global systems - causes and consequences of inequality

• Interdependence


  A relationship between countries in which they rely on one another for resources, goods, or services
• economic interdependence


  a condition in which countries have strong economic ties and depend on each other for resources, technology, trade, and investment

  Example - World bank and IMF
• Socio-economic interdependence


  Migrants work in foreign countries in response for remittance payments
• Global environment interdependence


  Global polices and laws in place to help protect the environment - Climate laws and regulations
• Political interdependence


  International organisations and agreements have been formed as a result of globalisation to handle issues, including trade disputes, terrorism, and climate change. Example - Trade agreements
• Positives of labour movement

  - Reduced unemployment, - remittances sent back to donor country,

  - fills skill shortages, reduces inequality between workers,

  - ideas and people might go back to the country of origin
• Negatives of labour movement

  - Loss of skilled workers,

  - risk of disease pandemics, - unemployment in more developed countries,

  - wage suppression in richer nations,

  - poor countries lose most qualified people (brain drain)
• outsourcing


  Hiring workers in other countries to do a set of jobs
• Benefits of outsourcing


  - Increased quality and efficiency of business processes

  - Reduced operating expenses and exposure to risk for large capital investments

  - Access to outsourcing service provider's expertise, economies of scale, best practices, and advanced technologies

  - Increased flexibility for faster response to market changes and less time to market for new products or services
• Disadvantages of outsourcing for origin country

  - loss of Jobs - less spending on local economy

  - deindustrialisation of the economy

  - Structural unemployment - skill set of workers is no longer compatible as they jobs they have trained fir have moved abroad
• Two types of inequality

  - the difference between richer counters and low income countries and whether difference ins rising or falling

  
  

  - The inequality that exists within in country and how that is impacting globalisation
• Causes of global inequality

  -Geography

  -Structure of the Global Economy

  -Population Growth

  -Government Policies

  -Political Instability

  -Natural Disasters

  - Development level

  - education, technology, and capital
• Consequences of inequality


  poor physical and mental health, inadequate nutrition, lack of affordable housing, fewer educational opportunities and educational resources
• inequalities between countries


  - communication and transport has connected the integration of economies

  - developing countries are closing the gap with their richer counter-parts

  - the fastest growing economies are in Asia
• Lorenz Curve


  Graph showing how much the actual distribution of income differs from an equal distribution
• How does the Lorenz curve measure inequality

  by visually depicting the cumulative share of income held by a given percentage of the population, where a curve closer to the line of perfect equality indicates a more equal distribution of income, while a curve further away from the line represents greater inequality;
• Gini Coefficient


  a number that summarizes a country's level of income inequality based on how unequally income is distributed across quintiles
• How does the Gini coefficient measure inequality?

  by providing a single number between 0 and 1, where 0 represents perfect equality (everyone has the same income) and 1 represents perfect inequality (one person has all the income),
• How is the gini coefficient calculated?

  Area A / Area A + Area B
• High inequality measure


  0.60 on gini coefficient
• Low inequality measure


  0.25 or less on gini coefficient
• Patterns of Inequality


  wealth gaps created and increased overtime. Globalisation has increased the incomes of the top 1%

  High levels of poverty and social housing in the UK

  There has been increase in wage inequality - 10x more salary for rich then poor
• Geopolitical issues


  the impact of geography on the entire political spectrum
• Examples of geopolitical issues

  - climate change

  - COVID aftermath
• How have the IMF, World Bank and World Trade Organisation reinforced unequal power relations between different countries?

  The IMF and the world bank are both based in the USA a HIC. Therefore less developed countries have less influence over decisions

  The loans they hand out are conditional - LIDC have to make changes in order to receive loan.

  
  

  The WTO world to remove barriers for trade but many HIC have kept the barrier in pace reducing imports for the low income countries
• Uganda inequalities and injustice

  - civil war

  - corruption

  - Poverty - especially in rural areas

  - Diseases - HIV and aids
• Uganda growth and development

  - village phones put in place

  -cheap wireless technology means that residents can have access to wifi and internet in remote rural areas

  - loans are being offered for those wanting to start small businesses
• Uganda unequal flows impact

  The effects of unequal flows of people, money, ideas, and technology have led to challenges in governance, stability, and social cohesion.