The impact of Globalisation Unit 4 HHD Globalisation

The impact of Globalisation Unit 4 HHD

Globalisation • Globalisation: Interconnectedness of the world through the transfer of goods, services, capital, people and information. • Aspects of globalisation include: • Internet • World financial markets, stock exchange • Trade of goods and services

Transnational corporations • Large conglomerations- great economic influence • Many have greater incomes than many developing countries • Companies include Microsoft, Nokia, cocacola, Mc Donald's

Globalisation Positive aspects of Globalisation • More choice for consumers • Cheaper prices due to competition • Trade can benefit economy of developing countries • Improved access to technology • Corporations provide employment Negative aspects of Globalisation • Unfair trade can discriminate against the poor • Lower incomes in developing countries • May have a monopoly on knowledge or technology • Motivated by profits not human rights, or environment • Large company, large power

• Some countries have embraced globalisation with a successful increase in GDP. • China, India and Mexico

World Bank • Has developed 7 point action plan Refer to page 336 • 1. Develop round of trade talks- reduce trade barriers, tariffs and subsidies • 2. Improve investment climate of developing countries • Improved education and health care • 3. Provide social protection to a changing labour market • 4. Invest in foreign aid • 5. Support debt relief • 6. Tackle greenhouse gases

Impact on health • Globalisation can increase access to goods services and information from all over the world • Globalisation has increases diet an lifestyle diseases. • Multinationals advertise cigarettes and alcohol to developing countries. These can result in lifestyle disease along side already establish health issues such as infectious disease

Changes in alcohol consumption • Wine, beer, cider, mead and other fermented beverages have been present in nearly all human societies for thousands of years. • In developing countries consumption of traditional alcoholic beverages is common, these products are not regulated, high in alcohol • Increased availability and marketing due globalisation. • Alcohol misuse leads to accidents, liver disease, cancer, CVD and mental illness

Changes in food consumption • Increase access to processed foods, resulting in change to traditional dietary patterns. • In urban areas processed foods are cheaper and more accessible, due to long storage life • Increased consumption of soft drinks, processed foods and oil. • Some developing countries now have combined health concerns of malnutrition and obesity

Mc Donald’s introduced vegetarian burger to relate to Indian market

Kosher

marketing • Coke cola sell smaller sized products to developing countries to make more affordable and market heavily, sponsoring sports and campaigns

Tobacco • Tobacco causes 3. 5 million deaths a year • Expected to increase to 10 million by 2020 with 7 million of these deaths in developing countries • Smoking rate are increasing in developing countries

Tobacco- why is it a concern for developing countries • Tobacco is a major public health issue globally, however in developing countries the impact of cigarette smoking can be greater. The rapid increase in smoking leads to an increased incidence of tobacco related diseases such as cardiovascular disease and cancers. This is particularly serious for developing countries which is trying to deal with the problems of poverty, such as under nutrition and infectious diseases, contributing to a double burden of disease which these countries will be unable to deal with.

Risk in developing countries • The government may not have the resources needed to be able to fund health promotion campaigns. • There may also be a lack of funds available to allocate towards the enforcement of anti-smoking laws which would make it more difficult for laws to be effective. • High levels of poverty also mean that governments and retailers rely on the income generated from the sale of cigarettes. • Governments are often paid large sums of money by the tobacco companies to allow them to advertise. Poor countries often need this income to be able to function.

• Low levels of literacy in developing countries may make it more difficult to educate people about the dangers of smoking. • Media coverage may be limited to the larger cities in Bangladesh and those areas outside the city may not have access, or those who are poor may also have limited access. • Often no regulation of cigarette content • Money used to purchase cigarettes increases family hardship

Food security • It is estimated that 80% of the worlds food is consumed by 20% of worlds population. • Food security exists when all people, at all times, have physical and economic access to enough safe and nutritious food to meet their dietary needs and food preferences for an active and healthy lifestyle. (World Food Summit 1996)

To be food secure means that: • Food is available - The amount and quality of food available globally, nationally and locally can be affected temporarily or for long periods by many factors including climate, disasters, war, civil unrest, population size and growth, agricultural practices, environment, social status and trade. • Food is affordable - When there is a shortage of food prices increase and while richer people will likely still be able to feed themselves, poorer people may have difficulty obtaining sufficient safe and nutritious food without assistance. • Food is utilised - At the household level, sufficient and varied food needs to be prepared safely so that people can grow and develop normally, meet their energy needs and avoid disease.

Why is there food insecurity? • Poverty-Poor people lack access to sufficient resources to produce or buy quality food. Poor farmers may have very small farms, use less effective farming techniques, and/or be unable to afford fertilisers and labour-saving equipment, all of which limit food production. • Health Without sufficient calories and nutrients, the body slows down, making it difficult to undertake the work needed to produce food. Without good health, the body is also less able to make use of the food that is available

• Water and the environment Producing sufficient food is directly related to having sufficient water. Irrigation can ensure an adequate and reliable supply of water which increases yields of most crops by 100% to 400%. Although only 17% of global cropland is irrigated, that 17% produces 40% of the world's food. • Disasters and conflicts Droughts, floods, cyclones and pests can quickly wipe out large quantities of food as it grows or when it is in storage for later use

• Trade Many poor countries can produce staples more cheaply than rich nations but barriers to trade, such as distance from markets, quarantine regulations and tariffs make it difficult for them to compete in export markets against highly subsidised farmers in rich countries.

Australia's response • The Australian Government helps developing countries in its region to reduce poverty and address food security by promoting trade liberalisation, peace and stability, good governance, security of land tenure, rural development and agricultural research. Australia also provides emergency food aid to developing countries in need. In May 2003, the Australian Government announced a A$1 billion food security pledge for the five years from 1 July 2003 to 30 June 2008 for programs and initiatives that enhance the food security of people in the developing world.