Issues: Unequal flows of ideas

Question 1

overview

Answer 1

High income countries usually dictate ​ideas ​of how countries should be run, and how trade should be carried out. This is mostly down to these countries having ​more money​, thus more power over less developed countries.

Question 2

benefits

Answer 2

● High income countries have introduced ideas of ​deregulation​ ​to developing countries and newly emerging economies (NEEs)​. Reducing ​state ownership ​has had benefits to developing countries, such as​ lower prices of products and services ​from competitive rates. For example, the long-distance telephone market in Chile has been deregulated, which has cut telephone rates by​ 50%​.

● Free-trade ​(​created​ by HIC deregulation) has increased globally due to deregulation, allowing ​global markets to thrive​ and decreasing the risk of conflicts.

● Countries with successful strategies can ​educate​ ​low income countries on how to create economic growth​ or remove ​social injustice​, meaning low income countries can implement these strategies.

Question 3

Problems

Answer 3

● Some argue that​ deregulation is occurring too quickly​ for low income countries to keep up, and this is not allowing the​ full benefits​ of the growth of the private sector to be achieved. Rapid flows of FDI and growth of the global markets mean some countries cannot keep up, and a ​reform​ ​of regulations would work better than only ​deregulation​.

● Privatisation​ ​allows​ large companies ​who buy originally state-owned industries to ​grow​. Profits are massively​ concentrated within these companies​, rather than ​nationalised industries​. This means low income countries may not benefit from privatisation as it is n​ ot growing their economy​ but is instead funding the company.

● Low income countries may feel ​forced​ ​to keep up with ideas of the wealthier countries, even if the ideas are not the most beneficial to these countries. E.g. it is a massive disadvantage to a country’s economy if they ​do not join trade agreements​ etc.

● Deregulation may lead to more ​relaxed ​social and environmental laws in low income countries, causing social ​injustice​ ​and environmental ​damage​ ​without proper government regulation.
● Ideas of ​multiculturalism​ ​and ​interdependency​ ​may be disputed by some people. Some citizens few an interdependent country as a ​threat ​to their nation’s ​sovereignty​.