Going global Global networks
Global networks <ul><li>Global networks come in a variety of forms: </li></ul><ul><li>business and trade  — physical and f...
Who’s connected? <ul><li>The  internet  provides one of the best indicators of connectivity.  </li></ul><ul><li>It has bee...
The internet (1) <ul><li>In 2007 1.3 billion people were using the internet.  </li></ul><ul><li>Growth has been uneven, cr...
The internet (2) World regions Penetration   (% population) Usage (% of world) Usage growth, 2000–07(%) Africa 4.7  3.4  8...
Global hubs <ul><li>Global hubs are  switched-on  places possessing qualities that make other places want to connect with ...
Creating connections (1) <ul><li>Creating connections  is a major challenge for the world’s poorest nations.  </li></ul><u...
Creating connections (2) <ul><li>a long-term strategy of  economic reform </li></ul><ul><li>policies that have been found ...
Creating connections (3) <ul><li>China has attracted a huge amount of  foreign direct investment (FDI) . </li></ul><ul><li...
The $100 laptop (1) <ul><li>One project which aims to connect people in the developing world is the  one laptop per child ...
The $100 laptop (2) <ul><li>the $100 price is too high  </li></ul><ul><li>the costs of setting up, training and internet a...
China in Africa <ul><li>Encouraging FDI is one way of kick-starting the development of the least developed countries. </li...
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Global Networks

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Global Networks

  1. 1. Going global Global networks
  2. 2. Global networks <ul><li>Global networks come in a variety of forms: </li></ul><ul><li>business and trade — physical and financial flows </li></ul><ul><li>communication networks — e.g. the internet </li></ul><ul><li>transport networks — e.g. air travel and container/bulk shipping </li></ul><ul><li>production networks — particularly those of transnational corporations (TNCs) </li></ul><ul><li>political networks — especially those that focus on economic/trade ties </li></ul><ul><li>demographic networks — flows of people </li></ul>
  3. 3. Who’s connected? <ul><li>The internet provides one of the best indicators of connectivity. </li></ul><ul><li>It has been adopted rapidly and widely and is now part of everyday life, especially in developed countries. </li></ul><ul><li>It requires certain key support features which are strongly related to levels of development: </li></ul><ul><ul><ul><li>computer hardware and software </li></ul></ul></ul><ul><ul><ul><li>internet service providers </li></ul></ul></ul><ul><ul><ul><li>telephone system (or wireless system) </li></ul></ul></ul><ul><ul><ul><li>money to pay for service </li></ul></ul></ul><ul><ul><ul><li>education/training </li></ul></ul></ul><ul><ul><ul><li>businesses willing to go online </li></ul></ul></ul><ul><ul><ul><li>political freedom to use it </li></ul></ul></ul>
  4. 4. The internet (1) <ul><li>In 2007 1.3 billion people were using the internet. </li></ul><ul><li>Growth has been uneven, creating a ‘ digital divide ’ between the developed and developing worlds. </li></ul><ul><li>The divide is related to income levels and technological infrastructure. </li></ul><ul><li>The growth in internet usage in the developing world is becoming quite rapid, but has a long way to go before a significant percentage of the population is connected. Africa remains the big ‘loser’ in terms of internet usage. </li></ul><ul><li>The table on the next slide shows the distribution of internet usage across the world. </li></ul>
  5. 5. The internet (2) World regions Penetration (% population) Usage (% of world) Usage growth, 2000–07(%) Africa 4.7 3.4 882.7 Asia 13.7 38.7 346.6 Middle east 17.4 2.5 920.2 Latin America/Caribbean 22.2 9.6 598.5 Europe 43.4 26.4 231.2 Oceania/Australia 57.1 1.5 151.6 North America 71.1 18.0 120.2 World total 20.0 100.0 265.6
  6. 6. Global hubs <ul><li>Global hubs are switched-on places possessing qualities that make other places want to connect with them. </li></ul><ul><li>In some cases, these are the obvious world cities , e.g. London and Tokyo. </li></ul><ul><li>In other cases, they may possess a particular attribute that others wish to connect with, rather than displaying a full range of connections, e.g. Bangalore. </li></ul><ul><li>Many of the global hubs host the major TNCs . </li></ul><ul><li>They tend to be places of increasingly diverse culture as flows of people, finance, trade and ideas converge on them. </li></ul>
  7. 7. Creating connections (1) <ul><li>Creating connections is a major challenge for the world’s poorest nations. </li></ul><ul><li>Getting ‘ switched on ’ to globalisation requires certain key criteria to be met. </li></ul><ul><li>Increasingly there is a need for sophisticated communications technology . </li></ul>
  8. 8. Creating connections (2) <ul><li>a long-term strategy of economic reform </li></ul><ul><li>policies that have been found not to work have been changed — pragmatism rather than dogmatism </li></ul><ul><li>investment in infrastructure building </li></ul><ul><li>a stable society </li></ul><ul><li>investment in human capital </li></ul>The global success story in terms of creating connections is China , with its 15 years of 9–10% annual economic growth. China’s success has resulted from:
  9. 9. Creating connections (3) <ul><li>China has attracted a huge amount of foreign direct investment (FDI) . </li></ul><ul><li>This has contributed to the fact that China is now on the verge of becoming a mass-consumption economy, at least in the heavily populated coastal zone. </li></ul>
  10. 10. The $100 laptop (1) <ul><li>One project which aims to connect people in the developing world is the one laptop per child (OLPC) scheme , or the ‘$100 laptop’. This began in 2005. </li></ul><ul><li>The laptop itself is a wind-up machine, using open-source software. </li></ul><ul><li>A number of large TNCs donated $2 million each to launch the project, including ebay, Google, AMD and News Corporation. </li></ul><ul><li>Haiti, Mongolia, Afghanistan, Rwanda and Mongolia were pilot countries. </li></ul><ul><li>Mexico, Peru, Uruguay and Mongolia have ordered laptops. </li></ul>
  11. 11. The $100 laptop (2) <ul><li>the $100 price is too high </li></ul><ul><li>the costs of setting up, training and internet access are not included in the price </li></ul><ul><li>there are more pressing problems, e.g. lack of clean water, sanitation and food </li></ul>Few very poor countries have expressed an interest in the project. It has been criticised on the basis that:
  12. 12. China in Africa <ul><li>Encouraging FDI is one way of kick-starting the development of the least developed countries. </li></ul><ul><li>China is increasingly desperate for mineral and fossil fuel resources and so is investing heavily in parts of Africa. </li></ul><ul><li>Parts of Africa have benefited from this investment, particularly as a result of the rise in commodity prices since 2001. </li></ul><ul><li>It remains to be seen whether the benefits will spread beyond a few mining (e.g. Zambia, Zimbabwe) and oil-rich (e.g. Nigeria, Sudan) countries. </li></ul>

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