Development and Globalisation Essay Example for Free

maturement and orbicularisation Essaygross domestic product- Gross Domestic Product the honour of all the goods and go produced in a plain in a category, in $US, usually convey as per capita (per person). PPP (purchasing power parity)* figures ar more than personaful. *Ad solelyed for loss of living GNP- The total esteem of goods and services produced by unrivaled kingdom in a family, plus all net income get from all overseas sources, in $US. HDI- Human Development Index It is a summary composite index that measures a regions number achievements in three basic aspects of adult male ripening health, know leadge, and a fair to middling standard of living. Life Expectancy Literacy Rate Standard of Living (measured in GDP per capita) It forgets a more complete picture of emergence of a country than GDP al unmatched as it considers social factors and non just sparing factors. Development Continuum Originally thither were three groupings that made up the development continuum, they were graduation exercise World (those substantial countries that had a democratic government and a strong sparing) Second World (communist countries) deuce-ace World (UN developed countries)yet as time has g cardinal on newer economies own started to develop caused by unalike development patterns and speeds. The Development c left(a) The gap mingled with rich and pathetic countries Most comm further, the gap is thought of in margins of income/economics It also social, environmental and eve political aspects at that place was a suggested North/S get sur looking ath divide originating from the Brandt report in 1980, where the north accounted for 80% of GDP but only 20% of the existence however this too requires almost artistic licence and is a very general way of dividing countries. on that point argon more accu crop ways of grouping countries as listed below and as countries move through the development continuum countries pass fro m adept category to an few other Developed (MDCs the almost s swell developed countries eg. UK) maturation (Countries which are undergoing development arguably they all are. Eg. Malaysia) LDCs (Least Developed Countries eg. Ethiopia) NICs ( naturally Industrialised Countries form just finished development (10 grades or so) Eg. China) RICs (Recently Industrialised Countries nurture behind than the NICs eg. Dubai) Centrally Planned Economies (The few remaining communist countries eg. North Korea) Oil copious Countries (Countries rich in oil eg. Saudi Arabia) Causes for the Development Gap Colonialisation colonial powers took resources from miserableer countries Price of commodities is a plentitude controlled by TNCs ensuring high loot for MEDC firms and low prices p economic aid to LEDC makers Fair trade specialise up in response to this. LEDCs are now primary producers producing low cost commodities, e. g. bananas Primary commodities have fallen i n price, or stayed steady, while commodities they train has change magnitude, e. . oil What is preventing the Development gap from closing? Many LEDCs main pains is as primary producers generally low addition Internatnioal trade dominated by TNCs Rapid The Asian Tigers Who or what are the Asian Tigers? Asian economies that have progressed economically at such(prenominal) substantial rates that have come to rival the earning capacity and quality of living of those world startle-world countries Taiwan, Hong Kong, Singapore and South Korea. globalisation Globalisation The incr unbosomd inter-connection in the worlds economic, cultural and political systems. officials Negatives Allowed the execution of mountain more soft Uncontrolled migration change magnitude contradictory trade Inequality in wealth More rag to nutrition, services, health cover etc. ll over the world Heavy environmental cost personnel casualty of countries individual cultures, global cutters Globalisation began in the 19th century as thither was the beginning of movement of people and goods Increase in independence Increase in trade as well as the spread of industry bloodline of Trans National Corporations. Globalisation continued in the 20th century and was shaped by a fall of factors including 1.Emergence of unfreeze markets (capitalist economy) 2. Deregulation of world financial markets 3. The establishment of the General Agreements of Tariffs and Trade (GATT) the WTO which sought to baffle low 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 keep rise of TNCs. Flows Capital o ICT allows cheap, safe and almost instantaneous communication o Allows sharing reading o Allows draw out of capital o Allows Marketing roughly the world Labour o improve conduct for people Size of air craft o Low cost airlines o soaring speed rail links o Specialised rifleers- doc tors, ICT etc. o Unskilled constructers Products and services o Integrated net taps o unattackables handling o Computing logistics o Container revolution o Improved raptus for goods o Global marketing, the world as one market and produce products that fit various regional market places e. g. coca-cola and McDonalds Patterns of pay offoff, distribution and consumption Manufacturing has gone from developed countries to demoralize plight economies. This is known as the orbicular SHIFT, which is brought about by FDI by TNCs.Many LEDCS have put oned from the transfer of technology which has meant these countries can turn up their productivity without raising their wages to the level of the developed countries. This has lead to the de-industrialisation of richer countries and the focus on tertiary and four-spot industry. There has also been outsourcing of service operations, such as call centres, Mumbai, this extends the influence on a global scale also the oeuvre costs are a clustering lower even though there is a highly educated custody. 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 demand for exports from MEDCs Loss of skills Cheaper imports can keep the cost of living down benefiting the retail Negative multiplier effect firmament Large gap between skilled and unskilled bring iners who may experience Labour market flexibility and efficiency innate redeployment differences Development of new technologies lede to enthronization deindustrialisation of some areas, such as the North Help to edit inflation Positives for LEDCs and NICs Negatives for LEDCs Development of new industries Rapid urbanisation and rural-urban migration increase employment Westernised approach to economy Helps to curve development gap increase environmental malign die to polluting industries Increa sed FDI and investment which can lead to improved services such as Exploitation of excavate infrastructure, health care and education Disruptive social impacts Increased exports helps BoPs, and increases income and GDP Over-dependant on one industry New technologies Destabilises nutriment supplies, less culture Health and safety issues because of revenue 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 doer that they can also be more productive due to the transfer of technology. Newly Industrialised Countries (NICs) First kind 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 sympathetic characteristics w hich allowed for such industrialisation Large populations Well educated populations Culture work ethic Less hard-and-fast 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 begin a multi subject 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, In put onesia, The Philippines and Thailand, Mexico and Brazil Third Phase China and India, Turkey, South Africa and the Philippines China has seen the fastest rate of economic return of any country Indias industry is heavily ground 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 s pateing population Other countries are beginning to argue 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 costs Negative impacts on quality 24 hour vagabondning(a) to fit with time differences putrefaction and rimruptcy Huge labor force for labor intensive jobs e. g. all centers Command economy, governemtn speding on subsidies earlier than investment IT college graduates, 2 million/year Infrastructure beyond major cities is poor Literacy only 61% Growth in the 21st 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 standards Increase opportunities for the population Increase FDI Become more of a world player with market to an international standard Coun tries at very low levels of economic development LDCs The countries were outlined by the linked Nations and of the top 50 33 are in Sub-Saharan Africa. They are defined by the chase Low incomes ($800 GDP per capita over 3 years) Human resource weakness, nutrition, health, education and literacy scotch vulnerability shown by signs of dependency on one industry Many of them suffer from widespread conflict, disease, geographical dis returns, urbanisation and fast urban growth (demographically disquisition). musical note of Life Most of the population cannot afford basic immunities Resources of such countries are not evenly distributed. Attempts to reduce exiguity High population growth rate means that numbers living in extreme mendicancy are increase. Many of these countries depend on FDI Debt From the 1970s onwards some countries found themselves in a debt crisis because the borrowed large amounts from the developed world. For umpteen countries at low levels of econom ic development that breaking free of poverty can only ever be a vision. There are certain policies being put in place by the IMF and the World Bank to help free the HIPCs They have provided debt computer backup and interest free loans. SAPs 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 bully costs ? Encourage foreign investment o Both intermediate and poor countries have had SAPs utilize o Some success but SAPs could bemuse matters worse especially for the poorest people because- Loss of course credit and subsidies from the government ? Food production fall ? Devaluation of currency leads to dramatic rises 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 neighborly Problems Lack of income, healthcare, education, sanitization 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 Economic Groupings Trade Bloc is a group of nations who have joined to percolate trade and benefit from economic cooperation. The countries involved agree to free trade between them but impose tariffs on goods from countries away the bloc. Made for a variety of reasons To further socio-economic development To increase alliances and trade To allow free movement To prevent war Types of groupings include- Free trade areas- tariffs and quotas are reduced on goods between ingredients and restrictions are put in place for goods coming in to the area e. g. NAFTA Customs unions- tariff on imports from foreign the group e. g.Mer cosur Common Markets- like customs unions but with greater freedom of movement of labour and capital, e. g. antecedently EU, current example East African Common Market Economic Unions-all of the above as well as member states are also required to adopt putting surface polices in areas such as agriculture (CAP) fisheries, transport, contaminant (Kyoto agreement), industry, energy and regional development e. g. EU Positives and negatives of trade blocs Positives Negatives Greater chance of stillness between member nations. Having to share economic resources Faster and smoother economic development Many countries go out have to pay a large sum of money regularly 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 falls in to ecomic crisis the rest of the member states are through the CAP. effected sight seeking work ca n move between member states EU. Non-member states badly affected, lack of trade Possibility of a common currency- Euro Loss of reign 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 play in over two countries usually having their research and headquarters in the country of origin and attitude the manufacturing plants overseas. As an organisation 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 blood line 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 g oods Many of these are assembly industries ? Ford, General Motors, BMW, Sony o Mass produced consumer goods ? Cigarettes, drinks, breakfast cereals, cosmetics and toiletries ? coca plant-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 demanding rules on employment and befoulment Fewer restrictions due to trade barriers Greater supply of raw materials To take advantage of trade within 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 sell in To acquire geographical flexibility so that they can shift resources and production be tween locations to maximise profits To serve a global market, TNCs may globalise production by- Produce for the market in which the plant is situated Use one plant to produce for a number of countries Use unified 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 Competition Injection of capital into the economy Adverse effects on local anesthetic companies which might not be as efficient More disposable income will urinate a demand for more Environmental concerns housing, transport and local services Less stringent pollution laws so more pollution allowed Multiplier Effect Labour exerciseation Investment by a TNC can trigger more employment by Exploit cheap, flexiable, non-unionised labour forces in developing countries additive 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 own 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 resilientliness To reach foreign markets more effectively To exploit mineral and other resources Development Issues within the world Trade vs guardianshipTrade is deemed as the more sustainable path out of the two to economic development as it helps to promote the growth in the tawdriness and value of goods, leading to jobs and greater incomes, some of this income will h elp 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 everyone benefits Promotion of free trade This is a similar path that was taken by the MDCs and more latterly 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 aim to invest in equipment, technology and training to make business productive and then infrastructure etc. Schemes like the CAP undercut mainly agriculturally base LDCs Wealth does not unendingly trickle down to those who need it, like aid. Debts mean they would have to make millions before they made profi t and due to the cuts imposed by the World Bank and IMF it often means there are public spending cuts especially on health care and education charge 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 ordain limit the power of nations and may eventually cause resentment Short-term aid o unremarkably following an emergency such as earthquakes or tsunamis o This can be help with render operations o Medical supplies, shelter, food and water Long-term development projects o Improving food availability and farming methods o Helping to provide improved shelter o Health care and education o Developing bette r livelihoods and improving income o CAFOD, Catholic Agency For Overseas Development return 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 hip to(predicate) projects e. g. Nepal o It often doesnt go to the people who need it most o Usually secure 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 needs 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 a id effectively Dependency can be created which is often not sustainable is aid is a large proportion of national income Tied aid comes with set up attached, in some cases with every dollar given in aid $7 is given in return Economic vs. Environmental Sustainability Development that meets the needs of today 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 threshold compulsory how far population can increase and economies expand sustainably The Rio dry land 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 th at 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 injurious 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 essential be fulfilled so as to meet development and environmental needs of present and future generations States should work together to eradicate poverty in order to decrease disparities in living standards The needs of the poorest countries should be put first Unsustainable production and consumption patterns should be eliminated States should cooperate to restore the earths ecosystem Scientific information and innovat ive technologies should be transferred to improve understanding States should support an contribute economic system, with few trade barriers and tariffs National authorities should initiative 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 tourism 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 maintain 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 destroying natural habitats such as co ral 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 sphere Economic benefits of tourism must partially go to those who are local to the area Everything is command 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 include Waste minimisation, land use, re-use and recycling Energy efficiency, conservation and management Transport Water ( snappywater and go off) 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 enviro nment 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 tolerance sustenance local businesses and traditional values Use the least amount of local resources Ecotourism Is one of the fastest suppuration areas 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 bidors 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. Easy and cheap to collect entropy 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 prescriptive 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 Comparing 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 adjust 33,296 1,160 Pop. Living on $1. 25 per day % 0 78. 1 Population with at least in run education , female 1. 015 0. 48 male Sustainability, Change in forest area (%) 9. 8 -24. 5 % of population living in urban areas 79. 8 19. 2 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 ranked 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 attach to 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 Ba rbie dolls in the world. Within 20 years Taiwans incomes began to rise which then led to Barbie moving somewhere else Mattel opened its first mill in China in 1987, wage prices were much lower and gradually production was mover there. instantly 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 attach to with a single product in which minor elements are tweaked for a different market. The company uses the homogeneous formulas, one with sugar and one with Corn Syrup for different markets. The bottle design is the alike 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 sell in Iceland because all bottles must be th e same shape as there is a large recycling project and coca cola lower 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 principle 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 armorial bearing 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 maturement 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 emerge 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 c lass 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 close of the rainforest Increasing cost of manufacturing short infrastructure Unequal society Slow national growth Increased crime and corruption 25% of the population live in poverty, favelas, Sao Paulo China Third academic degree of NIC Development In 1978 China began to follow the path of development of the Asian Tigers through an export operate 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 quite a little of the 21st Century Receiving up to $50 million per year. In 2006 they received $63 billion, their highest recorded figure. free burning growth of up to 10% one of the highest in the world. China became part of the WTO message 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 buyer Putting other populations before their own Development of two Chinas, east and westChongqing largest urban industrial c ity 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 wild 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 intercommunicateing human resource in the world Investment friendly and supportive government politics Good infrastructure for power, transport and data communication Worlds third largest brain bank motionless 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 lay 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 mak e 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 burn out 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 comer Environmental problems High electricity cost and rising carbon emissions Sewage because there is not complete 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 fac ing 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 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 well-mannered 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 falli ng prices Tourism is booming especially in the National Parks Attempts to help Government a national poverty eradicated outline- to reduce abject poverty 50% by 2010 The World Bank, IMF and bilateral donors have provided silver 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 industrial practice including gold and natural gas Increase orphic 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 pollution 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 c itizenship Prevent war Create better laws Positive impacts Negative impacts Group activity on waste, pollution control and climate change Loss of sovereignty over some decisions Common currency Greece and Spain situation Large labour market due to ease of movement Sharing fishing grounds CAP support Power 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 merger 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, animal(prenominal) 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 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 expiration 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 date 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 stations like those proposed in Nepal, this can lead to the loss of semiprecious farm land an d 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 interior 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 non 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 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 possib le 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 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 becoming 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 spy 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 commerce 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 trumpery 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 Th e city has changed from being an agricultural area to a more industrial city Flood problems have also been solved by building the place on the flood plains and making artificial 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 change state 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 touris ts, 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 reason 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 to urism is Kigio. Kigio Wildlife Conservancy is a 3,500-acre protected Conservancy 2 hours drive from Nairobi. Originally a cows 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 leaf node pays helps towards the maintenance of the conservancy. Wide ranging habitats Many wild animals, honey badger, and over 200 bird species Protecting virtually 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 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 widow s that craft sisal baskets, a group that makes jewellery from recycled paper and a carpet 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.