Contents

Introduction iv
How to use this book iv
Getting to know the exam v
Assessment objectives v
The examination paper and questions vi
Understanding and using the PPPPSS concepts vii

Unit 4 Power, places and networks 1

■ 4.1 Global interactions and global power 1
■ 4.2 Global networks and flows 12
■ 4.3 Human and physical influences on global interactions 27

Unit 5 Human development and diversity 43

■ 5.1 Development opportunities 43
■ 5.2 Changing identities and cultures 55
■ 5.3 The power of places to resist or accept change 70

Unit 6 Global risks and resilience 83

■ 6.1 Geopolitical and economic risks 83
■ 6.2 Environmental risks 98
■ 6.3 Local and global resilience 110

Glossary 122

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 Unit 4 Power, places and networks
4.1 Global interactions and global power
This study of global interactions has a broader perspective than some more
conventional studies of globalization that often emphasize a linear process Keyword definition
involving the domination and imposition of Western economic, political and Global interactions This
cultural models and values on the world. phenomenon includes all of the
In the context of this course, global interactions suggests a two-way and complex varied economic, social, political,
process whereby dominant economic commodities and conventions, cultural cultural and environmental
traits, social norms and global political frameworks may be adopted, adapted or processes that make up globalization.
resisted by local societies. Central to this analysis is an appreciation of power: It also encompasses the many local
n Some powerful people and places bring changes to other individuals and opposition movements and new
societies at a global scale. cultural forms that result when
n Local societies and stakeholders differ in their power to resist or adapt to globalizing forces meet and interact
globalizing forces and risks. with local societies and stakeholders.

Analysing globalization
The umbrella term globalization is used to describe a variety of ways in which
places and people are now more connected with one another than they used to PPPPSS CONCEPTS
be. Many differing definitions of the term are in use (Figure 4.1). Think about how the concept of place
n The words used reflect the varying perspectives of the writers: some definitions can be applied at varying scales in the
are primarily economic, such as the statement by the International Monetary country where you live (for example,
Fund (IMF). neighbourhood, town, city, country).
n Other definitions, as you can see, put greater emphasis on the cultural and
political transformations that are also part of the globalization process (Figure 4.2).
n Some definitions are critical: this is because some people and organizations
believe that recent global-scale changes brought by neoliberalism and
transnational corporations (TNCs) and governments are often deeply
harmful to people, places and environments.

It’s all It’s a It’s caused by

about economics bad thing powerful forces
The term ‘globalization’ A rapid and huge increase The world's economies have
refers to the increasing in the amount of economic developed ever-closer links
integration of economies activity taking place across since 1950, in trade,
around the world, national boundaries. The investment and production.
particularly through the current form of Known as globalization, the
movement of goods, globalization … has brought changes have been driven
services, and capital across poverty and hardship to by liberalization of trade
borders. millions of workers, and finance, how
particularly those in companies work, and
developing countries. improvements to transport
and communications.
IMF UK Trades Union Congress BBC

It’s a It benefits It’s complex, so

cultural thing everyone views differ
Globalization might mean The expansion of global A process in which the
sitting in your living room in linkages, organization of constraints of geography
Estonia while communicating social life on a global scale, on economic, political,
with a friend in Zimbabwe. and growth of global social and cultural
It might be taking a consciousness, hence arrangements recede, in
Bollywood dance class in consolidation of world which people are becoming
London. Or it might be society. increasingly aware that
symbolized by eating they are receding, and Figure 4.1 Different definitions of
Ecuadorian bananas in the in which people act
globalization: each has a different
European Union. accordingly.
Frank Lechner, ‘character’, reflecting the varying
World Bank The Globalization Malcolm Waters, views, priorities or concerns of its
(schools website) Reader Globalization author or audience

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 2 Unit 4 Power, places and networks

Keyword definitions policies are in fact the main reason Transnational corporations (TNCs)
Neoliberalism A sometimes why the rich continue to get richer Businesses whose operations are spread
controversial approach to managing compared with lower-income groups. across the world, operating in many
economies and societies which views nations as both makers and sellers of
Neoliberal A philosophy to managing
government interference in human goods and services. Many of the largest
economies and societies which takes
and environmental problems as being TNCs are instantly recognizable
the view that government interference
best kept to a minimum and left ‘global brands’ that bring cultural
should be kept to a minimum and
for ‘rational’ market forces to solve. change to the places where products
that problems are best left for market
Critics argue that neoliberal ideas and are consumed.
forces to solve.

Economic globalization Social globalization

• The growth of transnational corporations (TNCs) accelerates • International immigration has created extensive family
cross-border exchanges of raw materials, components, networks that cross national borders – world-city societies
finished manufactured goods, shares, portfolio investment become multi-ethnic and pluralistic
and purchasing • Global improvements in education and health can be seen
• Information and communications technology (ICT) supports over time, with rising world life expectancy and literacy levels,
the growth of complex spatial divisions of labour for firms although the changes are by no means uniform or universal
and a more international economy • Social interconnectivity has grown over time thanks to the
• Online purchasing using a smartphone allows citizens to easily spread of ‘universal’ connections such as mobile phones, the
order goods from other countries at a personal scale internet and email

Political globalization Cultural globalization

• The growth of trading blocs (e.g. EU, USMCA) allows TNCs to • Western cultural traits come to dominate in
merge and make acquisitions of firms in neighbouring some territories, e.g. the ‘Americanization’ or
countries, while reduced trade restrictions and tariffs help ‘McDonaldization’ of tastes and fashion; Japan and
markets to grow South Korea play large roles in shaping global culture too
• Global concerns such as climate change and the global • Glocalization and hybridization are a more complex outcome
response to natural disasters (such as the 2011 Japanese that takes place as old local cultures merge and meld with
tsunami) or conflict (e.g. Ukraine) globalizing influences
• The World Bank, the IMF and the WTO work internationally • The circulation of ideas and information has accelerated
to harmonize national economies (though views differ on thanks to 24-hour reporting; people also keep in touch using
these organizations’ ideology) virtual spaces such as Facebook and Twitter

Figure 4.2 Four interconnected strands of globalization

Modern globalization is the continuation of a far older, ongoing economic and

political project of global trade and empire building. Economies have been
interdependent to some extent since the time of Earth’s first great civilizations,
such as ancient Egypt, Syria and Rome. There is certainly nothing novel in the
global power-play and ambition of people, nations and businesses. Globalization
may be regarded as the latest chapter in a long story of globally connected places,
and of powerful people, businesses and countries shaping the world in ways that
benefit themselves.
In the past, global connections were achieved through:
n trade – for example, the ancient Silk Roads (around 2,000 years ago), or more
recently when Colombus reached the Americas, destroying the pre-Colombian
civilizations, and a new world economy began to take shape
n colonialism – by the end of the nineteenth century, the British Empire directly
controlled one quarter of the world and its peoples, the impacts of which can
still be felt today
n cooperation – ever since the First World War ended in 1918, international
organizations similar to today’s United Nations (UN) have existed.
Modern (post-1940s) globalization differs from the global economy which preceded
it due to the following factors:
n Lengthening of connections between people and places, with products shipped
greater distances than in the past, and tourists travelling further from home.

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 4.1 Global interactions and global power 3

n Deepening of connections, with the sense of being connected to other people

and places now penetrating more deeply into almost every aspect of life. Think
about the food you eat each day and the many places it is sourced from. It is
difficult not to be connected to other people and places through the products
we consume.
n Faster speed of connections, with people able to talk to one another in
real-time, using technologies such as Zoom, or travel very quickly between
continents using jet aircraft. Distance between continents has become
measured in mere hours of flight time. Air travel, the telephone, internet
access and containerized shipping are among the crucial new technologies that
help coordinate economic, political, cultural and sporting activities taking
place simultaneously in different parts of the world. In virtual social media,
videoconferencing and gaming environments, truly globalized communities
work and play in perfect synchronicity.
Figure 4.3 shows a timeline of the post-1945 period. It includes key economic,
political and technological influences or events that have helped mould the
world’s states into a single, densely interconnected economic unit.

1944–45 Establishment of the World Bank, International Monetary Fund (IMF) and origin of the World Trade Organization
(WTO). The post-war Bretton Woods conference provides the blueprint for a free-market non-protectionist world economy
where aid, loans and other assistance become available for countries prepared to follow a set of global financial guidelines
written by powerful nations.
1960s Rising production in Southeast Asia, including Japan, and the emerging so-called Asian Tiger economies, notably
South Korea, leads to international competition with the heavy industry economies of Europe and America. Unionized labour
costs push up the price of production for Western shipbuilding, electronics and textiles. Most high-income Western countries
enter a period of falling profitability for industry.
1970s The OPEC Oil Crisis of 1973 puts pressure on Western industry. Rising fuel costs trigger a ‘crisis of capitalism’ for Europe
and America, whose firms begin outsourcing and offshoring their production to low labour-cost nations. Meanwhile, soaring
petrodollar profits for Middle East OPEC nations signal that the United Arab Emirates and Saudi Arabia are on their way to
becoming new global hubs. In 1978, China begins economic reforms and opens up its economy.
1980s Financial deregulation in major economies like the United Kingdom and the USA brings a fresh wave of
globalization, this time involving financial services, share dealing and portfolio investment (by 2008, financial markets will
have an inflated value more than twice the size of actual world GDP!). The collapse of the Soviet Union in 1989 significantly
alters the global geopolitical map, seemingly leaving the USA as the only ‘superpower’.

TIME
1990s Landmark decisions by India (1991) and China (1978) to open up their economies bring further change to the global
political map. Established powers strengthen their regional trading alliances, including the European Union (EU, 1993) and
North American Free Trade Association (NAFTA, 1994). The late 1990s Asian financial crisis is an early warning of the risks
brought by loosely regulated free market global capitalism.
2000s Major flaws in the globalized banking sector emerge during the 2008 Global Financial Crisis (GFC). Unsecured loans
totalling trillions of dollars undermine leading banks. This brings a negative multiplier effect that causes a fall in the value in
global gross domestic product (GDP). In an interconnected world, growth slows for the first time in two decades for China
and India, the two great outsourcing nations and now emerging superpowers.
2010s Global economy remains weak following the GFC. Despite slower growth, China overtakes the USA to become the
largest economy by purchasing power parity (PPP). In some countries, popular opposition to global interactions, especially
migration and free trade, seems to be rising – the UK leaves the EU and Donald Trump is elected US President. Internet
connectivity rises steeply in African countries.
2020s Covid-19 pandemic lockdowns in most countries trigger a worldwide collapse in the value of trade and remittance
flows. In contrast, there is a surge in online connectivity as economic and social interactions move online. The 2022 Russian
invasion of Ukraine interrupts global energy and food markets; millions of refugees head towards Europe. Experts struggle to
tell whether globalization is increasing, pausing or retreating.
Figure 4.3 A post-1945 timeline for economic and political globalization

A sense of global connectivity is not yet shared by everyone in the world

PPPPSS CONCEPTS
though. Some nations and regions (for example, parts of the Sahel) experience
a much more ‘shallow’ form of integration. There can also be great disparity Think about how all states are
among a country’s citizens in terms of how ‘global’ they feel. For instance, globally connected (though to varying
citizens in Brazil’s core cities of Rio and São Paulo are producers and consumers degrees) but some smaller-scale
places and communities within them
of global commodities, culture, ideas, entertainment and sport. In contrast, some
may not be.
of Brazil’s Amazon rainforest communities, such as the Korubo people, may have
relatively little knowledge of the outside world, and lack much connectivity with
other societies.

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 4 Unit 4 Power, places and networks

■ Measuring globalization
Various efforts have been made to quantify the extent to which different countries
participate in global interactions. Uneven levels of globalization can be measured
using indicators and indices.
The Swiss Institute for Business Cycle Research, also known as KOF, produces an
annual Index of Globalization. In 2019, Belgium and Switzerland were the world’s
most globalized countries according to the KOF index (Figure 4.4). A complex
methodology informs each report (Table 4.1). Levels of economic globalization
are calculated by examining trade, foreign direct investment (FDI) figures and
any restrictions on international trade. Political globalization is also factored in,
for instance, by counting how many embassies are found in a country and the
number of UN peace missions it has participated in. Finally, social globalization Figure 4.4 KOF globalization scores
is accounted for, defined by KOF as ‘the spread of ideas, information, images and and ranks for selected countries,
people’. Data sources for this include levels of internet use, TV ownership, and 2019 (pre-Covid)
imports and exports of books.
100
KOF Globalization Index score

90
80
70
60
50
40
30
20
10
0
Switzerland

Netherlands

Belgium

Sweden

UK

Singapore

USA

Malaysia

South Korea

Japan

UAE

Iceland

Morocco

China

India

Brazil

Kenya

Ethiopia

Cayman Islands

Chad

Eritrea
1 2 3 4 5 20 23 26 34 37 43 53 59 80 95 101 114 179 185 189 197
Country and globalization rank

Table 4.1 Calculating a country’s globalization score using the KOF index

Stage
1 To study economic globalization, information is collected showing long-distance flows of goods, capital and services. Data on trade,
FDI and portfolio investment are studied, including figures from the World Bank.
2 A second measure of economic globalization is made by examining restrictions on trade and capital movement. Hidden import barriers
mean tariff rates and taxes on international trade are recorded. As the mean tariff rate increases, countries are assigned lower ratings.
3 Political globalization data are looked at next. To proxy the degree of political globalization, KOF records the number of embassies
and high commissions in a country as well as the number of international organizations of which the country is a member and also the
number of UN peace missions a country has participated in.
4 The assessment of social globalization starts with use of personal contacts data. KOF measures direct interaction among people living
in different countries by recording: (a) international telecom traffic (traffic in minutes per person); (b) tourist numbers (the size of
incoming and outgoing flows).
5 The study of social globalization also requires use of information flows data. World Bank statistics are employed to measure the potential
flow of ideas and images. National numbers of internet users (per 1,000 people) and the share of households with a television set are
thought to show ‘people’s potential for receiving news from other countries – they thus contribute to the global spread of ideas’.
6 Finally, cultural globalization data are collected. By KOF’s own admission, this is the dimension of social globalization most difficult to
measure. The preferred data sources include imports and exports of movies and music. How easily and accurately do you think these
flows and movement can be measured though?
7 Now all the data have been collected, a total of 43 variables (covering economic, political and social globalization) are each converted
into an index on a scale of 1 to 100, where 100 is the maximum value for each specific variable and 1 is the minimum value. High
values denote greater globalization. However, not all data are available for all countries and all years. Missing values are substituted
by the latest data available. Averaging then produces a final score out of 100.
8 Each year’s new KOF index scores are added to a historical series covering more than 40 years, beginning in 1970. Changes in
globalization over time can then be studied. In future years, it will be interesting to study the long-term impacts of the Covid-19
pandemic on KOF rankings from 2020–21 onwards.

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 4.1 Global interactions and global power 5

While there may be merit in KOF’s multistrand approach to measuring

globalization, there are considerable grounds for criticism too. For instance, does
the existence of IKEA in one neighbourhood of a city make that entire country’s
population highly globalized? Equally, the reasons why some countries volunteer
large numbers of troops for US missions are complex; it need not necessarily be
the case that the most economically globalized countries are the most militarily
proactive (take Japan and Germany, for instance).
Another well-known measure of globalization is the AT Kearney World Cities
Index (WCI). The ranking is established by analysing each city’s ‘business
activity’, ‘cultural experience’ and ‘political engagement’. The data supporting
this include a count of the number of TNC headquarters, museums and foreign
embassies, respectively. New York, London, Paris, Tokyo, Hong Kong, Beijing and
Singapore are always ranked highly as ‘Alpha’ global hubs for commerce – this
remained true in the post-Covid 2021 and 2022 WCI reports which praised the
way these cities ‘demonstrated their resilience’ during the Covid-19 pandemic.
The KOF Index and Kearney Index combine many data sources, which can be
critiqued on the grounds of either reliability or validity. Some data suffer from
crude averaging and statistical gaps. Other indicators are arguably poor proxies
for globalization (hours spent watching TV, for instance). While they are an
interesting starting point for the study of globalization, both indexes lack the
rigour and trustworthiness of, say, properly sampled and peer-reviewed scientific
surveys of climatic data for different countries.

Global superpowers
The term ‘global superpower’ was used originally to describe the ability of certain
countries and empires to project power and influence anywhere on Earth to Keyword definitions
become a dominant worldwide force.
Neo-colonial The indirect actions
n The British Empire was a colonial power, alongside France, Spain, Portugal and by which some countries exercise
other European states. Between approximately 1500 and 1900, these expansionist a degree of control over the
powers built global empires. One result was the suppression and erasure of many development of their former colonies
cultures and traditions of the countries they colonized and the diffusion of or other countries. This can be
European languages, religions, laws, customs, arts and sports on a global scale. achieved through varied means
n In contrast to the direct rule of the British in earlier centuries, the USA has including conditions attached to
dominated world affairs since 1945 mainly by using indirect forms of influence aid and loans, cultural influence
or neo-colonial strategies. These include the US government’s provision of and military or economic support
international aid and the cultural influence of American media companies (either overt or covert) for particular
(including Disney and Amazon). Alongside such soft power strategies, the US political groups or movements within
government has routinely made use of hard power. This means the geopolitical a developing country.
use of military force (or the threat of its use) and the economic influence achieved
Soft power The political scientist
through forceful trade policies, including economic sanctions or the introduction
Joseph Nye coined the term ‘soft
of import tariffs. The term ‘smart power’ is used to describe the skilful combined
power’ to mean the power of
use of both hard and soft power in international relations (Figure 4.5).
persuasion. Some countries are
n Russia’s full invasion of Ukraine in 2022 was the culmination of increasingly
able to make others follow their
aggressive ‘revanchist’ Russian foreign policy focused on reversing Cold War
lead by making their policies
territorial losses. Following on from previous interventions in Crimea (2014)
attractive and appealing. A
and Syria (2015 onwards), Russian leader Vladimir Putin has made violent use
country’s culture (arts, music,
of military hard power to achieve his aims. Putin has also been credited with
cinema) may be viewed favourably
successful use of a new type of influence called sharp power.
by people in other countries.
PPPPSS CONCEPTS Hard power This means getting
your own way by using force.
Think about what the word power means at different scales and in different
Invasions, war and conflict are very
contexts. What can make a person powerful, for instance?
blunt instruments. Economic power
can be used as a form of hard power:
Hard power Soft power
sanctions and trade barriers can
• Military action or threat • Cultural influence cause great harm to other states.
• Economic sanctions Smart • International decision-making
• Trade and aid policy power and leadership Sharp power This refers to the
• Moral and ethical authority power of manipulation, such as
attempts to interfere in other
countries’ democratic elections or
Figure 4.5 The ingredients of ‘smart power’ (recently, some authors have manipulate views on social media.
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 6 Unit 4 Power, places and networks

Other than the USA, what other states can claim to be true global superpowers?
Keyword definition
n China became the world’s largest economy in 2014 and exerts power over
Emerging economy Countries that
the global economic system through its sheer economic and demographic
have begun to experience higher
(population) size. Other emerging economies including India and Indonesia
rates of economic growth, often
play an increasingly important global role.
due to rapid industrialization.
n Russia uses economic power through exports of gas and hard power through
Emerging economies correspond
military force to maintain its global influence.
broadly with the World Bank’s
n Although no single European country equals the influence of the USA,
‘middle-income’ group of countries
several have remained significant global players in the post-colonial world
and include China, India,
(notably the G7 nations of Germany, France, Italy and the UK). Another view
Indonesia, Brazil, Mexico, Nigeria
is that European states can only rival the USA’s global superpower status when
and South Africa.
they work together as members of the European Union.
Figure 4.6 provides an assessment of several influential countries using a range of
criteria to create a superpower index.

Constructing a superpower index

Data on superpower characteristics can be used to quantify Each measure has been ranked, with 1 being the highest
their power and influence. Single measures, such as population score. Total PPP GDP and TNCs have been scaled (multiplied
size or total GDP, are unlikely to be good indicators because by 3 and 2, respectively) to reflect their greater importance as
they only quantify one aspect of power. measures of power.
Figure 4.6 shows a power index using four quantitative Using this index, the USA and China have equal scores of
measures: eleven. This reflects China’s ‘catching up’ to the USA in the last
n total GDP (economic) decade. Other countries are some distance behind these scores.
n total population (resources/demographic) This reflects the fact that they are powerful in some areas but
n nuclear warheads (military) not others. A wide range of data can be used to construct
power indices, although the results are often surprisingly similar.
n TNCs (economic/cultural).

Total PPP Total Fortune

GDP, US$ Rank, population, Nuclear Global 500 Rank, Sum of
trillions scaled × 3 millions Rank warheads Rank TNCs scaled × 2 ranks
China 27.8 3 1,402 1 290 3 119 4 11
Germany 4.2 16.5 83 6 0 6.5 29 8 37
India 11.3 9 1,362 2 140 5 7 12 28
Japan 5.4 12 126 5 0 6.5 52 6 29.5
Russia 4.2 16.5 146 4 6,500 1 4 14 35.5
UK 3.0 21 67 7 215 4 18 10 42
USA 21.4 4 329 3 6,185 2 121 2 11
Source: Cameron Dunn, using data from World Bank, Wikipedia, https://fortune.com/global500/

Figure 4.6 Constructing a superpower index (2019/20 data)

Many countries can make a claim to be globally powerful in certain ways. For
example, the small Middle Eastern state of Qatar has proved to be capable of
exerting great influence around the world. It has one of the highest per capita
PPP GDP values in the world, at almost US$100,000 (2021). Its wealth and global
influence, like neighbouring Saudi Arabia’s, are partly due to fossil fuel wealth:
Qatar has 14 per cent of all known gas reserves. Qatar’s government has reinvested
its petrodollar wealth in ways that have diversified the national economy and built
global influence too:
n The city of Doha has become a powerful place where international
conferences and sporting events are held, served by Qatar Airways and Doha
International Airport. Important UN and World Trade Organization (WTO)
meetings have taken place in Doha including the 2012 UNFCCC Climate
Negotiations. The city beat off competition from the USA and Japan to host
the 2022 football Fifa World Cup.
n Qatar’s Al Jazeera media network rivals the BBC and CNN for influence in
some parts of the world and is an important source of soft power.
However, many people regard Qatar as a regional power, rather than a global
superpower.
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 4.1 Global interactions and global power 7

CASE STUDY
RIVAL SUPERPOWERS? CHINA AND THE USA
The USA and China are the world’s leading superpowers.
n Until recently, the USA was widely seen as being the world’s
USA
unchallenged ‘hyperpower’, meaning that it was dominant in all
World’s largest superpower
aspects of power.
n In recent years, however, it has become harder to sustain this
unipolar view of the world. China is increasingly viewed as
rivalling the USA in many ways (Figure 4.7).
n Up until very recently, the USA benefited most from
globalization by being able to regulate the terms of its own China
global interactions with other countries and TNCs in ways that New superpower in ascendance
returned significant economic and political rewards. For this
Figure 4.7 China and the USA are vying for
reason, conventional wisdom used to be that globalization and
leading superpower status
‘Americanization’ were one and the same thing. However, the
roadmap is rapidly changing, as Table 4.2 shows.
Table 4.2 Analysing and evaluating the superpower status and global influence of the USA and China
Analysis Evaluation
USA l The 330 million people who live here (less than one- l The USA’s influence over international organizations, including
twentieth of the world’s population) own around the UN, NATO, the IMF and the World Bank, has given it greater
one-third of global personal wealth. Of the 500 influence over global politics than any other state. The USA was
largest global companies, around one-quarter were the main architect of the global economic system created at the
US-owned in 2019. end of the Second World War, and the neoliberal principles that
l The USA has disproportionate influence over important inform it. Over time, the free market philosophy that institutions
intergovernmental organizations, many of which are like the World Bank and International Monetary Fund promote
based in Washington DC or New York. To date, all have become known as ‘the Washington consensus’.
World Bank presidents have been US citizens. l The multiple ways in which the USA is able to influence global
l US cultural influence is so strong that terms like interactions make it a true global superpower (some people
‘Americanization’ and ‘McDonaldization’ are widely have even dubbed the USA a ‘hyperpower’). No other country
used to describe the way US food, fashion and media has such a formidable combination of geopolitical, economic
have shaped global culture. and cultural tools at its disposal.
l The USA has used a combination of overt military l Many US politicians think that the USA has lost too much
power and covert intelligence operations to influence to China. Washington signalled it would begin to
intervene in the affairs of around 50 states since take a tougher stance against Beijing in 2018 when it banned
1945, according to William Blum, a former US State Chinese technology TNC Huawei from supplying equipment to
Department official. US federal government offices, due to security concerns.
China l Prior to 1978, China was a poor and politically l The average income of China’s population is still less than
isolated country, ‘switched-off’ from the global one-third of US citizens. Further catch-up may be slow now
economy. Under the communist leadership of economic growth has begun to tail off in China.
Chairman Mao Zedong, millions had died from l The country has an ageing population (a legacy of its now-
famine. Most people lived in poverty in rural areas. abandoned one-child policy). China lacks the soft power of the
This changed in 1978 when Deng Xiaoping began USA, in part due to its cultural isolation (internet freedoms are
the radical ‘Open Door’ reforms that allowed China restricted by its government).
to embrace globalization while remaining under one- l But there are signs that China now challenges the USA in many
party authoritarian rule. ways, notably by investing in Africa and Asia by lending money
l Today, China is the world’s largest economy. Over to countries as part of its Belt and Road Initiative. Meanwhile,
half a billion of people who live here are thought to China’s so-called ‘wolf warriors’ are working to enhance China’s
have escaped poverty since the reforms began. FDI global reputation.
from China and its TNCs is predicted to total US$1.25
trillion between 2015 and 2025 (pre-Covid estimate).

Powerful global organizations

and groups
The world map of power is complicated. It is not only the governments of
individual states that influence the world economy and global interactions. Global
organizations (including lending institutions) and global groups of nations play an
important role too.

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 8 Unit 4 Power, places and networks

The UN was the first post-war intergovernmental organization (IGO) to be

established. The UN’s contribution to global development is vast. No other
international organization has the same degree of influence over global interactions.
Over time, its remit has grown to include human rights, the environment, health
and economics. The General Assembly is made up of voting representatives for all Keyword definition
193 member states. Important UN achievements have included: BRICS group Brazil, Russia, India,
n the Declaration of Human Rights and the International Court of Justice China and South Africa are five
n the 1992 Conference on Environment and Development (the ‘Earth Summit’) countries whose economies were
n the Millennium Development Goals (2000) and the Sustainable Development growing rapidly in the early years
Goals (2015). of the twenty-first century. In
the past, the BRICS countries
Alongside the UN, other important organizations and groups have a significant
have sometimes worked together.
role in global governance, particularly in relation to matters of trade. Table 4.3
Following Russia’s invasion of
analyses and evaluates the work done by global lending institutions, while
Ukraine, however, future relations
Table 4.4 shows several important and powerful global groups. Figure 4.8 shows
are uncertain.
the relationship between some of these groups and the wealth of their members.
Table 4.3 Global lending institutions

Institution Analysis Evaluation

International l The IMF monitors the economic development of countries. l IMF rules and regulations are controversial, especially
Monetary Under the umbrella of the UN, it lends money to states in the strict conditions imposed on borrowing governments.
Fund (IMF) financial difficulty which have applied for assistance. In return for help, recipients agree to run free-market
l The IMF supported over 50 low-income countries during the economies that are open to investment by foreign TNCs.
Covid-19 pandemic by distributing Poverty Reduction and Governments may also be required to cut back on health
Growth Trust loans – with a combined value of US$14 billion. care, education, sanitation or housing spending.
l The IMF has always had a European president but is based in l Critics say that the USA and some European countries
Washington DC. exert too much influence over IMF policies.
World Bank l Since 1960, the World Bank’s International Development l It is argued that the World Bank has succeeded in
Association (IDA) has provided zero-interest loans and promoting trade and development. It has helped the
grants for projects and programmes that were meant world avoid a return to the policies of the 1930s, when
to stimulate growth and help reduce poverty for over 1 many countries put up trade barriers. This was harmful to
billion people in the world’s poorest countries. In total, world trade and a major contributing factor to the Great
IDA distributed almost half a trillion dollars during its first Depression of the 1930s, and the mass unemployment
60 years. and hardship it brought to working people in many
l For example, by 2022 the World Bank had lent US$9 billion countries. This instability played a role in the outbreak of
to finance 55 projects in war-torn Democratic Republic of the war in in 1939.
Congo (DRC) with a strong focus on reconstruction of basic l The World Bank can impose strict conditions on its loans
transport and energy infrastructure. Learn more online at: and grants. Its critics describe this as ‘neo-colonialism’.
www.worldbank.org/en/country/drc/overview#2
l It has been headquartered in Washington since its
establishment in 1945 at the Bretton Woods conference.
New l In 2014, the BRICS group of nations announced the l The arrival of the NDB and CDB means that poorer
Development establishment of the New Development Bank (NDB) as an nations no longer have to agree to the lending terms of
Bank alternative to the World Bank and IMF. the US-dominated Bretton Woods institutions (the IMF
l In addition, the China Development Bank (CDB) loaned and World Bank). This can be viewed as a step towards a
nearly half a trillion dollars to low- and middle-income more democratic world order.
countries between 2008 and 2019 (Pakistan, Russia, l However, the new banks do have far less experience than
Venezuela and Angola were big borrowers). Although the IMF and World Bank of managing global economic
CDB lending rivalled World Bank lending through most of systems.
this period, it tapered dramatically after 2016 as China’s
economic growth slowed. It remains to be seen how active
China’s post-Covid-19 and post-Ukraine lending will be.
G7 and G20 l The G7 ‘Group of Seven’ nations includes the USA, Japan, l The G7 is steadily becoming less important as a forum
UK, Germany, Italy, France and Canada (past conferences for international decision-making. This is because several
with Russia were called G8 meetings).Since 1975, the world’s leading economies, including China, India, Brazil and
largest economies have met periodically to Indonesia, are not G7 members. A larger group called
coordinate their response to common economic challenges. the G20 has therefore been established which includes
l In 2011, G7 countries were praised for acting quickly to these leading emerging economies in addition to the G7
stabilize Japan’s economy after the devastating tsunami. members.
In contrast, the response of both the G7 and G20 to l The larger size of the G20, and the differing views of its
Covid-19 has been criticized – one view is that rich countries members, sometimes weakens its ability to agree and act
did too little to provide the world’s poorest states with on issues.
financial assistance.

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 4.1 Global interactions and global power 9

Table 4.4 Powerful global groups

Groups Analysis Evaluation

OECD l Like the G20, the Organization for Economic Cooperation l The OECD has made some progress towards clamping
and Development (OECD) is another grouping of high- down on tax evasion by TNCs. Rules to stop companies
income nations and middle-income countries like Mexico. using complex tax arrangements to avoid paying
The OECD mission is ‘to promote policies that will improve corporate tax have been established under the ‘Tax
the economic and social well-being of people around the Inspectors Without Borders’ initiative. As a result, it is
world’. becoming harder for firms to hide money in tax havens.
l Member states have signed formal agreements on l In contrast, OECD countries were criticized for failing to
protecting the environment. They have also agreed help distribute Covid-19 vaccines more fairly. One year
to work together to tackle the challenge of ageing after they were introduced, only one in seven of the
populations. Covid-19 vaccine doses promised to the world’s poorest
countries had been delivered – while consenting adults
in OECD nations had often received three shots (Figure
4.9). This falls far short of the OECD mission to improve
the well-being of people globally.
OPEC l The Organization of Petroleum Exporting Countries (OPEC) l Several OPEC countries have suffered the destabilizing
is a wealthy and important global grouping of countries effects of civil war, insurgency or international conflict,
like Saudi Arabia and Qatar. As demand for oil has grown, including Kuwait, Iraq and Nigeria. There is one view
OPEC nations have gained enormous wealth. that oil can actually hinder rather than help a country’s
l Global dependency on oil ensures OPEC countries are key economic growth (the ‘oil curse’ theory).
political players, with real influence on the world stage. l The collapse in world oil prices in 2020 left several OPEC
members in need of a financial ‘bail out’ from the IMF.

Figure 4.8 Global groupings (note

High income Upper-middle income Lower-middle and low income
that LDCs is a category created by
OPEC members the United Nations)
Saudi Arabia Nigeria Libya
Venezuela Iran Angola
UAE
Indonesia
Least developed
countries (LDCs)
China
Sudan
OECD members Mexico India
Ethiopia
Sweden Brazil
Afghanistan
South Korea
Spain G7 (was G8)
UK France Ex-Soviet states Uzbekistan
Australia Russia Ukraine Tajikistan
USA Germany
Italy Japan Estonia
Canada

100
Figure 4.9 Global disparities in the
90 distribution and use of Covid-19
80 vaccines at the start of 2022
70 (UN data showing percentages
of people in different types of
60
country)
50
40
30
20
10
0
High income Upper-middle Lower-middle Low income
income income
Key Unvaccinated One dose Two doses Three doses

■ Powerful places at different scales

Some principal cities within powerful or wealthy states function as global Keyword definition
hubs (Figure 4.10). These are powerful places at both national and global scales. Global hub A settlement or state
Cities like New York and Mumbai attract international migrants, businesses which is highly connected with
and flows of foreign investment while also drawing in migrants and capital other places and through which an
from other parts of the USA and India respectively. Some global hubs are unusually large volume of global
megacities with over 10 million residents. Size is not a prerequisite for global flows are channelled.
influence, however. Smaller-sized global hubs which ‘punch above their

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 10 Unit 4 Power, places and networks

weight’ in terms of their global reach include Washington DC and Qatar’s

Doha, as we have already seen. In 2021, Oxford University in the UK was
named as the world’s leading educational institution for the fifth consecutive
year: despite its small size, the city of Oxford is a powerful place.
Natural resources Human resources Figure 4.10 The excessive influence
Oil of global hubs often derives from
resources Skilled an advantageous pairing of natural
Coastline Large labour
ideal for force labour (has resources and human resources
trade universities)
Physical factors
aid growth of industry
(e.g. relief and Languages
minerals) spoken (English
Strategic location Affluence in call centres
(e.g. Pacific Rim) attracts service in India)
encourages providers
investment
G lo b al
Flows of
internal
migrants Go
ve
HUB t

en
Flows of
international
migrants
rnm
ve st m
ent p to in
olicy open

Flows of capital
and TNC investment

■ CHAPTER SUMMARY

KNOWLEDGE CHECKLIST
n The concept of globalization consisting of mainly high-income countries and emerging
n Attempts at quantifying globalization, for example, the economies, including: the G7, G20 and Organization for
KOF index Economic Cooperation and Development (OECD) groups
n The global superpowers concept n The influence that the Organization of the Petroleum
Exporting Countries (OPEC) continues to have over energy
n An illustration of the economic, geopolitical and cultural
policies and prices worldwide
influence of superpowers, using two contrasting
and detailed case studies (USA, China) and other n The global hub concept
examples (Qatar) EVALUATION, SYNTHESIS AND SKILLS (ESK)
n The actions and influence of global lending institutions, SUMMARY
including the International Monetary Fund (IMF) and n How wealthy and powerful places exist at varying scales
China’s New Development Bank (NDB)
n How the globalization map is complex and dynamic over
n The role and influence of international organizations
varying timescales

EXAM FOCUS
ANALYTICAL WRITING SKILLS
Once you have acquired knowledge and understanding, your course requires you to apply what you have learned to produce
an analytical or explanatory piece of extended writing (under assessment criteria AO1 and AO2). In the exam, the part (a)
extended writing question has a maximum score of 12 marks.
Below is a sample higher level (HL) answer to a part (a) exam-style extended writing question. Read it and the comments
around it. The levels-based mark scheme is shown on page vi.
Analyse how powerful states influence global interactions in ways which benefit themselves. (12 marks)
Powerful states are countries with the means to project their influence
1 This is a useful introduction that
regionally or, in the case of true superpowers, globally. Power is exercised
defines key geographic terms
in many ways, and different kinds of power are used by states to influence
and concepts, and also breaks
different types of global interaction. Economic power is important if you
them down in ways which
want to dominate global trade flows, for instance. Here I will be looking at
help to structure the essay that
economic and military power (hard power), and soft power (cultural and
follows.
political influence) of different states. (1)

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 4.1 Global interactions and global power 11

Economic power is arguably the most important type of power as it takes 2 A well-applied account of
money to pay for military technology and the media that are needed to project financial flows and TNCs, which
soft power globally. Large countries often have a very large GNI (though is linked well to the benefits
not necessarily per capita GNI). The largest states in terms of population are countries gain.
China, India, the USA and Indonesia, all of which are ranked highly in terms of
global wealth. All of them are important global players, although the USA is
still the number one global superpower according to many criteria. It has the
highest nominal GNI (though China’s is higher when adjusted for purchasing
power parity, or PPP). Moreover one-quarter of the world’s 500 largest TNCs
are domiciled in the USA. The USA was home to around one-quarter (700)
of the world’s billionaires (2,700 in total) in 2021, despite only being home to
one-twentieth of the world’s people. As a result of this wealth, the USA has a
disproportionate influence over global economic flows and patterns of trade and
investment. (2) The other type of hard power – military might – still matters too.
Putin’s forces were able to invade Ukraine in 2022 with limited opposition from
the West because Russia has many nuclear weapons. However, the imposition
of economic sanctions on Russia by the EU and USA means that this action has
actually been very costly, and not economically beneficial, for Russia.
The USA also uses its soft power, or diplomacy, to create conditions which its
3 Inter-governmental
businesses thrive in. US presidents have worked hard to negotiate deals with other
organizations are a relevant
countries which allow their TNCs to gain entry to new markets. Keeping good
theme to explore when looking
relations with European countries, China and India is important. So the soft power
at superpowers.
of diplomacy helps lay the groundwork for US companies to show their economic
power. Some countries like the USA and UK also have a major say in how global
multi-governmental organizations like the World Bank and IMF operate. They exert
a lot of influence over the rules of world trade and this helps them use global
interactions for their own benefit. The USA holds 17 per cent of IMF voting power
and so helps decide who gets lent money and who does not. (3)
Another way in which soft power works is through the way a country’s culture 4 Good points about diversity
and values are spread across the world, the result being that other states view it and representation are used to
more favourably. The power of TNCs and global media corporations is important widen the response further.
again here. As well as making the USA wealthy, its TNCs have also spread
American values and culture around the world, including fast food and the
English language, and films showing gender equality and the positive 5 Excellent details are provided,
representation of marginalized LGBTQ+ communities in new content from Disney although this paragraph is
and Amazon. This is all streamed globally and may help build goodwill towards less explicit about the benefits
the USA in other countries. (4) countries gain from their culture
becoming known. Could you
Soft power used to be associated mainly with western nations. However, improve it? How does Bollywood
increasingly, new Asian and African powers have cultural influence too. Japan’s benefit India, for instance?
culture has spread around the world: Sushi, Manga comics and cartoons like
Pokémon are part of global culture. India’s Bollywood cinema is a global
6 This paragraph shows the writer
export too. (5)
is thinking very carefully about
Finally, when we are looking at how a country uses global interactions in the way the question has been
beneficial ways, it may be worth asking: who really benefits? A country is made phrased in order to apply as
up of many different individuals and stakeholders, including governments, much understanding to the
companies and citizens, but they may not all benefit from their country’s task as he or she can. The idea
involvement in global interactions. For some people, their lives may actually get of countries acting in ways that
worse. Factory owners in China and India may have benefited from their benefit ‘themselves’ is actually
emergence as new superpowers but not all the workers may have done. (6) a complex proposition: not all
citizens of powerful countries
Examiner’s comment benefit equally from their
This is a well-structured (AO4) piece of extended writing, which applies (AO2) a country’s success. A high level
broad range of relevant ideas, concepts and examples. The detail of the content of AO2 attainment has been
(AO1) is good. Overall, this would reach the highest mark band. reached here.

Structuring an answer
The best essays use paragraphing to deliver a clear structure, which is awarded credit under criterion AO4. Read the essay
and the comments and review the way that it has been carefully structured. Note that the part (a) extended writing task is
not discursive and therefore does not require a formal conclusion.

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 12 Unit 4 Power, places and networks

4.2 Global networks and flows

In the study of global interactions, geographers
conceptualize the world as consisting of networks Figure 4.11 Places in
of connected places and people. A network is an (a) topographical and
illustration or model that shows how different (b) network mapping
places are linked together by connections or flows,
such as trade or tourist movements (Figure 4.11).
Network mapping differs from topographical
(a) Places shown (b) Places shown
mapping by not representing real distances or as territories as nodes in a
scale but instead focusing on the varied level of on a map network
interconnectivity for different places, or nodes,
positioned on the network map.

A networked world
Network flows have stimulated the imagination of writers and artists, including
Chris Gray who has represented the world in the style of the iconic London
Underground network map. In Gray’s worldview, the divisive international PPPPSS CONCEPTS
borders that separate cities are no longer present and physical separation poses Think about how different types
no obstacle to information flows between places in the internet age. The result of global interaction (migration,
is an isotropic surface of nodes and hubs in a borderless world, all connected by trade, internet use) may give rise
multi-coloured flow lines (Figure 4.12). to different kinds of globalizing
process (cultural change, economic
Cities viewed by the artist as being especially important or powerful are portrayed development, the spread of
as global hubs with heightened connectivity (see Unit 4.1, pages 9–10). Major democracy).
flows of goods, services, information and people pass through or penetrate these
places. Vast capital flows are routed through stock markets in global hubs such
as London and Paris where investment banks and pension funds buy and sell Figure 4.12 Europe and Russia
money in different currencies. In 2019, the volume of daily foreign exchange redrawn as a network (based on the
transactions reached US$6 trillion worldwide. London Underground design)

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