economic interactions.JPG

Global financial flows





Recap from Disparities



The luckiest nut in the world - links to many ideas here:




What about the informal sector?




Loans

1) Definition and description: Course companion p338

2) Role and influence of IMF: https://www.imf.org/external/np/exr/facts/howlend.htm
World bank: http://www.worldbank.org/en/about/what-we-do

3) Example (link to Leisure, Sport and Tourism):
http://news.bbc.co.uk/1/hi/business/8320342.stm

Example: IMF loan to Ghana
http://www.imf.org/external/pubs/ft/survey/so/2009/CAR071609B.htm

Debt repayment

1) Definition and description (CC p339)

2) Explanation of importance:


Debt is money owed: either the original sum borrowed or interest charges levied on the original sum. Debt service is the process of repaying a loan according to an agreed schedule. High debt service payments are often blamed for reducing government revenue, and thus resources for health and education. As a result, there are increasing calls for debt relief, which is a term used to describe the process of either forgiving or reducing debts held by poor countries.(Geographyalltheway)

The Human Development Report 2002 from the United Nations Development Programme (UNDP) shows that, among 50 African countries, at least 29 recently spent more on debt service than on health. At present 41 countries are classified as heavily indebted poor countries (HIPCs) - 33 in Africa, four in Latin America, three in Asia and one in the Middle East. The main objective of the HIPC initiative is to reduce debt in these countries to a sustainable level, thereby releasing extra budgetary resources for poverty-reducing expenditure, including expenditure on health.

Haiti debt cancellation:
http://news.bbc.co.uk/1/hi/world/americas/8502567.stm

Remittances



http://visual.ly/remittance-flows?view=true

Why are they important? (CC p342)
Example and comparison to other flows:
http://www.bbc.com/news/world-africa-22169474
http://www.economist.com/node/21553458



Development aId

Top down vs bottom up (greenfield geography):

top down bottom up.JPG

geography all the way definition:
Development aid or development cooperation (also development assistance, Official Development Assistance (ODA) or foreign aid) is aid given by governments and other agencies to support the economic, environmental, social and political development of developing countries. It is distinguished from humanitarian aid by focusing on alleviating poverty in the long term, rather than a short term response. There tends to be a grant element to distinguish from a loan.



http://greenfieldgeography.wikispaces.com/Reducing+disparities



Aid limitations:
http://www.theguardian.com/global-development/2014/mar/19/eu-funding-gap-threatens-vital-humanitarian-aid-projects


Foreign Direct Investment

Definition and description: p344 CC

Example:
http://news.bbc.co.uk/1/hi/world/africa/8304418.stm




Profit repatriation

Definition and description p345 CC

example: US
http://www.businessweek.com/investor/content/oct2010/pi20101012_762620.htm



Summary of economic flows

Economic flows summary

Flow type
Description
Example
Pros / cons
Loans
Money borrowed from World Bank or IMF which must be repaid with interest.
IMF loaned US$602 million to Ghana to assist with preparations for oil production
Debt was 67% of GDP in 2011 in Ghana.
Can often be given to corrupt governments.
Often lead to little tangible improvements for majority of population.
Remittances
Sent back to home country by migrants. Biggest source of external capital in many LICs.
Total estimated remittances US$480 billion in 2014 to LICs. 10% of Bangladesh’s GDP comes from remittances where 150 million live on less than $2 per day.
Less focussed on certain countries than loans or aid. Associated with poverty reduction, better health and education.
Negative – recipients become vulnerable to global events. Loss of working population (brain drain)
FDI
TNC are the main source of FDI. Flows on a global scale reached $1979 billion in 2007. Can help with establishing infrastructure and technology
China invested US$ 7 billion in infrastructure in Guinea to establish ports, railways and power plants. This was to set up mining and oil industry with Chinese TNCs.
FDI involved TNCs buying out state firms, purchasing equity in local companies. Possible leaking of profits.
The influence of governments, WTO, IMF, World Bank



International Labour flows

Migration within the EU.

Poland to UK





Write a paragraph to summarise the current migration of Poles to the UK
EU’
http://www.telegraph.co.uk/news/uknews/immigration/9568816/Poles-return-to-Britain-despite-ailing-economy.html


http://toppinggeography.wikispaces.com/Globalisation+and+Migration





The role of ICT in outsourcing



Outsourcing 1.JPG
Outsourcing 2.JPG

http://www.asecu.gr/files/RomaniaProceedings/02.pdf