Interdependence and unequal flows of people

• Interdependence is the theory that nations depend on each other economically, politically, socially and environmentally.
• Issues associated with Interdependence:

  •  Interdependence can cause issues for dependent countries due to unequal flows. The global flows of people (labour), money (capital), ideas, and tech are not equal around the world, sometimes countries give more, sometimes countries receive more.
• Unequal flows of people:

  • The flow of people globally is unequal. More people leave low income countries than enter low income countries. On the contrary, more people enter higher income countries than they leave.
• Benefits of unequal flows of people

  • Migrant workers become an important part of the host country as they become intertwined in work forces and take jobs that must be done, but are ‘unwanted’ by others. For example, 44% of the cleaning workforce in London is made up of ethnic minorities. 
  • Remittances (migrants sending money back home)  can boost growth and development in LDE and EME countries e.g. India is the largest recipient of remittances receiving over $100 billion in 2022
  • Refugees can find safety from conflict, disaster, or persecution e.g. Ukrainians fleeing the Russian invasion
• Problems with unequal flows of people:

  • LDE countries may suffer from brain drain e.g. health professionals such as doctors and nurses leaving countries like Nigeria
  • Host countries may become dependent on the migrant workers, and this causes issues if there is a change in circumstances.
  • Countries that migrants originate from may become dependent on remittances.
  • Migrants become more vulnerable to exploitation such as poor work conditions and low wages. E.g.  an estimated 1200 migrant workers have died in Qatar while building for the 2022 world cup.
• Unequal flows of money/ capital

  Foreign Direct Investment, aid, remittances all flow into low income countries, whereas the flows of money into high income countries are majorly repatriation of profits/product sales.
• Benefits of unequal flows of money/ capital

  • Improved quality of life due to more job opportunities and better infrastructure e.g. China has invested in high-speed rail links in East Africa which has boosted trade and business opportunities
  • Economic growth and development due to FDI, aid and remittances e.g. remittances account for 2-4% of India’s GDP
  • To the country sending money, there are also benefits. Richer countries can take advantage of lower labour costs, maximising their profits.
• Problems with unequal flows of money/ capital

  • Companies in low income countries operating from high income countries can create dependencies for workers. They are dependent on the higher wages, meaning they must subject themselves to dangerous situations.
  • Local businesses may struggle to compete with TNCs e.g. smaller retail companies may close if a Walmart opens nearby 
  • Foreign Aid can cause issues, as it can reduce incentive for governments to help their own countries.