Global Systems: Intro To Global Systems And Governance Flashcards
(18 cards)
What is Official Development Assistance (ODA)?
Funding provided by official agencies around the world to promote the economic development and welfare of developing countries.
Official UK target: 0.7% (Official Development Assistance)
What is Globalisation?
The process by which national economies, societies and cultures have become increasingly integrated.
What are the 5 flows of globalisation?
- Capital (FDI, TNCs, remittances, private investment, ODA (aid))
- Labour
- Products
- Information
- Services
Foreign direct investment statistics: US edition
US inputs over $2 trillion each year. The peak was $12.4 trillion invested between 2007-2008
What is the Marshall McLuhan ideology?
The Global Village: the world has transitioned from self-individualism to group definition
What is the Modernisation theory of 1960?
Theorised by Walt Whitman Rostow: suggest that if there is an equal opportunity then there will be equal growth in countries.
- Traditional society: agrarian economy of mainly subsistence farming
- Preconditions for takeoff: agriculture recognised and more is traded, some external funding, for example aid
- Take off: manufacturing industry grows
- Drive to maturity: industry becomes more diverse and growth should spread
- Age of mass consumption: output levels grow enabling increased consumer expenditure, shift towards tertiary sector activity and the growth is sustained by expansion of a middle-class of consumers
What is the Dependency Theory of 1971?
Developed by Andre Gunter Frank: accepts the idea of the core and periphery but also states: poor nations provide natural resources, cheap labour, a destination for obsolete technology and markets for developed nations, without which the latter could not have a standard of living they enjoy. Wealthy nations actively perpetuate a state of dependence by various means: this influence can be multifaceted involving economics, media control, politics, banking, finance, education, culture and sport
What are the aspects of global governance?
- Middle Power states (nations that, while not superpowers or great powers, still exert significant influence in international relations, often acting as bridge-builders and mediators) sometimes have a significant role
- The US designed much of the post-1945 UN architecture and often works with the G7 Nations
- There has been periods of warming and coldness towards the idea of global governance
TNC statistics
- Approx. 100,000 world wide
- The top 100 own 20% of the world financial assets, employ 6 million directly and 30% of consumer sales
- Bulk of taxes paid to the registered country (HQ)
- Most TNCs are assembly industries
- Spatial distribution of TNC is now moving east to India and China
What is the UN?
- First post-war IGO to be established-1945
- Overall aim to maintain peace and security
- 193 sovereign states are members
- Its sub-organisations govern different issues on a global scale
How do TNCs grow (the three Ms)?
- Motive: Profit through horizontal intergration (take-overs and mergers), vertical intergration (controlling and owning each stage of production) and economies of scale (expand production to increase efficiency and reduce unit product costs)
- Means: Access to finance and funding.
- Modility: Transport and communications. Accelerated and cheaper transport and communication systems along with production systems such as ‘Just in Time’ which provides a cheap and fast turn around, enabling companies to be faster than their competetors.
What is the Global Production Network?
- Accounts for over 80% of global trade
- Amazon: print on demand
- Dell: orders materials, builds a machine with exact specifications and deliveries: this is faster than competetors who had pre-made computers
- Just in Time production
FDI in 2020 statistics
- FDI plunged globally by 35% in 2020 (to $1 trillion from $1.5 trillion)
- Developed economies saw an FDI decrease of 58%
- Developing countries were much more stable, only experiencing an 8% drop due to robust flows in Asia
Remittance statistics in the US
US $500 billion - 3 x value of international aid (remittance is money made overseas and sent back home)
What are Global Systems?
The environmental, political, legal, economic, financial and cultural systems that organise the world
What is Global Governance?
The steering rules, norms, codes and regulations used to regulate human activity
What is the Core Periphery/World Systems approach of 1974?
The work of Immanuel Wallerstein, Friedman and Krugman. This follows the theory that there is always a natural order in the world. There is always leaders and always followers next bullet point.
Friedman: the ‘growth pole’ (economically prosperous areas) ‘backwash’ (less economically prosperous areas.)
Wallerstein: ‘strong centre, weak periphery, but inextricably linked and mutually dependent’
Krugman: ‘growth at the core is at the expense of the periphery’ most benefit, few lose out
What are the four main system aspects?
Inputs, Outputs, Flows and Stores
