Geography 372-910
Globalisation and Territory – Global Village
Geography 372-910
Globalisation 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
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
Bottom Line?
The things that increasingly control our lives don’t,
won’t, or can’t respect political boundaries:
Environmental problems
People and Power
Corporations
Poverty and Profits
Financial systems
National interests
Technology
Disease and Health
Conflict and Terror
Social change
This course looks at all of these topics within the
changing post WW2 territorial framework.
MECHANICS
Who, Where, What, When, How
Dr. Philip Coppack
pcoppack@geography.ryerson.ca
Course material at:
www.geography.ryerson.ca/coppack/geo372-910
!! NOT A BLACKBOARD SITE !!
Lectures take place in the here and now.
MECHANICS
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 whatMECHANICS
your essay deserves.
COURSE OUTLINE
MECHANICS
… 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
Who, Where, What, When, How
Week 1 of the Course Outline
Lecture Lecture/PP Topic… Readings (GI= Global Issues. WP=
Other…
#
World Politics)
Week of
1
Introduction and
GI#1: Global Trends 2025...
Videos in weeks
Jan 13th course mechanics. GI#3: The End of Easy Everything. following
Defining,
GI#5: Why the world needs
Conceptualizing,
America.
and Measuring
GI#17: Why the world isn’t flat.
GI#18: Globalisation
and itsis recommended.
Globalization
This book is required.
This book
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.
MECHANICS
Who, Where, What, When, How
Weeks 2 and 3 of the Course Outline
2
History of
Jan 20th 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.
3
Population,
GI#3: The new population bomb...
Jan 27th demographics and GI#7: Population and sustainability.
QUIZ #1 development
GI#25: Women and work…
LECTURES
WP#25: Gender equality and …
1,2
WP#32: Population 7 billion.
MECHANICS
Video:
Commanding
Heights, Episode
One, chapters 110
Video:
Commanding
Heights, Episode
Three, chapters
11-19.
Rest of the Course Topics
4 - Feb 3rd
5 - Feb 10th
QUIZ #2 LECTURES 3,4
Feb 17th
6 - Feb 24th
7 - Mar 3rd
QUIZ #3 LECTURES 5,6
8 - Mar 10th
ESSAY DUE
9 - Mar 17th
QUIZ #4 LECTURES 7,8
10 - Mar 24th
Resources and ecological footprints Video: World in the Balance –
The Population Paradox.
Global trade and capital flow,
Video: The Corporation
corporations and transnationals
chapters 1-10
(TNCs)
STUDY WEEK (INCLUDES FAMILY DAY)
Global interest groups, conflict,
Video: The Corporation
and terror
chapters 11-end
Pandemics
Video: Rx – Deadly messengers
Global health
Video: Rx – How safe are we?
Communication: the digital world,
travelling public, and migration
Video: Global warming – The
Environment
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
Regional Profiles
Video: China Inside Out.
QUIZ #5 LECTURES 9,10
MECHANICS
12 - April 7th
Final Exam Review.
COURSE PROJECT
MECHANICS
To Be Found In The Course Outline
CHOOSE 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 region
MECHANICS
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
Globalisation, Territory and the Global Village
Globalisation and Territory - Attributes Arising
More 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 Contagion
THEMES - BABEL
BABEL
THEMES - BABEL
THEMES - BABEL
18
THEMES - BABEL
THEMES - BABEL
20
THEMES - BABEL
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 Theatre
which, for humans, is getting increasingly
uninhabitable because of humans.
THEMES - BABEL
CONTAGION
THEMES - CONTAGION
2008
…three years later…
INTRODUCTION
…now
INTRODUCTION
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
Global Connectivity & Finance
The 2008 Financial Crisis (a.k.a. Sub Prime Mortgage Affair)
A very good example of contagion.
Complex cause and effect between:
Sub Prime Mortgages
Housing bubble
Financial derivatives market
Real trouble started in the U.S. with the 1999 GrammLeach-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
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
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.
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
A Happy(‘ish) Retail Banking Place
Equity (your money) protected
to some extent by CDIC and
bank reserve requirements.
Retail bank pays you
interest.
Difference between
interest paid and
interest earned is
profit, out of which…
Banks’ money protected by
insurance companies who
buy risk.
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.
Small risk due to defaults on secured
mortgages, loans, credit cards and
THEMES - CONTAGION
bonds.
A Risky(‘ish) Private Banking Place
Equity (investor’s money)
not protected.
Private bank takes
investors’ money and
pays a ROI.
Private bank pays you a
ROI.
Difference between money
invested and ROI earned is
profit (or loss), out of which…
Banks’ money protected by
insurance companies who
buy risk.
Private bank buys all
types of investments
and makes/loses money.
Large risk
equivalent with risk
of investment.
THEMES - CONTAGION
Risk is
assessed by
credit
agencies.
The Happy-Risky’ish Banking System 1933-1999
Equity (your money)
protected to some
extent by CDIC and
bank reserve
requirements.
Retail
Banking
Retail bank takes
your savings and
pays you interest.
Retail bank pays
you interest.
Difference
between interest
paid and interest
earned is profit,
out of which…
T
H
E
B
A
N
K
Retail bank lends your
savings to mortgages and
credit purchases, and
secured investments and
makes interest.
Small risk due to defaults on secured
mortgages and loans, and on credit cards.
A
C
T
Private
Banking
Equity (investor’s
money) not
protected.
Private bank pays
you ROI.
Difference
between
money
invested and
ROI earned is
profit, out of
which…
Banks’ money
protected by
insurance
companies
who buy risk.
Insurance
THEMES - CONTAGION
Companies
Private bank
takes investors’
money and pays
ROI.
Private bank
buys all types of
investments and
makes/loses
money.
Large risk
equivalent
with risk of
investment.
Risk is
assessed by
credit
agencies.
Rating
Agencies
The Unhappy-Very Risky Banking System
Equity (your money)
protected to some
extent by CDIC and
bank reserve
requirements.
Retail
Banking
Private
Banking
Equity (investor’s
money) not
protected.
Retail bank takes
your savings and
pays you interest.
Trade in
unsecured
instruments
Retail bank pays
you interest.
Difference
between interest
paid and interest
earned is profit,
out of which…
Retail bank lends your
savings to mortgages and
credit purchases, and
secured investments and
makes interest.
Trade in
CDO and
MBS
Retail banks
instruments
invent Sub Prime
Private bank pays
you ROI.
Difference
between
money
invested and
ROI earned is
profit, out of
which…
Private bank
takes investors’
money and pays
ROI.
Private bank
buys all types of
investments and
makes/loses
money.
Rating
Insurance
agencies
companies
buy (high
Banks’ money
Risk is
Large risk
buy
protected
by (high
risk)
CDO
Mortgages
assessed by
equivalent
insurance
risk) CDO with risk of and credit
MBS
companies
Small risk due to defaults on secured
agencies.
investment.
and
who buy
risk. MBS
mortgages and loans, and on credit cards.
and rate
Rating
them
lower
Insurance
High risk due to defaults on unsecured mortgages
THEMES - CONTAGION
Agencies
and loans, and on credit cards.
risk!
TheThe
Unhappy-Very
Risky
System
Largest Failure
ofBanking
Unregulated
Retail
Private
Capitalism
Since
1929
Banking
Equity (your money)
protected to some
extent by CDIC and
bank reserve
requirements.
Banking
Equity (investor’s
money) not
protected.
Retail bank takes
your savings and
pays you interest.
Trade in
unsecured
instruments
Retail bank pays
you interest.
Difference
between interest
paid and interest
earned is profit,
out of which…
Retail bank lends your
savings to mortgages and
credit purchases, and
secured investments and
makes interest.
Trade in
CDO and
MBS
Retail banks
instruments
invent Sub Prime
Private bank pays
you ROI.
Difference
between
money
invested and
ROI earned is
profit, out of
which…
Private bank
takes investors’
money and pays
ROI.
Private bank
buys all types of
investments and
makes/loses
money.
Rating
Insurance
agencies
companies
buy (high
Banks’ money
Risk is
Large risk
buy
protected
by (high
risk)
CDO
Mortgages
assessed by
equivalent
insurance
risk) CDO with risk of and credit
MBS
companies
Small risk due to defaults on secured
agencies.
investment.
and
who buy
risk. MBS
mortgages and loans, and on credit cards.
and rate
Rating
them
lower
Insurance
High risk due to defaults on unsecured mortgages
THEMES - CONTAGION
Agencies
and loans, and on credit cards.
risk!
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
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
graduatesTHEMES
unemployment
rates.
- CONTAGION
Sample of US bank mergers 1990 to 2009
(Think ecology here – the more complex ecosystems are, the safer.
1999
37
4
THEMES - CONTAGION
Global Growth in Derivatives, 1998-2013
Nominal value
invested in all
derivatives in 2013 =
$693 trillion.
This is about an 8fold increase in
value since 1998.
THEMES - CONTAGION
1: Adjusted for inter-dealer doublecounting.
2: Share refers to the percentage of
semiannual reporters in the global total.
Source: Bank for International Settlements,
OTC Derivatives Statistics November 2013
Share by Type of Derivative, 1998-2013
1998
2007
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 $24.4
trillion.
THEMES - CONTAGION
1: Adjusted for inter-dealer doublecounting.
2: Share refers to the percentage of
semiannual reporters in the global total.
Source: Bank for International Settlements,
OTC Derivatives Statistics November 2013
Credit Debt
Obligations CDO),
2007-2013
The boom and
then bust of
CDO pre- and
post 2008 is
evident.
2008
THEMES - CONTAGION
1: Adjusted for inter-dealer
double-counting.
2: Share refers to the percentage
of semiannual reporters in the
global total.
Source: Bank for International
Settlements, OTC Derivatives
Statistics November 2013
The Results
UK Housing Prices Adjusted for Inflation
2008
And the offshore loop
wired in European
nations, in classic
contagion fashion.
2008
1975
1999
THEMES - CONTAGION
Spain
Housing Prices
2008
1999
THEMES - CONTAGION
Ireland - Housing Prices
Dublin
Eire
2008
1999
THEMES - CONTAGION
The Bubble Begins to Burst………….
Foreclosures 1st quarter 2008
In the U.S. …
Foreclosures
1988 to 2008
Foreclosures 1988-2007
THEMES - CONTAGION
Housing
2008
Annual Change in
Home Prices
THEMES - CONTAGION
Industry
2008
THEMES - CONTAGION
Employment
2008
Job Openings
Unemployment
Rate
THEMES - CONTAGION
Discretionary Retail Sales
2008
THEMES - CONTAGION
The Co$t
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 trillion
THEMES - CONTAGION
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.
Contagion and Cascade Failure
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
THEMES - CONTAGION
THEMES - OTHER
Overpopulation
Resource Depletion
Climate Change
Terrorism
Pandemics
Disease
THEMES - OTHER
And now for
something
completely
different
The Changing Territorial Structure of the World
Entity
The world in 1947
Nations, dependencies
51(63) nations
and secession movements1 130 colonies &
dependencies
16 secession movements
Global/regional
12? organizations (UN,
government organisations World Bank, IMF, WHO,
etc)
Global NGOs
Probably a few dozen, but
41 had consultative status
with the UN.
Global Corporations
Terrorist organizations
1 Movements
The world in 2008
@194 nations
@ 64 dependencies
274 secession movements
>100 organisations (UN, WHO,
World Bank, EU, ASEAN, etc…)
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.
>70,000 transnational corporations
About 300 multinational
corporations but depends
on definition
Probably a few dozen,
978 local, national and international
mostly local and territorial groups based on territorial, political,
cultural, religious and economic
issues (MIPT TKB database)
in which a part of a nation state is trying to secede. They can be violent or fairly peaceful. Sources: See data
DEFINITIONS
AND are
ATTRIBUTES
in later lectures. Caution should be usedTHEMES
with the -data
for 1947. They
roughly approximate at best.
TERRITORY
Nation States, Regional Blocs, Seccesionary Movements, Terroir
Driving Factors
Transportation, Trade, Communications, Migration
Societal Structures Affected
Social, Economic, Cultural, Environmental, Developmental
Outcomes
Environmental
Degradation
Development
Health
Threats
Health
improvements
Resource
Exploitation
International
law
Security
Increased
safety?
THEMES - DEFINITIONS AND ATTRIBUTES
Politics and Economics
Politics studies
comparative systems of
governance.
Economics studies
comparative systems of
exchange.
Democracy
Socialism
Fascism
Anarchy
Capitalism
Communism
Underground
Anarchy
Together they form the Political Economies that
underlie the social and cultural structures of all
nations.
THEMES - DEFINITIONS AND ATTRIBUTES
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.
THEMES - DEFINITIONS AND ATTRIBUTES
Defining Globalisation
?
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.
THEMES - DEFINITIONS AND ATTRIBUTES
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.
THEMES - DEFINITIONS AND ATTRIBUTES
Globalization
Everything? 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.
THEMES - DEFINITIONS AND ATTRIBUTES
Globalization – A Timeline
References:
• 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.
THEMES - DEFINITIONS AND
ATTRIBUTES
Attributes of Globalization
Economic Globalization
Political Globalization
Cultural Globalization
Globalization of the Environment
The Globalization of Law
Health, Security, and Globalization
Conflict
THEMES - DEFINITIONS AND
ATTRIBUTES
Attributes of Globalization (cont…)
Economic Globalization
International Trade
Economic Growth
Economic Development
Foreign Direct Investment
Currency Use
Fiscal Policy
Corporations
THEMES - DEFINITIONS AND
ATTRIBUTES
Attributes of Globalization (cont…)
Political Globalization
Governmental Political Integration
NGO Growth
Growth of Statehood
Corruption & Failed States
Citizenship and Nationality
Guns for Hire
THEMES - DEFINITIONS AND
ATTRIBUTES
Attributes of Globalization (cont…)
Cultural Globalization
Communications Technology
Entertainment & Media
Language
Homogenizing Consumerism
Education
THEMES - DEFINITIONS AND
ATTRIBUTES
Attributes of Globalization (cont…)
The Globalization of Law
Global Legal Institutions
Global Legal Indictments
Global Laws
Alien Tort Claims Act
Law of the Seas
Extradition Treaties
THEMES - DEFINITIONS AND
ATTRIBUTES
Attributes of Globalization (cont…)
Globalization of the Environment
Global Environmental Problems
Local Environmental Problems
Global Resource Depletion
Fresh Water
Environmental Policy
THEMES - DEFINITIONS AND
ATTRIBUTES
Attributes of Globalization (cont…)
Health, Security, and Globalization
Health and Well Being
Incipient Pandemics
Non-Endemic Diseases
New Diseases
Big ‘Pharma’
Terrorism & Global Policing
THEMES - DEFINITIONS AND
ATTRIBUTES
Territory and Function in Globalisation
High Wider functional
integration but
limited spatial
scope
INTENSITY
Degree of
functional
integration of
economic
activities
Regionalizing
processes
Globalizing
processes
Limited functional integration but wide spatial scope
Internationalizing processes
Low
Low
Source: After Dicken, 2003, p13
High
SPATIAL SCOPE
Geographic extent of economic activities
THEMES - GLOBAL SYSTEM
Linear System + Finite World = Problems
Resource Depletion
Environmental Degradation
Income Inequality
Solutions?
Exploit Others
Others “Develop”
Apply Technology Fixes
But the linear system
in a finite world still exists.
THEMES - GLOBAL SYSTEM
Supposedly represents you
Mediates
THEMES - GLOBAL SYSTEM
Represents stockholders
Check it out:
http://storyofstuff.org/movies/story-of-stuff/
THEMES - GLOBAL SYSTEM
Globalisation and the Territorial Economic System
A.
Economic System
Economic Sectors:
Primary (Resources)
Secondary (Manufacturing)
Tertiary (Services)
P
S
T
Firms:
Large firms (TNCs)
Medium Firms (regional)
Small firms (local)
THEMES - GLOBAL SYSTEM
Globalisation and the Territorial Economic System
B.
Territorial System
Regions
Nations
Sector based trading blocs
Regional based trading blocs
Regionally isolated nations
Regionally integrated nations
Globally isolated nations
THEMES - GLOBAL SYSTEM
Globalisation and the Territorial Economic System
C.
The complexity of the
global economic and
territorial system.
Some national
economies are only
partly integrated, or
depend solely on
one economic sector
P
S
T
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. THEMES - GLOBAL SYSTEM
The Production Process and the Physical Environment
INPUTS FROM ENVIRONMENT
Local and global environment as supplier of
resources and energy
EXTRACTION
PROCESSING
FABRICATION
CONSUMPTION
Recycled products
Non-productive output
Local and global environment Local and global environment
as pollution dump
as energy EXTERNALITIES
dump
OUTPUTS
TO ENVIRONMENT
STRUCTURE
OF THE SPACE
Source: After Dicken 2003, p26
ECONOMY
Globalisation: Changes in the Social, Economic and Cultural Systems
Changes to transportation and
communications technology as goods and
people need to be moved and information
and money exchanged
PROCESSING
EXTRACTION
Changes to space as
subsistence activities
become cash based
traded activities
FABRICATION
Changes to space as
industrial development
and demographic change
drives urbanisation
Changes to economic
system as capitalism begins,
a wage economy develops,
THEMES - changes
GLOBAL SYSTEM
and employment
CONSUMPTION
Changes to cultural
attitudes as
consumption drives
behaviour through
demonstration effect
and product
homogenization
Summary
Globalisation 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