Development and Globalisation Essay

gross domestic product- Gross Domestic Product the value of all the goods and go produced in a commonwealth in a course of study, in $US, comm only when expressed as per capita (per person). PPP (purchasing power parity)* figures atomic blade sense 18 much commitful. *Ad cleaned for loss of living GNP- The total value of goods and services produced by virtuoso country in a course of study, plus all unclutter income earned from everywhereseas sources, in $US. HDI- homophile victimization Index It is a summary composite index that measures a countrys f personal line of creditish achievements in iii basic aspects of human divulgement strongness, kat once guidege, and a fit standard of living. Life Expectancy Literacy Rate Standard of Living (measured in GDP per capita) It births a more(prenominal) than(prenominal) complete picture of t all(prenominal)ing of a country than GDP al wiz as it considers social factors and non serious frugal factors. informati on Continuum Originally in that location were three groupings that cook up up the victimisation continuum, they were First reality (those verit fitting countries that had a democratic presidency and a strong preservation) Second World ( communist countries) third gear World (UN positive countries)However as era has gone on newer economies necessity started to develop caused by dissimilar festering intents and speeds. The Development fracture The gap in the midst of rich and shortsighted countries Most commonly, the gap is thought of in wrong of income/economics It in any case social, milieual and purge political aspects There was a suggested North/S come forthh divide originating from the Brandt report in 1980, where the north accounted for 80% of GDP entirely only 20% of the state until at a time this besides requires virtually artistic licence and is a truly general means of dividing countries.There atomic number 18 more accu sum up ways of g rouping countries as listed be modest and as countries move through the breeding continuum countries pass from one category to an virtually other true (MDCs the most intumesce developed countries eg. UK) Developing (Countries which atomic number 18 undergoing using arguably they all argon. Eg. Malaysia) LDCs (Least Developed Countries eg. Ethiopia) NICs ( new(a)ly industrialised Countries Have just finished ripening (10 geezerhood or so) Eg. chinaware) RICs (Recently Industrialised Countries Further behind than the NICs eg. Dubai) centrally Planned Economies (The few remaining communist countries eg. North Korea) Oil abounding Countries (Countries rich in oil color eg. Saudi Arabia) Causes for the Development Gap Colonialisation compound powers took resources from poorer countries Price of commodities is often concealled by TNCs ensuring juicy profits for MEDC firms and low prices pay to LEDC producers Fair hand set up in reaction to this. LEDCs are now primary election producers producing low cost commodities, e. g. bananas Primary commodities entertain fall in price, or stayed steady, while commodities they assume has improverd, e. . oil What is preventing the Development gap from closing? numerous LEDCs main be is as primary producers mainly low profit Internatnioal pile dominated by TNCs Rapid The Asian Tigers Who or what are the Asian Tigers? Asian economies that nurse girded economically at such(prenominal)(prenominal) substantial rates that check come to rival the earning skill and quality of living of those world first- universe countries mainland mainland chinaware, Hong Kong, Singapore and S divulgeh Korea. realitywideisation Globalisation The affix inter-connection in the worlds economic, cultural and political systems. Positives contradicts Allowed the relocation of pot more easily Uncontrolled migration augmentd unusual escape Inequality in wealth More nark to food, services, w ellnesscare etc. ll over the world fundamental environmental cost redness of countries item-by-item cultures, orbiculate cutters Globalisation began in the 19th coke as thither was the beginning of movement of stack and goods Increase in in take careence Increase in trade as well as the gap of sedulousness Beginning of Trans discipline Corporations. Globalisation saved in the 20th century and was shaped by a play of factors including 1.Emergence of free markets ( majusculeist miserliness) 2. deregulation of world financial markets 3. The establishment of the General Agreements of Tariffs and treat (GATT) the WTO which sought to displace trade barriers. 4. The emergence of trade blocs 5. The establishment of the IMF and the World situate 6. Development of global marketing and the continuing rise of TNCs. Flows Capital o ICT allows nickel-and-dime(prenominal), rock-steady and almost instantaneous communication o Allows sharing information o Allows transfer of c apital o Allows Marketing around the world tug o Improved stockpile for people Size of air deal o Low cost airlines o tall speed educate links o Specialised operate oners- doctors, ICT etc. o Un practiced workers Products and services o Integrated networks o honests handling o Com redacting logistics o Container revolution o Improved tape drive for goods o Global marketing, the world as one market and make water supply products that fit various regional market places e. g. coca- pinhead and McDonalds Patterns of fruit, distri only whenion and consumption Manufacturing has gone from developed countries to lower engage economies. This is kn suffer as the GLOBAL SHIFT, which is brought about by FDI by TNCs. umpteen LEDCS fuck off benefited from the transfer of applied science which has meant these countries stooge raise their productiveness without raising their wages to the level of the developed countries. This has data track to the de-industrialisation of richer co untries and the counsel on tertiary and quaternary patience. There has similarly been outsourcing of service operations, such as call centres, Mumbai, this extends the influence on a global scale also the utilization costs are a lot lower even though there is a highly educate custody. Positive and negatives of the global shift Positives for MEDCs shuns for MEDCs Movement of polluting industries away from their country Could lead to wide spread un art Growth in LEDCs whitethorn lead to demand for exportations from MEDCs expiry of skills Cheaper imports can keep the cost of living down benefiting the retail Negative multiplier effect scene of action mammoth gap surrounded by skilled and unskilled workers who may experience Labour market flexibility and capability extreme redeployment differences Development of new technologies star to investment deindustrialisation of some areas, such as the North Help to tame inflation Positives for LEDCs and NICs Negatives f or LEDCs Development of new industries Rapid urbanization and rural-urban migration increase employment Westernised approach to frugality Helps to reduce development gap change magnitude environmental monetary value die to polluting industries increase FDI and investment which can lead to change services such as Exploitation of dig substructure, health care and raising Disruptive social impacts Increased exports service of processs BoPs, and increases income and GDP Over-dependant on one industry New technologies Destabilises food supplies, slight agriculture wellness and safety issues because of tax legislation Patterns of production and solvees In manufacturing there has been a global shift of marketing from MDCs to LDCs.This leads to Foreign Direct enthronization (FDI) by the TNCs. This has led to the de-industrialization of MDCs but means that they can also be more productive referable to the transfer of technology. Newly Industrialised Countries (NICs) F irst Phase Asian Tigers (Taiwan, South Korea, Hong Kong and Singapore) started to appear in the 1960s, as developed countries experienceed at their less developed neighbours Rapid industrialisation due to the increased spread of TNCs. They share similar characteristics which allowed for such industrialisation greathearted macrocosms Well educated populations Culture work ethic less(prenominal) steadfast laws on health and safety governing support through loans and grants affirm less on foreign support and set up their own businesses such as the Chaebols in South Korea, comp raise of companies such as Samsung, LG and Hyundai This has now become a multi discipline and located in several disparate countries. Second Phase As wage prices increased in the primary TNCs (The Asian Tigers) Countries that could offer lower wage prices such as Malaysia, In fatigueesia, The Philippines and Thailand, Mexico and Brazil Third Phase China and India, Turkey, South Africa and the Philippines China has seen the high-velocity rate of economic ripening of any country Indias industry is heavily found around services which accounted for 50% of its total GDP. New TNCs are now being set up in Indian such as Infosys, Bangalore. Positives of India Constraints of India pear-shaped English speaking population different countries are beginning to compete Costs 37% lower than China Negative reaction in MEDCs Costs 17% lower than Malaysia ascension wage rates Professional salaries ? of UK and USA High cost of culture Low telecommunication costs Negative impacts on quality 24 hour working(a) to fit with m differences Corruption and relyruptcy considerable labor force for labor intensive jobs e. g. all centers Command economy, governemtn speding on subsidies rather than investment IT college graduates, 2 million/year Infrastructure beyond major cities is poor Literacy only 61% Growth in the twenty-first carbon Emerging Economies account for 70% o f the global population, countries including the BRICs (Brazil, Russia India and China) as well as countries such as the UAE and South Africa. The increase has been due to exalt living standards Increase opportunities for the population Increase FDI Become more of a world player with market to an international standard Countries at very low levels of economic development LDCs The countries were outlined by the United Nations and of the crystalize 50 33 are in mill-Saharan Africa. They are outlined by the undermentioned Low incomes ($800 GDP per capita over 3 geezerhood) Human resource weakness, nutrition, health, education and literacy sparing vulnerability shown by signs of dependency on one industry Many of them suffer from widespread conflict, disease, geographical dis expediencys, urbanisation and fast urban growth (demographically speaking). Quality of Life Most of the population cannot afford basic immunities Resources of such countries are not evenly distribut ed. Attempts to reduce poverty High population growth rate means that numbers game living in extreme poverty are increase. Many of these countries depend on FDI Debt From the 1970s onwards some countries found themselves in a debt crisis because the borrowed full-grown amounts from the developed world. For many countries at low levels of economic development that breaking free of poverty can only ever be a vision. There are certain policies being hurl in place by the IMF and the World Bank to help free the HIPCs They have provided debt relief and interest free loans. SAPs Structural adjustment programmes o Government spending cutbacks to fund debt repayments o Mexico was the first country o 3 main aims- ? Promote exports- integration and liberalisation ? Reduce politics spending- privatisation and trim costs ? Encourage foreign investment o Both talk borders and poor countries have had SAPs applied o closemouthedly success but SAPs could make matters worse oddly fo r the poorest people because- Loss of quote and subsidies from the regimen ? Food production falling ? Devaluation of currency leads to dramatic rises in prices ? Less spending on health and education by brass other scheme, the Multilateral Debt Relief Initiative (MDRI) Aimed to cancel the debt of the HIPCs per capita income US$380 a year or less would be eligible for MDRI debt relief from the IMFs resources sociable Problems Lack of income, healthcare, education, sanitation etc. The Millennium Development Goals were set up specifically to help countries out of the cycle of poverty barely they dont look well to be completed in 2015 (the authentic target).Global, Social and Economic pigeonholingings Trade Bloc is a group of nations who have joined to stimulate trade and benefit from economic cooperation. The countries involved agree to free trade among them but impose dutys on goods from countries away(p) the bloc. Made for a variety of reasons To further socio-econom ic development To increase alliances and trade To allow free movement To prevent war Types of groupings allow in- handsome trade areas- tariffs and quotas are reduced on goods amid members and restrictions are put in place for goods attack in to the area e. g. NAFTA Customs unions- tariff on imports from outside the group e. g.Mercosur Common Markets- like customs unions but with greater freedom of movement of labour and capital, e. g. previously EU, current physical exercise East African Common Market Economic matings-all of the above as well as member states are also required to guide common polices in areas such as agriculture ( pennant) fisheries, transport, befoulment (Kyoto agreement), industry, vim and regional development e. g. EU Positives and negatives of trade blocs Positives Negatives greater chance of cessation between member nations. Having to share economic resources Faster and smoother economic development Many countries leave alone have to pay a l arge sum of bills regularly to be in a Trade barriers removed trade bloc Higher standard of living. Elites can shake off a disproportionate amount of power. Certain areas of a national economy can be supported eg. Agriculture If one courty falls in to ecomic crisis the rest of the member states are through the CAP. realised People quest work can move between member states EU. Non-member states badly affected, escape of trade Possibility of a common currency- Euro Loss of sovereignty Greater political influence Loss of some finacail controls e. g. European central savings bank If countries become indebted member states can help bail out, Greece, Ireland. Aspects of globalization TNCsTransnational Corporations are companies that operate in over two countries usually having their research and headquarters in the country of origin and locating the manufacturing implants overseas. As an shaping becomes more global, regional R&D and headquarters provide develop. TNC s can be split in to three different groups concord to what industry they are- Resource inception o Mining, gas extraction and oil producing o ExxonMobil, Royal Dutch Shell and BP Manufacturing o high tech ? Computers, microelectronics, pharmaceuticals ? Hewlett Packard, GlaxoSmithKline and AstraZeneca o Consumer goods ? Motor vehicles, televisions and other electrical goods Many of these are collection industries ? Ford, General Motors, BMW, Sony o Mass produced consumer goods ? Cigarettes, drinks, breakfast cereals, cosmetics and toiletries ? Coca-Cola, Kelloggs, Unilever, Heinz Service operations o Banking/insurance, advertising, freight transport, hotel chains, fast food outlets, retailers o Barclays, AXA, McDonalds and Tesco Growth of TNCs Why do TNCs expand to different countries? Larger populations with cheaper Labour Costs Better government policies such as grants, lower taxes and subsidies Less stringent rules on employment and contamination Fewer restrictions du e to trade barriers Greater supply of rude(prenominal) materials To take advantage of trade indoors trade blocs Allowing them to grow thereby achieving economies of scale, reducing costs, finance new investment and compete in global markets Allow them to set up in markets that they want to sell in To acquire geographical flexibility so that they can shift resources and production between locations to maximise profits To serve a global market, TNCs may globalise production by- Produce for the market in which the plant is situated Use one plant to produce for a number of countries Use integrated production Source parts in places where they ensnare their products close to the market, GLOCALISATION Impacts of TNCs on a host country Positive Impacts Negative Impacts Employment Competition Injection of capital into the economy Adverse effectuate on elevationical anaesthetic companies which business leader not be as expeditious More disposable income will create a demand for more environmental concerns housing, transport and topical anesthetic anesthetic services Less stringent pollution laws so more pollution allowed Multiplier Effect Labour using enthronement by a TNC can trigger more employment by Exploit cheap, flexiable, non-unionised labour forces in developing countries cumulative precedent bringing greater wealth to the Minimum age area urbanization New working methods Factories built in major urban centres leads to jr. workers migration to the area Transfer of technology will create a more skilled Negative effects on the rural areas workforce. Removal of capital JIT developed Profit back to country of origin Escape Tariffs/trade barriers e. g.Nissan in Outside decision making Sunderland Plans effecting the development of plants are do in host country to boost profitability To take advantage of government incentives, subsides,Little consiereation for local people EPZs (export processing zones) etc. Dependancy on TNC Lo wer costs especially labor More westerniese approach to biography To reach foreign markets more effectively To exploit mineral and other resources Development Issues inwardly the world Trade vs AidTrade is deemed as the more sustainable path out of the two to economic development as it helps to promote the growth in the volume and value of goods, leading to jobs and greater incomes, some of this income will help to generate domestic demand leading to investment and the multiplier effect. This will also lead to rising living standards and gaining of skills by local people However it relies on three factors Ad option of capitalism Economic growth to filter out don so everyone benefits Promotion of free trade This is a similar path that was interpreted by the MDCs and more recently the NICs. However many of these NICs had largely stable governments, a well educated workforce and they utilise protectionist policies to stimulate growth e. g. tariffs and import quotas. Howeve r there are calm troubles with trade for a variety of reasons They cannot be competitive in world markets as they need to invest in equipment, technology and training to make business productive and then infrastructure etc. Schemes like the CAP gash mainly agriculturally based LDCs Wealth does not always trickle down to those who need it, like attend to. Debts mean they would have to make millions forwards they made profit and due to the cuts imposed by the World Bank and IMF it often means there are public spending cuts especially on health care and education Aid can be either 1. Bilateral from government to government. 2. Multilateral Where collective governments donate to an organisation (such as the World bank) who the distributes it to suffering countries. 3. Voluntary Where crushed NGOs send workers to help. NGOs such as OxfamAid is not always in the form of property sometimes it is in the form of goods or technical assistance. There are also several ways fear ca n be de go throughred tied aid o Will curb the power of nations and may last cause resentment Short- call aid o Usually following an emergency such as groundquakes or tsunamis o This can be help with rescue operations o Medical supplies, shelter, food and irrigate Long-term development projects o Improving food availability and market-gardening methods o Helping to provide improved shelter o wellness care and education o Developing better keeps and upward(a) income o CAFOD, Catholic Agency For Overseas Development Top down aid Throwing capital at a country and allowing them to get on with it. o It usually focuses on large scale, expensive projects which are unsuitable for the local community. , such as HEP projects e. g. Nepal o It often doesnt go to the people who need it most o Usually tied interpenetrate up o More helpful to the local community however still bring their problems. o Small scale o dispense the individuals as individuals with creativity and intellige nce o They work with people to create what the community most ineluctably and supply the materials o They can undercut local business. However aid is not perfect and may critics show- Aid does not reach those who need it the most, it is kept at the top by the government Aid is often used ineffectively on large scale, expensive projects which are often left uncompleted sometimes countries dont even have the correct infrastructure to use the aid effectively Dependency can be created which is often not sustainable is aid is a large proportion of national income fasten aid comes with strings attached, in some cases with every long horse stipulation in aid $7 is given in return Economic vs. Environmental Sustainability Development that meets the needs of today without compromising the needs of tomorrow This would be achieved by Human potential being improved The environment is used and managed to supply people on a semipermanent prat Implies social justice as well as long te rm environmental sustainability The capacity of the environment to provide resources and absorb increasing levels of pollution is the critical thres back up controlling how far population can increase and economies expand sustainably The Rio Earth summit set out the following points for each aspect of sustainability. Environmental Principles People should be at the centre of concerns States have the right to exploit their own environment but should not damage that of others protect the environment is integral to development People should be informed of projections for the rising as well as the current environmental land site There should be environmental legislation and standards within states Laws should be enacted regarding obligation for pollution The movement of substances that are harmful to others should be restricted States should chide neighbours of any environmental unease EIAs (Environmental Impact Assessments) should be carried out on all major plans Economic Principles The right to development must be fulfilled so as to meet development and environmental needs of present and future generations States should work together to eradicate poverty in order to decrease disparities in living standards The needs of the poorest countries should be put first Unsustainable production and consumption patterns should be eliminated States should cooperate to restore the earths ecosystem Scientific information and innovative technologies should be transferred to improve appreciation States should support an open economic system, with few trade barriers and tariffs National administration should endeavour to promote the internationalism of environmental costs, taking into account that the polluter should pay For anything to be effective it must strike the right proportionateness between the three core principles economic, social and environmental. sustainable tourism story or reality? As tourism is an increasingly expanding, billion dollar industry, it has increasingly been looked at to become more sustainable. Up until now it has followed this pattern The environment collects tourists for its ripions The money spent should help to maintain these featuresHowever as tourist flows increase it starts to do more harm than good, particularly to small areas which cant deal with the massive influx, this can lead to the destruction of invoke land to golf courses, and write downing inseparable habitats such as chromatic reefs, sunk by water sports ,e. g. Philippines . Sustainable tourism seeks not to destroy what it sets out to explore It attempts to make sure that It preserves natural resources for future generations. The local communities and their culture are recognised as the most serious in the tourist sector Economic benefits of tourism must partly go to those who are local to the area Everything is command by the wishes of local people and communities At the Rio Earth Summit an environmental checklist was drawn up to show how the tourism industry could become more sustainable, these included angry minimisation, land use, re-use and recycling Energy efficiency, conservation and management Transport water supply (freshwater and waste) Land use planning and management Involvement of all stakeholders in the planning Involvement of staff, customers and communities in environmental issues Sustainable tourism is an industry committed to making a low impact on the natural environment and local culture, while helping to generate income and employment for local people. Tourist can help by Being informed of the local culture, politics and economy Respecting local cultures Contributing to local cultures and tolerance keep local businesses and traditional values Use the least amount of local resources Ecotourism Is one of the fastest growing sectors within tourism An economic process by which rare and beautiful ecosystems and cultural attractions are marketed internationally to attract tourists Planning and management is an important factor o Capacity is managed o Encourages conservation, by educating local people and tourists o Focuses on the environment Criticised for being egotourism in some cases. Sustainable ecotourism must o Have a limit to the number of piffleors to sustain the environment o unbending up and execute in cooperation with local people Case Studies Measuring Development- HDI HDI = 1/3 ( deportment expectancy index) + 1/3 (education index)+ 1/3 (GDP index) Advantages Disadvantages governmental competitiveness Does not take into account poverty More factors and rock-steady ones PPP values change very quickly, inaccurate or misleading. calorie-free and cheap to collect data Little sense of income distribution shorten of welfare in the future, improving health and education, Quality of life does not seem to be that closely linked supply-side policies which can indicate the long-term patterns of AS Doesnt take account like war or political oppression. curve Based on normative economics. The success of government policy Other measures such as access to internet cleverness be more important. Easily comparable to other countries Changes over time ceteris paribus Comparing 2 countries, Nepal and the UK Measure UK Nepal HDI 28/187 157/187 Life expectancy 80. 68. 8 Expected years of schooling 16. 1 8. 8 GNI per capita, PPP familiarized 33,296 1,160 Pop. Living on $1. 25 per day % 0 78. 1 universe with at least secondary education , fe manful 1. 015 0. 48 male Sustainability, Change in forest area (%) 9. 8 -24. 5 % of population living in urban areas 79. 8 19. 2 Sub Saharan Africa A country at low levels of economic development Sub Saharan Africa contains many countries with the final HDI ranking in the world. Many hold backs from development including war, disease, famine, debt, lack of infrastructure etc. They need large amounts of FDI that will not leave them in a worse situation than when they started. HDI, lowest ranked are Mali, Sierra Leone and Niger (all with an average of 0. 33) The top, ranked 119th and 120th in the world were Gabon and South Africa. TNC-Barbie in Taiwan -global shift of manufacturing Barbie, an American alliance Mattel , was produced a Japan in 1959 Has seen a global shift in manufacturing since it started. They moved to Taiwan in the 1960s to take advantage of cheap labour costs and increased scale of production. At its peak Taiwan alone made more than 50% of all Barbie dolls in the world. within 20 years Taiwans incomes began to rise which then led to Barbie moving somewhere else Mattel opened its first factory in China in 1987, wage prices were much lower and gradually production was actor there. Today Mattel produces Barbies in China, Indonesia and Malaysia taking advantage of the second gunpoint of NICs, the Tiger Cubs. Taiwan has further benefited from globalisation, as it is now kin to companies that manufacture most computers and MP3 players such as BenQ TNC-Coca Cola Global Marketing A company with a single product in which minor elements are tweaked for a different market. The company uses the said(prenominal) formulas, one with sugar and one with Corn Syrup for different markets. The bottle design is the same and is correct depending on different countries standards. The only countries in the world that do not sell Coca Cola are Iceland, North Korea, and Antarctica. It is not sell in Iceland because all bottles must be the same shape as there is a large recycling project and coca cola refuse to change the shape of their bottle as it is part of their stake Labour costs may be lower in some countries, especially LEDC countries. Low labour costs = higher profits command on working conditions, workers rights, health and safety, and the environment may be less strict in some countries. Relaxed legislation = lower overheads = more profit. near countries may try to encourage multinatio nals to invest in their countries by pass lower tax rates and financial incentives.More favourable gross = lower overheads = more profits. Unilever Unilever is a very widespread (branches in 90 countries) include most countries in N S America, Europe, Australasia, Russia, China, India, a number of African countries = MEDCs, NICs and some LEDCs Sales also very widespread A lot of African countries (many LEDCs and LLEDCs), Greenland, some countries which were part of the old Soviet Union (Kazakhstan, Uzbekistan, Turkmenistan, Tajikstan) Very few countries where Unilever has no presence Asian Tiger- South Korea thirteenth largest economy Strong government Highly skilled and motivated workforce Large amounts of trade with a positive BoPProblems Move to nation takes time Large ripening population Unequal pay for women and poor working conditions for 52 hours a week Pollution with poor saying in infrastructure, roads and sewage BRIC economies It is said that these countr ies will be dominant allele by 2050, these brick economies, dont just rely on export industries like the 1st generation NICs. Brazil emerging economy death chair Lula, who began in 2003 took the economy out of dept and is now a stable country Generates $1. 5 trillion GDP/year Reliable power, with sustainable sources, such as hydro electric power, sugar cane, bio fuels, sustainable in own Tupi oil fields FDI is the 4th largest in the world, $45 billion each year Very easy to communicate with Emerging middle class Good highly skilled work force However there are some areas where Brazil will need to improve if its development is to continue being sustainable- Will become a increasingly aging population Destruction of the rainforest Increasing cost of manufacturing Poor infrastructure Unequal society Slow national growth Increased umbrage and corruption 25% of the population live in poverty, favelas, Sao Paulo China Third Stage of NIC Development In 1978 China began to follow the path of development of the Asian Tigers through an export driven road to development. Communist control was relaxed to allow this to do so. Foreign investment and joint ventures was encouraged. The internationalisation of the Chinese economy is also called the GUANXI NETWORK referring to the connections that exist between Chinese people and companies scattered all around the world In order to attract foreign industry in SE China, 14 open coastal cities and 5 Special Economic Zones were set up. They allow tax grants which would give more profit and were in favourable locations, geographically, to work. Labour was 80% cheaper in these areas There was a large amount of FDI for the bulk of the twenty-first Century Receiving up to $50 million per year. In 2006 they received $63 billion, their highest preserve figure. Sustained growth of up to 10% one of the highest in the world. China became part of the WTO meaning that trade went from just over $250 billion to jus t under $1 trillion, almost quadrupling as they got greater access to global markets. Problems Dramatic gap between rich and poor large rural/urban migration has left thousands in the countryside isolated as well as a decrease in agriculture meaning that poverty and famine has spread. Deterioration of environment and use of natural resources Dependent on the economy of the buyer Putting other populations before their own Development of two Chinas, east and westChongqing largest urban industrial city in the south-western part of china, 32 million people A major focus on migration and of the western development policy South of the Gorges Dam population grows by 500,000 people a year Chicago of china Heavy industry dominates Large pollution problems, air sewage 2000 tonnes of waste a day India NIC driven by services Many people take that the Indian service sector is driven by call centres however its involvement in the service sector it accounts for 50% of GDP as there is a high population of skilled workers. Software and IT companies have been attracted to India because- Second-largest English speaking human resource in the world Investment friendly and supportive government politics Good infrastructure for power, transport and data communication Worlds third largest brain bank Stable democratic with over 50 year of independence Large market size Investment and tax incentives for exports in certain sectors such as electronics, telecom, software and RD The UK and USA has fuelled the service sector in India as Indians migrated to gain skills which they would take back to their home country. such(prenominal) skills were used to set up companies like Infosys which is now a TNC based in Bangalore. Bangalore has become the centre of ICT because- First state to set up engineering collages First t set up a technology university Grants and tax incentives for the IT industry 1991 software technology park was built direct over 6 technology parks Infosys one of the largest software companies in India Founded in 1981 and had first foreign clients by 1987 Overseas offices in capital of Massachusetts and in MK 455 of workforce based in Bangalore Growth in the 21st century Dubai An RIC Dubai is located in the United Arab Emirates Globally central as it is half way between London and Sigapore Fastest growing economy Its economy boomed upon the discovery of oil in the 1960s. There was a growth of 300% between 1968 and 1975. There was rapid immigration. To make itself less dependent on oil, Dubai invested in new infrastructure which attracted FDI and now Dubais economy is heavily based around tourism as well as banking Oil and Gas currently occupy less than 5%. Borrowed money to fund many projects One of the countrys most effected by 2008 market crash, massive inflation problems Chinese and Indian banks brought a lot of Dubais debts Social problems Vast numbers of immigrants Poor working conditions, 20 hour day in some cases, because people took out loans to get to Dubai, and now due to little work they have to work all hours to get as much money as they can Live in poor conditions in tent cities out of the existing city Passports are taken by employers on arrival Environmental problems High electricity cost and rising carbon emissions Sewage because there is not enough water, as the city is in a desert, water is more expensive than oil Nuclear waste Adu Dhabi, must look to help out by providing solar energy Countries facing low levels of economic development Nepal One of the poorest countries in the world 157/177 in HDI Its GDP per capita is also one of the lowest at $1,049 Shortage of energy, supplies Little money to spend on development collectible to relief little transport infrastructure, remote communities Mainly subsistence farming and tourism 78. 1% of the population live on less than $1. 25 a day Little education and health care provisions HIPC- Tanzania 40% of the po pulation live down the stairs the poverty line HDI is ranked 152 Life expectancy is 58. 2 one-year GDP per capita is $800 75% of employment is based on agriculture Literacy rate is 64% Reasons for poverty Topography and climatic conditions limit cultivated crops to only 4% of the land area Industry- mainly limited to agricultural products and light consumer goods pendent on agriculture which accounts for half of GDP Products include coffee, cotton, tea, tobacco, cashews and sisal which are highly competitive and have falling prices Tourism is booming especially in the National Parks Attempts to help Government a national poverty eradicated strategy- to reduce abject poverty 50% by 2010 The World Bank, IMF and bilateral donors have provided funds to rehabilitate Tanzanias deteriorated economic infrastructure Structural Adjustment Policies, SAPs, poverty reduction strategy papers Vision 2025 programme set the goals of a high quality of livelihood by year 2025 peace, s tability and unity a well educated society and a competitive economy based on sustainable growth and equity UN MDGs The results of attempts to help Tanzania not improved quality of life Income and welfare indicators fell Even more dependent on foreign aid Increased environmental damage Pick up in industrial practice including gold and natural gas Increase insular sector growth Recent debt relief in Tanzania One of the poorest countries in Africa even though it had some of its international debt written off $3 billion will be discounted over the next 20 years Tanzanias total international borrowings of more than $7 billion Socio-Economic Groupings NAFTA USA, Canada, Mexico get along up in 1994 Aims To eliminate trade tariffs between the three countries, pushed by the establishment of other socio-economic groupings like the EU. Mexico saw it as the best option as it had built up debt in previous years. Pros Cons Trade between member countries tripled in the first 13 ye ars. Canada has been affected by the US increase Increased employment in the USA as manufacturing grew Some US jobs have been lost as the plants have moved to Mexico Mexico got increased FDI as other countries wanted to locate inside Dumping in Mexico NAFTA. Mexico is being exploited because o less rigid pollution laws which affects meet countries EU 27 member states, set up in 1957 as the European Economic Community Aims Promote social and economic progress amongst member states Have more government influence Introduce EU citizenship Prevent war Create better laws Positive impacts Negative impacts Group activity on waste, pollution control and climate change Loss of sovereignty over some decisions Common currency Greece and Spain situation Large labour market due to ease of movement Sharing fishing grounds CAP support Power of elite Peace in EU Small areas fell isolated Unilever TNC Set up in 1890 by William Hesker Lever, who owned a soap company which revoluti onised Victorian hygiene Unilever was formed by the merger of the Dutch margarine producer margarin Unie as they had the common raw material palm oil In 1937 Lipton tea was acquired and in 1957 birds eye joined Colworth House facility near Sharnbrook continued research efforts in food preservation, animal nutrition and health problems associated with toothpaste, shampoo and other personal products. It is one of several R D centres In 2008, the companies had over 300 manufacturing sites in more than 100 countries crosswise every continent Unilever employs over 170,000 people and has annual company receipts of over $50 billion in 2007. Unilever has had problems with animal testing, child labour and disforestation due to the use of palm oil CAFOD- long term and short term aid Aims are to promote long-term development respond to emergencies raise public awareness of the causes of poverty speak out on behalf of poor communities and promote social justiceLong-term aid Improving food availability and farming methods Helping to provide improved shelter Health care and education Developing better livelihoods and improving income Short-term aid Provide aid to disaster stricken countries Set up temporary shelters for those left homeless Democratic Republic of congou tea (Kinshasa Goma), Ethiopia, Kenya Swaziland top Down Aid Top down development is usually difficult as often hundreds of thousands of peoples needs need to be catered for and it is difficult to satisfy everyone. The ideal goal is a communist state with a one size fits all approach. Swaziland is in southern Africa. It is ranked very low in the world for human development. Many individual concerns to deal with which weakened the country, AIDs, famine and drought. The number of orphans was increasing as the death rate did correspondingly. Several branches of the United Nations which were trying to help them such as the UN food programme, and a many NGOs. They were distributing trade food to hundreds of thousands of people which was ultimately a good thing. However, the farmers of the local area were not able to sell the produce that they grew Therefore not able to take advantage of the wet season that blessed them. There was also a state of dependency Difficult to draw the line between those who should receive aid and those who did not. Other top down aid include large scale projects such as structure dams and HEP place like those proposed in Nepal, this can lead to the loss of valuable farm land and can limit the water downstream, leading to widespread droughts. Nepal, FoST tail end Up Aid Foundation of sustainable technologies Treats people as individuals with ideas and creativity. Due to the lack of energy in Nepal and the reliance on wood, leading to deforestation and help problems in the home due to the amounts of heater Subsides the purchase of products including solar cookers and no-smoke indoor cookers Educates people on how to make briquett es, which produce no smoke from waste, to prevent deforestation However there are limited resources to make the solar cookers and there for they are limited and rely on donations Not every community has the money to buy the equipment or has access to finding out about products Not sustainable in the long run if the donations stop Overall top down and bottom up development are both ways of narrowing the development gap, the gap between rich and poor countries. Both, like anything in life have pros and cons however the possible way forward is through micro-credit loans which give people the credit and respect that they deserve.This creates a successful and sustainable way of life and helps to promote individuals out of poverty. Economic vs. Environmental Sustainability Holes bay Economic Environmental High unemployment especially in Hamworthy gate Ramsar and SSSI sites rare birds and invertebrates 30 Ha of reinvigorated land, power station site 2nd largest natural harbor in th e world Poor access to Poole town centre The construction of the geminate sails span Environment- direct flow around the support pillars of the bridge cause deposition behind the pillars, May affect the tidal flats within holes bay, and Poole harbour Sediment becoming trapped within Holes bay building up the marshes Tidal salt marshes, to the build up of humus causing the build up of peat rising the level of the and creating fresh water marshes within Holes bay Poole harbours marshes could decrease in size Destroying many habitats for birds invertebrates and plants alike. Economic- Greatly over budget with its total cost coming in at over ? 37m Engineers spotted a large look into in the sur incline of the bridge making it unsuitable for use The development of the power station site will also cause an increase drain on local recourses such as schools and the area might not be able to cope, Increase the flow of traffic over the bridges. Not enough jobs generated in the area Increased population minginess and increased unemployment. Increased crime Brazil- Curitiba 2 million people in the population city wide service to recycle products Recycling and drivel system prevent waste issues, organic and nonorganic, with two different trucks for different types of trash The rubbish is sorted and distributed and reused this means that 2/3 of rubbish is recycled It also creates more jobs to help reduce unemployment Jaime Lerner, was an architect and later became city manager and designed the current layout of Curitiba The city has changed from being an agricultural area to a more industrial city Flood problems have also been solved by building the parks on the flood plains and making fake river banks around them this also prevents squatting and slums appearing in the parks Is home to many multinational industries, such as Nissan, Renault, Volkswagen, Audi, Volvo, HSBC, Siemens, ExxonMobil, Electrolux and Kraft Foods The per capita income for the city is $ 17,977 Sustainable tourism Nepal concentrated in certain areas such as Khumbu, Chitwan National Park, Annapurna National Park and the Sagarmartha National Park, The number of tourists increasing from 526,705 in 2007 to 710,547 in 2011, Actions must be taken in order to preserve Nepal. Problems with air pollution from the transport of tourists and fires getting trapped in the valleys due to the high mountains Increased demand for water and food supplies, taking away goods from the locals The same tracks are used by all of the tourists, erosion and destabilises the soil Increased the risk of landslides. Some tourists are also not respectful of peoples culture and the wildlife Poor sewage disposal Khumbu region problem with the amount of waste generated by trekking teams 500kg per team all waste must be taken down the mountain rubbish there have been clean up operations carried out during training and acclimatisation time of people who wish to climb Mt. Everest for people to pay the Sherpas to transfer down peoples rubbish Nepalese Government has begun charging deposits on tourists and are only returned if groups bring down their own rubbish Nepalese Government that they should limit the number of tourists Dismissed as it has been concluded that this will bring more harm than good, by limiting one of the countrys biggest industries they could face increased widespread poverty. Kenya, Kigio Tourism is the 2nd largest contributor of GNP later agriculture. One example of where agriculture has been replaced by tourism is Kigio. Kigio Wildlife Conservancy is a 3,500-acre saved Conservancy 2 hours drive from Nairobi. Originally a cattle ranch, sold by the family to the local community who after a few years determined to forgo cattle ranching in favour of wildlife conservation. The community now receives a regular income Conservancy fee each guest pays helps towards the maintenance of the conservancy. all-embracing ranging habitats Many wild animals, honey badger, and over 200 bird species Protecting nearly 100 species of indigenous plant species which are being destroyed outside the conservancy. The Conservancy is at the forefront of ecotourism in the Rift Valley lakes area.Guests are encouraged to participate in low impact activities o guided nature/bird walks, o cycling, fishing o Day or night game drives are conducted in open-sided 44 vehicles Lodges work closely with the local community and support several enterprises, schools and an orphanage. Guests can visit a group of widows that craft sisal baskets, a group that makes jewellery from recycled paper and a rug weaving factory. The lodges only sell what is made by the community and pay a fair price. A large percentage of the price is donated to the community fund. Every year, children from the local community and schools are invited to participate in ecotourism workshops To protect and improve their environment.