Development and Globalisation Essay Example for Free

instruction and internationalization EssayGDP- Gross Domestic Product the value of completely the goods and go produced in a country in a yr, in $US, usually expressed as per capita (per person). PPP (purchasing post parity)* figures atomic tally 18 more consumptionful. *Adjusted for loss of living GNP- The append value of goods and work produced by single country in a year, plus all net income earned from all overseas sources, in $US. HDI- Human Development Index It is a summary composite index that measures a countrys average achievements in tierce basic aspects of human increase health, knowledge, and a decent standard of living. Life Expectancy Literacy Rate Standard of Living (measured in GDP per capita) It gives a more complete picture of discip distinction of a country than GDP alone as it considers loving factors and non just economic factors. Development Continuum Originally there were three groupings that make up the emergence continuum, they wer e First World (those developed countries that had a democratic government and a strong thrift) Second World (communist countries) three World (UN developed countries)How incessantly as cadence has gone on newer economies cave in started to develop caused by different development patterns and speeds. The Development gap The gap among rich and wretched countries nearly commonly, the gap is thought of in terms of income/economics It to a fault social, environmental and even political aspects There was a suggested North/S verbotenh divide generatorating from the Brandt underwrite in 1980, where the north accounted for 80% of GDP but only 20% of the population however this too requires some artistic licence and is a real general way of dividing countries.There ar more accurate ways of grouping countries as listed be pathetic and as countries move through the development continuum countries race from one category to an some other substantial (MDCs the just about sa lutary developed countries eg. UK) Developing (Countries which are undergoing development arguably they all are. Eg. Malaysia) LDCs (Least Developed Countries eg. Ethiopia) NICs (Newly Industrialised Countries Have just finished development (10 years or so) Eg. China) RICs (Recently Industrialised Countries Further behind than the NICs eg. Dubai) Centrally think Economies (The few re maining communist countries eg. North Korea) crude 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 good deal controlled by TNCs ensuring high profits for MEDC firms and starting time prices paid to LEDC producers F glory throw exercise up in reaction to this. LEDCs are now primary producers producing low cost commodities, e. g. bananas Primary commodities realise fallen in price, or stayed s tea leafdy, while commodities they need has increase, e. . oil What is precludeing the Development gap from closing? Many LEDCs main assiduity is as primary producers generally low profit Internatnioal change over dominated by TNCs Rapid The Asian Tigers Who or what are the Asian Tigers? Asian economies that sw stomach progressed economically at much(prenominal) substantial order that deal come to rival the earning capacity and quality of living of those being start- foundation countries Taiwan, Hong Kong, Singapore and South Korea. Globalisation Globalisation The increased inter-connection in the humanitys economic, cultural and political systems. Positives Negatives Allowed the movement of volume more easily Uncontrolled migration Increased foreign job Inequality in wealth More access to nourishment, services, healthcare etc. ll over the world Heavy environmental cost Loss of countries individual stopping points, global cutters Globalisation began in the 19th century as there was the out evolution of movement o f people and goods Increase in independence Increase in trade as well as the spread of assiduity Beginning of Trans National Corporations. Globalisation continued in the 20th century and was shaped by a number of factors including 1.Emergence of disengage merchandises ( metropolisist sparing) 2. Deregulation of world financial markets 3. The organization of the General Agreements of Tariffs and Trade (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 low-priced, reliable and almost instantaneous communication o Allows dowry-out information o Allows transfer of capital o Allows Marketing around the world Labour o Improved transport for people Size of transport craft o Low cost airlines o High speed rail links o Specialised workers- doctors, ICT etc. o Un expert workers Products and services o Integrated networks o Goods handling o Computing logistics o Container revolution o Improved transport for goods o Global marketing, the world as one market and create intersections that fit various regional market places e. g. coca- weed and McDonalds Patterns of production, distribution and consumption Manufacturing has gone from developed countries to lower take economies. This is known as the GLOBAL SHIFT, which is brought about by FDI by TNCs.Many LEDCS deal benefited from the transfer of technology which has meant these countries cease raise their productivity without raising their wages to the aim of the developed countries. This has pass to the de-industrialisation of richer countries and the focus on tertiary and quaternary industry. There has also been outsourcing of service operations, such(prenominal) as call centres, Mumbai, this extends the influence on a global scale also the employment cost are a lot lower even though there is a highly enlightened workforce. Pos itive 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 accept for exports from MEDCs Loss of skills Cheaper imports raise keep the cost of living trim benefiting the retail Negative multiplier effect sector Large gap between skilled and unskilled workers who may experience Labour market flexibility and efficiency extreme redeployment differences Development of new technologies leading to investment deindustrialisation of some 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 can lead to ameliorated services such as Explo itation of advertise understructure, health care and education Disruptive social impacts Increased exports answers BoPs, and increases income and GDP Over-dependant on one industry New technologies Destabilises food supplies, little agriculture health and safety issues because of tax legislation Patterns of production and work outes 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 can also be more productive due to the transfer of technology. Newly Industrialised Countries (NICs) First figure 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 educate d populations Culture work ethic little rigid laws on health and safety regimen support through loans and grants Rely less on foreign support and gravel up their own businesses such as the Chaebols in South Korea, comprising of companies such as Samsung, LG and Hyundai This has now become a multinational and located in several 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, Infatheresia, The Philippines and Thailand, Mexico and Brazil Third Phase China and India, Turkey, South Africa and the Philippines China has seen the scurrying rate of economic ingathering of any country Indias industry is heavily based around services which accounted for 50% of its hit 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 maestro salaries ? of UK and USA High cost of training Low telecommunication costs Negative impacts on quality 24 hour working to fit with time differences Corruption and swanruptcy Huge 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 21st Century appear 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 standards Increase opportunities for the population Increase FDI Become more of a world player with market to an international standard Countries at genuinely low aims of economic development LDCs The countries were outlined by the United Nations and of the top 50 33 are in Sub-Saharan Africa. They are defined by the following Low incomes ($800 GDP per capita over 3 years) Human resource weakness, nutrition, health, education and literacy sparing vulnerability shown by signs of dependency on one industry Many of them suffer from widespread conflict, disease, geographical disadvantages, urbanisation and fast urban growth (demographically speaking). gauge of Life Most of the population cannot 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 on contendds some countries ready themselves in a debt crisis because the borrowed sizeable meats from the developed world. For many countries at low levels of economic development that breaking uninvolved of poverty can only ever be a vision. There a re certain policies being put in place by the IMF and the World Bank to help free the HIPCs They have returnd debt informality and interest free loans. SAPs Structural adjustment programmes o Government disbursal cutbacks to fund debt repayments o Mexico was the first country o 3 main aims- ? Promote exports- integration and liberalisation ? Reduce government clearing- privatisation and cutting costs ? Encourage foreign investment o Both intermediate and poor countries have had SAPs applied o Some success but SAPs could make matters worse oddly for the poorest people because- Loss of credit and subsidies from the government ? Food production locomote ? Devaluation of property leads to dramatic rises in prices ? Less spending on health and education by government Another scheme, the Multilateral Debt Relief Initiative (MDRI) Aimed to actuate 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 Socia l 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 pilot light target).Global, Social and Economic 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 the bloc. Made for a strain of reasons To notwithstanding socio-economic development To increase alliances and trade To allow free movement To prevent war Types of groupings take- Free trade areas- tariffs and quotas are reduced on goods between fragments and restrictions are put in place for goods approach path in to the area e. g. NAFTA Customs unions- tariff on imports from outside the group e. g.Mercosur Common Markets- like customs unions but with greater freedom of movemen t of labor party and capital, e. g. previously EU, current 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 (CAP) fisheries, transport, pollution (Kyoto agreement), industry, energy and regional development e. g. EU Positives and negatives of trade blocs Positives Negatives Greater feel of peace between member nations. Having to share economic resources Faster and smoother economic development Many countries go forth have to pay a large sum of money regularly to be in a Trade barriers removed trade bloc Higher standard of living. Elites can h centenarian a disproportionate amount of power. Certain areas of a national economy can be supported eg. Agriculture If one courty falls in to ecomic crisis the rest of the member states are through the CAP. effected large number 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 become 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 research and headquarters in the country of origin and locating the manufacturing plants overseas. As an arranging becomes more global, regional RD and headquarters will develop. TNCs can be split in to three different groups according to what industry they are- Resource extraction o Mining, gas extraction and oil producing o ExxonMobil, Royal Dutch Shell and BP Manufacturing o High-tech ? Computers, microelectronics, pharmaceuticals ? Hewlett Packard, GlaxoSmithKline and AstraZeneca o Consumer goods ? motor vehicles, televisions and other electrical goods Many of these are assembly industries ? Ford, General Motors, BMW , Sony o Mass produced consumer goods ? Cigarettes, drinks, breakfast cereals, cosmetics and toiletries ? Coca-Cola, Kelloggs, Unilever, Heinz Service operations o Banking/insurance, advertising, freight transport, hotel chains, fast food outlets, retailers o Barclays, AXA, McDonalds and Tesco Growth of TNCs Why do TNCs expand to different countries? Larger populations with cheaper Labour Costs Better government policies such as grants, lower taxes and subsidies Less stringent rules on employment and pollution Fewer restrictions due to trade barriers Greater supply of raw materials To take advantage of trade in spite of appearance trade blocs Allowing them to grow thereby achieving economies of scale, reducing costs, finance new investment and compete in global markets Allow them to set up in markets that they want to interchange in To acquire geographical flexibility so that they can shift resources and production between locations to maximise profits To serve a global m arket, TNCs may globalise production by- Produce for the market in which the plant is situated implement one plant to produce for a number of countries Use integrated production Source parts in places where they assemble their products close to the market, GLOCALISATION Impacts of TNCs on a host country Positive Impacts Negative Impacts Employment emulation Injection of capital into the economy Adverse effects on local companies which qualification not be as efficient More disposable income will create a demand for more milieual concerns housing, transport and local services Less stringent pollution laws so more pollution allowed multiplier factor Effect Labour exploitation 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 centres 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 decision making Sunderland Plans effecting the development of plants are made in host country to boost profitability To take advantage of government incentives, subsides,Little consiereation for local people EPZs (export processing zones) etc. Dependancy on TNC Lower costs especially labor More westerniese approach to life To discover foreign markets more trenchantly To exploit mineral and other resources Development Issues within the world Trade vs AidTrade is deemed as the more sustainable path out of the two to economic development as it helps to promote the growth in the volume and value of goods, leading to jobs and greater incomes, some of this income will help to picture domestic demand leading to investment and the multiplie r effect. This will also lead to rising living standards and gaining of skills by local people withal it relies on three factors Adoption of capitalism Economic growth to trickle don so everyone benefits Promotion of free trade This is a similar path that was taken by the MDCs and more recently the NICs. However many of these NICs had largely enduring governments, a well educated workforce and they employed protectionist policies to stimulate growth e. g. tariffs and import quotas. However there are slake 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 make business productive and then pedestal etc. Schemes like the CAP undercut mainly agriculturally based LDCs Wealth does not always trickle down to those who need it, like aid. 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 oft means there ar e public spending cuts especially on health care and education Aid can be either 1. Bilateral from government to government. 2. Multilateral Where collective governments donate to an organisation (such as the World bank) who the distributes it to suffering countries. 3. Voluntary Where 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 delivered Tied aid o Will constrain the power of nations and may eventually cause resentment Short-term aid o Usually following an emergency such as earthquakes or tsunamis o This can be help with rescue operations o Medical supplies, shelter, food and water Long-term development projects o up(p) food availability and farming methods o Helping to provide improved shelter o Health care and education o Developing rectify livelihoods and improving income o CAFOD, Catholic Agency For Overseas Development Top down aid Throwing money at a country and allowing them to get on with it. o It usually focuses on large scale, expensive projects which are unsuitable for the local community. , such as HEP projects e. g. Nepal o It often doesnt go to the people who need it most o Usually tied Bottom up o More helpful to the local community however still bring their problems. o Small scale o Treat the individuals as individuals with creativity and intelligence o They work with people to create what the community most demand 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 used ineffectively on large scale, expensive projects which are often left uncompleted Sometimes countries dont even have the correct infrastructure to use the aid effectively Dependency can be created which is often not sustainable is aid is a large proportion of nati onal income Tied aid comes with strings attached, in some cases with every sawbuck given in aid $7 is given in return Economic vs. Environmental Sustainability Development that meets the needs of to twenty-four hour period without compromising the needs of tomorrow This would be achieved by Human potential being improved The environment is used and managed to supply people on a long-term basis Implies social justice as well as long term environmental sustainability The capacity of the environment to provide resources and absorb increasing levels of pollution is the critical wand controlling how far population can increase and economies expand sustainably The Rio Earth summit set out the following points for each aspect of sustainability. Environmental Principles People should be at the centre of concerns States have the right to exploit their own environment but should not damage that of others Protecting the environment is integral to development People should be informed of projections for the future as well as the current 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 order to decrease disparities in living standards The needs of the poorest countries should be put first Unsustainable production and consumption patterns should be eliminated States should cooperate to restore the earths ecosystem Scientific information and innovative technologies should be transferred to improve understanding States should support an surface econo mic 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 increasingly expanding, billion dollar industry, it has increasingly been looked at to become more sustainable. Up until now it has followed this pattern The environment attracts tourists for its attractions The money spent should help to defend these featuresHowever as tourist flows increase it starts to do more harm than good, particularly to small areas which cant deal with the massive influx, this can lead to the destruction of farm land to golf courses, and set asideing natural 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 wishes of local people and communities At the Rio Earth Summit an environmental checklist was drawn up to show how the tourism industry could become more sustainable, these included Waste minimisation, land use, re-use and recycling naught efficiency, conservation and management Transport Water (freshwater and waste) Land use planning and management Involvement of all stakeholders in the planning Involvement of staff, customers and communities in environmental issues Sustainable tourism is an industry committed to making a low impact on the natural environment and local culture, while helping to generate income and employment for local people. Tourist can help by Being informed of the local culture, politics and economy Respecting local cultures Contributing to local cultures and security deposit 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 beautiful ecosystems and cultural attractions are marketed internationally to attract tourists Planning and management is an important factor o Capacity is managed o Encourages conservation, by educating local people and tourists o Focuses on the environment Criticised for being egotourism in some cases. Sustainable ecotourism must o Have a limit to the number of visitors to sustain the environment o launch 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. Easy 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 indicate the long-term patterns of AS Doesnt take account like war or political oppression. curve Based on normative economics. The success of government policy Other measures such as access to internet dexterity be more important. Easily comparable to other countries Changes over time ceteris paribus Comparing 2 countries, Nepal and the UK Measure UK Nepal HDI 28/187 157/187 Life expectancy 80. 68. 8 expect 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 Population with at least secondary education , female 1. 015 0. 48 male Sustainability, Change in forest area (%) 9. 8 -24. 5 % of population liv ing 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 be 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 be 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 e lse Mattel opened its first factory in China in 1987, wage prices were much lower and gradually 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 gelt and one with Corn Syrup for different markets. The bottle stick out 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 th eir 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 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 Sales also very widespread A lot of African countries (many LEDCs and LLEDCs), Greenland, some countries which were part of the old Soviet Union (Kazakhstan, Uzbekistan, Turkmenistan, Tajikstan) Very few countries where Unilever has no presence Asian Tiger- South Korea 13th largest economy Strong government Highly skilled and motivated workforce Large amounts of trade with a positive BoPProblems Move to democracy 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 2003 took the economy out of dept and is now a stable country Generates $1. 5 trillion GDP/year Reliable power, with sustainable sources, such as hydro electric power, sugar cane, bio fuels, sustainable in own Tupi oil fields FDI is the 4th largest in the world, $45 billion each year Very easy to communicate with Emerging middle class Good highly skilled work force However there are some areas where Brazil will need to improve if its development is to continue being sustainable- Will become a increasingly aging population Destruction of the rainforest Increasing cost of manufacturing hapless infrastructure Unequal society 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 the connections that exist between Chinese people and companies scattered all around the world In order to attract foreign industry in SE China, 14 open coastal cities and 5 Special Economic Zones were set up. They allow tax grants which would give more profit and were in favourable locations, geographically, to work. Labour was 80% cheaper in these areas There was a large amount of FDI for the bulk of the 21st Century Receiving up to $50 million per year. In 2006 they received $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 quadrupling 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 perverter 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 Popul ation 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 think that the Indian service sector is driven by call centres however its involvement in the service sector it accounts for 50% of GDP as there is a high population of skilled workers. Software and IT companies have been attracted to India because- Second-largest English speaking human resource in the world Investment friendly and supportive government politics Good infrastructure for power, transport and data communication Worlds third largest brain bank Stable democratic with over 50 year of independence Large market size Investment and tax incentives for exports in certain sectors such as electronics, telecom, software and RD The UK and USA has fuelled the service sector in India as Indians migrated to gain skills which they would take back to their home country. Such 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 place 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 London and Sigapore Fastest growing economy Its economy boomed upon the discovery of oil in the 1960s. There was a growth of 300% between 1968 and 1975. There was rapid immigration. To make itself less parasitical 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 Sewage because there is not enough water, as the city is in a desert, water is more expensive than oil Nuclear waste Adu Dhabi, must look to help out by providing solar energy Countries facing low levels of economic development Nepal One of the poorest countries in the world 157/177 in HDI Its GDP per capita is also one of the lowest at $1,049 Shortage of e nergy, 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 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 based on agriculture Literacy rate is 64% Reasons for poverty Topography and climatic conditions limit cultivated crops to only 4% of the land area Industry- mainly limited to agricultural products and light consumer goods 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 Parks Attempts to help Government a national poverty eradicated strategy- to reduce abject poverty 50% by 2010 The World Bank, IMF and bilateral donors have provided funds to rehabilitate Tanzanias deteriorated economic infrastructure Structural Adjustment Policies, SAPs, poverty reduction strategy papers Vision 2025 programme set the goals of a high quality of livelihood by year 2025 peace, stability and unity a well educated society and a competitive economy based on sustainable growth and integrity UN MDGs The results of attempts to help Tanzania Not improved quality of life Income and welfare indicators fell Even more dependent on foreign aid Increased environmental damage Pick up in industrial practice including gold and natural gas Increase 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 beside 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 put-upon because o less rigid pollution laws which affects surrounding countries EU 27 member states, set up in 1957 as the European Economic connection Aims Promote social and economic progress amongst member states Have more government influence Introduce EU citizenship Prevent war Create improve 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 seek grounds CAP support Power of elite love-in-idleness 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 merger of the Dutch margarine producer Margarine Unie as they had the common raw material manage oil In 1937 Lipton tea was acquired and in 1957 birds eye joined Colworth House facility near Sharnbrook continued research efforts in food preservation, animal nutrition and health problems associated with toothpaste, shampoo and other personal products. It is one of several R D centres In 2008, the companies had over 300 manufacturing sites in more than 100 countries 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 disaster stricken countries Set up temporary shelters for those left homeless Democratic Republic of Congo (Kinshasa Goma), Ethiopia, Kenya Swaziland top Down Aid Top down development is usually concentrated 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 de al with which shortened 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 hence not able to take advantage of the wet season that blessed them. There was also a state of dependency Difficult to draw the line between those who should receive aid and those who did not. Other top down aid include large scale projects such as building dams and HEP place like those proposed in Nepal, this can lead to the loss of valuable farm land and can limit the water downstream, leading to widespread droughts. Nepal, FoST 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 finding out about products Not sustainable in the long run if the donations stop Overall top down and git 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 elevate indi viduals 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 unused land, power station site 2nd 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 change state trapped within Holes bay building up the marshes Tidal salt marshes, to the build up of humus causing the build up of peat rising the level of the and creating fresh water marshes within Holes bay Poole harbours marshes could decrease in size Destroying many habitats for birds invertebrates and plants alike. Economic- Greatly over budget with its total cost coming in at over ? 37m Engineers spotted a large crack in the surface of the bri dge 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 lamp problems have also been solved by building the parks on the flood plains and making art ificial river banks around them this also prevents squatting and slums appearing in the parks Is home to many multinational industries, such as Nissan, Renault, Volkswagen, Audi, Volvo, HSBC, Siemens, ExxonMobil, Electrolux and Kraft Foods The per capita income for the city is $ 17,977 Sustainable tourism Nepal concentrated in certain areas such as Khumbu, Chitwan National Park, Annapurna National Park and the Sagarmartha National Park, The number of tourists increasing from 526,705 in 2007 to 710,547 in 2011, Actions must be taken in order to preserve Nepal. Problems with air pollution from the transport of tourists and fires getting trapped in the valleys due to the high mountains Increased demand for water and food supplies, taking away goods from the locals The same tracks are used by all of the tourists, erosion and destabilises the soil Increased the risk of landslides. Some tourists are also not respectful of peoples culture and the unduelife 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 after agriculture. One example of where agriculture has been replaced by tourism is Kigio. Kigio Wildlife Conservancy is a 3,500-acre defend 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 drop by the wayside 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 point of ecotourism in the Rift Valley lakes area.Guests are encouraged to move in low impact activities o guided nature/bird walks, o cycling, fishing o Day or night game drives are conducted in open-sided 44 vehicles Lodges work closely with the local community and support several enterprises, schools and an orphanage. Guests can visit a group of widows that craft sisal baskets, a group that makes jewellery from recycled paper and a rug weaving factory. The lodges only sell what is made by the community and pay a fair p rice. 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.