Theme 2 - Unequal Integration and Unequal Development in a Globalised World

« Theme 2 - Unequal Integration and Unequal Development in a Globalised World Key issues Strucuture K issues for Theme 2.pdf Key terms Key issues may be transient and not restrictive to key content from this module only. Key terms may be transient and not restrictive to key content from this module only Evaluate the reasons for unequal integration into the global economy. To what extent is the grouping of nations a cause of unequal territorial integration into the global economy. The increasing power and influence of emerging countries is changing the nature of global economic governance. Discuss the validity of this statement. Examine the role of international organisations in globalisation. Core-periphery Development strategies Emerging nations Global governance Global Inequality International Organisations Governance is the main reason for underdevelopment and lack of integration into the global economy in LDCs. Discuss the validity of this statement. Least Developed Country (LDC) Compare and contrast the success of different development strategies in reducing global inequality. Regional Inequality Evaluate the role of different actors in reducing global inequality. NGOs Trade blocs TNCs How far do you agree that the role of the state is becoming increasingly limited due to globalisation? Assess the extent to which locational factors are the main cause of regional inequality within countries. With reference to Britain or France, and other examples you have studied, evaluate the role of the major economic powers in global governance. Introduction: ❖ Integration into globalisation → identifying the concentration of the main flows of globalisation, especially trade ❖ Integrated if flows of money, goods, information, people ❖ Development Gap: why some countries develop while other remain underdeveloped Main actors of globalisation: ❖ TNCs ❖ International organisations (UN, WTO, IMF, G20) ❖ Governments ❖ Trade blocs Emerging economies → dispersion of global trade ❖ Regional trade agreements ex: MERCOSUR, afCFTA → increased trade ❖ Strong economic growth (TNCs + global banks) in certain groupings of countries → BRICS, Mint Economies(Mexico, Indonesia, Nigeria and Turkey) , the “Next Eleven” New actors → NICs + gulf states(Arabian and Persian gulfs; Qatar, Saudi Arabia, UAE) ⇒ Pb of integration → countries in the periphery → lack of integration and development Solutions to improve levels of development and reduce unequal integration ? ❖ Becoming an NIC →not possible bc not all countries benefit from the same advantages as NICs: ➢ ➕ infrastructure ➢ high levels and investment in education ➢ FDI from Japan and USA ➢ ➕ geostrategic position ❖ Setting up of SEZs (=Special Economic Zones) → attract FDIs from TNCs by modelling the rules → how China developed (reducing environmental laws) INTEGRATION ≠ DEVELOPMENT Integration into the global economy: ❖ can develop the economy ❖ can help social welfare increase (distributing economic benefits across different social groups) ❖ but cannot (usually) improve environmental protection How to increase integration into globalisation? ❖ Increase trade (main way) ❖ promote tourism (eg Madagascar, Nepal) ❖ facilitate flows of information (Rwanda, Africa’s tech-hub) ⇒ To increase trade ❖ reduce trade barriers by following a laissez-faire economic policy ❖ set up SEZ (eg Shenzhen) ❖ industrialise (EOI or ISI) ISI (import substitute industrialisation): limits the import of manufactured goods and increases domestic production of these goods (still often exporting though) ⇒ an economy can be both ISI and EOI Colonial Britain: used ISI India: =using ISI in SEZs (Main tactic used in the past: start with ISI and then start exporting / outsourcing.) Globalised economy relies on NIDL + comparative advantages ⇒ ISI does not work. Part 1 -Disparities in development at international level Development = a multi-strand process improvement in quality of life and standard of living Development encompasses: social, cultural, environmental and political factors Sustainable development = development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

3 main pillars → Countries have ≠ level of integration to globalisation bc ≠ level of development Measuring Development.pdf Development_what_and_how_measured.pdf How to measure development ? ● Standard of living → economics, money, wealth (GDP) ● Quality of life → related to wealth + social and environmental factors → health and education (HDI) → a person’s well-being and happiness Indexes of economic development: ❖ GDP per capita = total value of goods and services produced by a country in 1 year and dividing it by the population of the country ❖ GNI per capita = GDP per capita + income received from overseas investments (remittances, FDI, overseas factories) → more global economic index ⇒ disadvantage bc = average ⇒ inequalities ❌ considered ⇒ can = adjusted →take into account purchasing power parity (PPP) = cost → living ⇒ useful bc help → compare economic levels of development in ≠ countries ⇒➖ bc only economics side, ❌ show disparities, ❌ take into account informal sector Indexes → social development: ❖ HDI (=Human Development Index) = measures the quality of life ➢ Standard of living → GNI per capita ➢ Education → mean+ expected years of schooling ➢ Health → life expectancy at birth ❖ IHDI (=Inequality Adjusted Human Development Index) ❖ Gini coefficient = inequalities of wealth or income within a country Classifying countries: ordre décroissant: HICs > oil rich countries > MIEs > NICs > NEEs > Centrally Planned Economies > LIEs > LDCs > LLDCs The north south ➗ has become development gap Development Continuum = fact that countries can move from one category to another Measuring gender equality: ❖ GEM (Gender Empowerment Measure) ❖ GDI (Gender-related Development Index) Other ❖ ❖ ❖ useful indexes → development: Infant mortality rates Education – esp.

female literacy (important to women’s empowerment) Nutrition – malnutrition , undernourishment Three Gorges Dam has greatly benefited chinese economy but has had negative effects on the people + the environment ( displaced people + pollution + less rice + flooding issues ) How UN measures development: ❖ Human Assets (HAI: Human Assets Index) ❖ Economic vulnerability (EVI: Economic and environmental vulnerability index) ❖ Income (GNI per capita) Part 2: Causes of lack of integration into the global economy A) Least Developed Countries (LDCs) 46 LDCs ← can be either LIEs or MIEs Underdevelopment_doublespread.pdf Why is there such a development gap ? 3 features of an LDC: ● Low levels of Human Assets (based on indicators of nutrition, health, education and adult literacy) ● Economic and environmental vulnerability (based on instability of agricultural production, % of agriculture, hunting forestry and fishing in GDP, instability of exports of goods and services, % of population in low-lying coastal areas) landlocked country + no economic variety ● Income (three-year average GNI per capita of less than US $1018, which must exceed $1,306 to leave the list) Being an LDC gives exclusive access to support (economic, against climate change, technical aid) What makes LDCs? Physical geography: ● LLDC = Landlocked Developing country ⇒ they suffer from remoteness and isolation from world markets.

Any trade using maritime routes depends on transit through other countries.

This increases the costs of transport and can be politically complex. ● Small island countries → remoteness and climate vulnerability (ex: Comoros) ● Tropical regions w extreme climatic conditions (ex: sahel region w ● ● desertification, drought ) ○ Monoculture = growing only 1 crop = high risks → unproductive farming ■ Need → diversify agriculture production and economy Terrain ○ flat(bangladesh) ≠ mountainous (nepal) ○ Low lying = close to the sea (ex: netherlands, bangladesh) Advantage = abundant natural resources → drive economic growth ○ But in Nigeria abundant oil but high poverty rate bc greater disparities ⇒ natural resource curse Economic policies and political situation: Good Governance in an open economy ● Low corruption ● Effective institutions ● Stable governments ⇒ help → develop economy to attract FDI → develop faster than a closed economy (Ex: South Korean stability has attracted a lot of FDI) Corruption = the misuse of public funds for private gains (ex: bad national governance) ❖ Nigeria was a vast oil wealth + member of OPEC + MIE but 46% of people in Nigeria are living in absolute poverty ← corruption + labour unrest ❖ $582 billion lost in corruption in last 60 years ❖ 150/180 ranking of countries with corrupt public sectors ❖ Major environmental issues due to oil spills, deforestation (Shell) + exploitation not benefiting the locals ⇒ protests in Nigeria ❖ Shell accused for long series of human rights abuses in Nigeria Demography: The DTM = Demographic Transition Model: ● LDCs → high fertility rate ⇒ young population → only ➕if can get good education but not in an LDC ○ High rate of youth unemployment ⇒ high levels social unrest ○ Crime 📈 → survive ○ China uses large youthful pop → produce very cheaply = advantage ● ● ● Replacement level = the minimum fertility rate to keep the population the same from generation to generation (=2.1) World population is right under replacement level so it should be going down Death rate / birth rate / Infantile death rate Historical factors: ● Colonial.... »