Globalisation EQ3

Topic 7: How development is affected

Key ideas

• Measures of development:
  • Economic measures:
    • GDP/GNI per capita: ideally adjusted to PPP (purchasing power parity).
    • Economic sector balance: the shares of primary, secondary, tertiary and quaternary activity (the Clark–Fisher model).
  • Social measures:
    • Human Development Index (HDI, UNDP, 1990) is a composite of:
      • life expectancy,
      • education (mean and expected years of schooling),
      • GNI per capita (PPP).
    • Gender Inequality Index (GII) covers reproductive health, empowerment and labour-market participation.
  • Environmental quality: pollution indices (e.g. air quality, PM2.5).
  • Single indicators are simple but narrow; composite indices are broader but hide inequality.
• Inequality:
  • The Gini coefficient runs from 0 (equal) to 1 (unequal). South Africa has one of the highest, about 0.63 (World Bank).
  • Trends:
    • Between countries, global inequality fell as China and India grew.
    • Within many countries (e.g. China, the USA, the UK since the 1980s), income inequality has widened.
  • So globalisation creates winners and losers within and between developed, emerging and developing economies.
• Contrasting trends since 1970:
  • East Asia grew rapidly (the "Asian Tigers", then China).
  • Sub-Saharan Africa grew slowly until the 2000s.
  • Latin America had a "lost decade" in the 1980s debt crisis.
  • The environmental Kuznets curve idea: pollution rises with early industrialisation, then falls as countries get richer. Critics note that rich countries often simply export pollution through the global shift.

Glossary

Term	Definition
GDP / GNI per capita	Total output / income of a country divided by population.
PPP	Purchasing power parity: adjusting income for differences in the cost of living.
HDI	Human Development Index: a composite of health, education and income (0–1).
GII	Gender Inequality Index: measures gender gaps in health, empowerment and the labour market.
Gini coefficient	A measure of income inequality from 0 (perfect equality) to 1.
Development gap	The difference in wealth and wellbeing between the richest and poorest countries/people.

Self-test

Q1: What three dimensions make up the HDI? A: Health (life expectancy at birth), education (mean and expected years of schooling) and standard of living (GNI per capita, PPP).

Q2: Why might the Gini coefficient be more useful than GDP per capita for judging globalisation's impacts? A: GDP per capita is an average that hides the distribution of income. The Gini coefficient shows whether growth has been shared or has widened gaps between rich and poor.

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Topic 8: Tensions caused by globalisation and controlling globalisation

Key ideas

• Tensions from rapid change:
  • Open borders, deregulation and FDI create culturally mixed societies and thriving diasporas (e.g. the Indian diaspora in the UK).
  • But rapid change also causes tensions, e.g. the rise of extreme nationalism in Europe:
    • The vote for Brexit in 2016 (52% Leave), in which immigration was a key issue.
    • Growth of parties such as France's Rassemblement National, Germany's AfD and Hungary's Fidesz.
• Controlling the spread of globalisation:
  • Censorship:
    • China's "Great Firewall" blocks Google, Facebook and many foreign news sites and promotes domestic alternatives (Baidu, WeChat).
    • North Korea imposes near-total control of information.
  • Limiting immigration:
    • The UK has used a points-based system since 2021 (after free movement with the EU ended).
    • Japan has historically had very low immigration, although it is now cautiously expanding worker visas.
  • Trade protectionism: tariffs, quotas and subsidies, e.g. US tariffs on Chinese goods from 2018 and broader US tariffs in 2025.
• Retaining cultural identity: some groups seek to keep control of their culture and resources, while others embrace globalisation.
  • Example: First Nations in Canada:
    • Land claims and treaties.
    • Self-government agreements, e.g. the Nisga'a Final Agreement (2000).
    • The creation of Nunavut for the Inuit (1999).
    • Opposition to some pipelines and resource projects, e.g. the Wet'suwet'en opposition to the Coastal GasLink pipeline.
    • However, some First Nations partner with resource companies for revenue.

Self-test

Q1: Give two ways governments try to control globalisation. A: Censorship of the internet and media (e.g. China's Great Firewall) and restricting immigration (e.g. Japan, or the UK's points-based system). Trade protectionism (tariffs) is another.

Q2: Why are attitudes among First Nations in Canada towards resource development not uniform? A: Some communities oppose pipelines and mines to protect land, culture and the environment (e.g. the Wet'suwet'en). Others negotiate partnerships and revenue-sharing to fund services and jobs.

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Topic 9: Ethical and environmental concerns – localism, fair trade and recycling

Key ideas

• Localism and local sourcing, e.g. the Transition Town movement:
  • Founded in Totnes, Devon, in 2006 (Rob Hopkins).
  • It promotes local food, renewable energy, repair cafés and the Totnes Pound local currency (2007–2019).
  • Benefits:
    • Fewer food miles.
    • Community resilience.
    • Money retained locally (the multiplier effect).
  • Costs:
    • Higher prices.
    • Limited choice and scale.
    • It can be seen as a middle-class niche.
    • Local is not always lower-carbon, e.g. heated greenhouses compared with field-grown imports.
• Fair trade and ethical consumption:
  • The Fairtrade Foundation (UK, 1992) certifies products. Farmers receive a minimum price plus a Fairtrade Premium for community projects.
  • Fair trade can improve working conditions and reduce environmental damage (it sets standards).
  • Criticisms:
    • Only a small share of the retail price reaches growers.
    • Certification costs exclude the poorest farmers.
    • Small market share.
    • "Ethical" labels can be used for marketing.
• Recycling reduces resource consumption and ecological footprints, but it varies by product and place.
  • UK local authorities: England's household recycling rate has plateaued at about 44% in recent years, while Wales exceeds 60% thanks to statutory targets.
  • NGOs such as Keep Britain Tidy run anti-litter campaigns and Eco-Schools.
  • Limitations: much plastic waste has been exported (e.g. to Malaysia and Turkey) after China's 2018 import ban, and some "recycled" waste is actually incinerated.

Glossary

Term	Definition
Localism	Prioritising local production, consumption and decision-making.
Transition Town	A community initiative to build local resilience and reduce carbon dependence.
Fair trade	A trading partnership that gives producers fairer prices and better conditions.
Ethical consumption	Purchasing decisions that take account of social and environmental impacts.
Ecological footprint	The area of productive land and water needed to supply a population's resources and absorb its waste.

Exam technique (20-mark example)

Question: "Evaluate the view that globalisation has brought more costs than benefits for the physical environment."

• For (more costs):
  • China's pollution, Ok Tedi and PNG, and emissions from shipping and aviation.
  • Changing diets increase environmental footprints.
• Against (more benefits):
  • Technology transfer (e.g. cheap Chinese solar panels and batteries).
  • Global environmental agreements (Paris 2015).
  • The spread of fair trade and recycling.
  • The environmental Kuznets curve: China's air quality has improved since 2013.
• Conclusion: costs have dominated so far and fallen unequally on developing regions, but globalisation also spreads the tools and norms needed for solutions. The balance depends on the actions of players, i.e. governments, TNCs and consumers.

Self-test

Q1: Give one benefit and one criticism of Transition Towns. A: Benefit: a stronger local economy and community, plus fewer food miles. Criticism: higher costs and limited scale, so it can be a niche for wealthier residents.

Q2: How does Fairtrade aim to help producers? A: It guarantees a minimum price (a safety net) and pays a Fairtrade Premium for community investment. It also sets labour and environmental standards.

Assessment checkpoint (after Christmas): Globalisation end-of-unit multiple-choice and short-answer questions (23 marks). Revise definitions, figures and the named examples above.

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