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Economy and Development-2

This document discusses several topics related to development and the global economy, including trade, fair trade, foreign direct investment, and the Millennium Development Goals. It notes that while trade is meant to improve growth and reduce poverty, the poorest countries have not benefited much from increased world trade. Foreign direct investment and the role of non-governmental organizations are also examined. The document concludes by looking at the future of work and the increasing role of women in labor forces in more developed countries.

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Roxana Aguirre
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34 views8 pages

Economy and Development-2

This document discusses several topics related to development and the global economy, including trade, fair trade, foreign direct investment, and the Millennium Development Goals. It notes that while trade is meant to improve growth and reduce poverty, the poorest countries have not benefited much from increased world trade. Foreign direct investment and the role of non-governmental organizations are also examined. The document concludes by looking at the future of work and the increasing role of women in labor forces in more developed countries.

Uploaded by

Roxana Aguirre
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Economy and development

Part 7 and Part 8


Group 8 : Josefina Maciel and Rocio Zari
Part 7:
Part 7 which called “Making the world more equal “involves
issues such as Trade, Fair trade, Foreign direct investment and
The Millennium Development Goals.

The biggest challenge of globalization is to spread improvements


in the quality of life of all. The world contains 200 unequal
countries which are becoming more unequal.

Trade:
Trade is one way to improve growth and development and to
eliminate poverty .

This might be the case in theory, but the 49 LDCs ( Less


development countries) that compose the world’s poorest
countries have not shared in the growth of world trade.

About 70 % of the world’s por live in rural areas and work in


agriculture.

One of the foundations of the current shorts of trade is the


impact of history.

London was the centre of trading innovation in the eighteenth


century; which stimulated trading, led to the Industrial
Revolution and was the basis of London’s current financial
conditions.

The trading advantages that Europe and the USA have held for
over a century have increased, and only Japan has gained a
similar advantage in the twentieth century
The role of trade blocs:
A trade bloc is an intergovernmental association that manages
and promotes trade activities for a specific global región. Trade
blocs can threaten, free trade and protect the trade interests of
their región by:

- Establishing some control over trade that metes the


interests of members.
- Promoting trade among LDCs and LEDCs (eg: between
Africa and Asia)
- Promoting economic and technical cooperation among
developing countries.

Fair Trade:
Fair trade can be defined as a trading relationship whereby
buyers in rich MEDCs guarantee a fair price with minimal
fluctuations to producers of godos in developing countries.
According to The Fair Trade Foundation, equitable trade will
ensure that developing world producers have a just return for
their work and an improved quality of life.

The concept a fair trade runs alongside to the need to change


trade rules and liberalise trade in a way that is fairer to the
world’s poorest countries. It is fuelled by the purchasing power
of educated customers who will pay a higher Price for a more
ethical transaction. Fair trade is a good position of market, but
many of it’s advocates see it as better tan just giving to charity,
and more sustainable because it is a two way Exchange.
Foreign direct investment:
Foreign direct investment (FDI) is a direct investment that ocurrs
across national boundaries when any global company sets up a
branch or invests in a firm in another country. FDI is a measure of
foreign ownership of factories, mines and land.

The accelerating role of FDI is clearly a result of economic


globalisation.

Sources of FDI:
Historically , an importan proportion of FDI was concentrated
above natural resource-based activity, such as mines and
plantations , because the TNCs ( trasnational companies) offered
capital and technology. In the 1980s , especially in
technologically more advanced sectors , and medium-technology
consumer goods such as televisions and cars. By 2000, FDI was
important in the service sector, including finance,
telecomunications, tourism and retailing.

The role of non-governmental organisations


(NGOs):
The term NGO is a bit of a misnomer because most
organisations depend, in some measure, on government funds.

There is no such thing as a typical NGO (they vary in size,


operating style geographic focus, religious background and
programme orientation. Some have developed from a religious
foundation responding to a need, or from a single individual’s
motivation.

NGOs have three functional roles:

- Disaster relief
- Technical assistance (now called Practical Action).
- Network and institution building (for example, the “Trickle
Up” programme , which facilities indigenous enterprises.

NGOs collaborate with multilateral institutions. NGOs have


become “the Darling of the aid industry”, administering
percentage of government aid. NGOs playa n increasing role in
development education (for example, Amnesty International’s
work on human rights.

New approaches.
The Millenium Development Goals (MDGs):
The MDGs show how poverty has a major impact on the many
aspects of development. Development is now measured across a
wider range of criteria, rather than purely economic ones,
including aspects of the quality of life, such as health and
education. Recent assessments of progress towards the MDGs
confirm the enormous problems faced by the world’s poorest
countries for whom the development gap has truly widened and
whose future might be affected by climate change.
Part 8:
Part 8 “Economic futures” is focus two important issues, The
future of work and Women labour force.

Now we look to the future, at how work and employment might


change and then at how economic activities need to become
more sustainable.

The future of work:


Work has changed over the centuries and will continue to do so.

-Work only became a paid occupation in the eighteenth century.

- Work became more specialised during the industrial


Revolution, with a división of labour between tasks.

- In the late twentieth century, manufacturing employment


declined as service occupations grew, aided by IT developments.

Other factors are influencing attitudes to work and the


workplace. For instance inheritance is providing some people
with the opportunity to curtail or switch their career or to move
abroad.

It is difficult to predict the future. In the 1980s, people writing


about the future development of the world mentioned Japan,
but not India or China. People were looking towards more leisure
hours and fewer working hours. This trend has continued in
some countries, such as France, but in the USA, Japan and the
Uk, many have increased their working hours.
Changes in the workplace:
Computers in the workplace were almost unknown 50 years ago.
Computers dominate offices today. Computing continues to alter
the way we work. The technology to enable information to be
shared is becoming increasingly sophisticated. Work can be
carried out anywhere and at any time.

Women in the labour force:


The increasing proportion of women in the labour force has been
a feature of MEDCS over the past 30 years. However the
recruitment of women will not continue to fill the demographic
gap becasuse it is difficult to raise the levels of female
employment further without affecting the birth rate.

Activity:
Join with the correct term.
TNCs The Millenium Development Goals

MEDCs Foreign Direct Investment

NGOs Less Economcally Development Countries

IT More Economic Development Countries

FDI Trasnational Companies

LEDCs Information Technology

LDCs Non-governmental organisations

MDG Less Development Countries

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