Lesson3 superpowers through time 2


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Lesson3 superpowers through time 2

  1. 1. Superpowers through time 2<br />
  2. 2. Shift to a multi-polar world<br />Today:<br />Period of transition?<br />Uni-polar US-dominated world giving way to more multi-polar one?<br />Growing powers around the world increasingly challenge due to:<br />Energy resources<br />Alliances- political links<br />Economic power<br />Demographic weight<br />Nuclear weapons<br />
  3. 3. How did early Superpowers maintain status?<br />UK- during British Empire- through direct power and influence- colonialism and imperialism- manufacturing base- cultural power- through language and religion spread- direct investment in education and infrastructure in some colonies<br />Bi- polar world –USA V USSR- control over ideology used each other to gain power over other nations- spread political agenda etc<br />
  4. 4. http://current.com/groups/on-current-tv/88914010_superpower-politics.htm<br />http://current.com/groups/on-current-tv/88911076_superpower-firepower.htm<br />http://current.com/groups/on-current-tv/88912435_superpower-money.htm<br />http://current.com/groups/on-current-tv/88911077_superpower-culture.htm<br />
  5. 5. The Worlds One Superpower<br />The USA and its Superpower status<br />
  6. 6. How does this video suggest that the USA is a global superpower?<br />http://www.youtube.com/watch?v=-EW5ushVqEM America still superpower<br />http://www.youtube.com/watch?v=SRbYV5OWf2E ECONOMIC POWER LOSS?<br />http://www.youtube.com/watch?v=Da6qckWgsL4&feature=related Anti America<br />
  7. 7. The rise of US Power 1900-1990<br />By 1900 the USA had overtaken Britain as the world’s most dominant Superpower<br />It held and managed to maintain that position because<br />Had one of world’s major arable production areas- the Great Plains- where a large share of world’s grain produced (a necessity for both human and animals feed)<br />Had steel and iron industry on Eastern coast, ready to be easily transferred to Euro market across Atlantic<br />Rail links between pacific and Atlantic coasts so scope to influence Europe and Asia<br />Location- access to Europe and Asia <br />Had substantial reserves of coal and oil needed to develop industry and good for export<br />In 1940 world’s largest manufacturer of industrial and consumer goods<br />Produced goods and finance to rebuild Europe after WW2<br />By 1950 US$ World’s major currency- 60% of global bank reserves held in dollars<br />US military is everywhere dominating the globe in numbers and spending power- bases on all continents <br />USA now produces over 50% of world GDP<br />
  8. 8. US reaction to COMMUNISM<br />USA very worried by COMMUNIST expansion into China and Korea during 1940s<br />Tried to quell the spread by investing money into Asia especially India<br />The fight against communism consumed the USA till the Soviet Union collapsed totally in 1991<br />Americans tried to combat communism by using the Modernisation theory- <br />Modernisation theorists aimed to explain that poverty was a trap or cycle<br />Traditional family values held back economies<br />Capitalism solution to poverty<br />Investment and development loans to countries to USSR and China could reduce communist spread<br />As result they poured investment into Japan, India, Singapore, South Korea, Thailand and the Philippines as well as their neighbour- Mexico<br />
  9. 9. USA financial power- setting up the IMF and World bank<br />The IMF (International Monetary Fund) formed 1944 Bretton Woods, USA<br />Aim to stabilise currencies after 1930s depression<br />Initially 44 governments joined- created fund that could be used to help countries in debt- meaning communism would be prevented<br />IMF now 185 members- not equal voting rights proportional to amount invested. The world’s lading 21 economies invest most money and control 70% of votes- USA has 17% as has largest economy- between them the EU has 25%, developed western nations have 55%, BRICs have only 9.7%, while LDCs have less than 1% between them<br />The IMF therefore is very Western centred and controlled by them<br />Today it is still used as a stabiliser to aid debt ridden countries<br />
  10. 10. How is the USA doing today-<br />Maintains control indirectly by having key roles in many international organisations, trade patterns and agreements and through cultural power- BUT China is coming up to compete with its financial dominance in terms of total money in each nation- not in terms of per capita!<br />Media control- e.g. Microsoft, Google, sky, fox media, McDonalds and Disney- influence whole world<br />English- global language US has most native speakers<br />Energy- has renewables potential due to land area- influence over middle East- Iraq and Saudi Arabia- but still imports most energy and is particularly reliant on Canada<br />Military bases across the globe (disguised some say, as aid bases)<br />TNCs- spread a subliminal message about the nation of their birth reinforcing power they have <br />So is the USA to be just a CULTURAL POWER in future? We will see in a few lessons<br />
  11. 11. UK Still got the power?<br />Once gained SP status has to be maintained<br />As recently as 1945 colonialism still dominated large parts of the earth<br />Colonial rule in 1936<br />
  12. 12. Most colonial powers were European but some US colonies were still around, e.g. the Philippines<br />Colonial rule usually had distinct phases- <br />Exploration- discovery of new lands (e.g. 1492 Columbus sailed the ocean blue and discovered the Americas<br />Initial settlement on coastlines<br />Trade in raw material began<br />Gradual extension of rule over larger territories by direct military action and direct rule<br />Development of political systems and institutions and transport and trade networks both to rule the colony and exploit its resources<br />
  13. 13. Colonial India<br />A strict order maintained between the ruling white British and the Indians<br />British modernised India so its economy could better serve the needs of Britain <br />Most durable feature was the railway system-<br />1880- 14,000km of rail built<br />By 1920- 61,000km<br />Hugely improved travel and trade prospects, also allowed efficient military transport to quell disturbances<br />
  14. 14. Summary of the problems of independence in Indian sub continent<br />1971 war broke out, leading to formation of Bangladesh- in what used to be east Pakistan <br />India partitioned into largely Muslim Pakistan and largely Sikh/ Hindu India in 1947<br />In 1947 war between India and Pakistan over disputed Kashmir region<br />Dispute and periods of violence still flair up. Dispute never resolved<br />Punjab<br />Bengal<br />14 million moved across borders to relocate in areas of own religion<br />Now Sri Lanka- civil conflict here too<br />In mixed ethnic areas violence erupted, e.g. in Bengal and Punjab<br />
  15. 15. General legacy problems<br />Philippines- introduction of Christianity from the US, and influx of Islam from Indonesia- conflict which still lives on today<br />Much of Sub Saharan Africa- as above, plus less infrastructure development than in Asia- meaning economies left behind, many countries still rely on colonials for investment and to control markets. <br />Some countries in better states than others- e.g. Sierra Leone and Somalia have never developed at all, whereas Ghana and Nigeria have developed in some areas, e.g. education, but still have civil tensions caused by colonial legacy<br />India, Pakistan and Bangladesh- good infrastructure left in place by colonials, giving opportunity for manufacturing industry to be developed and links gave market for commodities like tea, coffee, etc<br />Brazil- important trade partner in sugar, bananas and coffee, built on legacy- better placed as used African slaves provided by Europeans to develop<br />
  16. 16. Neo colonialism-<br />‘New’ colonialism- where countries remain controlled by overseas- even though they’re supposedly independent.<br />
  17. 17. The example of Ghana<br />In 2007 Ghana celebrated 50 years of independence, they were the 1st Sub Saharan nation to be declared free of colonial rule in 1957<br />50 years later- some legacies remain, for example English is the official language, there are plenty of schools and hospitals built<br />However under colonial rule- best jobs held by Brits not Ghanaians <br />Ghana’s crops were exported in raw state- so Britain processed them and added value not Ghana<br />
  18. 18. In 1957 (independence year) Ghana had GDP equal to South Korea, since SK has developed rapidly whereas 1/3 of Ghanaians live on less than dollar a day (below global poverty line)<br />Ghana relies still on wealthy nations like Britain to buy its commodities<br />Cocoa growing region<br />
  19. 19. Cocoa Trade<br />Always been important<br />In colonial times largest world producer, Brits used to dictate price farmers received<br />Today price controlled by 3 external forces-<br />Commodity traders (cocoa industry)<br />Overseas tariffs<br />World Trade Organisation (WTO)<br />
  20. 20. 1. Commodity traders<br />Commodity trading exchanges found in London and New York.<br />Buyers seek supplies of cocoa for large companies like Cadburys’, where continuous supply is essential<br />So supply is guaranteed deal in futures market (ie buy now to be delivered in 3-6 months time)<br />Cocoa price depends on supply and demand, which varies- Ghana no longer largest supplier been overtaken by neighbouring Ivory Coast (Cote D’Ivoire)<br />If Ghana prices to high buyers will purchase from another country- pushing prices downwards<br />This makes Cocoa prices very volatile<br />Between 1991 and 95 price changed 60 times<br />From 1996-2002 changed 90 times<br />From 1991-93 price increased 12%<br />From June 1998 to December 2000 dropped by 32.5%<br />
  21. 21. Dependency and development theory<br />Dependency theory states that cause of poverty in developing nations is reliance on more developed economies- that they continue to sell raw products to countries opposed to developing own processing and manufacturing industries then selling them for increased profits<br />3<br />Raw goods exported<br />2<br />Produce agricultural/ primary produce<br />1<br />low value<br />5<br />4<br />Low profit <br />made<br />No money for investment in machines or manufacturing<br />
  22. 22. 2. Overseas Tariffs<br />Most processing and packaging of cocoa is done in Europe<br />EU import tariffs (duties on imported goods) higher for processed cocoa than raw beans e.g. in 2007 7.7% tariff on cocoa powder, 15% on chocolate containing cocoa butter but none on beans<br />This is known as tariff escalation.<br />USA and Japan have no import tariff on beans but up to 65% on cocoa chocolate imports<br />Ghana forced to export the beans lose out on the value added by processing them, so cocoa farmers have very hard no profit life<br />
  23. 23. 3. WTO<br />Ghana joined in 1995 to increase it’s global trade<br />Until then Ghana had subsidised its farmers to encourage them to stay on and farm land rather than migrate to larger cities for other work<br />The WTO imposed a joining condition on Ghana that it could no longer subsidise farmers (even though other countries do so)<br />Now Ghanaian farmers struggle against imports of heavily subsidised foreign food. E.g. tomato growers in Upper east district cannot compete with EU tomatoes which are much cheaper to import<br />As result tomato canning factories have closed so there is no market for their tomatoes<br />Same has occurred with rice farmers who cannot compete with cheaper US imports<br />Does it seem like countries like Ghana gain or lose from WTO membership? <br />
  24. 24. The WTO<br />Belongs to same family of organisations as the IMF and world bank<br />Deals with global trade, aim to ease trade and rid anything hindering it<br />Operates on one country- one vote system, so in theory seems fairer<br />Voting has never occurred decisions made by mutual consent- with biggest markets generally deciding outcome<br />Poorer nations feel WTO is a rich mans club and bargaining favours EU and the USA<br />Subsidies- grants paid to farmers to encourage production<br />Currently WTO working to remove them, but its own rules aren’t easily applicable-<br />In theory WTO should be anti subsidies because it believes in FREE TRADE with no tariffs or subsidies<br />Only rich countries can afford to give substantial subsidies poor cannot greatly <br />
  25. 25. But WTO agreement on agriculture allows support, under 3 categories<br />Green- subsidies for environmental benefits, e.g. reducing crop output replacing with woodland<br />Amber- allows subsidies governments have reduced but not cut all together<br />Blue- allows them as long as production reduced long term<br />This allows EU and USA to spend $400 billion annually on subsidies- allowing large farmers to go on mass producing, ironically this leads to surplus product then bought by LDC countries- undermining any producers in their own country<br />
  26. 26. Where next for the Ghanaian cocoa farmer? <br />To escape this cycle, Ghanaian farmers are beginning to form cooperatives an example is ‘Kuapa Kokoo (good cocoa farmers) which begun in 1993. Has 40,000 farmers in 650 villages producing 1% of total produced<br />They sell to ‘fair trade’ organisations in Europe and being a coop can bargain more for each bag of beans than could as individuals<br />In 1998 joined UK company to create ‘day chocolate company’ it makes ‘divine’ chocolate, aimed at mainstream UK choc market<br />Profit has paid for wells to provide fresh drinking water in villages and health insurance so farmers and their families are protected if job threatening things happen<br />In July 2009 Cadbury Dairy Milk became fair trade why could this cause problems for other fair trade chocolate companies?<br />
  27. 27. Why could the UK still be said to be a superpower? Discuss<br />What is neo-colonialism?<br /> What is responsible for Ghana’s current peripheral location in the world? <br />
  28. 28. Exam Questions<br />Explain using examples, how superpowers can exert their influence (15)<br />