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Lecture 15

GEOG 210 Lecture 15: GEOG 210 Lecture 15

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GEOG 210
Jon Unruh

Living conditions and quality of life Knox Ch 11: Focus on pg. 507 onward (from Urban Trends and Problems) Poverty traps • If your income doesn't change, you fall somewhere on the light blue line • Above light blue: your income is growing, your income tomorrow will be higher • No poverty trap: o Dark blue curve: income tomorrow will be higher. People have the ability to grow out of poverty • Poverty Trap: o There is a threshold. If you are above where the lines cross, your income is able to grow over time o If you are below the threshold, your income tomorrow will be less than your income today • Hypothesis on how a poverty trap might work --> debates and research on how this actually works • But we do see that some people Poverty traps • Cycles feedback into themselves • Get stuck in places you can't develop grow • Keeps areas in a place where growth is difficult at a regional/community level • Hard theory to test over time at a community level Chance of climbing the “income ladder” • Study on chances that a child raised in the bottom 1/5 rose to the top 1/5 across the US • Studies inter-generational mobility Study: • Data on people in the workforce and their parents income. Found: • No or very little effect: o Progressive taxation o Presence of higher education o Amount of extreme wealth • Positive effect o Basic education o Household stability o Social capital (valuable social networks or relationships) Take home points • Poverty is a social construct • Relative poverty is often most relevant, and has real effects • Poverty is multi-dimensional and varies by context • Rich(er) countries still have major poverty problems • “Poverty traps” hinder paths out of persistent poverty The Global-Local Nexus Theme 5: The global-local nexus 1. What is globalization as a process? a. why the emergence now? b. key factors involved: i. production ii. MNCs trade iii. Services iv. labor (NIDL) 2. How do we theorize all this? Three approaches 3. How can we better conceptualize globalization? 4. What about glocalisation? What is globalization? • The widening, deepening, and speeding up of worldwide interconnectedness in all aspects of contemporary social life (Held et al 1999: 2) 1. What is globalization as a process? • Changes in relationships between capital, labour and the state - and how all of those things are produced • increased interdependency across national borders A. Why globalization emerged • Coincided with widespread disruptions in the social fabric: o Increased local raw material shortages • Before, we were constrained by what was produced locally o Increased oil & commodity prices • Search for cheaper commodities o Increased wage costs in developed countries • Find people to work for cheaper in other countries o Increased fiscal deficits faced by many governments o Increased instability of the Bretton Woods monetary system • Coincided with technological change: o Increase in telecommunications • Telegraph • Telephone • Television • Internet o All of these changed the ways that people communicate • 1901: connections between North America and Europe, then through Asia • 2017: (submarine connections) more in Caribbean, coast of South America and connections across the Pacific Ocean that didn't exist at all before • Coincided with economic development: o Increased economic development o Increased search for markets • national markets “saturated” ▪ As economic firms grow in size, they see growth outside of home markets • growth in internationalization B. Four Key Factors of Globalization a. production b. MNCs trade c. Services d. labor (NIDL) 1st key factor: Production • Core countries o Research and Development o eg: US + few others. • Semi-periphery o Secondary Research & Development (not at same scale as core countries) o eg: Hong Kong, Australia • Satellite countries / periphery o Manufacturing in factories - actual production of goods o e.g. India, China, Peru • Many of things don't happen at a continuous national scale - think of it as 'core regions'/'core areas', 'peripheral regions', etc • Ex products that are made in different areas then they are designed, advertised and sold. But even in the countries producing these goods, there is a disparity between regions and people producing these goods and people who may be in the market for these goods Multinational Corporations • A firm which has the power to co-ordinate and control operations in more than one country, even if it does not own those operations in other countries o Source production/materials in other places and control the production, even if it doesn't own them • Core/semi-periphery: where you find research & development & HQ • Satellite countries: production units o low labour costs o trade unions have little power o Infrastructure is cheap to build o MNCs welcomed by govts – tax incentives, free trade zones • Ex Subway, company that doesn’t own all of it's franchises Positive or negative roles? • Appropriate technology transfer? o Opportunities to develop skills or produce technologies that wouldn't be there otherwise • Introduces competition to domestic firms? o
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