'Development and Globalisation Essay\r'

'gross domestic product- Gross subject field Product †the value of each(prenominal) the cheeseparings and go produced in a nation in a year, in $US, usu al iy express as â€Å"per capita” (per person). pala twitchharyngoplasty (purchasing power parity)* figures argon more than(prenominal) than than put on upful. *Ad meeted for loss of funding GNP- The append value of goods and run produced by one pastoral in a year, plus any net income realise from anyplaceseas sources, in $US. HDI- Human schooling Index: It is a summary coordination compound index that measures a country’s average achievements in terce many prefatory aspects of gay nurture: wellness, k immediatelyledge, and a toler open bill of hold. smell Expectancy • Literacy appreciate • Standard of Living (measured in gross domestic product per capita) It gives a much complete fancy of using of a country than gross domestic product alone as it considers kind factors and non just fcarpetalal factors. instruction Continuum primitively in that complaisance were three conclaveings that do up the using continuum, they were: • First homo (those positive countries that had a participatory disposal and a strong miser decipherss) • Second founding ( communistic countries) • 3rd mankind (UN veritable countries)\r\n heretofore as quantify has gone on newer economies extradite started to develop ca utilize by contrary harvest-time patterns and speeds. The Development counterpane • The interminusission in the midst of gamy and poor countries • Most comm completely, the open up is thought of in terms of income/ stintings • It a selfsame(prenominal) social, milieual and even constitution- make aspects in that location was a suggested North/ s give a mannerhwesterly divide originating from the Brandt report in 1980, where the north vitamin E fightd reported for 80% of GDP b ut merely 20% of the state; til now this excessively requires sanitary-nigh artistic licence and is a very general trend of dividing countries.\r\n at that place atomic add 18 more than accu arrange slipway of aggrouping countries as listed be hapless and as countries move by means of and through the training continuum countries murmur from one category to a nonher: • highly- develop (MDC’s †the some fountainhead developed countries eg. UK) • culture (Countries which argon undergoing development †arguably they all be. Eg. Malaysia) • LDC’s (Least Developed Countries †eg. Ethiopia) • NIC’s ( newly Industrialised Countries †Have just stainless development (10 eld or so) Eg. china) • RIC’s ( y pop outhfully Industrialised Countries †Further seat than the NIC’s eg. Dubai) Centrally Planned Economies (The few remain communist countries eg. North Korea) • Oil plenteous Countries (Countries rich in vegetable anoint colour colour colour eg. Saudi-Arabian Arabia) Causes for the Development Gap • Colonialisation †colonial powers took preferences from poorer countries • determine of commodities is a lot controlled by TNCs ensuring high remuneration for MEDC firms and humble prices p attend to LEDC producers †F cinch cope direct up up in response to this. • LEDCs ar to twenty-four hours main(a) producers †producing low greet commodities, e. g. bananas • Primary commodities deplete locomote in price, or stayed steady, while commodities they invite has motley magnitude, e. . oil What is precludeing the Development cattle farm from s issuegoping point? • many a nonher(prenominal) a(prenominal) LEDCs main pains is as primary producers †generally low mesh • Internatnioal great take dominated by TNCs • speedy The Asiatic tigers Who or what atomic number 18 the Asiatic Tigers? Asian economies that call for progressed scotchally at much(prenominal) substantial yards that bring come to rival the earning capa urban center and wood state of breathing of those organism graduation exercise- adult male countries †china state of wargon, Hong Kong, Singapore and s step forwardheastward Korea. orbiculateization Globalisation: The disclose gaind inter-connection in the human creations’s economic, cultural and g everyplacenmental governances. Positives | damagings | |Allowed the sweat of quite a bittie more comfortably |Uncontrolled migration | | attachd right(prenominal)(prenominal) manage |Inequality in wealth | | more(prenominal) access to victuals, emoluments, health allot etc. ll oer the gentlemans gentleman |Heavy environmental damage | | | spill of countries individual cultures, spheric cutters | • Globalisation began in the 19th hundred as in that location was the put out of movement of hoi polloi and goods; • development in freedom • emergence in swop as well as the spread of constancy • branch of Trans National Corporations. Globalisation take placed in the 20th century and was shaped by a number of factors including: 1.\r\nEmergence of expel grocerys ( peachyist preservation) 2. Deregulation of foundation fiscal markets 3. The system of the General Agreements of Tariffs and concern (GATT) â€the WTO which sought to rase trade barriers. 4. The emergence of trade blocs 5. The origination of the IMF and the World Bank 6. Development of world-wide marketing and the continuing machinate of TNCs. Flows • groovy o ICT sanctions cheap, reliable and almost instantaneous communication o Allows sharing learning o Allows transfer of capital o Allows trade some the world • wear o Improved beam for mint Size of air craft o pitiable cost airlines o high-pitched speed rail links o superfluousised readyers- doctors, ICT et c. o artless kick the bucketers • Products and services o Integ topical anaestheticized ne dickensrks o Goods handling o Computing logistics o Container revolution o Improved transport for goods o Global marketing, the world as one market and create products that ensure various regional market places e. g. coca-cola and McDonalds Patterns of outturn, distribution and consumption Manufacturing has gone from developed countries to get swallow wage economies. This is kn accept as the world wide- meatd SHIFT, which is brought about by FDI by TNCs.\r\n umteen LEDC’S view benefited from the transfer of engineering science which has meant these countries after digress raise their productivity without rearing their wages to the level of the developed countries. This has melt tear passel to the de-industrialisation of richer countries and the focalise on tertiary and quaternion persistence. There has similarly been outsourcing of service operations, much( prenominal)(prenominal)(prenominal) as call fondnesss, Mumbai, this extends the check on a global photographic plate in desire manner the transaction cost atomic number 18 a lot dismount even though thither is a highly enlightened workforce. Positive and negatives of the global shift Positives for MEDCs |Negatives for MEDCs | | ordure of polluting industries away from their country |Could feed to wide spread un work | | yield in LEDC’s whitethorn take in to demand for exports from MEDCs | evil of skills | |Cheaper imports quarter keep the cost of living take overmatch benefiting the retail |Negative multiplier factor effect | |sector | king- step to the fore gap in the midst of deft and unskilled workers who whitethorn experience | |Labour market tractability and efficiency |extreme redeployment differences | |Development of new technologies track to enthronization |deindustrialisation of some beas, much(prenominal) as the North | | answer to reduce in flation | | |Positives for LEDC’s and NIC’s |Negatives for LEDC’s | |Development of new industries fast urbanisation and rural-urban migration | | accession employment |Westernised access code to de come throughrance | |Helps to reduce development gap |increase environmental disablement get around to polluting industries | |increase FDI and investment which thunder mug lead to improved services much(prenominal) as |Exploitation of proletariat | | pedestal, health care and discipline |Disruptive social impacts | |Increased exports processs BoPs, and increases income and GDP |Over-dependant on one industry | | crude technologies |Destabilises fare supplies, less floriculture | | |wellness and guard issues because of value tax regulation | Patterns of output signal and processes In manufacturing on that point has been a global shift of marketing from MDC’s to LDC’s.\r\nThis leads to Foreign Direct investment funds (FDI) by the TNCà ¢â‚¬â„¢s. This has led to the de-industrialization of MDC’s but inwardness that they can also be more productive delinquent to the transfer of technology. revolutionaryly Industrialised Countries (NIC’s) First Phase • Asian Tigers (mainland China, southeast Korea, Hong Kong and Singapore) started to appear in the 1960’s, as developed countries looked at their less developed neighbours • Rapid industrialisation due to the change magnitude spread of TNC’s. • They share alike characteristics which allowed for much(prenominal)(prenominal) industrialisation: †Large nations †Well ameliorate harshwealths †Culture †work ethic †picayune rigid laws on health and safety †giving medication ache through loans and grants imprecate less on immaterial represent and touch on up their own businesses much(prenominal) as the Chaebols in South Korea, comp uprising of companies such as Samsung, LG and Hyundai • This has now expire a multinational and located in some(prenominal) different countries. Second Phase • As wage prices increase in the primary TNC’s (The Asian Tigers) • Countries that could offer get dressed about wage prices such as Malaysia, In male parentesia, The Philippines and Thailand, Mexico and brazil tertiary Phase • China and India, Turkey, South Africa and the Philippines • China has seen the fastest rate of economic offshoot of any country • India’s industry is heavily establish around services †which accounted for 50% of its total GDP. • New TNCs are now being present up in Indian such as Infosys, Bangalore. Positives of India |Constraints of India | |Large English utterance state |Other countries are beginning to grapple | | be 37% move than China |Negative reaction in MEDCs | |Costs 17% lower than Malaysia | rebellion wage rates | |Professional salaries ? of UK and the States |High cost of fosterage | |Low telecommunication costs |Negative impacts on quality | |24 hour functional to fit with time differences |Corruption and nonstarter | |Huge advertize force for drive intensive jobs e. g. all centers |Command economy, governemtn speding on subsidies rather than investment | |IT college graduates, 2 meg/year |Infrastructure beyond study cities is poor | | |Literacy only 61% | Growth in the 21st Century emerging Economies account for 70% of the global nation, countries including the BRICs ( brazil-nut tree, Russia India and China) as well as countries such as the UAE and South Africa. The increase has been due to: • mount living banals • Increase opportunities for the nation • Increase FDI • Become more of a world player with market to an internationalistic standard Countries at very low levels of economic development LDCs • The countries were outlined by the coupled Nations and of the top 50 33 are in fill in-Saharan Africa. They are defined by the adjacent: †Low incomes ($800 GDP per capita over 3 years) Human resource weakness, nutrition, health, genteelness and literacy †frugal vulnerability shown by signs of dependency on one industry • Many of them suffer from far-flung conflict, disease, geographic dis chooses, urbanisation and fast urban result (demographically speaking). Quality of Life • Most of the population can non afford basic immunities • Resources of such countries are non evenly distributed. • Attempts to reduce meagreness • High population growth rate means that numbers living in extreme leanness are increasing. • Many of these countries depend on FDI Debt • From the 1970’s in advance some countries found themselves in a debt crisis because the borrowed bountiful totalitys from the developed world. For many countries at low levels of economic development that b travel by free of impoverishment can only ever be a vi sion. • There are certain policies being put in place by the IMF and the World Bank to assistance free the HIPCs • They fill yieldd debt dressinging and interest free loans. • fatigues structural adjustment programmes o Government pass cutbacks to fund debt re give birthments o Mexico was the first country o 3 main aims:- ? enkindle exports- integration and liberalisation ? Reduce government spending- privatisation and cutting costs ? Encourage abroad investment o Both negotiate and poor countries have had SAPs applied o slightly victory but SAPs could launch matters worse specially for the poorest hoi polloi because:- expiration of credit and subsidies from the government ? Food work falling ? Devaluation of currency leads to dramatic rises in prices ? Less spending on health and education by government • some other scheme, the Multilateral Debt Relief Initiative (MDRI) • Aimed to vitiate the debt of the HIPCs • per capita inc ome US$380 a year or less would be eligible for MDRI debt relief from the IMF’s resources tender Problems • Lack of income, healthcare, education, sanitization etc. • The Millennium Development Goals were set up specifically to second countries out of the cycle of poverty however they don’t look well to be completed in 2015 (the original target).\r\nGlobal, Social and economic Groupings Trade Bloc is a group of nations who have joined to bring trade and benefit from economic cooperation. The countries gnarled agree to free trade between them but impose dutys on goods from countries after-school(prenominal) the bloc. Made for a variety of reasons: • To provided socio-economic development • To increase alliances and trade • To allow free movement • To prevent war Types of groupings include:- • Free trade areas- tariffs and quotas are reduced on goods between sections and restrictions are put in place for goods sexual cli max in to the area e. g. NAFTA • Customs unions- tariff on imports from outside the group e. g.\r\nMercosur • cat valium Markets- like customs unions but with great freedom of movement of crowd and capital, e. g. previously EU, period precedent East African super acid Market • Economic Unions-all of the above as well as section states are also required to train common polices in areas such as resurrecting ( treetop) fisheries, transport, befoulment (Kyoto agreement), industry, vital force and regional development e. g. EU Positives and negatives of trade blocs |Positives |Negatives | | great chance of peace between share nations. Having to share economic resources | |Faster and streamlined economic development |Many countries exit have to pay a abundant sum of property continually to be in a | |Trade barriers removed |trade bloc | |Higher standard of living. |Elites can hold a disproportional tot of power. | |Certain areas of a national eco nomy can be support †eg. Agriculture |If one courty falls in to ecomic crisis the rest of the piece states are | |through the summit. |effected | |People seeking work can move between member states†EU. Non-member states badly affected, lack of trade | | porta of a common currency- Euro | expiry of sovereignty | |Greater political influence |Loss of some finacail controls e. g. European central depository financial institution | |If countries become indebted member states can protagonist bail out, Greece, | | |Ireland. | | Aspects of globalisation TNCs\r\ntransnational Corporations are companies that operate in over two countries †usually having their research and furnish in the country of origin and military position the manufacturing lays overseas. As an organisation becomes more global, regional R&D and headquarters go out develop. TNCs can be tear in to three different groups concord to what industry they are:- • Resource parentage o Mining, g as extraction and oil producing o ExxonMobil, Royal Dutch lather and BP • Manufacturing o High-tech ? Computers, microelectronics, pharmaceuticals ? Hewlett Packard, GlaxoSmithKline and AstraZeneca o Consumer goods ? repel vehicles, televisions and other electrical goods Many of these are assembly industries ? Ford, General Motors, BMW, Sony o smoke produced consumer goods ? Cigarettes, drinks, breakfast cereals, cosmetics and toiletries ? Coca- gage, 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 pro want 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 defilement • Fewer restrictions due to trade barriers • Greater supply of bare materials To ou tput advantage of trade indoors trade blocs • Allowing them to grow thitherby achieving economies of scale, miti entrée costs, finance new investment and compete in global markets • Allow them to set up in markets that they want to treat in • To acquire geographical flexibility so that they can shift resources and production between locations to maximise shekelss To march a global market, TNCs whitethorn globalise production by:- • Produce for the market in which the plant is situated • procedure one plant to produce for a number of countries • Use integrated production • Source components in places where they fill their products close to the market, GLOCALISATION forces of TNCs on a master of ceremonies country Positive Impacts |Negative Impacts | | battle |Competition | |Injection of capital into the economy |Adverse consider on topical anesthetic anaesthetic companies which office not be as efficient | |More dis posable income ordain create a demand for more |environmental concerns | |housing, transport and topical anesthetic services |Less stringent pollution laws so more pollution allowed | |Multiplier termination |Labour exertionation | |investment funds by a TNC can trigger more employment by |Exploit cheap, flexiable, non-unionised labour forces in developing countries | |cumulative originator bringing great wealth to the | minimal age | |area |Urbanisation | |New running(a) methods |Factories built in major urban totals leads to younger workers migration to the area | | conveyancing 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.\r\nNissan in |Outside decision making | |Sunderland |Plans effecting the development of plants are made in emcee country to boost profitability | |To take advantage of government incentives, subside s,|Little consiereation for topical anesthetic anesthetic state | |EPZs (export processing zones) etc. |Dependancy on TNC | |Lower costs †especially labor |More westerniese approach to animation | |To fulfil foreign markets more effectively | | |To exploit mineral and other resources | | Development Issues in spite of appearance the world Trade vs Aid\r\nTrade is deemed as the more sustainable room out of the two to economic development as it alleviates to promote the growth in the volume and value of goods, leading to jobs and greater incomes, some of this income will help to amaze domestic demand leading to investment and the multiplier effect. This will also lead to rising living standards and gaining of skills by local mass still it relies on three factors: • Adoption of capitalism • Economic growth to ‘trickle don’ so everyone benefits • ordinaryity of free trade This is a similar path that was interpreted by the MDC’s and more recently the NIC’s. However many of these NIC’s had widely stable governments, a well educated workforce and they utilise protectionist policies to stimulate growth e. g. tariffs and import quotas. However there are still problems with trade for a variety of reasons: They cannot be warring in world markets as they consider to invest in equipment, technology and training to make business productive and past infrastructure etc. • Schemes like the CAP undercut mainly boorishly based LDCs • riches does not always trickle down to those who deprivation it, like alimony. • Debts mean they would have to make trillions before 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 bodied governments donate to an organisation (such as the World ban k) who the distributes it to suffering countries. 3. Voluntary †Where small NGOs get down workers to help. NGOs such as Oxfam\r\nAid is not always in the form of notes sometimes it is in the form of goods or technical assistance. There are also some(prenominal) ways sanction can be delivered • Tied aid o Will determine the power of nations and whitethorn eventually cause resentment • short aid o usually following an emergency such as earthquakes or tsunamis o This can be help with rescue operations o health check supplies, shelter, food and urine • Long-term development stick outs o upward(a) food handiness and removedming methods o service of process to provide improved shelter o wellness care and education o Developing part livelihoods and improve income o CAFOD, Catholic Agency For Overseas Development • squeeze down aid Throwing’ coin at a country and allowing them to get on with it. o It usually focuses on sizeable scale, pricy projects which are unsuitable for the local association. , such as informed projects e. g. Nepal o It often doesn’t go to the tidy sum who need it most o Usually tied • Bottom up o More helpful to the local confederation however still bring their problems. o Small scale o overcompensate the individuals as individuals with creativity and intelligence o They work with sight to create what the community most call for and supply the materials o They can undercut local business. However aid is not perfect and may critics say:- • Aid does not reach those who need it the most, it is kept at the top by the government Aid is often apply ineffectively on large scale, expensive projects which are often left hand uncompleted • Sometimes countries don’t even have the correct infrastructure to use the aid effectively • settlement can be created which is often not sustainable is aid is a large proportion of national income • Tied aid come s with strings attached, in some cases with every dollar given in aid $7 is given in translate Economic vs. environmental Sustainability ‘Development that meets the require of today without compromising the needs of tomorrow’ This would be achieved by • Human effectiveness being improved • The environment is used and managed to supply people on a semipermanent basis • Implies social arbiter as well as long term environmental sustainability The capacity of the environment to provide resources and absorb increasing levels of pollution is the critical threshold controlling how far population can increase and economies smash sustainably The Rio Earth summit set out the following points for each aspect of sustainability. environmental Principles: • People should be at the meaning of concerns • States have the right to exploit their own environment but should not damage that of others • defend the environment is integral to developm ent • People should be in create of projections for the forthcoming as well as the current environmental bit • There should be environmental legislation and standards indoors states • Laws should be enacted regarding liability for pollution • The movement of substances that are harmful to others should be restricted States should inform neighbours of any environmental unease • EIAs ( environsal Impact Assessments) should be carried out on all major plans Economic Principles: • The right to development essential 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 divertd • States should befriend to restore the earth’s ecosystem • scientific i nformation and innovative technologies should be transferred to improve understanding States should support an open economic system, with few trade barriers and tariffs • National government activity should endeavour to promote the internationalism of environmental costs, victorious into account that the polluter should pay For anything to be effective it mustiness see the right balance between the three core principles †economic, social and environmental. Sustainable touristry myth or reality? As tourism is an increasingly expanding, one thousand thousand dollar industry, it has increasingly been looked at to become more sustainable. Up until now it has followed this pattern: • The environment attracts tourists for its attractions • The notes spent should help to wield these features\r\nHowever as tourist flows increase it starts to do more harm than good, curiously to small areas which can’t dispense with the massive influx, this can lead t o the decease of farm land to golf courses, and destroying raw(a) habitats such as coral reefs, destroyed by water sports ,e. g. Philippines . Sustainable tourism ‘seeks not to destroy what it sets out to search’ It attempts to make sure that: • It preserves indwelling resources for future generations. • The local communities and their culture are recognised as the most beta in the tourist sector • Economic benefits of tourism must partly go to those who are local to the area • Everything is direct by the wishes of local people and communities At the Rio Earth Summit an environmental checklist was pinched up to show how the tourism industry could become more sustainable, these included: • liquidate minimisation, land use, re-use and recycling Energy efficiency, preservation and prudence • Transport • Water (freshwater and make off) • husbandry use planning and management • interlocking of all stakeholde rs in the planning • employment of staff, customers and communities in environmental issues Sustainable tourism is an industry committed to making a low impact on the instinctive environment and local culture, while luck to generate income and employment for local people. phaeton can help by: • cosmos informed of the local culture, government and economy • Respecting local cultures • Contributing to local cultures and allowance • Supporting local businesses and traditional value • Use the least amount of local resources Ecotourism Is one of the fastest ontogenesis sectors deep down 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 cognitive content is managed o Encourages conservation, by educating local people and tourists o Focuses on the environment • Criticised for being â₠¬Ëœegotourism’ in some cases. Sustainable ecotourism must : o Have a furbish up to the number of visitors to sustain the environment o set(p) up and run in cooperation with local people Case Studies beat Development- HDI HDI = 1/3 (life expectancy index) + 1/3 (education index)+ 1/3 (GDP index) Advantages |Disadvantages | | semipolitical competitiveness |Does not take into account poverty | |More factors and reliable ones | palatopharyngoplasty values change very quickly, unfaithful or misleading. | |Easy and cheap to lay away data |Little sense of income distribution | |Sign of welfare in the future, improving health and education, |Quality of life does not seem to be that almost coupled | |supply-side policies which can indicate the long-term patterns of AS |Doesn’t take account like war or political oppression. | | weave |Based on normative economics. |The success of government policy |Other measures such as access to internet might be more important. | |Eas ily corresponding to other countries | alterations over time †ceteris paribus | compare 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 adjusted |33,296 |1,160 | |Pop. Living on $1. 25 per day % |0 |78. 1 | | commonwealth with at least secondary education , female : |1. 015 |0. 48 | |male | | | |Sustainability, Change in forest area (%) |9. 8 |-24. 5 | |% of population living in urban areas |79. 8 |19. 2 | cuneus Saharan Africa †A country at low levels of economic development • Sub Saharan Africa contains many countries with the lowest HDI rank 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 hold them in a worse situation than when they started. • HDI, lowest graded 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 chinaware -global shift of manufacturing • Barbie, an American company Mattel , was produced a Japan in 1959 • Has seen a global shift in manufacturing since it started. • They moved to Taiwan in the 1960’s 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 Taiwan’s incomes began to rise which then led to Barbie moving someplace else Mattel opened its first factory in China in 1987, wage prices were much lower and gradually production was doer there. • Today Mattel produces Barbie’s in China, Indonesia and Malaysia †victorious advantage of the second stage of NICs, the Tiger Cubs. Taiwan has further benefited from globalisation, as it is now al-Qaeda to companies that manufacture most computer s and MP3 players such as BenQ TNC-Coca Cola †Global Marketing • A company with a unmarried product in which minor elements are tweaked for a different market. • The company uses the same formulas, one with colewort and one with lemon Syrup for different markets. • The bottle conception is the same and is regulated 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 exchange 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 brand • Labour costs may be lower in some countries, especially LEDC countries. Low labour costs = higher profits • Legislation on working conditions, workers’ rights, health and safety, and the environment may be less strict in some countries. Relaxed legislation = lower overheads = more profit. • Some countries may try to abet multinationals to invest in their countries by offer lower tax rates and financial incentives.\r\nMore favourable taxation = 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 • gross 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(prenominal) few countries where Unilever has no presence Asian Tiger- South Korea • 13th largest economy • dependable government • Highly skilled and cause workforce • Large amounts of trade with a positive BoP\r\nProblems • Move to democracy takes time • Large aging population • Unequal pay for w omen and poor working conditions for 52 hours a week • contaminant with poor construction in infrastructure, coursestead and cloaca BRIC economies It is said that these countries will be dominant by 2050, these brick economies, don’t just rely on export industries like the 1st generation NIC’s. Brazil emerging economy • President Lula, who began in 2003 took the economy out of dept and is now a stable country • Generates $1. 5 one thousand thousand 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 • really easy to communicate with • Emerging shopping mall 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 • Destru ction of the rainforest • Increasing cost of manufacturing • pitiful infrastructure • Unequal association • Slow national growth • Increased hatred 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 dictated 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 entanglement 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, geographi cally, to work. • Labour was 80% cheaper in these areas • There was a large amount of FDI for the bulk of the 21st Century • Receiving up to $50 million per year. In 2006 they original $63 billion, their highest recorded 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 just under $1 trillion, almost quadruple as they got greater access to global markets. Problems: • Dramatic gap between rich and poor • Huge 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 west\r\nChongqing â€largest urban industrial city in the south-west ern 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 †lucre of china †Heavy industry dominates †Large pollution problems, air sewage †2000 tonnes of waste a day India †NIC driven by services Many people intend that the Indian service sector is driven by call centres; however its affaire in the service sector it accounts for 50% of GDP as there is a high population of skilled workers. parcel 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 • World’s third largest brain bank • Stable democratic with over 50 year of independence • Large market size • Investment and tax incentives for exports in cer tain sectors such as electronics, telecom, computer software and R;D The UK and USA has fuelled the service sector in India as Indians migrated to gain skills which they would take back to their position country. Such 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 lay was built • Now 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 g rowing economy • Its economy boomed upon the discovery of oil in the 1960’s. • 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 Dubai’s economy is heavily based around tourism as well as banking • Oil and Gas before long occupy less than 5%. • Borrowed money to fund many projects • One of the country’s most effected by 2008 market crash, massive inflation problems • Chinese and Indian banks brought a lot of Dubai’s 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 actual city • Passports are interpreted by employers on arrival Environmental problems • High electricity cost and rising carbon emissions Sewage because there is not sufficient 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 • shortfall of energy, supplies • Little money to spend on development • Due to relief little transport infrastructure, remote communities • Mainly subsistence work 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 population live below the poverty line • HDI is ranked 152 Life expectancy is 58. 2 • Annual GDP per capita is $800 • 75% of employment is base d 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 • Dependant 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 greens 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 Tanzania’s deteriorated economic infrastructure • Structural Adjustment Policies, SAP’s, poverty reduction strategy written document • â€Å"Vision 2025” programme set the goals of a high quality of livelihood by year 2025; peace, stability and unity; a well educated soci ety 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 pull down • Even more dependent on foreign aid • Increased environmental damage • emollient up in industrial fare including gold and natural gas • Increase private 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 side by side(p) 20 years • Tanzania’s total international borrowings of more than $7 billion Socio-Economic Groupings NAFTA • USA, Canada, Mexico • Set 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 precept 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 years. 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 inner |Dumping in Mexico | |NAFTA. |Mexico is being victimised because o less rigid pollution laws which | | |affects surrounding countries | EU 27 member states, set up in 1957 as the European Economic Community Aims †• bring forward 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 | |CA P support |Power of elite | | peace of mind in EU |Small areas fell isolated | Unilever†TNC • Set up in 1890 by William Hesker Lever, who owned a flog company which revolutionised Victorian hygiene • Unilever was formed by the merger of the Dutch oleo producer ‘Margarine 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 approximative Sharnbrook continued research efforts in food preservation, animal nutrition and health problems associated with toothpaste, shampoo and other personal products. It is one of some(prenominal) R ; D centres • In 2008, the companies had over 300 manufacturing websites in more than speed of light countries across every continent • Unilever employs over 170,000 people and has annual company revenue of over $50 billion in 2007. • Unilever has had problems with animal testing, child labour and deforestation 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 justice\r\nLong-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 • brook aid to disaster stricken countries • Set up temporary shelters for those left roofless Democratic Republic of Congo (Kinshasa ; Goma), Ethiopia, Kenya Swaziland †top Down Aid • Top down development is usually difficult as often hundreds of thousands of people’s needs need to be ‘catered for’ and it is difficult to live up to 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, AID’s, 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 NGO’s. • They were distributing imported 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 unwavering season that blessed them. • There was also a state of dependency effortful to draw the line between those who should acquire aid and those who did not. Other top down aid include large scale projects such as twist dams and HEP stations like those proposed in Nepal, this can lead to the loss of valuable farm land and can limit the wat er downstream, leading to widespread droughts. Nepal, FoST †Bottom 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 smoke • Subsides the purchase of products including solar cookers and no-smoke indoor cookers Educates people on how to make briquettes, 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 determination out about products • Not sustainable in the long run if the donations dot Overall top down and back end up development are both ways of narrowing the development gap, the gap between rich and poor countries. Both, like anything in l ife have pros and cons however the possible way forward is through micro-credit loans which give people the credit and respect that they deserve.\r\nThis creates a successful and sustainable way of life and helps to lift 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 dead land, power station site |second largest natural harbor in the world | |Poor access to Poole town centre | | The construction of the twin sails bridge Environment:- direct flow around the support pillars of the bridge causing deposition behind the pillars, • May affect the tidal flats within holes bay, and Poole harbour • Sediment becoming confine 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 H oles bay • Poole harbours marshes could decrease in size • Destroying many habitats for bird’s invertebrates and plants alike. Economic:- • Greatly over compute with its total cost coming in at over ? 37m • Engineers spotted a large crack in the surface 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 density and increased unemployment. • Increased crime Brazil- Curitiba • 2 million people in the population • city wide service to recycle products • Recycling and garbage system prevent waste issues, organic and nonorganic, with two different trucks for different types of shabu • The rubbish is sorted and distributed and reused this means that 2/3 of ru bbish is recycled • It also creates more jobs to help reduce unemployment Jaime Lerner, was an architect and later became mayor 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 artificial river banks around them this also prevents scrunch 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 fro m the transport of tourists and fires getting trap 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 people’s 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 Sherpa’s to carry 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 • Dismiss ed as it has been concluded that this will bring more harm than good, by limiting one of the country’s biggest industries they could face increased widespread poverty. Kenya, Kigio Tourism is the 2nd largest ratifier of GNP after agriculture. One example of where agriculture has been replaced by tourism is Kigio. Kigio Wildlife Conservancy is a 3,500-acre protected Conservancy • 2 hours drive from Nairobi. • earlier a cattle ranch, sold by the family to the local community who after a few years decided to predate 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. • Wide ranging habitats • Many wild animals, passion 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 rupture Valley lakes area.\r\nGuests are encouraged to insert in low impact activities †o guided nature/bird walks, o cycling, fishing o Day or night game drives are conducted in open-sided 4Ã4 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 theatrical role 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.\r\n'