Sunday 20 October 2013

Case Study of Mezzogiorno (Italy)

• Mezzogiorno or Southern Italy is the region of Italy which includes the Southern part of the Italian Peninsula and the islands of Sardina and Sicily.
• The region covers 40% of Italy and 33% of the population lives there.
• Soils are poor with the exception of the volcanic soils near to Naples-Vesuvius and some of the coastal plains.
• The area is dominated by low-intensity agriculture due to; poor rainfall reliability, flash floods which can wash away both soils and crops, and overgrazing which has reduced the quality of the soil and made it more susceptible to erosion.
• The Mezzogiorno is the poorest part of Italy, not only because of its physical environment but also because of historical and economic reasons.
• In particular:
 - High birth rates among peasants living in overcrowded hilltop villages.
 - A legacy of landlords occupying the fertile low-lying land.
• The region has remained dependent on agriculture because, unlike the industrial north of Italy. it has fewer other resources.
• Its infrastructure has been poor and the market for imported goods minimal.
• As a result of this, economic development has been restricted.
• The location of the Mezzogiorno on the periphery of European economic activity, away from major markets, industry and employment opportunities has meant that it has remained an underdeveloped region not just of Italy but of the whole of Europe.
• The disadvantages of the region were recognised in 1950.
• The EU CAP benefitted the region and 89,000 new farms have been established but it still remains the poorest part of the country.
• Tourism is a potential growth sector and not only are efforts been made to attract people to Naples, Sicily and the Amalfi Coast but also to less accessible areas near Brindisi.

NAFTA Case Study

 North American Free Trade Agreement
• The NAFTA is an agreement signed by the United States, Canada, and Mexico, creating a trilateral trade bloc in North America.
• A trade bloc is an agreement between states, regions, or countries, to reduce barriers to trade between the participating regions.
• The NAFTA came into force on January 1st, 1994.
• As of 2007 the trade bloc is the largest in the world in terms of combined purchasing power parity GDP of its members.
• It is the second largest trade bloc by nominal GDP comparison.
• The agreement opened for door for open trade, meaning tariffs ended on various goods and services
• It implemented equality between Canada, USA and Mexico.
• It has allowed agricultural goods like eggs, corn and meats to be tariff free.
• This has allowed corporations to trade freely, and import and export various goods on a North American Scale.
• In 2010 the United States received about a quarter of its imports from Canada and Mexico, which are its second and third largest suppliers of imported goods.

Advantages:
 • Decreased Tariffs
 • All 3 countries experienced real wage increases
 - NAFTA increased wages in the U.S. by 0.17%, in Canada by 0.96% and in Mexico by 1.3%.
 • Increased trade between the 3 countries
 - Trade of goods and services between the U.S., Canada and Mexico has increased from $337 billion in 1993, before NAFTA went into effect, to $1.182 trillion in 2011.
 • Created jobs for US workers
 - According to the U.S. Chamber of Commerce, increased trade from NAFTA supports about 5 million U.S. jobs.

Disadvantages:
 • Mexican workers have benefitted less than expected
 - Much of the investment has been in the form of factories near the border that are called maquiladoras, where Mexican workers provide cheap labour to produce U.S. goods. This arrangement has fallen short in its goal of increasing the size of Mexico's middle class because Asian labour has proven to be cheaper, and maquiladora towns have a poor quality of life for workers.
 • Lifted tariffs but not regulations
  - NAFTA may have eliminated tariffs between the U.S., Canada and Mexico, but it didn't do away with the numerous customs regulation that can stifle trade. Rule of origin regulations decide whether a good qualifies for trade under NAFTA guidelines, and exporters must complete certificate of origin paperwork





Saturday 19 October 2013

Case Study of European Union (EU)


• History of the EU:
 - WWII saw a human and economic cost which hit Europe hardest so to help Europe recover after the war the European nations formed a group called the Council of Europe in 1949.
 - Their aims were to ensure peace and improve economic development by making the countries more closely integrated.
 - In 1950, the European Coal and Steel Community began to unite European countries economically and politically in order to secure lasting peace.
 - The six founders were; Belgium, France, Germany, Italy, Luxembourg and the Netherlands.
 - In 1973 Denmark, Ireland and the United Kingdom joined the European Union, this took the number of members up to 9.
 - In 1986 the Single European Act was signed. This created the ‘Single Market’.
 - In 1989, the Berlin Wall was pulled down and the border between East and West Germany was opened.
- In 1993 the Single Market was completed with the 'four freedoms' of: movement of goods, services, people and money.
 - In 1993 it was named the EU.
 - Now in 2013 there are 28 members, with Croatia been the newest (joining in July 2013).

EU enlargement between 1958 and 2007
(to the left) This shows the members of the EU with the years they joined.








• It's a closely integrated economic and political group. For example:
 - Goods, services, people and money can move freely between most member states without barriers.
 - 17 out of the 28 members of the EU have adopted a single currency - the Euro.
 - Member states have agreed to have common laws and policies on things like agriculture and fisheries.

• Positive impacts of the EU:
 • Trade has increased
 - Trade has increased between European Countries
 - For example in 1970 just over 12% of the UK's GDP came from trade with European countries. 
 - Then after the UK joined the EU in 1973 the % of the GDP from trading with Europe increased to 23% in 2003.
 • Trade is easier
 - Trade has been made easier between some countries because of the Euro - this means that there is no need for money to be exchanged.
 - This means prices are more consistent because there is no uncertainty in exchange rates.
 - It has also been made easier because of the single market.
 - A single market is a type of trade bloc which is composed of a free trade area for goods with common policies on product regulation, and freedom of movement.
 - The aim is that the movement of capital, labour, goods, and services between the members is as easy as within them.
 - In other words, doing business with other EU countries should become increasingly like doing business within your own country.

 • Easy to move around
- Many EU residents are free to move around the EU so they can work or live in most other EU countries.
 - For example in 2004 when Poland joined the EU many polish flocked to the UK to find jobs.
 • There's increased security from external threats
 - For example the EU counter-terrorism policy protects all member states from the threat of terrorism. One of the ways they did this was introducing biometric passports to increase border security.
 • The EU supports some industries
 - For example the Common Agricultural Policy (CAP) which includes subsidies for EU farmers and adds import tariffs and quotas on agricultural products from outside the EU.
 - This then gives farmers a reasonable standard of living, secures food supplies and ensures a good price for consumers.

Negative Impacts of the EU:
 • Joining can be expensive
 - To become an EU member a country has to meet certain criteria
 - For example high standards of environmental protection
 - Meeting this criteria can involve a lot of investment
 • Countries have to share some resources
 - For example, countries who join the EU come under the Common Fisheries Policy
 - This means their fishing grounds become open to fishing by other members
 • Economies of countries outside the EU suffer
 - For example policies like the CAP can cause economies of countries outside the EU to suffer.
 - This is because EU countries might trade with other non-EU countries less as its cheaper for them to trade with fellow EU members.
 • Lack of skilled workers
 - In some Eastern countries there is a lack of skilled workers.
 - This is because so many people have moved to Western Europe in the hope of better wages/jobs
 • Reduces Independence
 - Joining the EU could reduce independence
 - This is because EU countries have to agree to obey EU policies even if it conflicts with their own national policies.

• How is it governed?
 - There are three political institutions which hold the executive and legislative power of the Union; The Parliament, the Commission and the Council.
- The Parliament represents citizens.
- The Commission represents the European interest.
- The Council represents governments.
- The Council, Parliament or another party place a request for legislation to the Commission.
- The Commission then drafts this and presents it to the Parliament and Council, where in most cases both must give their assent.
- Although the exact nature of this depends upon the legislative procedure in use, once it is approved and signed by both bodies it becomes law.
- The Commission's duty is to ensure it is implemented by dealing with the day-to-day running of the Union and taking others to Court if they fail to comply.

Test your knowledge at http://www.sporcle.com/games/georevision/european-union-eu-case-study





Saturday 12 October 2013

Under developed African Countries

There are a number of factors contributing to a countrys development or keeping it in a state of underdevelopment:

● Economic factors
- countries with large stocks of natural resources (coal, oil, diamonds, etc) tend to be more developed.
- However, poor exploitation of natural resources with, for example, the wealth gained going only to a very few people can also lead to underdevelopment.

● Social factors
- The more a country develops,  the more it has to spend on ensuring its population is healthy and well-educated and likely to generate more wealth in the future.

● Political and historical factors
- countries without stable governments, those run by dictators and those involved in civil and external wars tend to be less well developed.
- Countries which were colonised by other powers have historical factors that may have worked to keep them poor.

● Environmental factors
- Harsh climates (in Africa this would include countries affected by drought) can lead to problems of crop failure, pests such as locusts and poor water supplies

LLDCs and SIDs

LLDCs:

• Most trade is done using shipping as it is the cheapest form of transport so if you don't have a coastline then their sea borne trade unavoidably depends on transit through other countries.
• Additional border crossings and long distance from the market substanttially increases the toal expenses for the transport services.
• Landlocked developing countries are generally among the poorest of the developing countries, with the weakest growth rates, and are typically heavily dependent on a very limited number of commodities for their export earnings.
• Out of the 30 landlocked developing countries, 16 are classified as least developed
• Austria:
 - Austria has developed because they are surrounded by major developed markets and their seabourne trade accounts for a relatively small part of their external trade
 - Their export is mainly high value added products and their distance from the seaport is relatively short
• The distances involved in most cases of landlocked developing countries are excessive.
• Kazakhstan has the longest distance from the sea - 3,750km
• Afghanistan, Chad, Niger, Zambia and Zimbabwe all have distances from the nearest sea coast of over 2,000km
• Transit time for goods of landlocked developing countries is extremely long because of their long distance, difficult terrain, road and railway conditions inefficient of transit transport.
● In most cases their transit neighbours are themselves developing countries, often of broadly similar economic structure and beset by similar scarcities of resources.
● The recorded trade between landlocked and transit developing countries tends to be relatively insignificant.
● In most cases, the transit developing countries are in no position to offer transport systems of high technical and administrative standards to which their  landlocked neighbours might link themselves effectively by the development of their own internal transport systems.
● There is a clear correlation between distance and the transport costs.
● High transport costs erode the competitive edge of landlocked developing countries and trade volume.
● The trade reducing effect Is strongest for transport intensive activities that are dependent on exports or imported intermediate goods for production.
● Most landlocked developing countries are commodity exporters.
● According to UNCTAD estimates based on the IMF balance of payment statistics,  on average landlocked developing countries spent almost 2 times more of their export earnings for the payment of transport and insurance services than the average for developing countries and 3 times more than the average of developed economies.

SIDS:
● Low lying coastal countries that tend to share similar sustainable development challenges,  including small but growing populations, limited resources, remoteness, susceptibility to natural disasters, vulnerability to external shocks, excessive dependence on international trade, and fragile environments.
● Their growth and development is also held back by high communication,  energy and transportation costs, irregular international transport volumes, disproportionately expensive public administration and infrastructure due to their small size, and little to no opportunity to create economies of scale.

Development and Globalisation Definitions

Bottom-up development: Where decisions about development are made by local communities

Colonialism: The rule of one weaker power by a stronger power, including take-over of its government

Commodity: Raw material items, usually either farm crops or minerals

Core and Periphery: A theory that shows how different economic development between regions leads to a prosperous 'core' region and a poorer 'periphery'

Demographic: Relating to population

Dependency theory: A theory by economist Andre Frank, which shows how economic development of core regions occurs at the expense of the peripheries. The core depends on raw materials from the periphery areas, while the periphery depends on the core as a market for its goods

Development: Socia-economic change which aims to improve wealth and standards of living

Development Continuum: The span of levels of economic development, from poorest to wealthiest countries

Development Gap: The differences between poorer countries of the developing world (or LICs), and wealthier developed countries (or HICs)

Export Processing Zones: A type of Special Economic Zone where businesses are free to import raw materials, process, and manufacture them, and re-export without paying duties or tariffs

Export-oriented industries: Those industries established largely for the purpose of increasing exports

Fair Trade: A system of trade whereby producers are paid fair prices to give them a reasonable standard of living

G8: The group of the 8 largest economies in the world (Russia, the USA, UK, France, Canada, Germany, Italy, and Japan)

GDP (and GDP per capita): Usually given in the US$, this is a figure which sums the total value of all goods and services produced in a country in a year. It may either be expressed for a whole country, or per capita by dividing the total by the population.

Globalisation: The way in which people, cultures, money, goods, and information 'move' between countries with few, or no barriers

Green Economy: An economy based on sustainable development eg. low carbon use

Green Revolution: A package of mechanised farming techniques and high yielding seeds to enable LICs to feed their growing populations

Human Development Index: A UN index with a range between 0 (worst) and 1 (best), which measures life expectancy, knowledge (literacy and number of years spent at school), and standard of living (GDP per capita)

IMF: The International Monetary Fund, an organisation which funds development in poorer countries, using bank deposits from wealthier countries

Just-in-time: A process used by transnational companies to reduce stock, so that goods are produced just in time before sale, rather than being held in warehouses

Modernisation theory: A theory stating that capitalism generates economic development in ways that will benefit all; it dates from the 1950's-70s when US investment was used in South East Asia to prevent the expansion of Russian communism

New Economy: Also known as the 'knowledge economy' which is based on creativity and specialised expertise in finance, media, and management, rather than manufacturing goods

Out-sourcing: The employment of people overseas to do jobs previously done by people in a HIC. Usually associated with IT software development, banks, and service companies, eg. call centres

Purchasing Power Parity (PPP): The relationship between average earnings and prices, and what it will buy, because a dollar buys more in some countries than others. It expresses the the spending power within individual countries and reflects the cost of living

Special Economic Zone: Areas in which governments offer tax incentives for foreign companies to build new factories there. Usually found in NICs

Tariffs: Also known as 'duties'. Charges imposed on the import of goods from certain countries

Top-down development: Where decisions about development are made by organisations, eg. government or large companies, and imposed on a population

Trade Liberalisation: Also known as free trade - means removing barriers such as duties or customs. The theory is that the fewer barriers there are to the flow of goods, the greater trade will be

World Bank: An organisation set up after World War II to promote investment globally. It provides loans for countries who agree to conditions; like the IMF

WTO - World Trade Organisation: A group of (in 2011) 143 nations agreeing to trade with each other without the use of tariffs or duties. It deals with the rules of global trade, with the aim of easing trade and getting rid of anything hindering it

Test your knowledge on these here: http://www.sporcle.com/games/georevision/develment-and-globalisation-definitions

Case Study Las Terrazas in Cuba

• Cuba is located in the Caribbean Sea
• The area of Sierra del Rosario, where Las Terrazas is situated, was designated a Biosphere Reserve by the United Nations Educational, Scientific and Cultural Organization (UNESCO) in 1985.
• Due to the areas importance, projects are combining sustainable development and tourism in the mountainous and historic Las Terrazas Community.
• Las Terrazas translates to mean 'terraces' as it is where coffee beans were grown by French immigrants.
• The projects in place here aim to start up the zones economy, raise standards of living and to connect economic, fiscal, commercial, energy, agricultural and industrial policies in order to protect the environment and promote awareness.
• The Moka Hotel is a four star hotel built in the San Juan Valley.
• It is a leisure centre and contemporary style hotel yet preservation of the natural environment is still the main concern.
• The infrastructure aims to integrate tourism into the community through traditional Cuban cuisine, historic traditions and the intimate experience of being close to nature.
• The natural beauty can be seen in 70 species of bird and nearly 800 plant species.
• There are opportunities for direct contact with mountain dwellers in understanding how environmental degradation is affecting those who rely on the environment.
• The community with around 900 inhabitants was built around an artificial lake in the San Juan River and its water mirror is one of the most famous in Cuba.
• You can tour around its environment by hiking through the foilage, zip lining under the Canopy, cruising the lake, taking a refreshing dip in one of the numerous natural baths, or simply strolling and admiring the surrounding nature.
• Recreational activities in Las Terrazas are all related to Nature: hiking, trekking, and bird watching of such endemic species as the Tocororo, the Zunzuncillo, the Cartacuba, and the Carpintero.
• The WWF has had a long involvement with tourism issues in Cuba especially the recovery and management of areas where mass tourism has caused a negative impact on wildlife species or ecosystems.

Case Study Kasban du Toubkal in Morocco

• The Kasban du Toubkal is a hotel situated in the High Atlas Mountains in Morocco and is 60km from Marrakech at the foot of Jbel Toubkal, the highest peak in North Africa.
• The property was bought by British trekker Mike McHugo in 1989 who restored and later opened the property for paying guests.
• Mike McHugo wanted the development to benefit the local community and so he created jobs for local village labourers who used traditional building techniques.
• A local villager and his wife now manage the property and employ 32 staff from local villages.
• Most food for the Kasban du Toubkal is bought locally.
• The Local village of Imlil has a population of only 1,500 people, but the Kasbah has made it easy to have work and an income for the local people.
• "Discover Ltd" helped set up the Imlil village association, funded by the levy of 5% on all accommodation.
• This association has created and manages; a local rubbish clearance programme, an ambulance service, accommodation in the nearest town for children to be able to attend school, and improved safe water systems, as well as a good electricity generator.

Case Study of an Amazon Lodge in Brazil

● The amazon lodge is accommodation for tourists that seek a closer association with the jungle.
● It has been operating since 1979.
● The tour operator and lodge owners sustain the experience and environment by; restricting the lodge to only 25 guests, keeping the lodge simple (so not air conditioning,  hot water, etc)
● The 5 hour trip to the lodge is also made as adventurous as possible by using canoes instead of flying people to the lodge.
● In addition solar panels are used, all waste is taken away in containers and local food is used whenever possible.
● All materials used in the construction of the Juma Lodge are plentiful in the region and were judiciously extracted from the forest.
● The main conservation project involves providing financial support to restore the forest along the rivers bordering the lake where the lodge is located (Juma Lake)
● The project involves an agreement between Juma Lodge and the local residents who live along the rivers.
● Under this agreement,  the residents receive training on how to cultivate seedlings of native trees and Juma Lodge agrees to purchase all the seedlings they produce.
● This allows the residents to increase their income and the Amazon Rainforest to be regenerated.
● Currently 40 families participate in the project and 3, 500 hectares of forest have been restored.

Case Study of the Napo region in Ecuador

● The Rio Napo region is situated at the western extreme of Amazonia where it has extraordinarily rich tropical moist forests. 
● There has been a lot of oil exploration and deforestation in the past (a research by the British charity Action Aid proved this).
● This was destroying the traditional lifestyles of the locals (Quicha people).
● Action Aid developed the eco-tourism project to stop this from continuing and to provide a sustainable income for the Quicha people.
● The Napo Wildlife Centre is a 100% community-owned lodge which is located inside the Yasuni National Park deep in the Ecuadorian Amazon.
● The Anangu Quichua community receives half of the profits from the lodge, this allows them to be active in conservation and to work towards preventing logging, market hunting, and oil extraction all of which are actively destroying local forests.
● The members of the community are active participants in the conservation and management of over 52, 000 acres within the Yasuni National Park as well as partners in the lodge
● Ten big luxury cabins, private shaded porches with lake view, ceiling fans, mosquito nets.
● Private bathroom, on-demand hot water showers, 24-hour electricity.
● Large thatch-roof dining hall
● Local fruits, fresh baked bread.
● 50-foot viewing tower, 120 foot canopy tower, parrot clay licks.
● This conservation region is more than 52, 000 acres in size, and an important biosphere reserve of Amazon rain forest.
● Costs roughly $865 for 4-5 days.
● All money goes to the local community so all Quicha people benefit with education and healthcare, etc.
● 85-93% of locals make up workforce, so a lot of employment has been made by eco-tourism scheme.
● The lodge has an environmentally sustainable sewage system and all waste water is treated to the highest standard in order to keep the swamps clean.
● Rubbish is kept to a minimum and they compost what they can, burn and bury what is safe to burn, and pack the remainder to designated landfills.
● Solar panels and diesel generations provide power.

Friday 11 October 2013

Ecuador - Santa Lucia Lodge

● In Ecuador, ecotourism has been helping to preserve and sustain Santa Lucia Lodge.
● A runner up for the 2005 WTTC (World Travel and Tourism Council) Tourism for Tomorrow Awards and the 2004 Responsible Tourism Awards.
● The lodge offers a multitude of elements that help sustain the local area and community. 
● Examples include: staff training for native guides, courses in cooking, hospitality and administration and capacity building; conservation (having now planted native trees in 20 hectares of land).
● For more info: www.santaluciaecuador.com

Sustainable Tourism

● minimizes negative social, economic and environmental impacts
● generates greater economic benefits for local people and enhances the well-being of host communities
● improves working conditions and access to the industry
● involves local people in decisions that affect their lives and life chances
● makes positive contributions to the conservation of natural and cultural heritage embracing diversity
● provides more enjoyable experiences for tourists through more meaningful connections with local people, and a greater understanding of local cultural, socialand environmental issues
● provides access for physically challenged people
● is culturally sensitive, encourages respect between tourists and hosts, and builds local pride and confidence

Tourism

● Tourism is a rapidly growing industry and has far-reaching economic and environmental impact across the world.
● In 2010, 940 million people were recorded as arriving in a country from abroad because of tourism.
● This is worth $919 billion dollars, making tourism one of the worlds largest industries.

Cause of the growth of tourism:

● Social/Economic
- increase in car ownership
- increase in leisure time by; holday entitlement, shorter working week, early retirement with pensions and ageing population
- greater wealth from; larger incomes, less children, two wage earner families

● Chnages in technology
- Motorways
- Jet aircraft
- Computer reservation systems
- Internet on line booking

● Product Development
- Package holidays
- Theme Parks
- Activity holidays
- Weekend breaks
- Ecotourism

Impacts of tourism

● Local
+ more sales to tourists
- displacement of local people because of rising house prices
- lack of community spirit due to holiday homes being empty most of the year

● Global
+ creates money for countries
- all the travelling leads to global climate change

● Social
- Urban development eg. Las Vegas
- Congestion - pressure on local services
+ Quality of life increases - more money for healthcare
- money goes to different people - could widen the gao between rich and poor
- some of the clothes worn could be disrespectful
- jealous of tourists wealth
- mass production of cultural objects - loses meaning
- culture changed to suit tourists

● Economic
+ Jobs created
- high rates of unemployment - Gull Coast, Queensland
- overly dependent on tourism - Maldives

● Environmental
- Mass tourism - Ohio - high rise hotels near beach = erosion on the beach
- Constant traffic in delicate ecosystem
- Coral reef damage - sea walls/anchors/divers
- Rubbish sorted
- Great damage in places where its flourished without thought for long term effects
- Problems won't keeo tourists away

HDI Rankings

1. Norway
2. Australia
3. United States
4. Netherlands
5. Germany
6. New zealand
7. Ireland
7. Sweden
9. Switzerland
10. Japan
11. Canada
12. South Korea
13. Hong Kong
13. Iceland
15. Denmark
16. Israel
17. Belgium
18. Austria
18. Singapore
20. France
21. Finland
21. Slovenia
23. Spain
24. Liechtenstein
25. Italy
26. Luxembourg
26. United Kingdom
28. Czech Republic
29. Greece
30. Brunei Darussalam
31. Cyprus
32. Malta
33. Andorra
33. Estonia
35. Slovakia
36. Qatar
37. Hungary
38. Barbados
39. Poland
40. Chile
41. Lithuania
41. United Arab Emirites
43. Portugal
44. Latvia
45. Argentina
46. Seychelles
47. Croatia
48. Bahrain
49. Bahamas
50. Belarus
51. Uruguay
52. Montenegro
52. Palau
54. Kuwait
55. Russia
56. Romania
57. Bulgaria
57. Saudi Arabia
59. Cuba
59. Panama
61. Mexico
62. Costa Rica
63. Grenada
64. Libya
64. Malaysia
64. Serbia
67. Antigua and Barbuda
67. Trinidad and Tobago
69. Kazakhstan
70. Albania
71. Venezuela
72. Dominica
72. Georgia
72. Lebanon
72. Saint Kitts and Nevis
76. Iran
77. Peru
78. Macedonia
78. Ukraine
80. Mauritius
81. Bosnia and Herzegovia
82. Azerbaijan
83. Saint Vincent
84. Oman
85. Brazil
86. Jamaica
87. Armenia
88. Saint Lucia
89. Ecuador
90. Turkey
91. Colombia
92. Sri Lanka
93. Algeria
94. Tunisia
95. Tongo
96. Belize
96. Dominican Republic
96. Fiji
96. Samoa
100. Jordan
101. China
102. Turkmenistan
103. Thailand
104. Maldives
105. Suriname
106. Gabon
107. El Salvador
108. Bolivia
108. Mongolia
110. Occupied Palestintian Territories
111. Paraguay
112. Egypt
113. Moldova
114. Philippines
114. Uzbekistan
116. Syria
117. Micronesia
118. Guyana
119. Botswana
120. Honduras
121. Indonesia
121. Kiribati
121. South Africa
124. Vanuatu
125. Kyrgystan
125. Tajikistan
127. Vietnam
128. Namibia
129. Nicaragua
130. Morocco
131. Iraq
132. Cape Verde
133. Guatemala
134. Timor Leste
135. Ghana
136. Equatorial Guinea
136. India
138. Cambodia
138. Laos
140. Bhutan
141. Swaziland
142. Congo
143. Solomon Islands
144. Sao Tome and Principe
145. Kenya
146. Bangladesh
146. Pakistan
148. Angola
149. Burma
150. Cameroon
151. Madagascar
152. Tanzania
153. Nigeria
154. Senegal
155. Mauritania
156. Papua New Guinea
157. Nepal
158. Lesotho
159. Togo
160. Yemen
161. Haiti
161. Uganda
163. Zambia
164. Djibouti
165. Gambia
166. Benin
167. Rwanda
168. Cote d'Ivoire
169. Comoros
170. Malawi
171. Sudan
172. Zimbabwe
173. Ethiopia
174. Liberia
175. Afghanistan
176. Guinea-Bissau
177. Sierra Leone
178. Burundi
178. Guinea
180. Central African Republic
181. Eritrea
182. Mali
183. Burkina Faso
184. Chad
185. Mozambique
186. Democratic republic of the Congo
186. Niger

Economic vs. Environmental sustainability

A key area of public lolicy in the last twenty years is the question of how, and how much, to protect the environment. At the heart of this has been the heated debate over the nature of the relationship between economic growth and environmental sustainability.

Is environmentally sustainable economic growth a contradiction in terms?

Sustainability is about meeting the needs of the present without compromising the ability of future generations to meet their needs. It implies care for the environment. Traditional economic growth has usually been at the expense of the environment for example the growth of China. But if you think about it you cannot have a sustainable economy if it isn't environmentally sustainable.  For example if you have an economy based on burning coal, because coal will run out one day, you will not be able to sustain this economy in the future.

China has achieved miraculous economic growth over the past 30 years to become the worlds second largest single-country economy. Since the introduction of market-oriented reforms began in 1979, economic growth has been the central task of the Chinese government.

However, growing gross domestic product at any cost has created a series of social and environmental problems, and consequently,  economic losses. In 2008, pollution and environmental degradation accounted for 10.51% of gross national income, according to calculations based on figures provided by the World Bank. Though problems have been prevalent since the beginning of China's modern industrialization,  environmental challenges have dramatically increased over the past three decades, raising both international and domestic concern. China is currently ranked 116 of 132 countries on the Environmental Performance Index, and since 2007, China has overtaken the US as the worlds largest greenhouse gas emitter.

Recognizing unsustainability of its growth model, the Chinese government has called for a major policy shift to address the environmental impacts of economic growth. In fact, China claims it is one of the first developing countries to propose and implement sustainable development as a national strategy.

Environmental Taxation

One of the most common policies used to tacklethe problem of pollution is the so-called green or environmental tax. A tax is placed on a product that damages the environment, or on a complementary product, in an attempt to reduce its production or consumption. Examples of green taxes include: petrol tax, vehicle excise duty, lamdfill tax, and the new carbon tax. The Irish Government also recently introduced a tax on plastic bags in a bid to reduce consumption and encourage recycling.

"Well designed environmental taxes and other economic instruments can play an important role in ensuring that prices reflect environmental cost - in line with the 'polluter pays' principle - and discouraging behaviour that damages the environment".

Summary of the main advantages of environmental taxes:

1. They can provide incentives for behaviour that protects or improves the environment, and deter actions that are damaging to the environment.

2. Economic instruments such as tax can enable environmental goals to be achieved at the lowest cost and in the most efficient way.

3. By internalising environmental costs into prices, they help to signal the structural economic changes needed to move to a more sustainable economy.

4. They can encourage innovation and the development of new technology

5. The revenue raised by environmental taxes can also be used to reduce the level of other taxes, which can help to reduce distortions in the economy, while raising the efficiency with which resources are used

Full cost accounting

This accounting method describes how goods and services should be priced to reflect their true costs (including environmental and other social costs). For example, if all the environmental costs associated with cup manufacturing were included in the price of paper and plastic cups, you would expect the least environmentally damaging to have the lowest price. Thus the consumer can make an environmental choice based on price - or can choose the more environmentally-damaging at a higher price, knowing that the additional environmental costs have been paid for.

Debt for nature swaps

In 1984 the World Wide Fund for Nature (WWF) initiated the debt for nature swap as a mechanism for enhancing conservation efforts in developing countries. The idea arose from the observation that much of the worlds biological diversity is in the same countries that have the biggest debt burdens. A debt for nature swap does not seek profit, but rather to provide additional funds for conservation activities within a country.

In 1988, WWF purchased an initial $390, 000 of Philippine debt at a discounted cost of $200, 000 (51% of face value). This debt was then redeemed by the Central Bank of the Philippines for the equivakent of the full face value of $390, 000 in Philippine pesos over a 2 year period. In other words, the Central Bank no longer owed $390, 000 in dollars to the commercial banks, but instead it agreed to pay the pesos equivalent to support designated conservation projects.

Rio +20

Rio de Janeiro:
The outcome of the Rio +20 summit provides further proof that the nation-state system is failing badly in tackling global environmental threats, say analysts. The UN's Conference on Sustainable Development had been billed as a once in a generation chance to overhaul an economic model that had left a billion people in poverty and imperilled the biosphere. But veteran observers who watched the 10 day event drag to a close on Friday shook their heads in dismay. To them, it was a fresh failure by the United Nations system, after the near-disastrous 2009 Copenhagen climate summit, to respond to eco-perils that are now approaching at express speed.

Happy Planet Rankings Top 20

1. Costa Rica
2. Dominican Republic
3. Jamaica
4. Guatemala
5. Vietnam
6. Colombia
7. Cuba
8. El Salvador
9. Brazil
10. Honduras
11. Nicaragua
12. Egypt
13. Saudi Arabia
14. Philippines
15. Argentina
16. Indonesia
17. Bhutan
18. Panama
19. Laos
20. China

Rostow model

● In 1960, the American Economic Historian, WW Rostow suggested that countries passed through five stages of economic development

● Stage 1 Traditional Society
- Subsistence - living from what you produce
- Barter
- Agriculture
- Africa - not developed

● Stage 2 Transitional Stage
- Specialization - focusing on 1 thing
- Surpluses - too much produced so selling extra = money
- Infrastructure
- developing

● Stage 3 Take off
- Industrialization
- Growing investment
- Regional growth
- Political change
- Example - China and India are developing
- Developing

● Stage 4 Drive to maturity
- Diversification
- Innovation
- Less reliance on imports
- Developed

● Stage 5 High Mass Consumption
- Consumer oriented
- Durable goods flourish
- Service sector becomes dominant
- Developed


According to Rostow development requires substantial investment in capital.  For the economies of LDCs to grow the right conditions for such investment would have to be created. If aid is given or foreign direct investment occurs at stage 3 the economy needs to have reached stage 2. If the stage 2 has been reached then injections of investment may lead to rapid growth.
Agriculture -->  Manufacturing -->  Services

There are exceptions:
- Kerala and Kuwait

Thursday 10 October 2013

TNCs Positives and Negatives for Host and Origin Country

Host Country:

Positive:

• Multiplier effect
 - Local employment by cumulative causation bringing wealth to the local economy through jobs that supply components, distribute new goods and supply services to the new plant

• Employment
 - In the UK in 2007, FDI generated more than 700 projects which created over 50,000 jobs
 - The jobs were financed with foreign money not government grants so have a big impact on local communities

• New Methods of Working
 - Eg. quality management systems monitoring the standard of output and technology transfer creating a more skilled workforce

•  Inject Capital
 - More disposable income creates demands for housing, transport and services


Negative:

• Competition
 - TNCs may be in direct competition with local firms
 - Eg. The arrival of western chocolate manufacturer in Russia had adverse effects on the home confectionary industry

• Environmental Concerns
 - Cause damage to the atmosphere, water and land
 - Many developing countries have less strict pollution laws
 - Agricultural land may be lost, along with wildlife habitats

• Labour Exploitation
 - Many have established a basic standard of operation to give training to workers, provide promotion opportunities and minimum wage and age limits
 - Some TNCs exploit cheap, flexible, non-unionised labour forces in developing countries

• Urbanisation
 - Young workers migrate to the city to work for the TNCs affecting rural communities resulting in an ageing population

• Outside decision making
 - Decisions about which plants stay open happens at the headquarters and its not in the interest of the host country

• Removal of Capital
 - The capital generated does not all stay in the host country



Origin Country:

Positive:

• Higher salaried jobs stay in the country of origin
 - Eg. Dyson retains several 100's of jobs in the UK in administration and Research and Development

• Profits returned to country of origin
 - Shareholders benefit
 - Government revenues from company taxation increase
 - The total revenue earned by UK companies overseas in 2004 was £63.8 billion


Negative:

• Unemployment
 - In both the company and the component suppliers

• Multiplier effect
 - Less disposable income
 - Traditional industrial regions that rely on 1 or 2 industries are hard hit

• Dyson moving from Malmsbury (Wiltshire) to Malaysia cost 800 UK jobs. Dyson claimed the move cut about 30% from production costs

• Kenwoods Chef food mixer production has moved to China

• Clarks shoes moving production to Romania

• Black and Decker moving from Country Durham to the Czech Republic

• Companies have call centres and back office functions in countries like India as wages are 20% less than the UK - British Airways, Prudential, HSBC and Barclays

TNCs Industries

Manufacturing Industry:

• TNCs often locate in areas of industrial concentrations of create concentrations

• A major factor promoting this is external economies of scale (agglomeration economies)

• These advantages arise outside the company

• They can be categorised into:

 - Localisation economies
 • Occur when firms linked by the purchase of materials and finished goods locate together - reducing transport costs between supplies and customers

 - Urbanisation economies
  • Locate near infrastructure eg. locate near a train station to transport goods easier


Service Industry:

• In recent years there has been a shift of investment towards service industries
 - Services now account for the largest share of inward FDI in many countries
 - The continuous process of liberalisation and deregulation of key services has led to a large inflow of FDI into industries that were previously dominated by the state or domestic private sector firms (eg. EDF)
 - A growing number of the largest TNCs are in the services sector
 - The ICT revolution has opened up overseas investment in tradable services - as the cost of sending information across the world is now low so services can be split into components which can be located in different places (eg. call centres in India)

Wednesday 9 October 2013

Least Developed Countries (LDCs)

• A lot of the LDCs are found in Sub-Saharan Africa eg. Ethiopia, Gambia, Rwanda, Uganda and Zambia. A few are found outside Africa eg. Afghanistan (Asia) and Haiti (the Caribbean)

• Theres a massive gap in development between the LDCs and the most developed countries - in terms of the global economy, the richest 1/5 of the global population have 80% of the worlds income and the poorest 1/5 have only 1%

•The difference in the level of development between more and less developed countries is called the Development Gap

•Economic:
 - low incomes: in LDCs the GNI per capita is less than $745 eg. in Ethiopia in 2010 the GNI per capita was $380
 - Poor Trade Links: many LDCs have little involvement in world trade- the poorest 49 countries make up 10% of the worlds population, but only account for 0.4% of world trade
 - High Levels of debt: many LDCs borrow money from more developed countries for development projects, eg. building dams and roads. The loans are large and many have high interest rates - lots of LDCs are forced to spend money on debt repayments rather than on development
 - Trade in low profit goods: many less developed countries rely on the export of primary products eg. agricultural products such as sugar and cotton, timber and minerals eg iron ore. The price paid for these products is low
 - Trade deficit: many LDCs spend more on importing goods than they earn exporting goods. They sell low profit primary products to more developed countries, who manufacture goods from these products. More developed countries then sell the manufactured goods to less developed countries at high prices.
 - Economic Stability: the economies of many LDCs are unstable because they're based on agriculture and dependent on exporting primary products. So if the crops fail so does the economy. LDCs often also rely on a narrow range  of exports which makes them vulnerable if the price falls. Eg. Ghana heavily relies on the export of cocoa


•Social:
 - Limited health care: in LDCs there are thousands of patients per doctor eg. in Ethiopia there are over 30,000 patients for every doctor compared to around 360 patients for every doctor in the UK
 - High IMR eg. in Ethiopia in 2010, there were 75 deaths per 1000 live births compared to 5 deaths per 1000 live births in the UK
 - High levels of malnutrition eg. in Ethiopia, between 2004 and 2005, 46% of the population was undernourished, and malnutrition was responsible for over half of all deaths of children under 5
 - high numbers of people infected by disease, eg. an estimated 9 million  people in Ethiopia contract malaria every year (around 10% of the population)
 - Low levels of education eg. primary school attendance in Ethiopia was 45% between 2005 and 2010
 - Low literacy rates eg. the adult literacy rate in Ethiopia in 2012 was 30%
 - Lack of access to clean water and sanitation (toilets and safe disposal of human waste) eg. in Ethiopia in 2006 only 42% of people had access to clean water and 11% had access to sanitation

•Demographic:
 - Low life expectancy eg. life expectancy at birth in Ethiopia in 2012 was 56, compared to 80 in the UK
 - Many LDCs have a much higher birth rate than death rate eg. the birth rate in Ethiopia in 2012 was 42 per 1000 people per year and the death rate was 11 per 1000 people per year. Having a much higher birth rate than death rate causes rapid population growth which can lead to other problems eg. food shortages

•Political:
 - Many LDCs don't have a democratic government eg. up until 1994 Ethiopia was a communist state
 - Political corruption is a problem in many LDCs eg. at general elections in Ethiopia in 2005, allegations of vote rigging led to hundreds of people being arrested and imprisoned for treason. Some governments of LDCs have also been accused of keeping money the country have received as loans, rather than spending it on development
 - Many LDCs were badly affected by war and conflict, eg. tens of thousands of people were killed between 1998 and 2000 in the conflict between Ethiopia and neighbouring Eritrea. During times of conflict, less money is spent on development (as so much is spent on the conflict itself)

• Cultural:
 - Inequality - between men and women or between other social or ethnic groups. Eg. in Ethiopia men and women are not treated equally - between 2005 and 2010 30% of males were attending secondary schools compared to only 23% of females.

Aid Definitions Crossword


Aid Definitions


 
 
 
 
 
 
1
 
 
2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
9
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

Across
1. Investment that can help agriculture, industry, energy supplies, infrastructure, education and medical facilities
4. Aid given by governments to international organisations which use the money to assist programmes in poorer countries eg. World Bank and UNESCO
5. The recipient has to agree to spend the money on goods and services in the donor country
6. Aid given directly by the government of one country to another
7. Given in response to a sudden problem within a country eg. natural disasters
9. Projects often funded by NGOs working closely with local communities and using local ideas and knowledge to bring about change.
Down
2. Distribute aid in a variety of ways. Many are charities eg. Oxfam who raise money for development projects, ensuring it goes to those who need it most.
3. Created when aid becomes a substantial proportion of National Income
8. A responsible body (internally or externally) directs the operation 'from the top' eg. building dams to provide irrigation water and HEP

 Answers:
1. LONGTERMDEVELOPMENT
2. NONGOVERNMENTALORGANISATIONS
3. AIDDEPENDENCY
4. MULTILATERALAID
5. TIEDAID
6. BILATERAL AID
7. SHORTTERMAID
8. TOPDOWNAID
9. BOTTOMUPSCHEMES