Global Systems and Global Governance 3


Globalisation makes countries and people interdependent - they rely on each other:

  • Economic - countries rely on each other for economic growth.
  • Political - countries are dependent on each other to solve issues that cannot be addressed by just one country.
  • Social - greater connection between people living in different countries creates social interdependence between the countries.
  • Environmental - evey country in the world is dependent on the rest of the world to look after the environment.

Interdependence creates inequality, both between countries and between people within the same country - it tends to bring more benefits to developed countries rather than less developed countries, and to richer people rather than poorer people. This is because the flows of people, money, ideas and technology are unequal.

People tend to move from countries where there are few jobs to countries with plenty.

People also leave countries to escape war, famine or persection. These refugees often try to get to the nearest safe country.

The people who move for economic reasons are not usually the poorest in society - money is needed to pay for a visa, transport and living expenses in the destination country. Countries may also only allow people with certain skills to enter the country, so migrants are often reasonably well educated.

It is easier for people from developed countries to migrate than people from less developed countries - in 2017, UK citizens could travel to 173 countries without a visa, while for citizens of Afghanistan, it was only 24.

Flows of people bring benefits as immigrants, for example, can create economic growth as they do jobs that a country's citizens can't do or don't want to do.

Many migrants send money back to their families or home communities - this is remittance. Remittance payments can significantly increase the amount of capital flowing into less developed countries. This can create economic growth in the home country as local people can afford to spend more, boosting local industries.

However, unequal flows of people can also create problems:

  • Inequalities - less developed countries suffer from 'brain drain' - skilled people leave and take their knowledge with them. This reinforces existing inequalities between countries.
  • Conlict - low-skilled migrants are often happier to work for less money than low-skilled locals. By employing them, companies may depress wages for the local population. This can cause conflict between the local and migrant populations.
  • Injustice - migrant workers are sometimes made to work in dangerous conditions for little money.

Flows of money can include remittances, foreign aid, foreign direct investment (FDI), and income from trade.

Flows of money are unequal - money often flows from developed countries to less developed countries.

Flows of money can bring benefits to countries, e.g. FDI allows foreign companies and countries to take advantage of cheap raw materials and low labour costs, while the host country can benefit from foreign capital and expertise. Foreign aid can be use to improve living standards or to rebuild local infrastructure after a…


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