CGP Global Systems

• Globalisation

  Movement of people, money, ideas and technology
• Globalisation


  Has consequences
• Interdependence

  Countries and people rely on each other
• Types of interdependence

  • Economic
  • Political
  • Social
  • Environmental
• Interdependence creates inequality between countries and people
• Unequal flows of people

  • People tend to move from countries with few jobs to countries with plenty
  • People also leave countries to escape war, famine or persecution
  • Migrants are often reasonably well educated
  • It is easier for people from developed countries to migrate than people from less developed countries
• Unequal flows of people

  Bring benefits and inequalities
• Benefits of unequal flows of people

  • Immigrants can create economic growth
  • Remittances can increase capital in less developed countries
• Unequal flows of people

  Can cause inequalities, conflict and injustice
• Unequal flows of money

  • Money flows from developed countries to less developed countries
  • Developed countries and companies invest in less developed countries
• Unequal flows of money

  Can bring benefits and negative impacts
• Ideas about how the world works are dominated by developed countries
• Neo-liberalism


  Belief that the economy will work better without state intervention
• Neo-liberalism


  Has increased free trade, but also increased inequalities, conflict and injustices
• Most technology is owned by developed countries
• Unequal flows of technology

  Increase inequalities and can lead to conflict and injustice
• Unequal power relations between countries

  • Developed or emerging countries with a lot of money and technology can drive global systems to their own advantage
  • Less developed countries lack money and technology and have limited power
• Global institutions like the IMF and World Bank can reinforce unequal power relations between countries
• The IMF and World Bank are based in the USA and led by developed countries, giving less developed countries less influence
• The IMF and World Bank's loans are conditional on less developed countries making changes to benefit developed countries
• The WTO generally works to reduce trade barriers, but developed countries have kept barriers in place, boosting their economies at the expense of less developed countries