1. Globalisation and Development
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Globalisation and Development
Human
Updated April 2015

2. 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

3. 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

4. Development Continuum

5. Asian Tiger Economies Singapore South Korea Hong Kong Taiwan
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 South Korea Hong Kong Taiwan
South East Asian Financial Crisis
Tiger Cubs

6. 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 USA
Singapore slips into recession for the first time in 13 years 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.

7. Military threat from North Korea
South Korea
1950: LEDC
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

8. EX – British Colony 1 July 1997
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

9. 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.

10. China
By Berrelar and Emily
See separate Powerpoint

11. 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.

12. 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.

13. 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 was a result of Chinas industrialisation, and in 2007, china overtook the USA, consuming:
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.

14. Energy 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.

15. 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?

16. 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

17. 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

18. India Is it Fair ? NO ? Money leaves the country to go to TNC HQ
Jobs only available to well educated middle class
In % 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

19. LDC – Least developed Countries
What is a LDC???
How to identify an LDC
The Development Continuum has lead to some countries being classified as better developed than others.
The UN classifies a LDCs as :
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.
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.

20. Where are the LDCs
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

21. 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.

22. 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
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.

23. 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.

24. 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.

25. CASE STUDY: LDC Uganda Location: Africa
History: Ex – BE colony: 9 October 1962
GDP (PPP) 2012 estimate
- Total $ 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

26. 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

27. The future for Uganda
The cancellation of $1.5bn of its debt under the HIPC initiative is helping Uganda to make progress:
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

28. 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

29. Continue revising G+D
NEXT POWER POINT