A2 - Globalisation Case Studies Flashcards
(45 cards)
China’s Belt Road Initiative
- launched in 2013, $1 trillion in infrastructure
- connects china to 60% of world’s population +30% of global GDP
- resource endowment - china is the largest exporter $3.6 trillion in 2023
How many people signed BRI
more than 140 countries
Key BRI projects
Nairobi Railway, Kenya, China-Pakistan corridor, Djibouti port
Sri Lanka debt to china
$33bn and owes $3.4bn to china
- interest rate for china is 3-6% whereaa IMF 1-2%
- inflation rate 73.3%
- President Gtotobaya Rajapaska fled
When did Sri Lanka default on their debt
April 2022
What was the project in Sri Lanka
Hambantota port - cost$1.3bn - 85% funded by China - China has a 99yr lease on the port till 2116
- key shipping route + naval presence in indian ocean
Aid in Ethiopia
- 6% GDP growth
- $4bn/yr in aid
-65%poverty rate (1990) to 40% in 2023 - $$28bn external debt
- limited FDI due to instability + corruption
- soil degradation dur to aid-driven reliance
- 50% of national bugest comes from aid
Trade in Vietnam
- 7% GDP growth
- $66bn in 1990 to $409bn in 2023
- poverty rate 58% in 1990 to 4.8% in 2023
- $372bn export revenue in rice textiles and electronics
- low-debt-to-GDP via FDI
- trade led development
Examples of trade led development in Vietnam
Thi Vai Port, Vung Tau Port, North-South express way, Ho Chi Minh City + Hanoi
London Gateway
- opened in 2013
- connects to 110 ports in 60 different countries
- 3 day process - 60 robotic cranes
- can deliver to 90% of UK pop in 4 hrs
- loss of 100km2 of mudflats
London gateway post brexit
- loss of FDI
- opportunity in non-EU markets
- free port status giving a competitive advantage of EU ports
International debt of Ghana in 1999
6.1bn - 90% of export revenue
- 107% in 2000
- debt-to-GDP 84% in 2023
- debt dependency
International aid in Ghana
- 3.5bn debt relief from HIEC - 2002
- bilateral aid - UK - £400M 2000-2015
- World Bank $150m education project 2004
- literacy rate increased by 22% from 1995 to 2023
- relief aid after natural disasters- IMF
- IMR 111/1000 (1999) to 48/1000 (2023)
Fair trade - dominican republic
- 450,000 metric tons of bananas - 2023 - 3% globally
- 60% bananas under fairtrade certificate
- $500m revenue
- 30,000 small scale farms on $15-20/day
- $1.80/kg - fair trade premium
- 60% of profits to farmers/workers
Free trade - equador
- 6.5 million metric tons - 2023 - 33% globally
- top banana exporter
- 80% goes to owners
- $3.5bn in revenue
- monoculture
- $1.10/kg due to economies of scale
- 2.5 million jobs
- $6-8/day
- fluctuating price
WTO success
maintains peace, trade liberalisation and consumer price and quality
- 166 members
- 98% of all trade
- solved US-EU banana war
WTO failure
- benefit rich not poor
- trump ignores with no repercussions
- as members increase it is harder to reach decision
- trade wars increased
- labour exploitation
APEC
- 21 members
- 45% of world trade
- bilateral free trade agreement with china
USMCA
- formerly NAFTA
- trump said it was the worst trade deal ever
EU
- most powerful trading bloc
- GDP as large as the US
- links with ACP countries
G20
21 members
- major exporters like brazil, china, india and south africa
- challenge US + EU trade negotiations
Historical factors
commonwealth, DRC with Belgium, neo-colonism (TNCs)
Resource endowment
14 OPEC - 90% of all crude oil
Strategic investment
suez canal - 1869
panama canal 1914 - $1.27 trillion annually
BRI initiative