NIC India

India:
• Population - 1,203,710,000
• 17% of worlds population
• EIC
 - 1765 - controlled Bengal Region
 - 1820s - controlled most of India
 - 1848 - modern India started - introduced new technology
 - Rebellions - 1857 - harsh land taxes - led to dissolution of EIC - British Parliamentary Rule
 - started commercialising agriculture in 19th century - set back by small farmers - little industrial employment
 - not all bad - railways were built
 - After WWI - pressure for self governments - Ghandi
 - After WWII - independence in 1947

What started economic growth?
• Rapid economic growth in recent years eg, economy has grown an average of 7% per year since 1997
• 1990s - economic reforms to reduce barriers of trade - encourage Foreign Direct Investment (FDI)
• Focused on services rather than manufacturing, reasons for this:
 - highly educated and skilled workers - 3 million graduate from indian universities a year
 - English is widely spoken and understood
 - low labour costs
 - extensive communications network
• 2 main ways services have grown:
 1. local services eg. IT companies, grew as they supplied TNCs
 2. TNCs wanted to relocate to India
• In 2002 estimated 35,000 people worked in call centres

Benefits of economic growth on economy and society:
• Development so far has only affected a minority of the country - therefore widened the gap between north and south
• India government hope north economy will grow as south grows
• call centres - economic growth - perks:
 - free private transport to and from work
 - air conditioning at work
• Rise in hospitals and health care industries
• Rise in hotels/travel/tourism
• Developed into open market in 1991
• Privatisation
• Reduced controls on foreign trade
• In 2008 tourism was $175 billion and expected to rise to $275 billion in 2008
• Special Economic Zones
 - agreement with China helped with additional economic activity
 - promoted exportation of goods and services

North/South Divide:
• Increasing divide between North and South
• Southern States have a faster decline in population growth rate
• As a result - lack of unskilled workers in South
• Currently being replaced by migration from other parts of the country
• In urban areas late marriages, more divorces and smaller families have been taken on by western ideas
• Not happening in rural areas in North
• Movement of labour also leads to aging population in North which people move away from and young population in South

Bangalore:
• India's fastest growing city - It has become the call centre capital of the world
• India's 3rd largest city
• Between 1991 and 2001 population increased by over 60%
• Per capita income for Bangalore is around US$1160 - highest in India
• It has over 10,000 millionaires ($)

• Between 2000 and 2003 the number of call centres in India increased from 50 to 800 - many of these were in Bangalore
• In India the customer service jobs are known to be respectable and well-paying, enough to give men the income and the title to become a suitable bachelor
• Typical wage is 5,000 rupees a month ($100), call centre wage Is 15,000 rupees ($300)
• As long as your accent is good, its not that hard to get a job on the floor, because of the high burnout rate and booming industry
• A high UK jobless rate means many companies are moving their call centres back to the UK

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

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).


(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

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