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Globalisation What is globalisation and how is it changing people‟s 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: o Trade
Especially after 1492 when Columbus reached the Americas and the traditional world economy began to take shape
o Colonisation
By the end of 19th century the British empire directly controlled ¼ of the world
The colonies were forced to share monarchies, cultures and trade
Key Terms: Birth Rate: The number of births per 1000 people per year in a
Globalisation, population change and migration Economic growth usually triggers an increase in population
region Death Rate: The number of deaths per 1000 people per year per
This is because of birth rates and migration Greater levels of international
region Economic Migrant: A migrant
migration are another strong influence
whose primary motivation is to
that globalisation has
seek employment Internal Migration: The movement of people between different
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 investment Periphery: 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 investment
Global shift of industry:
Manufacturing falling in the old core and raised in periphery areas
Core countries profit as they dictate to the new production lines
Transnational 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 world
Transport
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: o Standardised box o Easier and cheaper to transport goods o Economies of scale were used, reducing overhead costs and costs of production o 40ft boxes carry 95% of world‟s trade o Eleanora Maersk – largest container ship in the world o 7,500 containers and only 19 person crew
Computer 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 world
International organisations
Most important is the IMF
Channels loans from world‟s 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 relief
Markets
Increasing numbers of consumers in emerging markets
China has an estimated 30 million affluent consumers
Growth of major stock markets
Globalisation and population
Key Terms:
movements
Elite: A group of people who are
Globalisation can make the world seem
economically and socially powerful
like a borderless place
Foreign Direct Investment: A
People are seeing themselves as „global
financial injection made by a TNC
citizens‟, visiting and relocating to
into a nation’s economy
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:
o Television and radio allow those in rural areas to have knowledge of other places which trigger the migration, especially of youth o FDI that TNCs make in urban areas boost employment opportunities o 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?
Groupings:
Development Gap: The difference
Past:
Key Terms:
LEDCs and MEDCs, the „have‟ and „have nots‟
in levels of economic and social well being between the richest and poorest people Gross Domestic Product: A measure of the financial value of the goods and services produced within a territory Human Development Index: A
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 o A large number of previously poor nations are now relatively wealthy o Presence of rich elite make it harder to generalise about rich as poor nations
Economic groupings:
Nationals can be categorised by wealth and power
LDCs o Least developed countries o 50 states sometimes referred to as the „4th world‟ o Lack of engagement with globalising forces
NICs o Newly industrialising countries o Middle income countries with rising exports and average earnings o BRICs, MINTs and Asian Tigers o RICs (recently industrialised countries) for India and China
Ex-Soviet States o New 15 states after the break up of the Soviet Union o Usually LICs or HICs
OPEC o Organisation of petroleum exporting countries
o High levels of wealth but often unevenly distributed o 65% of oil reserves, 35% of production
OECD o Organisation for economic cooperation and development o Organisation of 30 nations where high levels of wealth are evenly distributed
Key Terms: Spatial Division of Labour: The common practice among large firms of moving low skilled work
Political groupings:
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: o Markets can grow as TNCs get access to new markets o Firms that are good at the production of one product should prosper in supplying it to more markets o Enlarged market increases demand, this is economies of scale o Small national firms can merge to create TNCs o Some trade blocs may have other benefits associated with them o Since WW2 countries need support from each other o Job gaps can be filled
Key Terms: Assembly Industries: Manufacturing operations that take the products of many different industries and fit them together to create a finished good Transnational Cooperation: A company that has operations in
TNCs
more than one country
„Architects of globalisation‟
Branch Plant: A factory built in a
Have supply chains all around the work
country by a TNC, which has its
Roots in colonial companies such as the
headquarters somewhere else
East India Company
Consumption: The purchase and
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: o Rely on chain of suppliers o 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 it‟s profits
Promotes patterns of consumption
Many have profits larger than the GDPs of countries o 2003 profits of McDonalds was three times the GDP of Afghanistan
Problems with supply chains o Disrupted by
Natural hazards
Economic disasters
Political uprising
Oil spills
Advantages
Disadvantages
o Deglobalising is the most effective way to reduce the costs of globalisation
Glocalisation: o Large companies build global networks by setting up branches and call centres abroad, or by completing international business deals o They used glocalisation strategies to build a customer base in different countries o This allows the consumer to feel safe o Also the local sourcing of parts or items for a product, lowering costs o Therefore they can customise their products for the market o E.g.
Burkini Barbie
McAlooTilcki
Kosher Subway
McCurry Pan
Dark stores: o Supermarkets we don‟t see o Food ordered online and it is picked and delivered from warehouses o 6% of grocery shopping is done online
Winners and Losers: o HICs
Generally winners with increased profits and consumers get lower prices
Local businesses may loose out
Factory workers will not be hired as wages too
standards
high
Transfer of
o LICs
technology Generally losers as labour is exploited
However many benefits TNCs bring to an area
Political stability Raising environmental
Wages generally higher
awareness
than other jobs
Increased
Taxation to the country
TNCs can exploit the
Raising living
employment in the formal sector
land
Chances to
FDI
increase skills Exports for country
Multiplier effect Indirect employment
Tax avoidance
Limited linkages Growing global wealth divide Environmental degradation
High paying jobs by immigrants
Corrupt government Profits back to home country Bad working conditions Children working
Global Networks
Key Terms: Core: the most developed and highly populated region of a country
Why, as places and societies
Switched-on Places: Nations, regions
become more interconnected, do
or cities that are strongly connected
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 off‟
Technology building networks A shrinking world
Simple forms of transport revolutionized the movement of goods and people
New technology are helped global
Key Terms: Shrinking World: Thanks to technology, distant places start to
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 o 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
o 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
o Air travel
Faster airplanes with greater capacity increases passenger numbers
o GIS and GPS
Data and broadcasts to everyone
GIS can collect and manage satellite data anywhere
Network 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 of o Money
Key Terms:
o Raw materials
Cluster: A geographically
o Manufactured goods and services
concentrated group of connected
Value of world trade is now
industries and institutions
$70 trillion
Cumulative Causation: A model
Rises by around 10% each
that explains why wealth becomes
year
concentrated in certain places
o Information
Export Processing Zone: A small
o People
industrial area, often on the coast,
Overtime places have become more
where favourable conditions are
o Interconnected
created to attract foreign TNCs
o Interdependent
Global Hub: A settlement providing a focal point for activities that have
Switched on and switched off
a global influence
Switched on
Human Resources: The abilities and
Large networks/global hubs
potential of the human population
World cities
in terms of their education levels,
Technopoles
their skills, the languages they
“Core” regions which are very well
speak and their capacity to
connected
Natural resources o Strategic location o Coastline ideal for trade o Oil resources o Physical factors which aid growth of industry
Human resources o Large labour force o Skilled labour
o 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 poor
Switched 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 poverty
Global 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 Change Why?
Policy making o Hospitals and schools
Key Terms:
o Money for pensions and
Age-selective Migration: A
benefits
movement of a particular age group
o Immigration laws
or gender
o Housing development
Extended Places: The movement of
Global competitiveness o Type of workers o Number of people of working age
Economics o Dependency ratio
Interest o TV shows such as who do you think you are
How?
National o UK census data since 1801, every 10 years
Local data o Dating back to Middle Ages o Church records
Personal o 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 o www.statistics.gov.uk o www.esrcsocietytoday.ac.uk o www.ancestry.co.uk o www.familypast.com
Overseas o www.movinghere.org.uk
UK Population change
Family size o 4.82 per household in 1851, 2.3 in 2011 o Women take control of fertility from 1960s with abortion and contraceptive pill o Urbanisation reduces need for children
Population structure o In 1931 7% of population was over 65 and 24% under 16 o Now 16% are over 65 and 19% under 16 o Top heavy population due to people living longer o Life expectancy grown from 50 for men and 57 for women to 77 for men and 82 for women
Migration and ethnicity o Southeast drift of UK population o Mobility of population increased o Counter-urbanisation o Age-selective migration
o Main ethnicity of migrants is Polish, then Irish then Indian o EU accession and post-war commonwealth immigration
Employment o Decline of manufacturing jobs and increase in services, media and farming o Increased women working since suffragette movement o Introduction of minimum wage in 1999 o As JSA decreases so does unemployment
Social aspirations o During 1900s average wages rose and more people entered higher education o Increased social mobility o 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 1971
Baby booms after both wars
Long baby boom during prosperity in the
Key Terms:
1960s
Secularisation: A general decline in
Phase 2: after 1970s
Population increasing more slowly
Growth mainly due to immigration
IVF advancements
Grandchildren of 60s boomers New 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 children
Reasons for trends
Internal factors o 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
o 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 o Falling births
Global recessions
Energy costs rising
o 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 o
(
) ( (
) )
o Not enough taxpayers to support young and old population
Economic cost o By 2026 money spent on elderly will be about £30 billion per year o Counties with higher elderly population, e.g. the coast, will see increased cost and strained services o Strain on NHS o More people claiming state pensions o Housing shortages
Between 1995 and 2005 average house prices in some UK seaside town trebled
Responsibility and care o Emotional burden on younger and middle-aged population o People act as unpaid carers o Less people from cancer and heart strokes and more from degenerative diseases e.g. Alzheimers
Benefits o Voluntary charity work o Spending money on goods and services o Earning money and paying tax o Bringing wisdom and experience to politics and commerce
Global greying o Many countries, e.g. Japan, are already seeing this o Other will start to as global medicine is becoming available o China‟s one child policy has left them with a „greying time bomb‟
On the Move
How is migration changing the face of the European Union? Migration Classification
Long/short term
Key Terms:
National/international
Displaced Persons: People who are
Voluntary/forced
forced to move, by war, famine,
Legal/illegal
political persecution or natural disaster
Reasons
Illegal migrants: People who avoid
Push o People move to get away
border and immigration controls and
from something o Racial tension o Environmental pollution o War o Natural Disaster
Pull o People are attracted to move to another area o Excellent job prospects o Access to good transport links o Free healthcare o Good schools
Intervening obstacles o International frontiers o Cost of moving
Facilitating factors o Language
o Culture o Media o Ease of visas and permits Why do people migrate?
Work (economic migration)
Medical tourism (teeth whitening in Bulgaria)
Retirement
Sport (Olympics)
Family
Increased migration
Better global networking – transport links, internet etc…
Relaxed boundaries between countries o 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 WW2
Migration hotspots
USA, Europe, Middle East, Near East
Fewer emigrants
„Sun-seeker‟ migration slowing
Decline in pound/euro and smaller pensions
Foreign 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 colleges
Illegal 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 o Migrants pay traffickers €1000-4000 each o Sahara desert route is dangerous and many die along the way o Fishing boats can be lethal o Being caught can lead to deportation
Asylum 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): o Cyprus, Malta, Estonia, Latvia, Lithuania, Poland, Slovenia, Czech Republic, Slovakia and Hungary
A2 (2008): o 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 o High unemployment
o Sponsorship from those already in UK o 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 migration Positive
Demographic o Multicultural societies o Balances our aging population o For 700,000 Eastern Europeans who arrive 2004-7 only 5,000 claimed benefits o Welcomed by younger people with college degrees o Contact theory – sustained positive contact
Economic o Boosts working age population o 20% low-skilled workers filled by non-UK o Germany: €2000 paid to economy by migrants each year o UK: raises GDP and controls inflation o UK migrants pay 10% of taxes and use 9% of spending o Contributions of international students helps subsidise home students o Remittances sent home – up to $233 billion sent home in 2006
Negative
Economic o Unemployment of locals rising o Discriminating against UK workers in east England
77,000 workers in East Anglia are eastern European
o Lower wages o Benefits pay-out and fraud from asylum seekers
Social o Pressure on social housing o More money needs to be spent on schools and hospitals o Migrants vulnerable to abuse o Brain drain – skilled workers leaving
Socio-political o Anti-immigration sentiments and rise of nationalism
France: National front
UK: BNP
Denmark: Danish people‟s party
Shutting open boarders
o Group conflict theory – majority groups threatened o Social unrest
Paris riots
Demographic o Change to UK population structure
World Cities What is driving the new urbanisation and what are its consequences Why do cities grow? Push Factors
Poverty
Conflict
Natural disaster
Crop failure
Boredom
Pull Factors
Bright lights
Housing
Safety
Health-care
Education
Jobs
Rural-urban migration
Push and pull factors mean people move to urban areas
This then fuels investment and growth
Natural 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 rates
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
Key Terms: Slum: An urban settlement in which, according to the UN, over 50% of
reach 1.3-1.4 billion by 2020
By 2030 the urban population will have risen to 5 million, or 60% of global population
Asia‟s urban population is set to rise from 1.4 billion to 2.6 billion in 2030
Africa‟s 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 o Megacity is just with a population over 10 million o Global hub is defined by its global significance and the number of connections it has with other places around the world
Types of megacities
Immature o Very rapid growth of over 3% o Large informal economy o Little planning, uncontrolled sprawl o Many squatter settlements o E.g. Lagos
Consolidating o Rapid growth of 2-3% o Manufacturing economy important o Attempts at urban planning
Key Terms: Megacity: An urban area with a
o Upgrading of slums o E.g. Mumbai
Maturing o Slow growth of under 2% o Mainly service industry o Suburbanisation o Effective attempts at housing, transport and land-use planning o Good quality of life for many o E.g. Beijing
Established o Very slow growth, under 1%, some are stable o Dominated by professional series and retail o Counter urbanisation and reurbanisation is taking place o Since 1980 most have regenerated inner-city o E.g. London
Sustainable megacities? o Can be unsustainable:
Lack of adequate housing
Poor health
Weak urban governance
Low environmental quality
Poverty
o 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 o Hotbeds of poverty and potential unrest o They can be improved to provide basic housing for the city‟s 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 o 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
o 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
o 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
o 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
o 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 o External aid is required to break the cycle of poverty o Great Cairo Wastewater Project began in 1982 and is still going o Engineered solution are unusual and costly o Small scale projects by NGOs are often implemented
Transport and environment o Most megacities have severe air pollution o In 2007 70% of residents in Calcutta had respiratory problems
Ecocity?