Global systems and global governance
What is globalisation?
Globalisation describes a process of opening up world trade + markets to
TNCs + an increasingly interconnected world. The definition should
involve its effects on people, culture, political systems, environment +
quality of life.
Dimensions of globalisation
Globalisation‘s interconnected aspects:
Flows of info, technology + capital
● Cheap + rapid communication allows info + capital to be shared
● Money flows electronically - HDEs invest in LDEs
● Technology e.g. internet + mobiles, ignore political boundaries when
connecting people + places
● Outsourcing financial + IT services for HICs (e.g. India)
Flows of products + labour
● Transport is cheaper + efficient in moving people + goods
● High speed rail, airport hubs + containerisation have enhanced travel
● People migrate for employment e.g. specialised workers, TNCs +
unskilled migrant workers
● Tourists travel to more remote and exotic locations, encouraged by
global marketing + low cost flights
Flows of services + global marketing
● Services follow the flows of capital, info, people + products
● Marketing uses international strategies for global messages
● Global products rely on brand + identity
Patterns of production, distribution + consumption
● TNCs dictate where their products are made - generally in LDEs
● Products are globally distributed for the demand of HDEs
Colonialism
Historians argue correlations between globalisation + colonialism, by
extracting wealth from land and people.
Factors in globalisation
New technologies, communication and info systems
● Info can be shared easily + cheaply to billions with 1 click
● Mobile phones are essential in HDEs to connect people, markets + trade
Global financial systems
● Banks operate worldwide. They are linked by transmission systems
that allow lending + flows of money
, ● The 2007 collapse of US house prices led to a credit squeeze (banks no
longer lending) and the financial crisis in 2008
Transport systems
● Allows the movement of people + goods across vast distances
● Without the friction of time + space, there are opportunities + threats
Security
● National boundaries + traditional security measures have been
reduced because of informed + mobile populations
● Cybersecurity has grown due to our reliance on info systems and
avoidance of leaks
● The average cost of online security breaches for PLCs is £1.5m
Trade agreements
● Without rules, countries would resist some imports + favour others.
● The WTO oversees 97% of world trade, with a forum for negotiations +
ensures trade agreements are followed
Interdependence and unequal flows of people
Global systems are like Jenga, because of interdependence, any ‘tumble’ might
have an impact globally.
The British empire
English colonies were formed in West Indies, Canada, India etc. Between
1815 and 1914, 400m were added to the Empire. The British way of life was
imposed + national economies ‘served’ the needs of the Empire. After
WW2 the Empire was dismantled + replaced by the Commonwealth.
Uganda and global system
Uganda a land-locked in East Africa, within the Nile basin. Uganda
shouldn’t be poor - it is green and fertile with plenty of resources eg
copper + cobalt.
However, civil war, corruption and AIDS have stalled development. Nearly
1/3 live below the national poverty line and life expectancy is only 59
years.
Inequalities and injustices
Poverty in Uganda is greatest in rural areas. In the past, the British Empire
strongly influenced the country’s exports. Primary products e.g. coffee, tea
and cotton were exported around the Empire + still dominate their exports.
Fishing is successful by Lake Victoria and is one of the country’s most
profitable exports. This trade is unsustainable because of overfishing + the
predatory Nile Perch have reduced stocks of indigenous fish to extinction
levels. Fish factories have close with a knock-on effect to the local
economy.
, Stability, growth and development
Shambas, a smallholdings owned by subsistence farmers, suffer from
global systems.
Installing fixed cables is costly, but wireless technology means access to
the internet is possible. The‘Village Phone’ model offers loans to start a
mobile phone business. The market is rapidly growing e.g. farmers can gain
info about prices or new techniques.
The internet and single-product economies
‘When America sneezes we all catch a cold’. The USA uses global systems
to advantage over the rest of the world. Other countries can only respond
to global events in a more limited way, they are followers or recipients of
change.
China and the internet
China has the largest number of internet users - 25%
The internet reflects globalisation - allowing flows of money, ideas +
technology. Managing the internet is difficult, yet China controls the internet
at source and uses it to influence geopolitical events and its citizens.
The Chinese government controls what citizens can see using 2 methods:
● The ‘Great Firewall’ - online censorship blocking access to foreign
websites + filtering key words. Attempts to bypass this have limited
success.
● The ‘Golden Shield’ - domestic surveillance uses fines + arrests to
enforce censorship.
Ironically, China’s trade connections matter. However, the communist
government has ensured a filtered view of the online world.
Open sesame
Alibaba‘s (e-commerce company) web portals have boosted China’s
manufacturing sector by connecting exporters to businesses in over 190
countries. The Alibaba Group has grown to become a leading facilitator of
international trade + amongst domestic shoppers. The Alibaba Group’s
websites include Taobao (equivalent of eBay), AliPay (400m users) and
Tmall.com (for international brands).
The internet in numbers
Every 60 seconds... 204m emails are sent, 4m Google searches are made.
Yet only 40% have an internet connection.
