GEOG1012 Winners & Losers in the Global World Exam 2024-2025 PDF

11/22/2024 Winners & Losers in the Global World Instructor: dr. Frank van der Wouden GEOG1012 – 1st semester 2024-2025 Exam December 14th 2024 - Saturday 2:30 – 4:00 PM 3/F Multi-purpose Zone, Main Library Library Extension (LE) 2 Library Extensio...

11/22/2024 Winners & Losers in the Global World Instructor: dr. Frank van der Wouden GEOG1012 – 1st semester 2024-2025 Exam December 14th 2024 - Saturday 2:30 – 4:00 PM 3/F Multi-purpose Zone, Main Library Library Extension (LE) 2 Library Extension (LE) 3 Where is your seat? Log-in to Exam Office website! http://www.exam.hku.hk/ 1  11/22/2024 Exam 50 MC questions 2 points each 1.5 hours 108 seconds per question (< 2 minutes) Closed book Exam Examples: 1. Advocates of the [X] have argued that… A: the government should [X] B: countries should [X] C: [X] developing economies is vital D: the development of [X] 2  11/22/2024 Exam Examples: 2. What is the key take-away from the figure above? A: [X] more than larger economies B: [X] than developing economies C: Developed economies [X] D: Developing economies [X] Exam Examples: 3. With respect to [X], the following is true [X] … A: [X] has increased, but [X] has decreased B: [X] has decreased, while [X] increased C: [X] and [X] decreased D: [X] and [X] increased 3  11/22/2024 Exam Examples: 4. [X] has been used to do [X]. What is NOT a feature of [X]? A: [X] has increased, but [X] has decreased B: [X] has decreased, while [X] increased C: [X] and [X] decreased D: [X] and [X] increased Winners & Losers in the Global World Instructor: dr. Frank van der Wouden GEOG1012 – 1st semester 2024-2025 4  11/22/2024 Why do we care? Globalization has resulted in growth in several countries But not for everyone… Poverty and under-development still exist 5 11/22/2024 6  11/22/2024 Content Global processes and local impacts Winning & losing Governance issues Key take-aways Questions Important arguments World is becoming more unequal, because society has focused on facilitating expansion of global markets but little on social consequences. Solving this is difficult, because the problem is complex – with a lot of key players with different (conflicting) interests This generates winners & losers → tidily linked to the capitalist market system. But also globalization? 7  11/22/2024 Trends in the Global Economy Second half of 20th century marked by tremendous economic expansion Trends in the Global Economy Second half of 20th century marked by tremendous economic expansion Recent decades are a lot more volatile Recessions following growth (financial crisis & COVID-19) 8  11/22/2024 Trends in the Global Economy Second half of 20th century marked by tremendous economic expansion Recent decades are a lot more volatile Recessions following growth (financial crisis & COVID-19) These trends are increasingly global rather than limited to specific regions Trends in the Global Economy Underlying these trends are broader structural changes: World economies increasingly interlinked Economic activities are multi-polar (more growth centers) 9  11/22/2024 Trends in the Global Economy Underlying these trends are broader structural changes: World economies increasingly interlinked Economic activities are multi-polar (more growth centers) No wonder, because the geography of the world economy is driven by global capitalist competition Result: “A mosaic of unevenness in a continual state of flux” (Dicken) Significant Changes over the Last Half-Century When the UN was founded (1945), 2/3 of current members did not exist as sovereign states – (55 out of the 193 countries) 10  11/22/2024 Significant Changes over the Last Half-Century When the UN was founded (1945), 2/3 of current members did not exist as sovereign states – (55 out of the 193 countries) The planet hosted 2.5 billion people – today 8 billion Significant Changes over the Last Half-Century When the UN was founded (1945), 2/3 of current members did not exist as sovereign states – (55 out of the 193 countries) The planet hosted 2.5 billion people – today 8 billion Economy: Trade barriers were high Capital controls strong Most corporations located entirely within one nation 11  11/22/2024 Significant Changes over the Last Half-Century Real world exports have increased 10-fold since 1950 and FDI has expanded more rapidly Significant Changes over the Last Half-Century Real world exports have increased 10-fold since 1950 and FDI has expanded more rapidly Foreign exchange flows have increased from $15b a year in 1973 to $1.5t a day in 2015! 12  11/22/2024 Significant Changes over the Last Half-Century Real world exports have increased 10-fold since 1950 and FDI has expanded more rapidly Foreign exchange flows have increased from $15b a year in 1973 to $1.5t a day in 2015! MNC exports comprise more than 66% of all exports Drivers of Change Transformations of the global economy are complex: Involving major changes in the key players 13  11/22/2024 Drivers of Change Transformations of the global economy are complex: Involving major changes in the key players Along with changes in patterns of production Off-shoring Out-sourcing Drivers of Change Transformations of the global economy are complex: Involving major changes in the key players Along with changes in patterns of production Off-shoring Out-sourcing Changes in patterns of consumption Local vs. global 14  11/22/2024 Drivers of Change Transformations of the global economy are complex: Involving major changes in the key players Along with changes in patterns of production Off-shoring Out-sourcing Changes in patterns of consumption Local vs. global Changes in patterns of distribution of ‘wealth’ Drivers of Change Transformations of the global economy are complex: Involving major changes in the key players Along with changes in patterns of production Winners & losers Off-shoring Out-sourcing Changes in patterns of consumption Local vs. global Changes in patterns of distribution of ‘wealth’ 15  11/22/2024 Drivers of Change Three key inter-related issues: 1. MNCs are the primary movers & shapers of the global economy They control of production in complex value chains spread across much of the world MNCs continually reshaping the map of growth and decline Drivers of Change Three key inter-related issues: 2. States continue to exert a major influence through deregulation of trade and financial flows through the regional trade agreements that bind some nations together more than others (EU, NAFTA, ASEAN) 16  11/22/2024 Drivers of Change Three key inter-related issues: 3. Technology has been a key enabling force Allows the emergence of a global economy (enabling not determining) Technology (knowledge) is the key asset on which firms compete Look at today’s stock market Drivers of Change Transformations of the global economy are complex: Involving major changes in the key players Along with changes in patterns of production Winners & losers Off-shoring Out-sourcing Changes in patterns of consumption Local vs. global Changes in patterns of distribution of ‘wealth’ 17 11/22/2024 18  11/22/2024 Why the Backlash Against Globalization? The world as a whole is much richer than ever before Globalization has generated wealth But… that wealth is generated increasingly unevenly, both across countries & within them 19  11/22/2024 Surely, the growth in the middle of the global income distribution is a good thing Surely, the growth in the middle of the global income distribution is a good thing But the relative lack of growth for the middle-class in developed countries is cause for concern 20 11/22/2024 21  11/22/2024 Inter-country inequality: Based on mean income in each country Inter-country inequality: Based on mean income in each country International inequality: Based on income of all global citizens on an equal basis 22  11/22/2024 Inter-country inequality: Based on mean income in each country International inequality: Based on income of all global citizens on an equal basis Why the Backlash Against Globalization? We have experienced many changes that have facilitated the expansion of global markets 23  11/22/2024 Why the Backlash Against Globalization? We have experienced many changes that have facilitated the expansion of global markets However, far fewer changes that support other social objectives: Development Human rights Poverty reduction Environmental concerns Linking Inequality to patterns in our Changing World? Increase in inequality occurring at same time as rise of globalization But are these trends linked? 24  11/22/2024 Linking Inequality to patterns in our Changing World? Would inequality have risen without the increase in globalization? Is inequality inevitable? Linking Inequality to patterns in our Changing World? Are there nation-state policies that have fueled the rise of inequality? 25  11/22/2024 Linking Inequality to patterns in our Changing World? Are there nation-state policies that have fueled the rise of inequality? Changing tax policy Reductions in social investment (education, healthcare) Ability of the rich to hide money from taxes The relentless expansion of neo-liberalism 26  11/22/2024 Can the Market & Globalization Eradicate Poverty? There is no question that globalization has enabled rapid growth in a number of countries This growth has lifted large numbers of people out of poverty – China for example 27  11/22/2024 Can the Market & Globalization Eradicate Poverty? Many other countries have not been as lucky – will their “catch-up” be more difficult? Can the Market & Globalization Eradicate Poverty? Many other countries have not been as lucky – will their “catch-up” be more difficult? Should we embrace the market and leave it up to competition to eliminate poverty? 28  11/22/2024 Can the Market & Globalization Eradicate Poverty? Many other countries have not been as lucky – will their “catch-up” be more difficult? Should we embrace the market and leave it up to competition to eliminate poverty? Is there a role for the nation-state – a tax to end poverty? How much do we need? Not much, but no political will We don’t need much? 29  11/22/2024 We don’t need much? So, we needed $200b in 2015 Estimated global military budget that year ~ $1000b (2/3 of that spent by the US military) Global Governance & Regulation of the World Political Economy Current regulatory framework comprises individual nation-states & a mélange of international institutions 30  11/22/2024 Global Governance & Regulation of the World Political Economy Current regulatory framework comprises individual nation-states & a mélange of international institutions Most of these are developed to regulate a post-WW2 system built around independent sovereign nations Global Governance & Regulation of the World Political Economy Globalization appears to have rendered this governance system essentially useless 31  11/22/2024 Global Governance & Regulation of the World Political Economy Globalization appears to have rendered this governance system essentially useless Our post-war institutions were built to regulate an international world not a global world 32  11/22/2024 Governance Challenges Conflict – the UN Charter developed to assure peace between nations But most serious threats to peace from civil wars Can these be linked to globalization (through environmental & ideological pressure)? 33  11/22/2024 Governance Challenges Conflict – the UN Charter developed to assure peace between nations But most serious threats to peace from civil wars Can these be linked to globalization (through environmental & ideological pressure)? Economy – UN Charter developed to assure growth in independent states That international economy does not exist anymore Neo-liberal regulation has aided globalization Little attention to shielding populations from negative impacts of globalization The global economy controls our future (for good – ask the Chinese; for bad – ask the Greeks) Governance Challenges Conflict – the UN Charter developed to assure peace between nations But most serious threats to peace from civil wars Can these be linked to globalization (through environmental & ideological pressure)? Economy – UN Charter developed to assure growth in independent states That international economy does not exist anymore Neo-liberal regulation has aided globalization Little attention to shielding populations from negative impacts of globalization The global economy controls our future (for good – ask the Chinese; for bad – ask the Greeks) What should improved governance look like? Stronger nation-states? More global governance, but for whom and by whom? Can the global economy be controlled (global taxes, global regulations)? 34  11/22/2024 Governance Challenges Conflict – the UN Charter developed to assure peace between nations But most serious threats to peace from civil wars Can these be linked to globalization (through environmental & ideological pressure)? Economy – UN Charter developed to assure growth in independent states That international economy does not exist anymore Neo-liberal regulation has aided globalization Little attention to shielding populations from negative impacts of globalization The global economy controls our future (for good – ask the Chinese; for bad – ask the Greeks) What should improved governance look like? Stronger nation-states? More global governance, but for whom and by whom? Can the global economy be controlled (global taxes, global regulations)? Environment? Key take-away Globalization has generated significant economic growth The prospects for improvements in global living standards have never been higher (though only if we ignore the environment & COVID19 crises) Yet, we still see significant poverty around the world and growing divides between a super-rich & everyone else Is rising inequality a threat to the future capitalist world order? Or not… if emerging economies experience income growth for a rising middle class… 35  11/22/2024 Questions Can the earth sustain this much growth? What will the cost of rising incomes be on resources & the environment? Are we thinking enough about these global problems and potential solutions? 36