Going Global Notes

Globalisation

What is globalisation and how is it changing peoples lives?

What is globalisation? Before 1990 it was known as the global economy. Economic changes were being accompanied by cultural, demographic, political and environmental changes on a global scale Globalisation in the past: Trade Especially after 1492 when Columbus reached the Americas and the traditional world economy began to take shape Colonisation By the end of 19th century the British empire directly controlled of the world The colonies were forced to share monarchies, cultures and trade

Globalisation, population change and migrationKey Terms:Birth Rate: The number of births per 1000 people per year in a regionDeath Rate: The number of deaths per 1000 people per year per regionEconomic Migrant: A migrant whose primary motivation is to seek employmentInternal Migration: The movement of people between different regions within the same nationIntervening Obstacle: Barrier to a migrantIntervening Opportunity: An alternative migration destination that exists between the migrants place of origin and intended destinationNatural Increase: The difference between the birth rate and death rate

Economic growth usually triggers an increase in population This is because of birth rates and migration Greater levels of international migration are another strong influence that globalisation has Globalisation has polarised push and pull factors Globalisation has created more jobs in the city and less in the rural areas Globalisation is removing some intervening obstacles Intervening opportunities may interrupt a migration flow

The evolution of globalisation:Core: Owns and consumers 80% of global goods and services Earns the highest incomes Makes most decisions about the global economy Provides most global investmentPeriphery: Owns and consumes 20% of global goods and services Has 75% of population Earns low incomes 2.5 billion live on under $2 per day Makes few decisions about the global economy Provides little global investmentGlobal shift of industry: Manufacturing falling in the old core and raised in periphery areas Core countries profit as they dictate to the new production linesTransnational Corporations: Firms spread across the world Architects of global trade Brought cultural as well as economic changes to places where products are made and consumed Instantly recognisable Link between switched on and off countries Creation of a global market and a shrinking worldTransport Arrival of intercontinental Boeing 747 (400 passengers) commercial flights Airbus A380 (600 passengers) Package holidays and cheap air travel Urbanisation of roads and tunnels Improvement of train lines e.g. Eurostar One size fits all container ship: Standardised box Easier and cheaper to transport goods Economies of scale were used, reducing overhead costs and costs of production 40ft boxes carry 95% of worlds trade Eleanora Maersk largest container ship in the world 7,500 containers and only 19 person crewComputer and Internet technology CAD and CAM allow manufacturing to be more flexible and less reliant on human labour, creating footloose firms Internet commercialized in 1980s and 1990s and resulted in a popularization and incorporation into virtually every aspect of modern life Countries can interact and contact each other easily and instantly TNCs can old video conferences and transfer money abroad They can also view business prospects online, opening up the global market Greater awareness of the worldInternational organisations Most important is the IMF Channels loans from worlds richest nations to countries which apply for help TNCs can enter these countries easily Very controversial regulations especially structural adjustment programmes This require governments to cut back spending on healthcare, education, sanitation and housing programmes Other organisations include WTO, World Bank and NGOs which connect people through flows of aid or debt reliefMarkets Increasing numbers of consumers in emerging markets China has an estimated 30 million affluent consumers Growth of major stock marketsKey Terms:Elite: A group of people who are economically and socially powerfulForeign Direct Investment: A financial injection made by a TNC into a nations economyRural-urban Migration: A movement of population from rural to urban areas

Globalisation and population movements Globalisation can make the world seem like a borderless place People are seeing themselves as global citizens, visiting and relocating to distant places The international elite are affluent people whose skills or financial resources are highly prized Therefore there are new intervening obstacles in their international migration Large scale rural-urban migration is also taking place, 3.3 billion people now live in urban areas Reasons for this: Television and radio allow those in rural areas to have knowledge of other places which trigger the migration, especially of youth FDI that TNCs make in urban areas boost employment opportunities Advances in technology: E-technology link people all over the world In 2010 80% of the population was on the internet People can look for work, accommodation and flights easily using the internet People can keep in contact with family using Skype and Facebook People can buy their favourite products online However globalisation has brought terrorist fears and new migration laws

Global Groupings

What are the main groupings of nations and what differences exist in levels of wealth and power?Key Terms:Development Gap: The difference in levels of economic and social well being between the richest and poorest peopleGross Domestic Product: A measure of the financial value of the goods and services produced within a territoryHuman Development Index: A United Nations measure of economic and social development that takes into account income per capita, life expectancy and adult literacyPoverty: A lack of wealth

Groupings:Past: LEDCs and MEDCs, the have and have nots Richard Brandt described the north-south divide in 1981 as north as wealthy core, south as poor periphery However the distribution of people living in poverty and the elite has becomes more complex because of globalisation A large number of previously poor nations are now relatively wealthy Presence of rich elite make it harder to generalise about rich as poor nationsEconomic groupings: Nationals can be categorised by wealth and power LDCs Least developed countries 50 states sometimes referred to as the 4th world Lack of engagement with globalising forces NICs Newly industrialising countries Middle income countries with rising exports and average earnings BRICs, MINTs and Asian Tigers RICs (recently industrialised countries) for India and China Ex-Soviet States New 15 states after the break up of the Soviet Union Usually LICs or HICs OPEC Organisation of petroleum exporting countries High levels of wealth but often unevenly distributed 65% of oil reserves, 35% of production OECD Organisation for economic cooperation and development Organisation of 30 nations where high levels of wealth are evenly distributedPolitical groupings:Key Terms:Spatial Division of Labour: The common practice among large firms of moving low skilled work abroad to where labour costs are low

Trade blocs which allow countries to trade freely Agreements have been drawn up to allow flows of goods, money and sometimes workers to cross national boundaries Many mixed level countries to allow special division of labour Some trade blocs, e.g. EU allow free movement of people however most do not Benefits: Markets can grow as TNCs get access to new markets Firms that are good at the production of one product should prosper in supplying it to more markets Enlarged market increases demand, this is economies of scale Small national firms can merge to create TNCs Some trade blocs may have other benefits associated with them Since WW2 countries need support from each other Job gaps can be filled

TNCsKey Terms:Assembly Industries: Manufacturing operations that take the products of many different industries and fit them together to create a finished goodTransnational Cooperation: A company that has operations in more than one countryBranch Plant: A factory built in a country by a TNC, which has its headquarters somewhere elseConsumption: The purchase and use of commodities and servicesGlocalisation: The local sourcing of parts by TNCs in places where they assemble their global productsParent Company: The original business that a TNC developed around and whose directors still make decisions, which affect the organisation as a whole

Architects of globalisation Have supply chains all around the work Roots in colonial companies such as the East India Company TNCs may build their businesses through buying foreign firms and carrying out mergers and acquisitions Much manufacturing or labour is subcontracted to third parties Most are assembly industries: Rely on chain of suppliers Some may be independent subcontractors, some owned by parent company Largest TNCs have branch plants in almost every country Products are consumed all over the world and are instantly recognisable Parent company is located usually in a HIC, where it registers its profits Promotes patterns of consumption Many have profits larger than the GDPs of countries 2003 profits of McDonalds was three times the GDP of Afghanistan Problems with supply chains Disrupted by Natural hazards Economic disasters Political uprising Oil spills Deglobalising is the most effective way to reduce the costs of globalisation Glocalisation: Large companies build global networks by setting up branches and call centres abroad, or by completing international business deals They used glocalisation strategies to build a customer base in different countries This allows the consumer to feel safe Also the local sourcing of parts or items for a product, lowering costs Therefore they can customise their products for the market E.g. Burkini Barbie McAlooTilcki Kosher Subway McCurry Pan Dark stores: Supermarkets we dont see Food ordered online and it is picked and delivered from warehouses 6% of grocery shopping is done online Winners and Losers: HICs Generally winners with increased profits and consumers get lower prices Local businesses may loose outAdvantagesDisadvantages

Raising living standardsTax avoidance

Transfer of technologyLimited linkages

Political stabilityGrowing global wealth divide

Raising environmental awarenessEnvironmental degradation

Increased employment in the formal sectorHigh paying jobs by immigrants

Chances to increase skillsCorrupt government

Exports for countryProfits back to home country

Multiplier effectBad working conditions

Indirect employmentChildren working

Factory workers will not be hired as wages too high LICs Generally losers as labour is exploited However many benefits TNCs bring to an area Wages generally higher than other jobs Taxation to the country TNCs can exploit the land FDI

Global NetworksKey Terms:Core: the most developed and highly populated region of a countrySwitched-on Places: Nations, regions or cities that are strongly connected to other places through the production and consumption of goods and services

Why, as places and societies become more interconnected, do places show extreme wealth and poverty?

Distribution of wealth Wealth is found mainly in North America and Europe These are cores, we can also see them in regions with less impressive levels of national growth Light up places are switched on However almost nowhere is completely switched offTechnology building networksA shrinking worldKey Terms:Shrinking World: Thanks to technology, distant places start to feel closer and take less time to reach

Simple forms of transport revolutionized the movement of goods and people New technology are helped global networks operate more efficiently and quicker Using these TNCs have built bridges between countries and airlines facilitate the international flows of tourists Main ways of building networks through technology Telephones Replaced a 3 week journey with instantaneous connection Core technology for communicating across distances In some places technological leapfrogging is taking place and people are using mobiles and have never used a landline The internet Large amounts of data can be moved and transferred instantly Office staff can work as teleworkers Things like movies can be created all around the world and sent back to be put together Air travel Faster airplanes with greater capacity increases passenger numbers GIS and GPS Data and broadcasts to everyone GIS can collect and manage satellite data anywhereNetwork and Flows Shows how places are linked together with points called nodes A particularly well connected node is a global hub Connections between these nodes or hubs are called flows They are the movement ofKey Terms:Cluster: A geographically concentrated group of connected industries and institutionsCumulative Causation: A model that explains why wealth becomes concentrated in certain placesExport Processing Zone: A small industrial area, often on the coast, where favourable conditions are created to attract foreign TNCsGlobal Hub: A settlement providing a focal point for activities that have a global influenceHuman Resources: The abilities and potential of the human population in terms of their education levels, their skills, the languages they speak and their capacity to innovate and inventMultiplier Effect: The positives spin-offs that follow an initial investment in a regionNatural Resources: Material found in the environment that humans have the technological ability and desire to useTechnopole: A cluster of technologically innovative businesses and research institutesTrickle Down: The positive impacts on peripheral regions of the creation of wealth in core regions

Money Raw materials Manufactured goods and services Value of world trade is now $70 trillion Rises by around 10% each year Information People Overtime places have become more Interconnected Interdependent

Switched on and switched offSwitched on Large networks/global hubs World cities Technopoles Core regions which are very well connected Natural resources Strategic location Coastline ideal for trade Oil resources Physical factors which aid growth of industry Human resources Large labour force Skilled labour Languages spoken Flows of international migrants, capital and TNC investment Governments have open to investment policies In HICs there is more time for trickle down to reach the peripheries In MICs there are many people still living in poverty even though there are global hubs They can increase the gap between the rich and poorSwitched off Less connected Many TNCs do not operate here Lack a global hub or strong flows of trade and investment If they do experience integration it is mainly dependence on aid and HICs Worlds richest 1% own 40% of global wealth Worlds poorest 50% own 1% of global wealth Cycle of povertyGlobal hubs in MICs and LICs HICs have trickle down from core to periphery MICs generally have hubs just in core with greater regional and social disparities LICs remain relatively switched off from global networks

Roots

How does evidence from personal, local and national sources help us understand the pattern of population change in the UK?

Analysing Population ChangeWhy? Policy makingKey Terms:Age-selective Migration: A movement of a particular age group or genderExtended Places: The movement of individuals between different levels of a social hierarchy, usually measured occupationally

Hospitals and schools Money for pensions and benefits Immigration laws Housing development Global competitiveness Type of workers Number of people of working age Economics Dependency ratio Interest TV shows such as who do you think you areHow? National UK census data since 1801, every 10 years Local data Dating back to Middle Ages Church records Personal Recollections and word of mouth

Skills Focus: Talk to your oldest living relatives Consult old birth and death certificates kept by your family or General Register Office in Southport Search online www.statistics.gov.uk www.esrcsocietytoday.ac.uk www.ancestry.co.uk www.familypast.com Overseas www.movinghere.org.ukUK Population change Family size 4.82 per household in 1851, 2.3 in 2011 Women take control of fertility from 1960s with abortion and contraceptive pill Urbanisation reduces need for children Population structure In 1931 7% of population was over 65 and 24% under 16 Now 16% are over 65 and 19% under 16 Top heavy population due to people living longer Life expectancy grown from 50 for men and 57 for women to 77 for men and 82 for women Migration and ethnicity Southeast drift of UK population Mobility of population increased Counter-urbanisation Age-selective migration Main ethnicity of migrants is Polish, then Irish then Indian EU accession and post-war commonwealth immigration Employment Decline of manufacturing jobs and increase in services, media and farming Increased women working since suffragette movement Introduction of minimum wage in 1999 As JSA decreases so does unemployment Social aspirations During 1900s average wages rose and more people entered higher education Increased social mobility Better social status of women

Reasons for the changes

Phase 1: before 1970s Still growing due to natural increase Death rate falling due to improvements in food supply, health and hygiene Took till after the post war baby boom for birth rate and death rate to level Population grew from 38 million to 55 million between 1901 and 1971Key Terms:Secularisation: A general decline in the significance of religious beliefs

Baby booms after both wars Long baby boom during prosperity in the 1960sPhase 2: after 1970s Population increasing more slowly Growth mainly due to immigration IVF advancements Grandchildren of 60s boomersNew baby boom? Births in 2012 reached highest level in 40 years Faster growth than any other EU nation (0.7%) Large regional variations Migrants of child bearing age fertility rate of 2.2 v 1.9 Changes in fertility Total fertility rate in 2005 was 1.79 Replacement level needed is 2.1 20% of women in UK do not have childrenReasons for trends Internal factors Falling births Since suffragette movement women are postponing having children till after work, average age is 30 Contraceptive pill in 1961 and abortion in 1967 and sex education Rising costs of living, children cost 150,000 Longer life expectancy NHS set up in 1940s, free on point of consumption Vaccinations for diseases such as flu Provision of universal education taught people about e.g. car seats and washing hands Risks associated with certain lifestyles are now more widely known Dangerous occupations are now mainly mechanised Medical advancements in cures External factors Falling births Global recessions Energy costs rising Longer life expectancy Health tourism Dangerous jobs migrated overseas

Greying Population Aging of the UK population is occurring Population over 60 is expected to rise to 26% by 2020 and 38% by 2050 Increasing dependency ratio Not enough taxpayers to support young and old population Economic cost By 2026 money spent on elderly will be about 30 billion per year Counties with higher elderly population, e.g. the coast, will see increased cost and strained services Strain on NHS More people claiming state pensions Housing shortages Between 1995 and 2005 average house prices in some UK seaside town trebled Responsibility and care Emotional burden on younger and middle-aged population People act as unpaid carers Less people from cancer and heart strokes and more from degenerative diseases e.g. Alzheimers Benefits Voluntary charity work Spending money on goods and services Earning money and paying tax Bringing wisdom and experience to politics and commerce Global greying Many countries, e.g. Japan, are already seeing this Other will start to as global medicine is becoming available Chinas one child policy has left them with a greying time bomb

On the MoveHow is migration changing the face of the European Union?

MigrationClassificationKey Terms:Displaced Persons: People who are forced to move, by war, famine, political persecution or natural disasterIllegal migrants: People who avoid border and immigration controls and enter a new country illegallyVoluntary Migrants: People who move for quality of life reasons, usually for economic gain

Long/short term National/international Voluntary/forced Legal/illegalReasons Push People move to get away from something Racial tension Environmental pollution War Natural Disaster Pull People are attracted to move to another area Excellent job prospects Access to good transport links Free healthcare Good schools Intervening obstacles International frontiers Cost of moving Facilitating factors Language Culture Media Ease of visas and permitsWhy do people migrate? Work (economic migration) Medical tourism (teeth whitening in Bulgaria) Retirement Sport (Olympics) FamilyIncreased migration Better global networking transport links, internet etc Relaxed boundaries between countries E.g. Schengen Agreement and EU Migration hotspots which attract large numbers of migrants More women taking up employment opportunities Higher demand for labour Increased mobility after WW2Migration hotspots USA, Europe, Middle East, Near EastFewer emigrants Sun-seeker migration slowing Decline in pound/euro and smaller pensionsForeign students rise Most stay between 5 months and 6 years Only 20% stay longer than 5 years Their fees are a major contributor to UK universities and collegesIllegal migrants Illegal migration to EU on rise 4-8 million illegal African migrants could be in the EU UK estimates is 0.5 million EU is an economic powerhouse very close to the conflict, civil unrest, poverty and famine of Africa Many cross over from Morocco to Spain Costs Migrants pay traffickers 1000-4000 each Sahara desert route is dangerous and many die along the way Fishing boats can be lethal Being caught can lead to deportationAsylum seekers If claim is granted then refugee allowed to stay Asylum claims peaked in 1990s and in 2001-2 but have fallen since Majority from middle and far east

Movement within Europe 1995 Schengen Agreement Proposed that all people living within the EU are its citizens and should be allowed to move freely within it As a consequence it abolished border controls between all those countries that signed Today there are 25 countries in Schengen agreement (not UK) Norway, Iceland and Switzerland have signed but are not in EU EU evolved from European Economic Community in 1993 To begin with 15 countries were included After the accession of more countries in 2004 and 2007 it now has 27 countries A8 (2004): Cyprus, Malta, Estonia, Latvia, Lithuania, Poland, Slovenia, Czech Republic, Slovakia and Hungary A2 (2008): Romania and Bulgaria

Post-Colonial Migration 1920s British explorers colonised places around the world British built up empires in these locations After WW2 these empires broke up as countries started to claim independence More labourers were needed in UK to re-build war torn country Restrictions were lifted and workers flocked E.g. West Indians came to work in ammunitions in Merseyside and Lancaster British government recruited workers More than 60,000 Indians moved to UK by mid 1950s Many filled vacancies for NHS doctors More than 550,000 people who describe themselves as Caribbean and come form the former colonies Reduced discrimination West Indies High unemployment Sponsorship from those already in UK McCarren-Walter immigration act from US Attracted people from Indian sub-continent and family and friends Main immigrants went to London, Yorkshire, Merseyside, West Midlands, Manchester Three D jobs

Consequences of migrationPositive Demographic Multicultural societies Balances our aging population For 700,000 Eastern Europeans who arrive 2004-7 only 5,000 claimed benefits Welcomed by younger people with college degrees Contact theory sustained positive contact Economic Boosts working age population 20% low-skilled workers filled by non-UK Germany: 2000 paid to economy by migrants each year UK: raises GDP and controls inflation UK migrants pay 10% of taxes and use 9% of spending Contributions of international students helps subsidise home students Remittances sent home up to $233 billion sent home in 2006Negative Economic Unemployment of locals rising Discriminating against UK workers in east England 77,000 workers in East Anglia are eastern European Lower wages Benefits pay-out and fraud from asylum seekers Social Pressure on social housing More money needs to be spent on schools and hospitals Migrants vulnerable to abuse Brain drain skilled workers leaving Socio-political Anti-immigration sentiments and rise of nationalism France: National front UK: BNP Denmark: Danish peoples party Shutting open boarders Group conflict theory majority groups threatened Social unrest Paris riots Demographic Change to UK population structure

World CitiesWhat is driving the new urbanisation and what are its consequences

Why do cities grow?Push Factors Poverty Conflict Natural disaster Crop failure BoredomPull Factors Bright lights Housing Safety Health-care Education JobsRural-urban migration Push and pull factors mean people move to urban areas This then fuels investment and growthNatural Increase City dwellers have high birth rates, leading to natural increase which sustains internal growth Migrants are generally young and fertile Internal growth is responsible for around 60% Migration for 30% And 10% when suburbs are reclassified as urban

Understanding urban growth The poorest areas of the world have the fastest urban growth ratesKey Terms:Slum: An urban settlement in which, according to the UN, over 50% of inhabitants lack necessities

Cities in these areas can grow at rates of 6-8% per year, with much growth consisting of slums Population living in slums is likely to reach 1.3-1.4 billion by 2020 By 2030 the urban population will have risen to 5 million, or 60% of global population Asias urban population is set to rise from 1.4 billion to 2.6 billion in 2030 Africas urban population will rise from 300 to 750 million and that of Latin America and the Caribbean from 400 to 600 million In a developed world counter-urbanisation tends to balance the influx of migrants The more developed the megacity the slower the rate of growth

Where is growth occurring? In million cities and megacities Megacities increasing exponentially and are mainly in Asia Megacity vs Global Hub Megacity is just with a population over 10 million Global hub is defined by its global significance and the number of connections it has with other places around the world

Types of megacitiesKey Terms:Megacity: An urban area with a population of over 10 million

Immature Very rapid growth of over 3% Large informal economy Little planning, uncontrolled sprawl Many squatter settlements E.g. Lagos Consolidating Rapid growth of 2-3% Manufacturing economy important Attempts at urban planning Upgrading of slums E.g. Mumbai Maturing Slow growth of under 2% Mainly service industry Suburbanisation Effective attempts at housing, transport and land-use planning Good quality of life for many E.g. Beijing Established Very slow growth, under 1%, some are stable Dominated by professional series and retail Counter urbanisation and reurbanisation is taking place Since 1980 most have regenerated inner-city E.g. London Sustainable megacities? Can be unsustainable: Lack of adequate housing Poor health Weak urban governance Low environmental quality Poverty Millennium goal 7 Significant improvement in lives of at least 100 million slum dwellers, by 2020

Megacities and slums Developing world megacities contain growing concentrations of urban poverty Some 1 billion people live in slums, likely to grow to 2 billion by 2030 Two views of slums Hotbeds of poverty and potential unrest They can be improved to provide basic housing for the citys poor Some slums are in the inner city (Dharavi) Other are on the rural-urban fringe (Kibera) Many are located on dangerously steep slopes, next to polluted rivers, on marshland or near polluting industry Improving slum housing Eviction 6.7 million were evicted from slums in 2001-2 Disadvantages International condemnation Slums may reappear Trust broken between people and authorities Violent and chaotic People loose homes and businesses Advantages Rapid solution Allow infrastructure projects to be completed If new housing provided then could work Security of tenure 30-50% of people have no legal right to occupy the land Disadvantages Compensation paid to landowners No guarantee people will improve homes Encourage further illegal land occupation Advantages Utility companies will connect to areas with tenure Low cost Communities may form groups to improve conditions together Site and service Roads, water and sewers before slums develop Disadvantages Expensive Careful planning and choosing of sites Rent will be needed so deters poorest Advantages Prevents urban sprawl Secure tenure is built in Sanitation and water have major health benefits Self-aided help Local councils and NGOs give materials to help improve conditions Disadvantages Process is slow Standards of construction may be slow Advantages Costs are low Build community spirit Examples Social housing for the 1990s Cingapura Project in Sao Paulo 10,000 low cost housing units Built 14,000 homes and spent $300 million but home 45,000 Slum improvement in 1980 and Orangi Pilot Project in Karachi, Pakistan Sewers improved conditions for 1 million dwellers Improving health and environemtn External aid is required to break the cycle of poverty Great Cairo Wastewater Project began in 1982 and is still going Engineered solution are unusual and costly Small scale projects by NGOs are often implemented Transport and environment Most megacities have severe air pollution In 2007 70% of residents in Calcutta had respiratory problems Ecocity?