The process by which people, cultures, money, goods and information can be transferred between countries with few or no barriers

Rostow’s Model

In 1960 WW Rostow developed his model by studying 15 countries (mainly in Europe) that suggested that all countries had the potential to break the cycle of poverty and to develop through 5 linear stages:

• The traditional societyo Subsistence economyo Mainly based on farmingo Very limited technology or capital to process raw

materials or develop industries ad serviceso E.g. Ethiopia

• Preconditions for take-offo Needs an injection of external help to move into this

stageo Extractive industries developo Agriculture is more commercialised and becomes

mechanisedo Some technological improvements and a growth of

infrastructureo Development of a transport system encourages tradeo Single industry (often textiles) begins to dominateo Investment is about 5% of GDP

• Take-offo Manufacturing industries grow rapidlyo Airports, roads and railways are builto Political ad social adjustments are necessary to adapt

to new way of lifeo Numbers in agriculture declineo E.g. India

• The drive to the maturityo Growth is self-sustainingo Economic growth spreads to all parts of the countryo Increase in the number and types of industryo Rapid urbanisationo E.g. Venezuela

• High mass consumptiono Expansion of tertiary industries and welfare facilitieso Service industry increaseso Manufacturing industry decreaseso E.g. UK and the USA

2 3 4 5UK 1750 1820 1850 1940

USA 1800 1850 1920 1930India 1950 1980 - -

Ethiopia - - - -Transnational Corporations (TNCs)

• A company that has operations in more than one country

• Grown by buying up foreign firms in mergers and acquisitions e.g. Guinness and Smirnoff owned by Diageo

• Much of manufacturing is subcontracted to third parties making it hard to regulate working conditions

• Link together groups of countries through the production of goods (most manufacturing TNCs are ‘assembly industries’)

• Forge connections between people in different countries by shaping common patterns of consumption

Reasons for the global nature of TNCs:• To be closer to their separate markets (these may

need to be served different, depending on cultural needs – Glocalisation) e.g. McDonald’s

• To operate inside local trade barriers, such as tariffs and quotas

• To operate where labour is cheaper and less regulated

• To spread the risk (e.g. those associated with industrial action or crop failure) e.g. Ford – if a store in London loses money, then a store in Manchester could ‘save’ them

• To gain grants and other rewards from national governments who are trying to attract inward investment e.g. South Wales and Sony

TNCs grow for 3 main reasons:• Motive – maximising profits by controlling costs:

o Horizontal Integration By buying up the competition E.g. Ford moved from mass-market sales to up-

market sales by acquiring Jaguar, Volvo and Land Rover

o Vertical Integration By controlling and owning every stage of

production from exploration and research through to sales

E.g. Exxon owns oil wells, oil tankers, oil refineries and petrol stations

o Economies of Sales

Companies expand production to increase efficiency and reduce unit production costs

• Means – financial support from banks:o Traditionally overseas investment has come from

OECDs/core countrieso Has been a recent trend of investment from developing

countries – a ‘reverse colonialism’

• Mobility – improved transport and communications:o Is faster/cheaper to move goodso Improved communications systems – fibre optic and

digital technology

Benefits that a TNC brings to the country of origin:• Profit• Jobs provided (planning etc.)• Brings status to country – more TNCs attracted

Advantages and Disadvantages that TNCs Bring to LEDCs:

Advantages DisadvantagesDevelop trade links with other countries

Few skilled workers are employed – jobs are often repetitive and low-skilled

Bring work and use local labour The needs of the country are rarely considered

Improve roads, airports and services

Local labour is usually poorly paid

Provide new technology Products being made are often of little value/too expensive for local people

Improve education and work skills

Companies may leave country at any time leaving many locals with no jobs

Provide money for new industrial projects

Often create pollution

Help develop mineral wealth (sell natural resources)

Most of the profits go overseas

Improve energy production Minerals are usually exported

Glocalisation:

• Changing what you sell to suit the target market/needs of the people in different countries

• e.g. McDonald’s have to change their menu in India to suit their religion

McDonald’s

Background Information:

General UKFirst restaurant opened in 1955 in the US

First restaurant opened in 1974

30,000 restaurants in 120 countries

1200 restaurants

50 million customers a day 2 million customers a day

They have often been viewed in a negative light because:

the high-fat, low fibre diet can cause diseases such as cancer, heart disease, obesity and diabetes

they harm/destroy the environment by deforestation to make way for cattle ranching

o they produce over a million tonnes of packaging – used just for a few minutes before being discarded

they bombard children with adverts, toys and schemes in schools – many parents object to this

they are responsible for killing 100s of 1000s of cows

o they use chickens from windowless factory farms by spreading all over the world they are merging cultures

there have been many complaints from employees about:

discrimination lack of rights understaffing few breaks illegal hours sewage in the kitchens sales of food which has been

dropped on the floor NAMED: MCJOBS

Rebranding McDonalds:

Using its products from local farms Not transporting goods by aeroplane, only using lorries in the

same country – reducing CO2 emissions Redesigning their restaurants into a more modern feel rather

than a greasy restaurant Using coffee beans from the Rainforest Alliance from

sustainable farms in Colombia, Brazil and Central America

China – Is it ‘Switched On’?

- Economic development is a relatively recent phenomenon- 1995 – GDP per capita = $620- 2005 – GDP per capita = $1,700- development aided by natural and human resources

- Natural Resources:o Reserves of coal, oil and natural gas

Used to fuel the industrial development of the country

- Since 1900s China has also been developing its energy base, with new hydroelectric and nuclear power stations

- Surrounded by developing markets e.g. South Korea, Taiwan and India, its on the major trade routes

Beneficial for its development

- Human Resources:o Vast population

Willing to work hard – in education AND employment

Trains 600,000 new engineers every year Rural labourers not treated well buy their

employerso They fuel China’s economic growtho Shut out of the health care system o State education o Live in appalling conditions

(overcrowded) o Work long hours for little pay

- China has become a divided society:o Within citieso Between the:

Developed urban eastern regionso Where most production is

concentrated e.g. Shanghai, Tianjin Underdeveloped western regions

o Where the majority of poor Chinese live e.g. Shaanxi, Gansu

- Developing fast BUT at a social cost- China is in the process of ‘switching on’ fully because half the

population still live in poverty, while the rest are rich and ‘switched on’

The Gambia – Is it ‘Switched On’?

Remains poorly connected Not at the same developing rate as China because it lacks:

Physical resources Human resources

1995 – GNP per capita = $320 2005 – GNP per capita = $290

has no confirmed mineral/natural resource deposits has a limited agricultural base/source 75% depend on crops and livestock for the livelihood small-scale manufacturing activities include:

the processing of:groundnutsfishhides that are then exported

dependent on aid for any development it may achieve Government:

trying to aid development with spending in the social sector

e.g. a girl’s scholarship programme was started in 2001

enrolling girls from poor households in school

The Gambia is ‘switched off’ because it has no natural or human resources to start developing properly

G20 Summit

A meeting between the top 20 countries (they represent 85% of the world’s economy)

They are discussing the recession and global economy and how to sort it out

Different places have different ideas, instead of just the G8s ideas

China: A Global Winner?

China’s increasing connectivity means it is a global winner because:

Foreign investments in China reached $63 million in 2006o Foreign firms are attracted to moving to and investing in

China because: Since China joined the World Trade

Organisation in 2001 barriers to foreign corporations have been removed

It now has a more open doors policy China has low production costs and has

been designated a manufacturing Export Processing Zone

With its population of 1.3 billion China provides a plentiful supply of cheap labour

China has a large and growing internal consumer market with rising purchasing power

HOWEVER:

• Although China had an estimated GDP of $5,300 per capita in 2007 this doesn’t mean a high income for all and 250 million Chinese people still live on $1 a day

• It has resulted in rapid rural to urban migration and the working and living conditions for many migrant workers are poor

• There is:o increased pollutiono degradation of natural resources

• these problems pose a threat to the sustainable development of the country:

soil erosion desertification steady fall of the water table (especially in the

north)

UK’s Population Structure

• high life expectancy – especially for females• economically active 15-65 – positive for UK economy – big

contribution to global economy• fall in fertility rates – links to birth rate

• Drop in population:

o 1980-85 – recession, Falklands war (UK involved)

• Issues:o Ageing population - pressure on social services

-- pressure on families-- tax payers pay for it but less workers

to pay-- therefore taxes increase

o falling consumer base – number of people to buy products will fall TNCs affected

• Influx of immigrants to fill the employment gap – has the EU helped or discouraged this?

Demography

• Study of population’s characteristics and movements

In the UK, to find out how population has changed we would use:• National statistics – detailed census records dating back to

1801• Parish registers include information at a local scale, outlining

info such as baptisms/births, burials/deaths and marriages• Personal recollection of individuals can help us to build a

picture of family history

Population: Inputs and Outputs

Population Change of a

Country or Region of a Country

Immigration

Inputs

Births

Outputs

Deaths

Emigration

The UK

• Birth rates and death rates sort of cancel each other out, very similar

How has the UK’s population changed?

Family size has changed by:• 1901 = 38 million• 2007 = 61 million• In early 1900s, average of 4 or 5 children per family• Today, only 2 children per family• Increased life expectancies, resulted in grandparents living

longer

Population structure has changed by:• Have developed a top heavy population structure• 1931:7% = over 65

24% = under 16• 2009:16% = over 65

19% under 16

Migration has impacted upon the UK’s population structure by:• mobility increased• most important migrations has been movement away from

manufacturing and mining towns, especially in North England• go towards settlements in higher economic sectors

Migration

Types of migrant and what they do:

Migrate for: Social reasonsDemographicEconomicEnvironmentalPolitical

Migration Theory:

Origin – where they have come fromDestination – where they are goingIntervening obstacles – tings that get in the way of migration (i.e. make it more difficult)

Displaced

Persons

Refugee/Asylum SeekersForced to move by war, famine, disaster or fear of persecution

Temporary Stay

Granted asylum in new

country

Repatriation to own country (failed asylum requests leads to deportation)

Voluntary

Migrants

Permanent move for work or quality of life reasons

Temporary move for work reasons

Citizenship is granted and move is permanent

May stay for weeks or years

Returns to own country

Illegal Migrants (may be

failed asylum seekers)

Voluntary individual move for work

Organised move as part of criminal activity (element of force)

Living and working until ‘discovered’

Forced deportation to own country

Migration: UK Spain

• Most immigrants to the UK are fairly young• Emigrants tend to be older, 60% are over 45• There are now significant permanent British populations in

several other EU countries• The most popular of these countries is Spain

• They choose to live in ‘urbanisaciones’• These are purpose built villa developments• E.g. Urbanisacion La Marina, near Alicante, construction began

in 1985• Largest population of non-Spanish residents of any

municipality in Spain. Around 8000 of the 10,000 residents are foreign and about half from the UK

Numbers of Britons In Spain

TotalInc. part-

timePensioner

s% male % female

761,000 990,000 74,636 42 41

Breakdown By Age %

0-14 15-24 25-44 45-64 64+9.5 4.9 24.7 39.4 21.5

Employment Status %

Employed Unemployed InactiveUK born 30.4 6.3 63.4

Locally born 47.5 7.7 44.7

Why are the Pensioners Migrating?

• Mediterranean climate Leisure facilities• Awareness of destination Cost of living• Communications networks (internet) Living longer• Expatriate community Property market• Lifestyle of Spanish people Health care

Impacts on the UKCosts Benefits

Family break-up, grandparents move away

Emigration balances increased immigration, reducing net migration rates

Loss of potential childminders

Fewer older people to take care of, some health and care problems are exported

Loss of a highly experienced workforce, especially if they retire early

Relieves pressure to build new homes, and therefore to build on greenfield sites

The ‘grey pound’ is spent overseas

Impacts on Spain

Costs BenefitsImmigrant ‘ghettos’ are created, with little social or cultural integration

Increased spending in the local economy; some retirees are highly affluent

Resentment as immigrants seek to enter local politics

Job creation in construction, retail and other services

House prices become too high for local people

Areas that were largely unproductive scrubland become valuable building sites

Healthcare costs are borne by the host countryPhysical infrastructure systems may be strained

The UK’s 5 Tier System to Manage Immigration

Tier 1: Highly skilled• Including entrepreneurs, top scientists and business people• No job offer will be required

Tier 2: Skilled with job offer• People with qualifications/work-related experience• Job offer in a ‘shortage area’ such a nursing

Tier 3: Low skilled• Workers from the expanded EU, who do not need prior

permission to arrive

Tier 4: Students• Those paying for tuition in the UK

Tier 5: Temporary workers, youth mobility

Polish Migrants to the UK

• Eastern European migrants who have moved to the UK have done so mainly for work. They include:

o Migrants around 30 years old with vocational training or secondary education and some work experience

o Young migrants, just finished vocational training or secondary education

o Young and unmarried migrants with a tertiary education keen to brush up their language skills and attain some work experience abroad

o Highly-educated specialists with work experience

• The vast majority of the 800,000 to 1 million migrants who have come to the UK since 2004 are from Poland

• In the past, immigration has tended to concentrate in urban areas

• Many Polish have settled in rural areas and work on farms and in food processing

• The UK’s Polish migrant hotspots are: Boston, Peterborough, Fenland, Herefordshire and Dungannon

• 2007 – 10% of people living in rural areas were immigrants

• Many of these areas previously experienced emigration

• Temporary immigrants send about 25% of their earnings home as remittances

• Immigrants who plan to settle in the Uk only send about 8% home

• For Poland, this income was around €6.4 billion in 2006, or 2.5% of Polish gross national income (GNI)

• Polish average earnings in the UK = £6 an hour

• A significant brain drain is occurring

Mumbai – a mega city in Asia

Location:• Largest city in India• On a long, thin island in a natural harbour• On the west coast• In the opening of Thane Creek• 650km2 of island

The population has changed by:• 1951 = 3 million• 2007 = 14 million• 2020 = 26 million (projected)

The population has changed so quickly because:• of its central position in Asia, with easy access to China and

the west global hub for the world’s TNCs• home of the Bollywood film industry

The impact of this change has been:• lack of space• overcrowded transport systems• shortage of water transported from the mainland in

enormous pipesDharavi:• most organised and successful shanty town in Asia• 60% live in poverty• citizens live in shanty towns• densely populated – overcrowded

o 100,000 people live and work in this area• industries = wide ranging

o produce over $500 million of goods here

Mumbai’s ‘Vision for the Future’ is:o to have a sustainable mega cityo to have a greener city:

• opening 325 new open spaces• extra 300 public toilets to deal with sanitation

problemso to create 200,000 new jobs in service sector health

care, finance and entertainmento to make it a world class location by 2013:

• 160 energy efficient trains to earn carbon credits

‘Vision Mumbai’ will work by:• getting sponsorship to maintain green spaces• the economy improving its economic growth rate to 8-10%

a year• need an increase in employment in construction – about

500,000 jobs• Dharavi given own redevelopment project

o 7 storey apartments will be built to help slum dwellers

London – a mega city in Europe

Location• on the River Thames• south east England

• highest population of any urban area in the EU 2005 - 7.5 million – 12.5% of the UK population

• 2004 – 220,000 foreign migrants into London 155,000 British migrants into London 350,000 moved out

260,000 to other parts of the UK

Finance and tourism – prime industries in 20th century Finance and business services – growth of 550,000 jobs in

1993

Vision London: ‘The London Plan’

• Aim is to create an exemplary sustainable world city for the 21st century

• To achieve this will require cooperation between London boroughs – they must work together to develop commercial and residential areas, improve transport and communications infrastructure and promote a sense of community

• The plan splits London into 5 sub regions: West, North, Central, South and East

• Within these sub-regions, certain areas have been identified as:

o Opportunity areaso Areas for intensificationo Areas for regeneration

• There are also other parts of the plan including the congestion charge and recycling targets

• Congestion charge: introduced in 2003 to central London extended further westward in Feb 2007 drivers charged £8 to drive in certain parts of the

city proved successful in cutting congestion thus

reducing pollution in the city• Recycling:

Started in 2003 London given £21 million (from London recycling

fund) to improve recycling rates through local initiatives

Further £20 million given in 2005

Money spent on 70 projects across the boroughs

Million City

• A city with population of over 1 million• There are around 200 of these

Super city

• A city with a population over 5 million

Megacity

• A city with a population of over 10 million

World city

• Cities of power based on:o tradeo political strengtho innovationo communication