade and capital flows, Millennium goals, development progress. 5
Oct 2
6. Corporations, the Global Financial Sector, and Income Inequality.
The global finance system – too big to let fail?
Corporations – too big to fail?
Rich, and getting richer – income inequality and wellbeing. 6
Oct 9
READING WEEK

15. Weeks 7 to 13 of the Course Outline
Who, Where, What, When, How
Weeks 7 to 13 of the Course Outline 7
Oct 16
Quiz #2 on lectures 4&5.
7. The Digitocracy.
The communications technology revolution and its effects on the global economic system’s feedback loops: we need more negative feedback! 8
Oct 23
8. Environment and Resources.
Are we running out of resources? Answer: yes/no/maybe.
Are we running out of time? Answer: yes/yes/yes. 9
Oct 30
Quiz #3 on lectures 6&7.
8. Global Health - dying healthy or living sick.
The dilemma of the DALY.
What ails us?
The Double Burden 10
Nov 6
9. Pandemics: bugs without borders
Contagions that kill. 11
ESSAY DUE
Nov 13
Quiz #4 on lectures 8&9.
FRI NOV 17
10. Global Urbanization, Global Cities and the New City State.
An increasingly urban world, urban growth versus urbanisation, feedback links between urbanization, economic growth, and demographic change.
‘F’ Is Forever Friday: Last Date To Drop Course Without Academic Penalty. 12
Nov 20
11. Geopolitics.
Global interest groups, conflict, and the changing face of terror. 13
Nov 27
Quiz #5 on 10&11.
12. Paradox Regained - Course Summary and wrap up
Babel, contagion, systems, feedbacks good and bad, and an eye to the future.

16. IN CLASS OR OWN TIME VIDEO TITLE AND LINK
Video Schedule
WEEK OF
LECTURE TOPIC
IN CLASS OR OWN TIME VIDEO TITLE AND LINK
Sept 4
1. Introduction to the Course.
Simon Anholt: Which country does the most good for the world? Ashdown: The global power shift.
Sept 11
2. Regions, Nations and the Global Community.
Commanding Heights – Episode One, Chapters 1-10
Parag Khanna: Mapping the future of countries (18mins)
Sept 18
3. Population Growth and Demographics
Don’t Panic – The Facts About Population. Hans Rosling.
Also at:
Sept 25
4. Economic Growth and Economic Development.
How economic inequality harms society
Oct 2
5. Corporations and the Global Financial Sector.
The Corporation – Chapters 1-10
Oct 9
6. READING WEEK
Watch “The Big Short” on Netflix
Oct 16
7. Digitocracy.
The Virtual Revolution – Episode 1
This is a BBC 2 documentary by Dr. Aleks Krotoski in four episodes. This link will play Episode One in 5 segments of about 10 minutes each (and the rest of the episodes if you don’t stop it).
Requiem for the American Dream. Noam Chomsky. Netflicks.
Oct 22
8. Environment and Resources.
The Corporation – Chapters 11-end
James Hansen: Why I must speak out about climate change
Oct 30
9. Health.
Hans Roslin – Facts and Fiction on Global Health – Nordic Media Conference
Hans Roslin at the Global Health – Health Beyond
Nov 6
10. Pandemics
Nov 13
11. Global Urbanization/ Global Cities.
Nov 20
12. Geopolitics.
Commanding Heights – Episode Three, Chapters

17. TEXTBOOK None. Save your money.
PowerPoint are detailed and extensive and, along with the video, have all the information you need to get through this course.

18. COURSE PAPER

19. Details To Be Found In The Course Outline
CHOOSE A REGION
(NOTE: A COUNTRY IS NOT A REGION).
Use the regional groupings of a major IGO: the UN, WHO, IMF, World Bank etc. depending on your theme.
Describe how globalization has shaped the space economy of the region (the good, the bad, and the ugly) since WW2.
This will entail defining globalization, describing the region’s geography, its relationships with its neighbors and the global community, and what you expect its future (the next 50 years) to be.

20. The approach of the course. What globalisation is and possibly is not.
The rest of today?
The approach of the course.
What globalisation is and possibly is not.
What the global space economy looks like.
Other stuff we will be doing.

21. Globalisation, Territory, and the Global Village

22. Globalization and Territory and the Attributes Arising Therefrom
A series of related attributes summarizes what has happened since WW2:
More territories but physical distance less important
More borders but movement is getting easier as areas regionalize
Movement may be easier but places are still unique
Places may be unique but societies are increasingly homogenous
Increasing homogeneity maybe, but increasing nationalism too
Increasing nationalism requires systems of dispute mediation
Dispute mediation encourages growth of IGOs and INGOs
Dispute avoidance mechanisms such as TNCs also develop
TNCs & governments encourage new barrier reduced traffic channels
Physical traffic benefits from trade & migration agreements
Communication traffic benefits from electronic advances
And as with all flows, they go both ways and carry both good and bad
Two images characterize globalisation: Babel and contagion

23. And economic growth at all costs is required to keep it going.
More territories but physical distance less important.
More territories means more borders.
More borders but movement is getting easier as areas regionalize.
Regionalization occurring but places are still celebrating their “terroir”.
Places may claim uniqueness but societies are increasingly homogenous.
Increasing homogeneity maybe, but increasing nationalism too.
Increasing nationalism requires systems of dispute mediation.
Dispute mediation encourages growth of IGOs and INGOs.
Dispute avoidance mechanisms such as TNCs also develop.
TNCs & governments encourage new barrier reduced flow channels.
Physical flows benefit from trade & migration agreements.
Communication flows benefit from electronic advances.
As with all flows, they go both ways and carry both good and bad.
And economic growth at all costs is required to keep it going.
Two metaphors characterize globalisation.
Babel and Contagion
More territories but physical distance less important
More borders but movement is getting easier as areas regionalize
Movement may be easier but places are still unique
Places may be unique but societies are increasingly homogenous
Increasing homogeneity maybe, but increasing nationalism too
Increasing nationalism requires systems of dispute mediation
Dispute mediation encourages growth of IGOs and INGOs
Dispute avoidance mechanisms such as TNCs also develop
TNCs & governments encourage new barrier reduced traffic channels
Physical traffic benefits from trade & migration agreements
Communication traffic benefits from electronic advances
And as with all flows, they go both ways and carry both good and bad
Two images characterize globalisation: Babel and contagion

24. BABEL NATIONS Canada Italy Somalia U.S.A. Germany France Brazil Yemen
Iceland
Russia
Pakistan
South Africa
Saudi Arabia
The image of Babel is appropriate, I think, because it points up the increasing growth in the number and complexity of “translation” and “mediation” agencies over the past few decades, brought about by the list
. The obvious need for and complexity of the “ UK
Spain
Turkey
India
Iran
Afghanistan
Iraq
Portugal
China
Ireland
Chad
Greece
173 other nations

25. IGOs World Court OECD G8/20 UN ICAO Security Council OAS Arab League
NATO
The image of Babel is appropriate, I think, because it points up the increasing growth in the number and complexity of “translation” and “mediation” agencies over the past few decades, brought about by the list
. The obvious need for and complexity of the “
WTO EU
ASEAN
IOC
African Union
ITU
World Bank
WHO
IMF
FAO
100 others

26. Medecins Sans Frontiers Amnesty International
INGOs
Oxfam
WWF
FOE
Greenpeace
CARE
Medecins Sans Frontiers
Amnesty International
OAS
PLAN
The image of Babel is appropriate, I think, because it points up the increasing growth in the number and complexity of “translation” and “mediation” agencies over the past few decades, brought about by the list
. The obvious need for and complexity of the “
Save The Children
VisionCare
Red Cross
Freedom House
Red Crescent
Earth Watch
Democracy Watch
300 others

27. TRADING BLOCS SAARC OPEC EFTA NAFTA MERCOSUR PARTA ASEAN UMA CARICOM
TPP
CACM EU
ASEAN
WTO
GCC
ECOWAS
GAFTA
SADC
IMF
400 others

28. TERRORIST GROUPS ISIL Tamil Tigers al Qaeda FARC Khmer Rouge UMA
Red Brigades
Shining Path
ETA
ANO
HUM
GEM
HAMAS
Hezbollah
KGK
IRA
Aum Shinrikyo
Kach
TNCs
others

29. And no last page at which to sneak a peak.
Babel’s Bottom Line?
Without script.
A cast of billions.
Playing out their parts.
Each with a different story line.
Few agreeing on the dialogue that preceded.
None knowing the lines that will follow.
And no last page at which to sneak a peak.
All performed live, on stage at Planet Earth Theatre
which, for humans, is getting increasingly uninhabitable because of humans.
She should have died hereafter; There would have been a time for such a word. Tomorrow, and tomorrow, and tomorrow, Creeps in this petty pace from day to day, To the last syllable of recorded time; And all our yesterdays have lighted fools The way to dusty death. Out, out, brief candle! Life's but a walking shadow, a poor player That struts and frets his hour upon the stage And then is heard no more. It is a tale Told by an idiot, full of sound and fury Signifying nothing. — Macbeth (Act 5, Scene 5, lines 17-28)

30. CONTAGION
Global Connectivity & Finance The U.S. Sub Prime Mortgage Affair
Complex cause and effect between:
Sub Prime Mortgages
Housing bubble
Financial market derivatives
But the real trouble started in 1999 with the Gramm-Leach-Bliley Act in the US that deregulated banks and created the financial services sector

31. In the beginning…

32. Your world
Fall 2008…
TODAY WE ARE STILL FEELING THE EFFECTS OF THIS FAILURE TO RECOGNISE HISTORY AND NOW FACE A SOVEREIGN DEBT CRISIS THAT THREATENS TO RUIN ALMOST A CENTURY OF ECONOMIC PROGRESS AROUND THE WORLD.

33. … and three
years later.
TODAY WE ARE STILL FEELING THE EFFECTS OF THIS FAILURE TO RECOGNISE HISTORY AND NOW FACE A SOVEREIGN DEBT CRISIS THAT THREATENS TO RUIN ALMOST A CENTURY OF ECONOMIC PROGRESS AROUND THE WORLD.

34. Three years and three months
later…
POLITICAL DECISION MAKERS APPEAR PARALYSED TO CONTROL THE EFFECTS OF UNCONTROLLED WEALTH AND WEALTH MAKERS, OR AT BEST THEY APPEAR TO MAKE SHORT TERMS DECISIONS THAT DELAY THE ENVITABLE. YET WHEN PEOPLE PROTEST THEY ARE THE ONES CONSIDERED TO BE THE CRIMINALS AND ARE TREATED ACCORDINGLY.
AT THE SAME TIME, CLIMATE CHANGE THREATENS A MUCH MORE FUNDAMENTAL SYSTEM – THE INTEGRITY OF THE VERY ECOSYSTEM WE DEPEND ON TO SURVIVE AS A SPECIES.
YET ONCE AGAIN, POLITICAL DECISION MAKERS APPEAR PARALYSED, UNABLE TO SEE PAST THE FIVE YEAR TERMS TO WHICH THEY ARE ELECTED AND THEIR SUBSEQUENT FAILURES TO ACT – KYOTO, BALI, COPENHAGEN, DURBAN – NOW LEAVE US WITH A GUARANTEED CLIMATE CHANGE FUTURE NOT SEEN IN 100,000 YEARS.
NEXT SLIDE…

35. Now… 2008 is all but forgotten. It is…
…but a walking shadow, a poor player That struts and frets his hour upon the stage And then is heard no more. It is a tale Told by an idiot, full of sound and fury Signifying nothing.
Macbeth, Scene v, Act v.

36. …except
for
TODAY WE ARE STILL FEELING THE EFFECTS OF THIS FAILURE TO LEARN FROM HISTORY AND NOW FACE A SOVEREIGN DEBT CRISIS THAT THREATENS TO RUIN ALMOST A CENTURY OF ECONOMIC PROGRESS AROUND THE WORLD.

37. Now we can add populism to the mix and return to the 2008 financial crisis, resurrect zombie economics, abandon climate change as a hoax, retreat from trade, and get racism thrown in for good measure.

38. And who pays??

39. Some numbers to set the stage… … and with which to get to grips.
Global GDP in current dollars, 2016 = $78.0 trillion.
Global market capitalisation 2016 = $65.6 trillion.
U.S. GDP in current dollars, 2016 = $19.4 trillion (22%).
U.S. market capitalisation 2016 = $23.8 trillion (35%).
Canada GDP in current dollars, 2015 = $1.6 trillion (2.4%).
Canada market capitalisation 2016 = $1.9 trillion (3.7%).
Ontario GDP in current dollars, 2016 = $798 billion (0.95%).
Cost of 2008 financial crisis by 2012 = $22 trillion (US alone).
33% of global capitalization value lost = $17.6 trillion.
Sources:

40. A Word On Number Magnitudes
We take numbers for granted.
We use millions, billions, trillions as if we know what they mean but we really do not.
Consider the following:
1 million seconds is about 11 ½ days.
1 billion seconds is about 32 years.
I trillion seconds is about 32,000 years.
What a difference 3 zeros can make.
So the next time you see $1 billion you’ll understand just how much it is compared to $1 million – or a trillion.
(100,000 seconds is only about 28 hours)
Much as projections make it impossible to show all quantities on a map accurately, so by definition can maps NOT show the world at its real size.
Scales are away of indicating on the map, the actual size of the areas being represented.

41. Global Flameout in a Nutshell
Contagion:
Global Flameout in a Nutshell

42. Burst! Contagion – Stage 1 The Causes and Effects on People & Banks
SUB PRIME MORTGAGE BONDS
Private Banks create and repackage
Collateralised Debt Obligations (CDO)
and Credit Default Swaps (CDS)
People buy or leverage existing mortgages -> housing bubble.
Tranches blur the credit worthiness of the CDOs and CDSs creating “toxic assets”.
Bubbles grow
Housing CDO/CDS
Burst!
People lose homes due to (1) inability to pay
SPMs and (2) loss of home value (equity).
Banks become insolvent (i.e. you owe more than you own).

43. Credit dries up. Contagion – Stage 2
The Effects on Countries & Companies
BONDS & COMMERCIAL PAPER (CREDIT)
What countries and companies use to fund themselves.
Credit dries up.
Countries
Manufacturing
1. Nations bail out banks and become illiquid (i.e. cash flow dries up – Spain) or insolvent (i.e. owe more than they own - Ireland and Iceland) or close to it (U.K., France, Italy).
2. Financially inefficient nations become insolvent (e.g. Greece) or are both (e.g. Portugal).
3. Solvent nations have to bail out failing nations (E.U., U.S.A., China) because they hold the failing nation’s bonds.
Manufacturing companies cannot sell their bonds (called commercial paper) to fund their day-to-day operations.
Firms close and/or layoff people -> bills don’t get paid -> credit defaults on debt in CDOs.

44. Macroeconomic Effects – The Central Banks
Contagion – Stage 3
Macroeconomic Effects – The Central Banks
MONETARY POLICY & MOMENTARY POLITICS
How to catch a falling nation and failing global economy.
Role of central banks (e.g. Bank of Canada, Federal Reserve, Bank of England, European Central Bank) is to control recessions/depressions through controlling unemployment and inflation. They use Bagehot’s dictum: a central bank should be a bank of last resort and should lend to commercial banks freely, at high rates of interest on good collateral.
But central banks are forced to lend at low rates of interest using toxic assets as collateral to save economies.
Central bank lending is ultimately national lending and when done at low rates of interest with poor collateral leads to insolvent nations.

45. THE RESULT?

46. Global GDP Current US$
Source: World Bank Development Indicators 2016

47. Global GDP Growth Rates
Source: World Bank Development Indicators 2016

48. Global Market Capitalisation Current US$
Source: World Bank Development Indicators 2016

49. Annual Change in Home Prices
Housing
2008
Annual Change in Home Prices

50. Industrial Production
2008
The Ceridian-UCLA POC Index is an Index number that monitors the money spent on diesel fuel by truckers. It is a real time index of the transhipment of goods, raw materials, retail products, parts etc, and as such is a good indicator of the health of an economy. It was developed by UCLA economists using the Ceridian database of card swipes for credit and debit cards.
Industrial
Production

51. 2008
Job Openings
Unemployment Rate
Employment

52. Discretionary Retail Sales
2008
“Nominal” dollars are current dollars not corrected for inflation – blue line.
“Real” dollars are constant dollars that are corrected for inflation and are hence ‘real’ in terms of value from growth and/or changenot resulting from inflaiton.
Discretionary
Retail Sales

53. A Reprise on Global Dollars
Global GDP in current dollars, 2015 = $73.4 trillion.
Global market capitalisation 2015 = $61.8 trillion.
U.S. GDP in current dollars, 2015 = $17.9 trillion (24%).
U.S. market capitalisation 2015 = $25.1 trillion (41%).
Canada GDP in current dollars, 2015 = $1.5 trillion (2.0%).
Canada market capitalisation 2015 = $1.6 trillion (2.6%).
Ontario GDP in current dollars, 2015 = $597 billion (0.9%).
Cost of 2008 financial crisis by 2012 = $22 trillion (US alone).
33% of global capitalization value lost = $17.6 trillion.
Current notional cost of global OTC trillion.
Sources:

54. Contagion and Cascade Failure
The 2008 CDO/MBS crisis is example of the cascade failure that results from a contagion.
Triple AAA financial securities considered almost risk free - “as good as cash”.
Risk estimate on the CDOs and MBSs was evaluated by credit rating agencies at about 1% - they might lose 1% of their value. They lost an average 20%.
But credit agencies were grossly underestimating risk and insurers were using the insurance premiums to buy the very derivatives they were insuring.
AND THE LEGACY?
The sub prime mortgage crisis is an example of a cascade failure where an isolated problem gets propagated throughout a system due to the lack of checks & balances.
No-one expected the triple A financial instruments to fail so no-one assessed their risk adequately.
Risk estimate on the MBS was about 1% - they might lose 1% of their value. They lost 20%.
It is an example of the fallibility of complex systems

55. The next crisis – but who bails out countries?
DEBT
DEBTORS
Hi!
My name is
U.K.
My name is
Hi!
U.S.
Sovereign Debt
The next crisis – but who bails out countries?
My name is
Hi!
Italy

56. Have we finally learned a lesson?
Perhaps not…
In December 2015 big US banks succeeded in getting parts of the Dodd-Frank Act2 repealed, especially the Volker Rule that stopped them from trading in the more speculative derivatives such as CDOs tht are not in their investor’s best interest.
The big US banks (and their 2008 bailouts) were:
Citigroup ($25billion)
Bank of America ($15 billion)
J.P.Morgan Chase ($25 billion)
Goldman Sachs ($10 billion)
Morgan Stanley ($10 billion)
The Trump administration and his economic advisory committee is populated with the same ex-Wall street bankers who created 2008 crisis.
2The irony: the full name of the Act is the Dodd Frank Wall Street Reform and Consumer Protection Act (neither of which it appears to have done).
Remember the
numbers lesson?

57. So much for all that misery! What else are we going to do?

58. Overpopulation
Resource Depletion
Climate Change
Terrorism
Pandemics
Disease

60. And now for something completely different

61. Societal Structures Affected
TERRITORY
Nation States, Regional Blocs, Seccesionary Movements, Terroir
Driving Factors
Transportation, Trade, Communications, Migration
Societal Structures Affected
Social, Economic, Cultural, Environmental, Developmental
Outcomes
Development
Health improvements
International law
Increased safety?
Outcomes
Environmental Degradation
Health Threats
Resource Exploitation
Security

62. Politics and Economics
Politics studies comparative systems of governance. Democracy Socialism Fascism Anarchy
Economics studies comparative systems of exchange. Capitalism Communism Underground Anarchy
Another important distinction that you should know lies in the distinction between what are political systems and what are economic systems. When you look at all nations they have at least one of each, which combine to form their particularly political economy.
Political economies form the basis for all other activities and often control how those other systems function – if they function or are allowed to function – at all.
As well, we tend to use the terms loosely and often wrongly. For example we tend to treat certain mixes as givens, such as capitalist democracies (such as Canada) and communist autocracies (such as Cuba or the current Russian Federation – what’s left of the old USSR). Yet nations state are rarely pure models of political economies>
For example,let’s look at this thing called capitalism. Capitalism is an economic system that is based in its purest form on the absolutely free flow of all types of capital (money, labour, resources) governed only by the demand and demand for commodities between individuals, none of whom are large enough to influence the “invisible hand” of the market in which all these transactions occur. The only thing that controls what goes on is in effect an individual’s ability to choose between different suppliers and different buyers, and in fact they will choose – always and forever – the cheapest supplier and the most generous buyer! But competition will always ensure that the price you buy for and the price you sell for is the cheapest possible. But of course, Adam Smith’s theoretical free market system – pure capitalism or “laissez-faire” (everything goes)” - doesn’t function very well because it cannot guarantee that enough individuals will operate independently to ensure that supply and demand functions will operate properly. In fact, the basis of Marxism (another political-economic system) says that the very principles that underlie capitalism ensures that as capital becomes focused in fewer and fewer hands due to profit accumulation, this imbalance will ensure that the market mechanism will break down. When it does, it will leave a vast majority of poorer workers (suppliers of labour) to be exploited by a tiny minority of richer capitalists (the owners of resources). Eventually this will lead to discontent and revolution, the only answer to which will be ownership of resources by the people in the form of a state controlled by the people. FINISHED OFF IN LECTURE NOTES.
Let’s very briefly look at some of the more dominant of these systems.
Together they mix and match to form the Political Economies that underlie the social and cultural structures of all nations.

63. Defining Globalization
What is it?
How does it work?
Who and what does it affect?
What are its attributes?
Can they be measured?
If so, how?
Is it good or bad? Both?
For whom?
Defining and measuring globalisation is difficult to say the least
This is due to the fact that if you can’t agree on what it is and how it works and whether it even exists, then how do you begin to describe and quantify it?
The first question is whether globalisation is such a different animal than internationalization? While simplifying the debate quite a bit, there are two types of approach that can be considered, but regardless of the perspective you take one thing is very clear: globalization is a process more than it is a thing.

64. Defining Globalization Oxford English Dictionary:
The process by which businesses or other organizations develop international influence or start operating on an international scale.
Financial Times:
Globalisation describes a process by which national and regional economies, societies, and cultures have become integrated through the global network of trade, communication, immigration and transportation.
But these are limited to political economy, which, although a very large part of globalization, are not complete.

65. Defining Globalization – Long Version
SUNY – The Levin Institute
“Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world.”
This about sums globalization up.
SUNY – The Levin Institute

66. Defining Globalization
So what is globalization then?
The Levin Institute definition tells us that:
Globalization is defined as much by its flows of money, people and commodities, ideas, ideologies, as by the actors themselves – people, companies, nations, supranational groups, and all the other things involved, influencing or influenced by the global system – commodities, natural mechanisms.
Fundamentally it is a process as much as a thing.
Defining and measuring globalisation is difficult to say the least
This is due to the fact that if you can’t agree on what it is and how it works and whether it even exists, then how do you begin to describe and quantify it?
The first question is whether globalisation is such a different animal than internationalization? While simplifying the debate quite a bit, there are two types of approach that can be considered, but regardless of the perspective you take one thing is very clear: globalization is a process more than it is a thing.

67. Territory and Function in Globalization
High
Wider functional integration but limited spatial scope
INTENSITY
Degree of functional integration of economic activities
Wide functional integration and spatial scope
Regionalizing
processes
Globalizing
processes
Limited functional integration but wide spatial scope
Internationalizing processes
Low
Low
SPATIAL SCOPE
Geographic extent of economic activities
High
Source: After Dicken, 2003, p13

68. Globalization Everything? Everyone? Everywhere?
Extent of globalization has limitations: Not all parts of the world are connected. Not all economic sectors are integrated. Not all economic sectors are global. Not all flows are two-way.
Globalization: Everything? Everyone? Everywhere?
Not all parts of the world are connected:
Some parts of the world (such as sub Saharan Africa) are very weakly connected on just about every measurable aspect of globalization: travel, communications, manufacturing, foreign direct investment, cultural homogeneity.
Not all economic sectors are integrated:
The financial sector is highly integrated and almost borderless, but much of manufacturing, while globalised in terms of its production functions, is still tied to places.
Not all economic sectors are global:
Again sub Saharan Africa is very weakly integrated into whatever passes for a global manufacturing system. The vast majority of manufacturing activity itself is not directly globalized to any degree; most of it is still done by small companies tied to one nation or region. Another example is the resource sector which, while it might be run by transnational corporations in large part, is by definition tied to specific locations and thus places and political economies.
Not all flows are two-way:
Some sectors are characterized by almost one way flows, leaving the idea of an integrated global system very lopsided. Again by way of example, resource extraction is by definition tied to place but economically is controlled by the TNCs of western countries.

69. Space Economy Process Parts

70. The Materials System Approach
Manufacturing
Consumption
Extraction
Distribution
Disposal
Linear System + Finite World = Problems
Resource Depletion
Environmental Degradation
Income Inequality
Solutions?
Exploit Others
Others “Develop”
Apply Technology Fixes
But the linear system in a finite world still exists.

71. The Materials System The Law The Government The Corporation
Supposedly represents you.
Mediates within the law.
Only represents stockholders.
Manufacturing
Disposal
Extraction
Distribution
Consumption

72. Check it out: http://storyofstuff.org/movies/story-of-stuff/
Lebow's best-known words were published in the Spring 1955 issue of the Journal of Retailing. The paper discussed the cost of maintaining the American lifestyle in 1955, and the effect this cost had on retail profits. According to Lebow, the large "cover charge" taken out of retail sales revenue would result in severe competition at the retail level, and that retail markups would be widespread. Under the heading, "The Real Meaning of Consumer Demand", Lebow wrote:
“ Our enormously productive economy demands that we make consumption our way of life, that we convert the buying and use of goods into rituals, that we seek our spiritual satisfactions, our ego satisfactions, in consumption. The measure of social status, of social acceptance, of prestige, is now to be found in our consumptive patterns. The very meaning and significance of our lives today expressed in consumptive terms. The greater the pressures upon the individual to conform to safe and accepted social standards, the more does he tend to express his aspirations and his individuality in terms of what he wears, drives, eats- his home, his car, his pattern of food serving, his hobbies. These commodities and services must be offered to the consumer with a special urgency. We require not only “forced draft” consumption, but “expensive” consumption as well. We need things consumed, burned up, worn out, replaced, and discarded at an ever increasing pace. We need to have people eat, drink, dress, ride, live, with ever more complicated and, therefore, constantly more expensive consumption. The home power tools and the whole “do-it-yourself” movement are excellent examples of “expensive” consumption.
Check it out:

73. Space Economy Territorial Parts

74. Globalisation and the Territorial Economic System
Economic Sectors:
Primary (Resources)
Secondary (Manufacturing)
Tertiary (Services)
Firms:
Large firms (TNCs)
Medium Firms (regional)
Small firms (local) P S T

75. Globalisation and the Territorial Economic System
Territorial System
Regions
Nations
Regionally isolated nations
Regionally integrated nations
Globally isolated nations
Sector based trading blocs
Regional based trading blocs

76. Globalisation and the Territorial Economic System
The complexity of the global economic and territorial system.
Some national economies are only partly integrated, or depend solely on one economic sector P S T
Flows of goods and especially capital are less restricted in the economic system than they are across the territorial system
Flashpoints exist at the intersections of economy with territory.

77. Support for globalization Opposition to globalization
Summary
Globalization is:
Multi dimensional dynamic process as much as a thing to be defined.
Asymmetrical - creates inequalities, and acts out on a global playing field with built in inequalities from the past but also provides opportunities to correct inequalities.
Support for globalization
Comes from individuals, small nations and INGOs who see it as inevitable and say that all boats float on a rising tide.
Opposition to globalization
Comes from individuals, small nations and INGOs who see it as another version of colonialism and empire building by the powerful western developed nations and transnationals.
Who’s right?
SUMMARY
The above listing of some of the areas and attributes of globalisation emphasizes that globalisation is a multi dimensional dynamic process as much as a thing to be defined.
If a definition is to be offered it would perhaps focus on “the growing influence exert at the local, national and regional levels by financial, economic, environmental, political, social and cultural processes that are global in scope.” (ECLAC, 2002).
That the globalisation process is also asymmetrical and unequal is also without question as globalisation, itself a process that creates inequalities, acts out on a global playing field fraught with built in inequalities from the past.
It is little wonder that there is considerable opposition to globalisation from small nations and NGOs who see it as little more than another version of colonialism and empire building by the powerful western developed nations and transnationals.
The paternalistic, exploitative and unilateral behaviour of the western developed nations – especially the United States as it changes the rules to suit itself even for so-called allies such as Canada (as in the softwood lumber dispute) - certainly does little to alleviate the concerns of the smaller players on the field.
But before we rush to judgment on the benefits – or not – of globalisation, we need to delve further into the history of the phenomenon itself. To start with, let’s look at the 1st hour of the DVD Commanding Heights.