Text of Edexcel AS Geography (8GE01) Unit 1: Topic 2 â€“ Going Global
Edexcel AS Geography (8GE01) Unit 1: Topic 2 Going Global
Enquiry question: What are the main groupings of nations and what differences in levels of power and wealth exist? According to the spec, students need to learn: The disparities in global wealth and poverty, through broad economic and political groupings of countries (e.g. NICs, OPEC, LEDCs, LDCs, OECD and trade blocs like NAFTA).
Gross National Product (all trade) The value of all the goods and services earned by a company including companies working abroad (TNCs). Gross Domestic Product (internal trade) The value of all the goods and services earned by a country excluding foreign earnings. Per Capita Statistics providing an average per person. Purchasing Power Parity Relates average earnings to prices and what they will actually buy. Physical Quality Of Life Index Made up of life expectancy, literacy rates and infant mortality. Human Development Index Made up of life expectancy, literacy rates, infant mortality and school enrolment. Human Suffering Index Made up of daily calorie intake, access to clean water, inflation rate, access to communications, political freedom and civil rights. Economic Development Indicators Human Development Indicators Traditionally the world was viewed as developed core (north) or developing periphery (south) however globalisation has made this more complex as some countries are poor but have rich elites and make it hard to generalise. Countries are now classified as High, Middle or Low, using these indicators and then grouped politically, economically or by companies (TNCS):
Development Indicators 1. GNP 2. GDP 3. Balance of trade (Imports-Exports) 4. Natural increase 5. Life expectancy 6. Number of doctors per capita 7. Proportion of people living in urban areas 8. Dependency ratio 9. HDI Ratio
Countries can be put into broad economic and political groups because wealth and power arent shared out equally around the world These groups change over time as the wealth and power of countries change For example, most countries used to be classed as either More or Less Economically Developed Its now thought that this system is too simplistic there are too many stages of economic development to put all countries into only 2 categories.
The Brandt Line (or also known as the North South Divide) In the global north living conditions are high due to high wealth In the global south living conditions are low due to low amounts of wealth
G8 + 5 Aim to create deeper international co-operation and an understanding of climate change and international trade. OECD (Organisation for Economic Co- operation and Development) It is a global think tank for 30 of the worlds wealthiest nations and ensures wealth is distributed evenly across the nations. OPEC (Organisation for Petroleum Exporting Countries) - Established to regulate the global oil market. Stabilise prices and ensure a fair return for the 11 member states who between them supply 40% of the worlds oil. BRICS (Brazil, Russia, India, China and now South Africa) - They all have newly advanced economic development. LDCs (Least Developed Countries) - 50poorest countries classified by the UN Ex-soviet states After the break up of the soviet Union in 89, there were 15 ex soviet states remaining, which scored poorly in HDI and GDP NICs (Newly Industrialised Countries) - Countries undergoing industrialisation where average earning and exports have increased dramatically since the 70s. China. G20 - This actually has 23 members from the developing world, and was formed in 2004 with a focus on agricultural trade.
Least Developed Countries (LDCs) are a group of around 50 countries that are defined by very low incomes, poor health, low education, economic instability and their heavy debt to richer countries, e.g. Mozambique, Sudan, Ethiopia, Afghanistan Their economies are usually based on agriculture, so crop failures can lead to economic disaster Countries are moved out of the LDC group when conditions improve, e.g. Botswana
The majority of LDCs are located in the African continent, with a few located in Asia as well as Oceania, and only one in the Americas (Haiti)
Less Economically Developed Countries have started to develop their economies and this can be seen in their increasing GDP, calorie intake per day, birth rates and death rates Eg Egypt, Namibia
Newly Industrialised Countries (NICs) arent yet classified as developed countries (like the UK), but arent thought of as LDCs (like Bangladesh) either. Their economies are usually growing very fast, and there has often been a recent move from a mostly agricultural economy to one involving manufacturing and exporting The term was originally used for the Asian Tiger economies of Singapore, Hong Kong, South Korea and Taiwan
However, some people now argue theyre fully developed and so shouldnt be referred to as NICs any more. Theres no official list of NICs, though China brazil and India are currently thought of as NICs
The table above presents the list of countries that are consistently considered as NICs Green coloured cells indicate higher value or best performance in index, while yellow coloured cells indicate the opposite
The four BRIC countries are Brazil, Russia, India and China. They are in the same group as they all have newly advanced economic development. They are middle income countries, which are becoming high income countries. Now they the BRICS as South Africa has just been added very recently! Apparently they are the economies that we expect to lead in the future..wait and see!!!
Russia and some of the surrounding countries in central Asia and eastern Europe used to make up one large state called the Soviet Union A lot of independent countries have been created since the Soviet Union collapsed in 1991 these are mostly now classed as middle-income countries (E.g. Estonia) Middle-income countries have growing economies, but the growth isnt as rapid as the NICs and their development hasnt reached the same level, e.g. Ukraine
Recent growth in some ex-Soviet states is due to the exploitation of natural resources E.g. Oil and gas in Kazakhstan The privatisation of industries (state controlled in Soviet times to privately controlled now) has led to economic recovery and growth in many ex-Soviet states E.g. Belarus
More Economically Developed Countries have highly developed economies. They have high calorie intakes and GDP. Their birth and death rates are low, indeed their death rates may even exceed the birth rates. Eg UK, Italy
The Organisation of Petroleum Exporting Countries (OPEC) is a group of 12 major oil- producing countries African OPECs: Algeria, Angola, Libya Nigeria South American OPECs: Ecuador, Venezuela Middle East OPECs: Iran, Iraq, Kuwait, Qatar, Saudi Arabia, United Arab Emirates (UAE) Half of OPECs are from the Middle East due to the vast oil reserves present there Indonesia was a recent member but left OPEC in 2007
OPEC countries control around 2/3 of global oil reserves Because theyre a large group in control of a large amount of oil, they can make sure they get a fair price from oil-consuming countries (e.g. The UK) Some members have left since OPEC was founded because they wanted to produce more oil than the agreed OPEC quotas allowed (e.g. Gabon) Other countries have been invited to join (e.g. Bolivia and Sudan)
The Organisation for Economic Cooperation and Development (OECD) is a group of 34 of the richest and most powerful countries The top eight are called the G8 one of the worlds most powerful and wealthy groups its made up of Canada, France, Germany, Italy, Japan, Russia, USA and the UK They meet to discuss and provide possible solutions to economic, environmental and social issues Members of the OECD are always changing too, e.g. Potential new members include Brazil, China, India and more recently South Africa (BRICS)
53 countries that all used to be colonies of the UK, except the UK itself and Mozambique. They are all very different countries but try to uphold the same standards
There are six major trading blocs around the world
APEC Asian Pacific Economic Cooperation ASEAN Association of South East Asian Nations
Trade Blocs are groups of countries that make agreements to reduce barriers to trade E.g. By removing tariffs (taxes on imported goods) Blocs increase trade between members, and members can work together as a larger organisation to trade with non-members Benefits of membership of a trade bloc are linked to two important concep