KI5 Who loses from
Globalisation?
MEDCs – the effects of
deindustrialisation.
Economic effects
• Rising unemployment.
• UK 3.4million lost jobs in manufacturing 1975-1995
• Lost skills e.g. ‘metalbashing’ in West Midlands. Older
workers not passing skills to next generation.
• Well paid traditional ‘skilled working’ jobs (replaced by
lower paid, lower skilled work)
• Rising male unemployment
• rising female employment as a proportion of workforce
eg s. Wales Valleys
Economic effects
• Long term unemployed
• Concentration of unemployment in
manufacturing sector
• Regional differences (‘north’ / ‘south’ divide)
• Demultiplier effect
Demultiplier effect eg Ebbw Vale in
south Wales
14,500 jobs in 1967
when nationalised.
Closure of steelworks
in 1978 and tinplate
works in 2002 (780
jobs)
Demultiplier effect eg Ebbw Vale in
south Wales
14,500 jobs in 1967
when nationalised.
Closure of steelworks
in 1978 and tinplate
works in 2002 (780
jobs)
Intervention – WAG –
‘The Works’.
Regional
problems
Development of
social problems
Labour displacement
Outmigration of
people and decrease
in spending power
Unviability of services –
schools, hospitals, local shops.
Social Effects
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Crime
Violence
Vice
Health issues
Depression
Unhealthy lifestyle
Particular impacts on some social groups …
gender, age, minorities
Environmental Effects
• Derelict buildings – Ebbw Vale tinplate works, old
mine buildings.
• Scarred landscapes – spoil heaps (Aberfan)
• Polluted waste land – Llandarcy oil refinery
• Inner city slums e.g. Cardiff Docks (Bay) and
Swansea Docks – urban redevelopment sites.
POSITIVE EFFECTS of
DEINDUSTRIALISATION
• Productivity increased – ‘leaner, fitter’ more competitive
manufacturing sector
• Reindustrialisation – TNC inward investment from Japan,
Taiwan and S. Korea. (1980s & 90s)
• Growth of small businesses
• Growing Tertiary sector “TERTIARISATION” – In 2000 75% UK
labour force in tertiary and 20% in manufacturing.
• Social changes – more jobs for females, more part-time
• Rise of Quaternary sector (subset of Tertiary)– research and
development , pharmaceutical, ICT– Science Parks e.g.
Cambridge. Technium – Swansea SA1