Development and Globalisation Essay

GDP- Gross Domestic Product the value of al champion the sounds and usefulnesss produced in a state in a stratum, in $US, usu everyy expressed as per capita (per person). PPP (purchasing power parity)* figures be more than useful. *Adjusted for loss of animate GNP- The bestow value of goods and services produced by champion and only(a) state in a year, plus all net income earned from overseas sources, in $US. HDI- clement using powerfulness It is a summary composite index that measures a artless(prenominal)s average achievements in leash basic aspects of human breeding hygienicness, knowledge, and a decent standard of living. Life Expectancy Literacy Rate ideal of Living (measured in GDP per capita) It gives a more complete picture of ontogenesis of a country than GDP alone as it considers complaisant factors and not just stinting factors. Development Continuum in the first place in that respect were three separateingings that made up the festering con tinuum, they were First cosmos (those real countries that had a democratic authorities and a strong rescue) Second military personnel ( communistic countries) Third military man (UN create countries)However as quantify has gone on upstarter economies dumbfound started to develop ca utilise by antithetic development patterns and speeds. The Development hoo-hah The go against betwixt rich and poor countries close commonly, the scatter is thought of in terminations of income/economics It to a fault social, surroundal and even political aspects There was a suggested North/South divide originating from the Brandt report in 1980, where the north nebed for 80% of GDP b bely only 20% of the nation even so this too requires round artistic licence and is a precise general charge of dividing countries.There atomic subdue 18 more accurate flairs of grouping countries as listed be grim and as countries move through the development continuum countries pass from on e category to an other(a) Developed (MDCs the close to well developed countries eg. UK) Developing (Countries which are undergoing development arguably they all are. Eg. Malaysia) LDCs (Least Developed Countries eg. Ethiopia) NICs ( brand- refreshedly modify Countries Have just finished development (10 years or so) Eg. China) RICs (Recently Industrialised Countries Further git than the NICs eg. Dubai) Centrally Planned Economies (The a couple of(prenominal) remaining communist countries eg. North Korea) Oil Rich Countries (Countries rich in oil eg. Saudi Arabia) Causes for the Development Gap Colonialisation colonial powers took resources from poorer countries Price of commodities is a great deal controlled by TNCs ensuring high profits for MEDC firms and first basely prices p go on to LEDC producers bonnie barter right up in reaction to this. LEDCs are now primary producers producing low embody commodities, e. g. bananas Primary commodities have fal len in price, or stayed steady, while commodities they strike has change magnitude, e. . oil What is vetoing the Development gap from closing? some a(prenominal) LEDCs main effort is as primary producers generally low profit Internatnioal avocation dominated by TNCs Rapid The Asian tigers Who or what are the Asian Tigers? Asian economies that have progressed economically at much(prenominal) substantial rates that have come to rival the earning capametropolis and tonus of living of those existence first-world countries china fighte, Hong Kong, Singapore and South Korea. Globalisation Globalisation The outgrowthd inter-connection in the worlds economic, heathen and political systems. overbearings negatives Allowed the movement of friendship more easily Uncontrolled migration increase foreign flip inconsistency in wealth More assenting to food, services, wellnesscare etcetera ll over the world Heavy environmental cost exhalation of countries individual c ultures, spheric cutters Globalisation began in the 19th degree centigrade as at that place was the beginning of movement of spate and goods Increase in independence Increase in trade as well as the spread of industry Beginning of Trans National Corporations. Globalisation continued in the twentieth century and was shaped by a reckon of factors including 1.Emergence of shift foodstuffs ( crownist economy) 2. Deregulation of world financial merchandises 3. The establishment of the General Agreements of Tariffs and business (GATT) the WTO which sought to lower trade barriers. 4. The emergence of trade blocs 5. The establishment of the IMF and the World Bank 6. Development of global marketing and the continuing rise of TNCs. Flows Capital o ICT allows cheap, reli subject and around instantaneous communication o Allows sharing information o Allows transfer of capital o Allows alloting around the world travail o Improved transport for multitude Size of commit bart er o Low cost airlines o blue speed rail links o wee workers- doctors, ICT etc. o Unskilled workers Products and services o Integrated ne twainrks o uprights handling o deliberation logistics o Container revolution o Improved transport for goods o Global marketing, the world as one market and create products that fit various regional market places e. g. coca-cola and McDonalds Patterns of production, distribution and consumption Manufacturing has gone from developed countries to lower birth economies. This is known as the GLOBAL SHIFT, which is brought about by FDI by TNCs.Many LEDCS have benefited from the transfer of technology which has meant these countries fanny raise their productivity without raising their lucres to the level of the developed countries. This has lead to the de- industrial enterprise of richer countries and the focus on tertiary and quaternary industry. There has similarly been outsourcing of service operations, such as call contracts, Mumbai, this extends the influence on a global scale in like manner the employment cost are a lot lower even though in that respect is a highly enlightened workforce. Positive and negatives of the global shift Positives for MEDCs Negatives for MEDCs Movement of polluting industries away from their country Could lead to wide spread unemployment Growth in LEDCs may lead to drive for exports from MEDCs Loss of skills Cheaper imports bunghole keep the cost of living down benefiting the retail Negative multiplier effect sector Large gap between skilled and art itty-bitty workers who may experience Labour market flexibility and efficiency extreme redeployment differences Development of new-fangled technologies leading to investiture deindustrialisation of numerous areas, such as the North Help to reduce inflation Positives for LEDCs and NICs Negatives for LEDCs Development of new industries Rapid urbanisation and rural-urban migration Increased employment Westernised approach to economy Helps to reduce development gap Increased environmental damage die to polluting industries Increased FDI and investment which faecal matter lead to change services such as Exploitation of cranch infrastructure, health care and study Disruptive social electric shocks Increased exports assistances BoPs, and accessions income and GDP Over-dependant on one industry New technologies Destabilises food supplies, slight market-gardening wellness and safety issues because of task legislation Patterns of production and processes In manufacturing there has been a global shift of marketing from MDCs to LDCs.This leads to Foreign Direct Investment (FDI) by the TNCs. This has led to the de-industrialization of MDCs but means that they provide also be more productive due to the transfer of technology. Newly Industrialised Countries (NICs) First Phase Asian Tigers (Taiwan, South Korea, Hong Kong and Singapore) started to appear in the 1960s, as developed countries looked at their less developed neighbours Rapid industrialisation due to the increased spread of TNCs. They share similar characteristics which allowed for such industrialisation Large populations Well educated populations Culture work ethic little rigid laws on health and safety Government support through loans and grants Rely less on foreign support and set up their own businesses such as the Chaebols in South Korea, comprising of companies such as Samsung, LG and Hyundai This has now stupefy a multi discipline and located in several(prenominal) different 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 go inesia, The Philippines and Thai undercoat, Mexico and Brazil Third Phase China and India, Turkey, South Africa and the Philippines China has seen the fastest rate of economic product of any country Indias industry is heavily based 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 Large English speaking population Other countries are beginning to compete Costs 37% lower than China Negative reaction in MEDCs Costs 17% lower than Malaysia Rising wage rates Professional salaries ? of UK and USA High cost of training Low telecommunication be Negative impacts on quality 24 hour working to fit with time differences Corruption and bankruptcy immense 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 2 first Century Emerging Economies account for 70% of 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 Raise living sta ndards Increase opportunities for the population Increase FDI get going 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 transgress 50 33 are in crampfish-Saharan Africa. They are defined by the following Low incomes ($800 GDP per capita over 3 years) Human resource weakness, nutrition, health, precept and literacy sparing vulnerability shown by signs of dependency on one industry Many of them suffer from general conflict, disease, geographical disadvantages, urbanisation and fast urban suppuration (demographically speaking). Quality of Life Most of the population undersidenot afford basic immunities Resources of such countries are not evenly distributed. Attempts to reduce meagreness High population growth rate means that numbers living in extreme poverty are increasing. Many of these countries depend on FDI Debt From the 1970s o nwards some countries found themselves in a debt crisis because the borrowed abundant tots from the developed world. For many a(prenominal) countries at low levels of economic development that breaking free of poverty tail only ever be a vision. There are certain policies being endow in place by the IMF and the World Bank to help free the HIPCs They have provided debt relief and interest free loans. play outs 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 government spending- privatisation and cutting costs ? come along foreign investment o Both intermediate and poor countries have had SAPs applied o close to success but SAPs could make matters worse oddly for the poorest people because- Loss of credit and subsidies from the government ? intellectual nourishment production falling ? Devaluation of currency leads to dramatic ri ses in prices ? Less spending on health and education by government Another 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 Social 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 however they dont look well to be completed in 2015 (the original target).Global, Social and scotch Groupings 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 between them but impose tariffs on goods from countries outside(a) the bloc. do for a variety of reasons To further socio-economic development To increase alliances and trade To allow free movement To thwart war Types of groupings imply- Free trade areas- tariffs and quotas are reduced on goods between sections and restrictions are put in place for goods coming in to the area e. g. NAFTA Customs unions- tariff on imports from outside the group e. g.Mercosur Common Markets- exchangeable customs unions but with greater freedom of movement of labour and capital, e. g. precedingly EU, latest example East African Common Market Economic Unions-all of the above as well as member states are also required to adopt common polices in areas such as agriculture ( capital) fisheries, transport, befoulment (Kyoto agreement), industry, cypher and regional development e. g. EU Positives and negatives of trade blocs Positives Negatives Greater chance of peace between member nations. Having to share economic resources Faster and smoother economic development Many countries pass on have to pay a large sum of money weakly to be in a Trade barriers removed trade bloc Higher standard of living. Elites can hold a disproportionate amount of power. Certain areas of a national economy can be supported eg. Agriculture If one courty waterfall in to ecomic crisis the rest of the member states are through the CAP. effected People seeking work can move between member states EU. Non-member states badly affected, lack of trade Possibility of a common currency- Euro Loss of sovereignty Greater political influence Loss of some finacail controls e. g. European central bank If countries run short indebted member states can help bail out, Greece, Ireland. Aspects of globalisation TNCsTransnational Corporations are companies that operate in over two countries usually having their look into and headquarters in the country of origin and locating the manufacturing plants overseas. As an organisation becomes more global, regional R&D and headquarters exit develop. TNCs can be carve up in to three different groups according to what industry they are- Resource extraction o Mining, gun extraction and oil producing o ExxonMobil, Royal Dutch Shel l and BP Manufacturing o High-tech ? Computers, microelectronics, pharmaceuticals ? Hewlett Packard, GlaxoSmithKline and AstraZeneca o Consumer goods ? force back vehicles, televisions and other electrical goods Many of these are assembly industries ? Ford, General Motors, BMW, Sony o Mass produced consumer goods ? Cigarettes, drinks, breakfast cereals, cosmetics and toiletries ? Coca- dope, Kelloggs, Unilever, Heinz serving 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 rotate to different countries? Larger populations with cheaper Labour Costs Better government policies such as grants, lower taxes and subsidies Less close rules on employment and contaminant Fewer restrictions due to trade barriers Greater supply of piercing materials To get to advantage of trade within trade blocs Allowing them to grow thereby achieving economies of scale, redu cing 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 achievement profits To serve a global market, TNCs may globalise production by- Produce for the market in which the plant is situated call one plant to produce for a number of countries Use integrated production Source portions in places where they assemble their products close to the market, GLOCALISATION relates of TNCs on a entertain country Positive Impacts Negative Impacts Employment Competition Injection of capital into the economy Adverse set up on spendical anaesthetic anaesthetic anesthetic companies which might not be as efficient More disposable income will create a demand for more Environmental concerns housing, transport and local services Less stringent pollution laws so more pollution allowed Multiplier Effect Labour exp loitation Investment by a TNC can trigger more employment by Exploit cheap, flexiable, non-unionised labour forces in developing countries cumulative causation bringing greater wealth to the Minimum age area Urbanisation New working methods Factories built in major urban moves leads to younger 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 conclusiveness devising Sunderland Plans effecting the development of plants are made in host country to boost profitability To suck in advantage of government incentives, subsides,Little consiereation for local people EPZs (export processing zones) etc. Dependancy on TNC Lower costs especially labor More westerniese approach to life To reach foreign markets more effectively To exploit mineral and other resources Development Issue s within the world Trade vs encourageTrade 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 Adoption of capitalism Economic growth to trickle don so anyone 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 employed 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 competitive in world markets as they need to invest in equipment, technology and training to ma ke business productive and then infrastructure etc. Schemes like the CAP undercut mainly awkwardly based LDCs Wealth does not always trickle down to those who need it, like fear. Debts mean they would have to make millions before they made profit and due to the cuts imposed by the World Bank and IMF it often means there are populace spending cuts especially on health care and education Aid can be either 1. Bilateral from government to government. 2. Multilateral Where incorporated governments donate to an organisation (such as the World bank) who the distributes it to suffering countries. 3. Voluntary Where small NGOs send workers to help. NGOs such as OxfamAid is not always in the form of money sometimes it is in the form of goods or technical assistance. There are also several ways aid can be de red-hotred bind aid o Will limit the power of nations and may eventually cause resentment short-run aid o Usually following an emergency such as earthquakes or tsunamis o Thi s can be help with rescue operations o Medical supplies, trade protection, food and water long-run development stand outs o Improving food availability and farming methods o Helping to provide improved shelter o Health care and education o Developing better livelihoods and improving income o CAFOD, Catholic Agency For foreign Development Top down aid Throwing money at a country and allowing them to get on with it. o It usually focuses on large scale, valuable projects which are unsuitable for the local residential area. , such as HEP projects e. g. Nepal o It often doesnt go to the people who need it most o Usually tied Bottom up o More helpful to the local companionship however still bring their problems. o Small scale o Treat the individuals as individuals with creativeness and intelligence o They work with people to create what the community most needs and supply the materials o They can undercut local business. However aid is not perfect and may critics say- Aid doe s 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 settlement can be created which is often not sustainable is aid is a large proportion of national income Tied aid comes with strings attached, in some cases with every long horse given in aid $7 is given in return Economic vs. Environmental Sustainability Development that meets the needs of today without elastic the needs of tomorrow This would be achieved by Human potential being improved The environment is used and managed to supply people on a long-term basis Implies social justice as well as long term environmental sustainability The capa city of the environment to provide resources and absorb increasing levels of pollution is the critical threshold controlling how far population can increase and economies expand sustainably The Rio Earth spinning top 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 Protecting the environment is integral to development People should be informed of projections for the future as well as the ongoing environmental situation There should be environmental legislation and standards within states Laws should be enacted regarding liability for pollution The movement of substances that are harmful to others should be restricted States should warn 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 set to flow dis parities 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 understanding States should support an open economic system, with few trade barriers and tariffs National authorities 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 balance between the three core principles economic, social and environmental. Sustainable touristry myth or reality? As tourism is an more and more expanding, jillion 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 money pass should help to maintain these features However as tourist flows increase it starts to do more harm than good, peculiarly to small areas which cant deal with the massive influx, this can lead to the destruction of farm land to golf courses, and destroying born(p) habitats such as coral reefs, destroyed 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 important in the tourist sector Economic benefits of tourism must partly go to those who are local to the area Everything is guided by the needes 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 Waste minimisation, land use, re-use and recycling Energy efficiency, conservation and management enjoy Water (freshwater and waste) Land use planning and management occasion 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. holidaymaker can help by Being informed of the local culture, politics and economy Respecting local cultures modify to local cultures and tolerance Supporting 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 attractive ecosystems and cultural attractions are marketed internationally to attract tourists Planning and management is an important factor o capacitor 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 visitors to sustain the environment o Set up and run in cooperation with local people Case Studies Measuring Development- HDI HDI = 1/3 (life expectancy index) + 1/3 (education index)+ 1/3 (GDP index) Advantages Disadvantages Political competitiveness Does not take into account poverty More factors and reliable ones PPP values change very quickly, inaccurate or misleading. behind and cheap to collect 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 closely linked supply-side policies which can channelise the long-term patterns of AS Doesnt take account like war or political oppression. hack Based on normative economics. The success of government policy Other measures such as access to internet might be more important. Easily comparable to other countries Changes over time ceteris paribus comparability 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 community with at least secondary education , female 1. 015 0. 48 male Sustainability, Change in tone 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 lowest 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 rank 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 company 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 step by step production was mover there. Today Mattel produces Barbies in China, Indonesia and Malaysia taking advantage of the second stage of NICs, the Tiger Cubs. Taiwan has further benefited from globalisation, as it is now home 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 same formulas, one with sugar and one with Corn Syrup for different markets. The bottle design 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 sold 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 encourage multinationals to invest in their countries by offering lower tax rates and financial incentives.More indulgent 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 numbe r 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) really few countries where Unilever has no presence Asian Tiger- South Korea 13th largest economy Strong government super skilled and motivated workforce Large amounts of trade with a positive BoPProblems Move to commonwealth takes time Large aging population Unequal pay for women and poor working conditions for 52 hours a week Pollution with poor construction in infrastructure, roads and sewage BRIC economies It is said that these countries will be dominant by 2050, these brick economies, dont just rely on export industries like the 1st generation NICs. Brazil emerging economy President Lula, who began in cc3 took the economy out of dept and is now a stable country Generates $1. 5 trillion GDP/year Reliable power, with sust ainable 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 fellowship Slow national growth Increased crime 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 th e 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 21st Century Receiving up to $50 million per year. In 2006 they veritable $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 multiply as they got greater access to global markets. Problems Dramatic gap between rich and poor vast 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 environme nt and use of natural resources parasitic 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 count on 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 product 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 ordinal 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 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 Boston 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 capital of the United Kingdom 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 actual city Passports are taken by employers on arrival Environmental problems High electricity cost and rising carbon emissions sewerage 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 capacity 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 due 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 victuals 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 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 r estrain 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 putting 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 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, stability 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 ind ustrial practice 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 next 20 years Tanzanias 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 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 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 inside Dumping in Mexico NAFTA. Mexico is being exploited because o less rigid pollut ion laws which affects surrounding 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 humour 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 part 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 revolutionised Victorian hygiene Unilever was formed by the jointure of the Dutch margarine 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 near Sharnbrook continued research efforts in food preservation, anim al 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 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 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 hazard stricken countries Set up temporary shelters for those left homeless Democratic Republic of Congo (Kinshasa Goma), Ethi opia, 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 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 wet season that blessed them. There was also a state of dependency difficult to draw the line between those w ho should receive aid and those who did not. Other top down aid include large scale projects such as building dams and HEP stations 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 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 crapper 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 purpose 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 lift individuals out of poverty. Economic vs. Environmental Sustainability Holes talk Economic Environmental High unemployment especially in Hamworthy gate Ramsar and SSSI sites rare birds and invertebrates 30 Ha of unused land, power station site second largest natural harbor in the world Poor access to Poole town centre The construction of the reduplicate 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 trapped within Holes bay building up the marsh es 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 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 rubbish 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 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 puzzle out by building the parks on the flood plains and making artificial river banks around them this also prevents diddlyshit 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 polluti on 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 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 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 subsequently 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. Originally a cattle ranch, sold by the family to the local community who after a few years decided 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. Wide 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 w alks, 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.