Development and Globalisation Essay

developing and Globalisation Development A process of social and economic advancement in terms of the quality of human life. Development net involve can involve economic, demographic, social governmental and cultural changes. Development is a term that can be used in many contrastive contexts whether it is social, economical, governmental and so on However generally breeding refers to an improvement in certain argonas Economic o An increase in the countrys economy with a geological fault from secondary to tertiary fabrication which becomes less dependent on FDI. Demographic An increase in population and a more maturation population as standard of living increases. Birth rates and death rates drop as life expectancy increases. Social o An increase in the range of services, increased land prices and a more multicultural society. Greater access to education, health care and communication Political o much democratic and more influence on the spherical stage. Stable govern ment, no dictatorship. Cultural development o Greater equality for women and better race relations in multicultural societies. Measuring Developmentgross domestic product- Gross Domestic Product the value of all the goods and services produced in a country in a year, in $US, usually expressed as per capita (per person). PPP (purchasing power parity)* figures are more useful. * adjusted for loss of living GNP- The total value of goods and services produced by one country in a year, plus all net income earned from overseas sources, in $US. HDI- Human Development Index It is a summary composite index that measures a countrys average achievements in terce prefatorial aspects of human development health, knowledge, and a decent standard of living. Life Expectancy Literacy Rate Standard of life (measured in GDP per capita) It gives a more complete picture of development of a country than GDP alone as it considers social factors and not just economic factors. Development Continuum O riginally there were three groupings that made up the development continuum, they were First World (those developed countries that had a democratic government and a strong economy) Second World (communist countries) Third World (UN developed countries)However as time has deceased on newer economies extradite started to develop caused by different development patterns and speeds. The Development gap The gap amidst rich and poor countries Most commonly, the gap is thought of in terms of income/economics It also social, environmental and even political aspects There was a suggested North/South divide originating from the Brandt report in 1980, where the jointure accounted for 80% of GDP but only 20% of the population however this too requires some fine licence and is a very general way of dividing countries.There are more accurate slipway of grouping countries as listed below and as countries move through the development continuum countries pass from one folk to another D eveloped (MDCs the most hale 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 geezerhood or so) Eg. China) RICs (Recently Industrialised Countries Further behind than the NICs eg. Dubai) Centrally Planned Economies (The few stay communist countries eg. North Korea) Oil Rich Countries (Countries rich in oil eg. Saudi Arabia) Causes for the Development ranch Colonialisation colonial powers took resources from poorer countries Price of commodities is often controlled by TNCs ensuring high profits for MEDC firms and low prices paid to LEDC producers Fair trade wind set up in reaction to this. LEDCs are now primary producers producing low constitute commodities, e. g. bananas old commodities have fallen in price, or stayed steady, while commodities they need has increased, e. . o il What is preventing the Development gap from ending? Many LEDCs main industry is as primary producers generally low profit Internatnioal trade dominated by TNCs Rapid The Asian Tigers Who or what are the Asian Tigers? Asian economies that have progressed economi holler outy at such substantial rates that have come to rival the earning capacity and quality of living of those world first-world countries Taiwan, Hong Kong, Singapore and South Korea. Globalisation Globalisation The increased inter-connection in the worlds economic, cultural and political systems. Positives Negatives Allowed the movement of people more easily Uncontrolled migration Increased foreign trade Inequality in wealth More access to food, services, healthcare etc. ll over the world Heavy environmental cost Loss of countries individual cultures, global cutters Globalisation began in the 19th century as there was the fountain of movement of people and goods Increase in independence Increase in trade as well as the spread of industry Beginning of Trans National Corporations. Globalisation continued in the 20th century and was shaped by a number of factors including 1.Emergence of free markets (capitalist economy) 2. Deregulation of world financial markets 3. The mental home of the General Agreements of Tariffs and Trade (GATT) the WTO which sought to inflict trade barriers. 4. The emergence of trade blocs 5. The establishment of the IMF and the World edge 6. Development of global marketing and the continuing rise of TNCs. Flows Capital o ICT allows cheap, reliable and almost instant(prenominal) communication o Allows sharing information o Allows transfer of capital o Allows Marketing nigh the world Labour o Improved transport for people Size of air craft o Low cost airlines o High speed rail links o Specialised workers- doctors, ICT etc. o Unskilled 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 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 wage 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 can raise their productivity without raising their wages to the level of the developed countries. This has asterisk to the de-industrialisation of richer countries and the focus on tertiary and quaternary industry. There has also been outsourcing of service operations, such as call centres, Mumbai, this extends the influence on a global scale also the employment costs are a lot lower even though there is a highly educated workforce. Positive and negatives of the global shift Positives for MEDCs Negatives for MEDCs Movement of polluting industries away from their country Could shoot to wide spread unemployment Growth in LEDCs whitethorn lead to demand for exports from MEDCs Loss of skills Cheaper imports can keep the cost of living down benefiting the sell 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 hint to investment deindustrialisation of some areas, such as the North Help to shave 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 improved services such as Exploitation of labour infrastructure, health care and education exuberant social impacts Increased exports he lps BoPs, and increases income and GDP Over-dependant on one industry New technologies Destabilises food supplies, less gardening Health and safety issues because of tax legislation Patterns of production and processes In manufacturing there has been a global shift of marketing from MDCs to LDCs.Guests are encouraged to act in low impact activities o guide 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 sightly 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 the ir environment.