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Geography 372-910Globalisation and Territory – Global Village
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Geography 372-910Globalisation and Territory – Global Village
Divergent Trends in Territory and Function
Spatial fragmentation
Socio-economic integration
Together they have created a global village both in terms of the number of territorial entities that now exist, and the ease with
which almost everyone is affected by almost everyone else.
MECHANICS
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Theme of the course is the apparent
paradox between territorial
fragmentation on the one hand and
social, cultural and economic
globalization on the other, the former
diversifying societies while the latter
homogenizes them.
MECHANICS
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Bottom Line?The things that increasingly control our lives don’t,
won’t, or can’t respect political boundaries:
Environmental problemsPeople and Power
CorporationsPoverty and ProfitsFinancial systemsNational interests
TechnologyDisease and HealthConflict and Terror
Social change
This course looks at all of these topics within the changing post WW2 territorial framework.
MECHANICS
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Who, Where, What, When, How
Dr. Philip [email protected]
Course material at:www.geography.ryerson.ca/coppack/geo372-910
!! NOT A BLACKBOARD SITE !!
Lectures take place in the here and now.MECHANICS
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COURSE EVALUATION:
Essay 50% (due dates see schedule below)MC Tests (5x10%) 50% (due dates see schedule below)
There will be no final exam in this course. NOTE: Tests will be run in the first 50 minutes of the class hour
and will be comprised of 40 multiple choice questions
If you miss a test, you will lose the grade for it – no exceptions, otherwise you will be swamped.
A note on essays:I don’t write your essays – you do. The grade you get reflects
your effort at writing not mine at reading. And remember: there are those who put in much work and get a poor grade and vice versa. But these are the exceptions to the essay rule that you
usually get what your essay deserves.MECHANICS
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… is there for a reason – to inform you.
Read it ALL.
I will not answer any questions that are answered on the outline or in the
PowerPoints.MECHANICS
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Who, Where, What, When, HowWeek 1 of the Course Outline
Lecture #
Week of
Lecture/PP Topic… Readings (GI= Global Issues. WP= World Politics)
Other…
1Jan 13th
Introduction and course mechanics.Defining, Conceptualizing, and Measuring Globalization
GI#1: Global Trends 2025... GI#3: The End of Easy Everything.GI#5: Why the world needs America.GI#17: Why the world isn’t flat.GI#18: Globalisation and its contents.GI#20: Who will rule the world?GI#43: UN Women’s Head…GI#44: The end of men.GI#45: Humanities Common Values…WP#3: A world in transformation.
Videos in weeks following
This book is required.
MECHANICS
This book is recommended.
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Who, Where, What, When, HowWeeks 2 and 3 of the Course Outline
2Jan 20th
History of globalisation, global change, colonialism, nation states, regions, territory, global inventory and measurement
GI#19: The future of history...GI#24: Africa’s hopeful economies…GI#31: The revenge of geography.WP#1: Balancing the east, …WP#2: The future of the liberal …WP#4: The global power shift …WP#5: The shifting landscape…WP#13: The future of the United ...WP#14: Decline of western realism.
Video: Commanding Heights, Episode One, chapters 1-10
3Jan 27th
QUIZ #1 LECTURES
1,2
Population, demographics and development
GI#3: The new population bomb...GI#7: Population and sustainability.GI#25: Women and work…WP#25: Gender equality and …WP#32: Population 7 billion.
Video: Commanding Heights, Episode Three, chapters 11-19.
MECHANICS
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4 - Feb 3rd Resources and ecological footprints Video: World in the Balance – The Population Paradox.
5 - Feb 10th
QUIZ #2 LECTURES 3,4Global trade and capital flow, corporations and transnationals (TNCs)
Video: The Corporation chapters 1-10
Feb 17th STUDY WEEK (INCLUDES FAMILY DAY)6 - Feb 24th Global interest groups, conflict,
and terrorVideo: The Corporation chapters 11-end
7 - Mar 3rd
QUIZ #3 LECTURES 5,6Pandemics Video: Rx – Deadly messengers
8 - Mar 10th ESSAY DUE
Global health Video: Rx – How safe are we?
9 - Mar 17th QUIZ #4 LECTURES 7,8
Communication: the digital world, travelling public, and migration
10 - Mar 24th
Environment Video: Global warming – The
Signs and the Science.
NOTE: FRIDAY MARCH 28th IS THE LAST DATE TO DROP COURSES WITHOUT ACADEMIC PENALTY. IT IS BETTER TO DROP A COURSE THAN TO FAIL A COURSE. REMEMBER: ‘F’ IS
FOREVER.11 - Mar 31st
QUIZ #5 LECTURES 9,10Regional Profiles
Video: China Inside Out.
12 - April 7th Final Exam Review.
Rest of the Course Topics
MECHANICS
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To Be Found In The Course OutlineCHOOSE A REGION (NOTE: A COUNTRY IS NOT A REGION). Your first task is to choose a region using the United Nation’s
regional groupings as discussed in Lecture 2.
CHOOSE A TOPIC. Choose a topic from one of the lectures of this course.
For example, Demographics such as the demographic dividend (Lecture 3), Health such as the changing nature of the double
burden or pandemic threats (Lectures 7/8), Resources and Population such as ecological footprints (Lecture 4).
Must use of a human geographic perspective in your discussion. For example, if you choose environment I do not
want a scientific essay on climate change but one which discusses the human impact such as rising ocean levels on the
coastal cities of your chosen regionMECHANICS
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The rest of today?
The approach of the course.
What globalisation is and possibly is not.
What the global political economy looks like.
Other stuff we will be doing.
THEMES - BABEL
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Globalisation, Territory and the Global Village
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Globalisation and Territory - Attributes ArisingMore territories but physical distance less important.More borders but movement is getting easier as areas regionalize.Movement may be easier but places are still unique.Places may be unique but societies are increasingly homogenous.Increasing homogeneity maybe, but increasing nationalism too.Increasing nationalism requires systems of dispute mediation.Dispute mediation encourages growth of IGOs and INGOs.Dispute avoidance mechanisms such as TNCs also develop.TNCs & governments encourage new barrier reduced flow channels.Physical flows benefit from trade & migration agreements.Communication flows benefit from electronic advances.As with all flows, they go both ways and carry both good and bad.
And economic growth at all costs is required to keep it going.Two images characterize globalisation.
Babel and ContagionTHEMES - BABEL
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Germany
France
South Africa
China
UKSpain
Chad
Somalia
Yemen
Turkey
U.S.A.
ItalyRussia
India
Saudi Arabia
Brazil
Canada
Iran Afghanistan
Iraq
Pakistan BABEL
…and @ 173 other nations
Italy
Greece
NATIONS
THEMES - BABEL
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G8
UN
NATO
World Bank
WTOEU
IMFWHO
OAS
ASEAN
Security Council
Arab League
African Union IOC
ICAO
World Court
…and @ 100 others
IGOs
18
World Bank
THEMES - BABEL
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Greenpeace
FOE
PLAN
Red Crescent
Save The Children
Democracy Watch
Earth Watch
OAS
VisionCare
WWF
Medecins Sans Frontiers
Amnesty International
Red Cross Freedom House
CARE
Oxfam
…and @ 300 others
INGOs
THEMES - BABEL
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MERCOSUR
EFTA
CACM
SADC
WTOEU
IMF
GAFTA
CARICOM
ASEAN
NAFTA
ASEANUMA
ECOWAS GCC
PARTA
SAARC
…and @ 400 others
TRADING BLOCS
20
OPEC
THEMES - BABEL
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Aum Shinrikyo
Kach
Shining Path
KGK
ETAANO
IRA
Hizbullah
Red Brigades
HUM
Tamil Tigers
Khmer RougeUMA
HAMAS GEM
FARC
al Qaeda
…and @ 1000 others
TERRORIST GROUPS
TNCs
ISIL
THEMES - BABEL
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Babel’s Bottom Line?
Without script.A cast of billions.
Playing out their parts.Each with a different story line.
Few agreeing on the dialogue that preceded.None knowing the lines that will follow.
And no last page at which to sneak a peak.
All performed live, on stage at Planet Earth Theatrewhich, for humans, is getting increasingly
uninhabitable because of humans.
THEMES - BABEL
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CONTAGION
THEMES - CONTAGION
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2008
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…three years later…
INTRODUCTION
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…now
INTRODUCTION
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Yet the inhabitants of Main Street increasingly think the answer lies in Tea Parties and the simplistic right wing politics of division that
drive them.INTRODUCTION
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Global Connectivity & FinanceThe 2008 Financial Crisis (a.k.a. Sub Prime Mortgage Affair)
A very good example of contagion.
Complex cause and effect between:
Sub Prime MortgagesHousing bubble
Financial derivatives market
Real trouble started in the U.S. with the 1999 Gramm-Leach-Bliley Act (GLBA) that repealed the Banking Act of
1933 (Glass-Steagall Act) designed to prevent the financial speculation that helped bring the Depression.
THEMES - CONTAGION
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OMG! HUH? WAIT!I didn’t sign up for this!
OK, I understand your trepidation about:
#1. Being bored to death by economics.
#2. Being buried by politics.
#3. Not having a clue about (or interest in) what was just said.
But bear with me because there is no better illustration of the interrelatedness that globalisation is – and the
contagions that affect such systems - than the 2008 crisis.
THEMES - CONTAGION
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Some numbers to set the stage…… and with which to get to grips.
Global GDP in current dollars, 2012 = $72.9 trillion.Global market capitalisation 2012 = $53.2 trillion.
U.S. GDP in current dollars, 2012 = $16.2 trillion (22%).U.S. market capitalisation 2012 = $18.7 trillion (35%).
Canada GDP in current dollars, 2012 = $1.8 trillion (2.4%).Canada market capitalisation 2012 = $2.0 trillion (3.7%).
Ontario GDP in current dollars, 2013 = $695 billion (0.95%).
Cost of 2008 financial crisis by 2012 = $22 trillion (US alone).33% of global capitalization value lost = $17.6 trillion.
Sources: http://www.gao.gov/assets/660/651322.pdf. http://data.worldbank.org/data-catalog/world-development-indicators.
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A Simple Overview of the Financial Sector
Financial sector has four primary actors:
Retail banks – your savings and credit.Private (investment) banks – stocks and derivatives.
Credit Rating Agencies – who assess risk.Insurance companies – who buy risk.
Bank Acts in various countries (prompted by the Great Depression 1929) separated these four players, legally preventing them from trading in each others products.
This was done to partition risk and prevent what would later be called “cascade failures”.
THEMES - CONTAGION
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Retail bank takes your savings and pays you
interest.
Retail bank lends your savings to mortgages and credit purchases,
and secured investmentsand makes interest.
Difference between interest paid and interest earned is
profit, out of which…
Retail bank pays you interest.
A Happy(‘ish) Retail Banking Place
Small risk due to defaults on secured mortgages, loans, credit cards and
bonds.
Equity (your money) protected to some extent by CDIC and bank reserve requirements.
THEMES - CONTAGION
Banks’ money protected by insurance companies who
buy risk.
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Private bank takes investors’ money and
pays a ROI.
Private bank buys all types of investments
and makes/loses money.Difference between money invested and ROI earned is
profit (or loss), out of which…
Private bank pays you a ROI.
A Risky(‘ish) Private Banking Place
Large risk equivalent with risk of investment.
Equity (investor’s money) not protected.
Banks’ money protected by insurance companies who
buy risk.
Risk is assessed by
credit agencies.
THEMES - CONTAGION
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The Happy-Risky’ish Banking System 1933-1999
Retail bank takes your savings and pays you interest.
Retail bank lends your savings to mortgages and
credit purchases, and secured investments and
makes interest.
Difference between interest paid and interest earned is profit, out of which…
Retail bank pays you interest.
Small risk due to defaults on secured mortgages and loans, and on credit cards.
Equity (your money) protected to some
extent by CDIC and bank reserve requirements.
Private bank takes investors’ money and pays
ROI.
Private bank buys all types of investments and
makes/loses money.
Difference between money
invested and ROI earned is profit, out of
which…
Private bank pays you ROI.
Large risk equivalent with risk of investment.
Equity (investor’s money) not protected.
Banks’ money protected by
insurance companies
who buy risk.
Risk is assessed by
credit agencies.
THE
BANK
ACT
Retail Banking
Private Banking
InsuranceCompanies
Rating AgenciesTHEMES - CONTAGION
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The Unhappy-Very Risky Banking System
Retail bank takes your savings and pays you interest.
Retail bank lends your savings to mortgages and
credit purchases, and secured investments and
makes interest.
Difference between interest paid and interest earned is profit, out of which…
Retail bank pays you interest.
Small risk due to defaults on secured mortgages and loans, and on credit cards.
Equity (your money) protected to some
extent by CDIC and bank reserve requirements.
Private bank takes investors’ money and pays
ROI.
Private bank buys all types of investments and
makes/loses money.
Difference between money
invested and ROI earned is profit, out of
which…
Private bank pays you ROI.
Large risk equivalent with risk of investment.
Equity (investor’s money) not protected.
Banks’ money protected by
insurance companies
who buy risk.
Risk is assessed by
credit agencies.
Retail Banking
Private Banking
Insurance Rating AgenciesHigh risk due to defaults on unsecured mortgages
and loans, and on credit cards.
Trade in unsecured
instruments
Trade in CDO and
MBS instruments
Insurance companies buy (high risk) CDO and MBS
Rating agencies buy (high risk) CDO and MBS and rate
them lower risk!
THEMES - CONTAGION
Offshore
Retail banks invent Sub Prime
Mortgages
Onshore
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The Unhappy-Very Risky Banking System
Retail bank takes your savings and pays you interest.
Retail bank lends your savings to mortgages and
credit purchases, and secured investments and
makes interest.
Difference between interest paid and interest earned is profit, out of which…
Retail bank pays you interest.
Small risk due to defaults on secured mortgages and loans, and on credit cards.
Equity (your money) protected to some
extent by CDIC and bank reserve requirements.
Private bank takes investors’ money and pays
ROI.
Private bank buys all types of investments and
makes/loses money.
Difference between money
invested and ROI earned is profit, out of
which…
Private bank pays you ROI.
Large risk equivalent with risk of investment.
Equity (investor’s money) not protected.
Banks’ money protected by
insurance companies
who buy risk.
Risk is assessed by
credit agencies.
Retail Banking
Private Banking
Insurance Rating Agencies
Retail banks invent Sub Prime
Mortgages
High risk due to defaults on unsecured mortgages and loans, and on credit cards.
Trade in unsecured
instruments
Trade in CDO and
MBS instruments
Insurance companies buy (high risk) CDO and MBS
Rating agencies buy (high risk) CDO and MBS and rate
them lower risk!
THEMES - CONTAGION
2008The Largest Failure of Unregulated
Capitalism Since 1929
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What happened to world economies?People walked away from their homes, lost their equity,
stopped spending, drew more on social services.
Housing and related businesses and industries almost came to a standstill as consumption of their products
declined steeply.
Many large financial institutions went bankrupt, leaving people with only deposit insurance amounts.
Surviving banks, now risk averse, offered fewer and more expensive loans, reducing capital available in the system
for manufacturing and retail sectors.
Reduced capital & spending led to slower economic production, impacting employment, further exacerbating housing market woes and related consumption decline.
THEMES - CONTAGION
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What happened to people’s futures?Perhaps most unfairly, people who had played it safe and invested in equity secure bonds, GICs and other securities found themselves facing near zero interest rates because
of monetarist central bank rates.
Those in retirement who relied on these types of secure investments for income found themselves facing greatly
reduced income and thus spending power.
Those planning retirement in the two decades after 2008 found themselves facing the need to work longer to make
up the shortfalls.
The governments of western developed nations dressed this up by removing mandatory retirement ages, opening
the door to unwanted longer work lives and higher graduates unemployment rates.
THEMES - CONTAGION
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Sample of US bank mergers 1990 to 2009(Think ecology here – the more complex ecosystems are, the safer.
37 4
THEMES - CONTAGION
1999
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Global Growth in Derivatives, 1998-2013
1: Adjusted for inter-dealer double-counting.2: Share refers to the percentage of semiannual reporters in the global total.Source: Bank for International Settlements, OTC Derivatives Statistics November 2013
Nominal value invested in all
derivatives in 2013 = $693 trillion.
This is about an 8-fold increase in
value since 1998.
THEMES - CONTAGION
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Share by Type of Derivative, 1998-2013
1: Adjusted for inter-dealer double-counting.2: Share refers to the percentage of semiannual reporters in the global total.Source: Bank for International Settlements, OTC Derivatives Statistics November 2013
Credit derivatives are CDO and include MBS.
They barely existed in 1998.
By 2007 their nominal value was $51.1 trillion
(@9% of all derivatives).
In 2013 it was still $24.4 trillion.
THEMES - CONTAGION
1998 2007
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Credit Debt Obligations CDO),
2007-2013
1: Adjusted for inter-dealer double-counting.2: Share refers to the percentage of semiannual reporters in the global total.Source: Bank for International Settlements, OTC Derivatives Statistics November 2013
The boom and then bust of
CDO pre- and post 2008 is
evident.
THEMES - CONTAGION
2008
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The Results
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UK Housing Prices Adjusted for Inflation
2008
1975
2008
1999
THEMES - CONTAGION
Housin
g Pric
e Bub
bleAnd the offshore loop
wired in European nations, in classic contagion fashion.
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SpainHousing Prices
2008
1999
THEMES - CONTAGION
Hous
ing P
rice
Bubb
le
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Ireland - Housing Prices
2008
1999THEMES - CONTAGION
Housing Price Bubble
Dublin
Eire
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Foreclosures 1988-2007
Foreclosures 1st quarter 2008
In the U.S. …
Foreclosures 1988 to 2008
THEMES - CONTAGION
The Bubble Begins to Burst………….Bang!
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Annual Change in Home Prices
Housing
THEMES - CONTAGION
2008
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Industry
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2008
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Job Openings
Unemployment Rate
Employment
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2008
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Discretionary Retail Sales
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2008
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The Co$t
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Cost of TARP (Well known bailout
program):$750 billion
Cost of 50 other US federal government
programs, guarantees and write-downs:
$14.4 trillion
Annual value of US GDP:
$14.2 trillionTHEMES - CONTAGION
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A Reprise on Global Dollars
Global GDP in current dollars, 2012 = $72.9 trillion.Global market capitalisation 2012 = $53.2 trillion.
U.S. GDP in current dollars, 2012 = $16.2 trillion (22%).U.S. market capitalisation 2012 = $18.7 trillion (35%).
Canada GDP in current dollars, 2012 = $1.8 trillion (2.4%).Canada market capitalisation 2012 = $2.0 trillion (3.7%).
Ontario GDP in current dollars, 2013 = $695 billion (0.95%).
Cost of 2008 financial crisis by 2012 = $22 trillion (US alone).33% of global capitalization value lost = $17.6 trillion.
Current notional cost of global derivatives: $600 trillion.
Sources: http://www.gao.gov/assets/660/651322.pdf. http://data.worldbank.org/data-catalog/world-development-indicators.
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The 2008 CDO/MBS crisis is example of the cascade failure that results from a contagion.
Triple A financial securities considered almost risk free - “as good as cash”.
Risk estimate on the CDOs and MBSs was evaluated by credit rating agencies at about 1% - they might
lose 1% of their value. They lost 20%.
But credit agencies were underestimating risk on the very derivatives they were buying.
AND THE LEGACY?
THEMES - CONTAGION
Contagion and Cascade Failure
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DEBTDEBTORS
Hi!
My name is
U.S.
Hi!My name is
Japan
Hi!My name is
E.U.
Sovereign DebtTHEMES - CONTAGION
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So much for all that misery! What else are we going to do?
THEMES - OTHER
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OverpopulationResource Depletion
Climate ChangeTerrorismPandemics
DiseaseTHEMES - OTHER
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And now for something completely
different
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Entity The world in 1947 The world in 2008 Nations, dependencies and secession movements1
51(63) nations 130 colonies & dependencies 16 secession movements
@194 nations @ 64 dependencies 274 secession movements
Global/regional government organisations
12? organizations (UN, World Bank, IMF, WHO, etc)
>100 organisations (UN, WHO, World Bank, EU, ASEAN, etc…)
Global NGOs Probably a few dozen, but 41 had consultative status with the UN.
UN estimate of about 29,000 international NGOs and likely over 4 million at the national and local level. UN has 2,900 registered with consultative status.
Global Corporations
About 300 multinational corporations but depends on definition
>70,000 transnational corporations
Terrorist organizations Probably a few dozen, mostly local and territorial
978 local, national and international groups based on territorial, political, cultural, religious and economic issues (MIPT TKB database)
The Changing Territorial Structure of the World
1 Movements in which a part of a nation state is trying to secede. They can be violent or fairly peaceful. Sources: See data in later lectures. Caution should be used with the data for 1947. They are roughly approximate at best.THEMES - DEFINITIONS AND ATTRIBUTES
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TERRITORYNation States, Regional Blocs, Seccesionary Movements, Terroir
Driving FactorsTransportation, Trade, Communications, Migration
Societal Structures AffectedSocial, Economic, Cultural, Environmental, Developmental
OutcomesEnvironmental Degradation
Health ThreatsResource Exploitation
Security
OutcomesDevelopment
Health improvementsInternational law
Increased safety?
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Politics and EconomicsPolitics studies
comparative systems of governance.
DemocracySocialismFascismAnarchy
Economics studies comparative systems of
exchange.
CapitalismCommunismUnderground
Anarchy
Together they form the Political Economies that underlie the social and cultural structures of all
nations. THEMES - DEFINITIONS AND ATTRIBUTES
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Defining Globalisation
What is it? How does it work?
What are its attributes?Can they be measured?
Globalisation is defined as much by its flows of money, people and commodities, as by the things themselves – people, firms, nations, supranational
groups.
Fundamentally it is a process rather than a thing.
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Oxford English Dictionary:The process by which businesses or other
organizations develop international influence or start operating on an international scale.
Financial Times:Globalisation describes a process by which
national and regional economies, societies, and cultures have become integrated through the
global network of trade, communication, immigration and transportation.
Defining Globalisation
THEMES - DEFINITIONS AND ATTRIBUTES
?
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Defining Globalisation
Two Approaches
The hyperglobalist perspective:Globalisation is a new phenomenon.
The skeptical perspective:Globalisation is just internationalization
modernized.
The truth lies somewhere between.
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GlobalizationEverything? Everyone? Everywhere?
Extent of globalization has limitations:
Not all parts of the world are connected.
Not all economic sectors are integrated.
Not all economic sectors are global.
Not all flows are two-way.
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Globalization – A TimelineReferences:• 1990 - @90 articles and books using the word globalization.• 1990 and 1996 - over 600.• 2006 – Google: @1.3 million entries.• 2010 – Google: @89.6 million entries.• 2015 – Google: @49.4 million entries
Protests:• 1990s – virtually no protests or NGOs focusing on the
excesses of globalization.• 1999 to 2010: starting with the World Trade Organization
meeting in Seattle, there were almost daily protests on the topic.
• Currently, only occasional protests, including the Occupy Movement focused more on the excesses of the financial system.
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Attributes of Globalization
Economic GlobalizationPolitical GlobalizationCultural Globalization
Globalization of the EnvironmentThe Globalization of Law
Health, Security, and GlobalizationConflict
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Attributes of Globalization (cont…)
Economic GlobalizationInternational TradeEconomic GrowthEconomic DevelopmentForeign Direct InvestmentCurrency UseFiscal PolicyCorporations
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Attributes of Globalization (cont…)
Political GlobalizationGovernmental Political IntegrationNGO GrowthGrowth of StatehoodCorruption & Failed StatesCitizenship and NationalityGuns for Hire
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Attributes of Globalization (cont…)
Cultural GlobalizationCommunications TechnologyEntertainment & MediaLanguageHomogenizing ConsumerismEducation
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Attributes of Globalization (cont…)
The Globalization of LawGlobal Legal InstitutionsGlobal Legal IndictmentsGlobal LawsAlien Tort Claims Act Law of the SeasExtradition Treaties
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Attributes of Globalization (cont…)
Globalization of the EnvironmentGlobal Environmental ProblemsLocal Environmental ProblemsGlobal Resource DepletionFresh WaterEnvironmental Policy
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Attributes of Globalization (cont…)
Health, Security, and GlobalizationHealth and Well BeingIncipient PandemicsNon-Endemic DiseasesNew DiseasesBig ‘Pharma’Terrorism & Global Policing
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Territory and Function in Globalisation
INTENSITYDegree of functional
integration of economic activities
SPATIAL SCOPEGeographic extent of economic activities
Internationalizing processes
Globalizing processes
Regionalizingprocesses
LowLow High
High
Source: After Dicken, 2003, p13
Limited functional integration but wide spatial scope
Wider functional integration but limited spatial
scope
Wide functional integration
and spatial scope
THEMES - GLOBAL SYSTEM
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Extraction DistributionConsumption
DisposalManufacturing
The Materials System
Linear System + Finite World = ProblemsResource Depletion
Environmental DegradationIncome Inequality
Solutions?Exploit Others
Others “Develop”Apply Technology Fixes
But the linear system in a finite world still exists.THEMES - GLOBAL SYSTEM
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Extraction Distribution Consumption DisposalManufacturing
The Materials SystemThe Government The Law
The CorporationSupposedly represents you Represents stockholdersMediates
THEMES - GLOBAL SYSTEM
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Check it out:http://storyofstuff.org/movies/story-of-stuff/
THEMES - GLOBAL SYSTEM
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Globalisation and the Territorial Economic System
P S T
A.Economic System
Economic Sectors:Primary (Resources)Secondary (Manufacturing)Tertiary (Services)
Firms:Large firms (TNCs)Medium Firms (regional)Small firms (local)
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B.Territorial System
Sector based trading blocsNationsRegionally isolated nationsRegionally integrated nations Globally isolated nations
Globalisation and the Territorial Economic System
Regions
Regional based trading blocs
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P S T
C.The complexity of the global economic and territorial system.
Some national economies are only partly integrated, or
depend solely on one economic sector
Flows of goods and especially capital are less restricted in the economic system than they are
across the territorial system
Flashpoints exist at the intersections of economy
with territory.
Globalisation and the Territorial Economic System
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STRUCTURE OF THE SPACE ECONOMY
The Production Process and the Physical Environment
EXTRACTION PROCESSING FABRICATION CONSUMPTION
Local and global environment as supplier of resources and energy
Local and global environment as pollution dump
Local and global environment as energy dump
Source: After Dicken 2003, p26
INPUTS FROM ENVIRONMENT
OUTPUTS TO ENVIRONMENT
Recycled products
Non-productive output
EXTERNALITIES
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EXTRACTION PROCESSING FABRICATION CONSUMPTION
Changes to space as subsistence activities become cash based
traded activities
Changes to space as industrial development
and demographic change drives urbanisation
Changes to cultural attitudes as
consumption drives behaviour through
demonstration effect and product
homogenizationChanges to economic system as capitalism begins, a wage economy develops, and employment changes
Changes to transportation and communications technology as goods and people need to be moved and information
and money exchanged
Globalisation: Changes in the Social, Economic and Cultural Systems
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SummaryGlobalisation is:
Multi dimensional dynamic process as much as a thing to be defined.
Asymmetrical - creates inequalities, and acts out on a global playing field with built in inequalities from the
past.
Opposition to globalisation:Comes from small nations and INGOs.
See it as another version of colonialism and empire building by the powerful western developed nations
and transnationals.
Are they correct?
THEMES - DEFINITIONS AND ATTRIBUTES