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1. Global interactions and global power

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        • 1. Global interactions and global power
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Key Words - Global interactions and Global Power

How Global power varies SPATIALLY 

Globalization

The worldwide movement toward economic, financial, trade, and communications integration.
Globalization implies the opening of local and nationalistic perspectives to a broader outlook of an interconnected and interdependent world with free transfer of capital, goods, and services across national frontiers. However, it does not include unhindered movement of labor and, as suggested by some economists, may hurt smaller or fragile economies if applied indiscriminately.
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Created by London-based data visualisation studio Kiln and the UCL Energy Institute

How do we measure globalization?

AT Kearney Index of Globalisation

AT Kearney is a global management consulting firm that advises large corporations on international competitiveness.  Founded in 1926, the company’s headquarters is in Chicago (USA) and it has 60 offices in more than 40 countries in six continents.  In conjunction with Foreign Policy magazine, AT Kearney publishes an annual Globalisation Index.  The AT Kearney Globalisation Index assesses the extent to which the world’s most populated countries are becoming more or less globally connected. The AT Kearney Index analyses the 72 countries that account for 96% of the world’s GDP and contain 84% of the world’s population. 
Twelve variables are examined, divided into four aspects of globalisation:
  • political engagement, including participation in treaties, organisations, and peacekeeping 
  • technological connectivity, including the number of internet users, hosts, and secure servers 
  • personal contact, including telephone, travel and remittances 
  • economic integration, including international trade and foreign direct investment

Codrington, Stephen. Our Connected Planet (Planet Geography Book 2) . Solid Star Press. Kindle Edition. 
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Further Reading
Global Cities - AT Kearney
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Globalization index 2016
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KOF Globalization Index

KOF is an acronym for the German word "Konjunkturforschungsstelle" meaning: Economic cycle research institute. The KOF Index of Globalisation is an index of the degree of globalisation of countries. It was conceived by Axel Dreher at the Konjunkturforschungsstelle of ETH Zurich, Switzerland.

The Index makes use of 24 variables covering three areas of globalization: economic globalization, social globalization and political globalization.
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Interpreting measures of globalization is a tricky business.  Small countries will always come out on top.  They have to be global to survive.  Singapore, for example, imports everything, including water.  Large economies like the US score lower, in part because they trade a lot more internally.  And yet they are home to the world’s most global cities, like New York and San Francisco.

The KOF team has a rather complicated definition of globalization, namely, “the process of creating networks of connections among actors at multi-continental distances, mediated through a variety of flows including people, information and ideas, capital and goods.  Globalization is conceptualized as a process that erodes national boundaries, integrates national economies, cultures, technologies and governance, and produces complex relations of mutual interdependence.” 
 
The KOF Index of Globalization incorporates the economic, social and political dimensions of globalization.
  • Economic globalization is measured by the actual flows of trade, foreign direct investment and portfolio investment, as well as the restrictions applying to these flows. 
  • Social globalization is expressed as the spread of ideas, information, images and people.  It is estimated by personal contact (international telephone traffic, transfers, tourism, foreign population, and international letters), information flows (Internet users, television ownership, trade in newspapers), and cultural proximity (number of McDonald’s restaurants, number of Ikea shops and trade in books). 
  • Political globalization is characterized by the degree of political cooperation.  It is measured by the number of embassies, membership of international organizations, participation in UN Security Council missions, and number of international treaties signed. 
Link to Kof map data
Advantages & Disadvantages of KOF index
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KOF Index of Globalization Top 50 Countries 2018
Statistic: KOF Globalization Index - 100 most globalized countries 2018  | Statista
Find more statistics at Statista

Global SuperPowers

A superpower is a nation with the ability to project its influence anywhere in the world and be a dominant global force. The term originally dates back to the 1940s where it was used to describe the major powers at the time: the USA and USSR.

Super power status depends on what might be called pillars of power. Some nations such as the USA, have all of these pillars, where as others might just be strong in some types of power but weaker in others. 
  • Economic Power: This represents a base and is a prerequisite  of power. A large and powerful economy gives nations the wealth to build and maintain a powerful military, exploit resources and develop human ones through education.
  • Military Power: This is used in two ways - as a threat or bargaining tool and to achieve geopolitical goals. This can be deployed globally and reach distant places.
  • Political Power: The ability to influence others through diplomacy. It an be exercised through organisations such as the UN and World Trade Organisations. 
  • Cultural power: Includes the appeal of your nations way of life, values and ideology to others. It is often exercised through film, the arts and food.
  • Resources: This can be physical resources such as minerals or land but also human resources such as skills, education or even sheer numbers of people. 
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Size and structure of world economies
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The United States of America

The United States Is the Most Powerful Military In The World
When you think about largest armies in the world you will no doubt also think about the US, whose army which is considered the strongest and best equipped in the world. It also has the largest military budget of $648 billion which is far larger than its closest rival China at $250 billion and is (actually bigger than the next nine countries combined). The country’s army was formed way back in 1775 and since then the army of this country has come a long way. Today, it has about 1,358,193 active duty personnel. The US has the second-largest army in the world and it is considered one of the best-trained and most powerfully equipped armies in the world. It has by far the most aircrafts, biggest advancement in technologies like the Navy's new rail gun, best trained human force and the world's largest nuclear arsenal.
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The United States GDP
US Nominal GDP: $19.39 trillion
US GDP (PPP): $19.39 trillionThe U.S. has retained its position of being the world’s largest economy since 1871. The size of the U.S. economy was at $19.39 trillion in 2017 in nominal terms and is expected to reach $20.41 trillion in 2018. The U.S. is often dubbed as an economic superpower and that's because the economy constitutes almost a quarter of the global economy backed by advanced infrastructure, technology, and abundance of natural resources. While the U.S. economy is service-oriented, contributing almost 80% its GDP, it's manufacturing merely contributes about 15% of its output. 
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Finally, the United States is also considered to be a cultural superpower because of the impact it has around the world through television programs, movies and news organisations.  US media productions have been credited with shifting cultural opinions among people around the world, usually towards a more pro-US viewpoint but sometimes against.  This process is known as soft diplomacy, and has accelerated with the development of internet-based video and podcasts. The importation by non-Americans of products, images, technologies and practices that are closely associated with the United​ States is known as the process of Americanisation.  In the minds of many people, Americanisation is closely related to the process of globalisation, and indeed the former US Secretary of State, Henry Kissinger, stated in 1999 that “globalisation is really another name for the dominant role of the United States”.

Codrington, Stephen. Our Connected Planet (Planet Geography Book 2) . Solid Star Press. Kindle Edition. 



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China

Chinese People's Liberation Army Is the Largest Standing Army In The World
​When judging the largest standing armies in the world we see that there are many armies that are really big and strong. China is the country with the largest standing army and is one of the best trained. China has upped its military budgets by more than 10% a year over the last five years. This army was established way back in 1927 and was known as the China People’s Liberation Army which is made up of Ground Forces, NAVY and Artillery as well as armed police and of course a strong air force. The latest estimates about the size of this army is put at 2,035,000 personnel. Most of the personnel of this army are aged between 18 and 49 years. By law military service is compulsory in China, although the country has never enforced conscription due to the large number of volunteers from its population. Its army is divided into five main service branches: the Ground Force, the Navy, the Air Force, the Rocket Force, and the Strategic Support Force. The army is well trained and equipped and is considered to be one of the strongest in the world, although its equipment is considered to be behind the US by about 20 years.
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THE RISE OF CHINA AS A SUPERPOWER
The 'globalisation' of China's military power
China GDP
China Nominal GDP: $12.01 trillion
China GDP (PPP): $23.15 trillionChina has experienced exponential growth over the past few decades, breaking the barriers of a centrally planned, closed economy to evolve into a manufacturing and exporting hub of the world. China is often referred to as the "world’s factory" given its huge manufacturing and export base. However, over the years, the role of services has gradually increased and that of manufacturing as a contributor to GDP has declined relatively. Back in 1980, China was the seventh-largest economy with a GDP of $305.35 billion while the size of the U.S. then was $2.86 trillion. Since it initiated market reforms in 1978, the Asian giant has seen an economic growth averaging 10% annually. In recent years, the pace of growth has slowed although it remains high in comparison to its peer nations. 
The World Bank reported a spurt in China’s economic growth in 2017 for the first time since 2010, mainly driven by a cyclical rebound in global trade. It projects a growth of 6.6% in 2018 which would sober down to around 5.5% by 2023. Over the years, the difference in the size of the Chinese and the U.S. economy has been shrinking rapidly. In 2017, the Chinese GDP in nominal terms stood at $12.01 trillion, lower than the U.S. by $7.37 trillion.

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  • ​What is meant by the terms (a) superpower, (b) hegemony
  • ​Describe the areas of the world where military expenditure per % GDP is highest.
  • ​Provide evidence that the United States is (a) a military superpower, (b) an economic superpower, (c) a technological superpower, (d) a cultural superpower, and (e) a global superpower.
  • ​Using the information list the countries with the largest economies in each of the six continental groups.
  • ​Compare the (a) size and (b) structure of the US and Chinese economies.
  • Compare the United States’ and China’s strengths and weaknesses as superpowers.

Powerful organizations and global groups

G7, G8 & G20

The inaugural G20 event happened in 1999 as a meeting among finance ministers in countries with large economies. Since then, regular meetings have become an important aspect of economic cooperation. As the name implies it includes 20 members of the international community–Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Republic of Korea, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States, and the European Union. Along with these nations and regional blocs, several non-state actors attend the G20 including the United Nations, the International Monetary Fund, the World Bank, the World Trade Organization, the Financial Stability Board, the International Labor Organization, the Organization for Economic Cooperation and Development (OECD).
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The G7 was the first of these international summits, starting back in 1975. (The first meeting was actually only attended by six of the countries, as Canada did not attend until 1976. For this reason, some refer to the initial summit as the G6).

The G7 originated when seven countries, including the United States, joined together to address the oil embargo in 1973 that had been triggered by Western support for Israel in the Yom Kippur War. G7 is short for the Group of Seven Industrialized Nations and it included the United States, United Kingdom, Germany, France, Italy, Japan, and Canada. Since 1991, Russia regularly met with countries at the G7 summit and in 1998, it was added to form the G8.

While the exact reason for the addition of the G20 in 1999 was not explicitly spelled out, the increasing economic significance of developing countries made them desirable partners for the international summits. Even with this addition, though, some feel that G8 members still wield greater power in the G20 than the other members. Regardless of that specific sentiment, even when the organization was just seven members, other countries in the developing world were invited to participate and exerted some influence. Russia, in particular, participated before becoming a member and even joined in on some of the dialogue since 1991. Even after the expansion to the G20, the original G8 members still meet at a separate event. The site where the meeting will be hosted is rotated between the eight member countries. The video below gives a brief explanation of the G8 and G20:

PURPOSE
Initially, the G20 summit, and the G8 before it, was a place for finance ministers and central bank governors to discuss economic matters, including international financial and monetary policies, international institutions, and world economic development. However, that role changed following the 2008 financial crisis when the first Leaders Summit was held in Washington, D.C. At the next summit, in 2009 in Pittsburgh, Pennsylvania, world leaders announced that the new G20 would overtake the G8 as the primary means of international economic cooperation.

Ultimately, no decisions made in the meetings are binding. The main goal of the meetings is to serve as an open forum for communication. Thus, it is not surprising that even after the meetings end, follow-up discussion continues. This is done through sherpas–representatives of the officials who attend the actual meetings. These people keep in regular communication concerning the decisions made at the most recent meeting. Ministerial meetings also occur throughout the year, which include finance ministers from member nations.

CRITICISM AND CONTROVERSY
Like other international events involving economic policy, the G8 and G20 have their detractors. The first protesters at a G8 Summit appeared in 1998 to denounce globalization. The dispute eventually turned deadly three years later when a protester was killed during a clash. The G20 has also been the site of protests virtually every year since its inception. This has been increasingly true following the financial crisis, as the leaders who met annually were viewed as the personification of a problem that led to global calamity.
Aside from protests surrounding the meetings, there has also been dissent within. In 2014, the original G7 members declined to attend that year’s G8 meeting in Russia to protest Russia’s actions in Ukraine. Instead, the member countries held their own G7 conference in Brussels. Since then, Russia has been expelled from the group and the G8 has returned to the original G7 group.

IMPACT
For all the media exposure that these summits generate, the actual impact of the G7/G8 and G20 is up for debate. For its part, the G20 is not actually an organization but a network that brings various organizations together. However, this has not stopped it from competing with other organizations, on purpose or not, such as the IMF and World Bank. Still, the G20 relies on those organizations and others to actually address the issues identified and outlined at the meetings.

The G20’s biggest impact has been through its broadened membership. Specifically, it now includes countries such as China, India, and Brazil, all of which have large economies. The hope behind this move was that the additional countries would speak for themselves of course, but also for other countries facing similar issues. Due to the informality of these events, however, some argue that this hope has not yet been realized. For many of these countries, with this being their first time on the world stage, they are merely learning the basics.
The G8 is also a rather informal affair and, in fact, has maintained that arrangement on purpose. In 1998 for example, Britain stopped sending its finance minister as a way to separate the G8 from the traditional ministerial meetings. The concept was further decentralized and ministers began having separate events throughout the year. The impact of both the G8 and G20 is not necessarily in the results that they generate but the opportunities they present for collaboration and communication.

CONCLUSION
The G8 and G20 serve as important forums where the world’s most powerful countries can meet to discuss pressing economic issues that affect the entire planet. The process started as many of the leading organization today have, with a western focus. However, with the introduction of the G20, in which many more voices are heard, that focus has decidedly broadened.

Even after the addition of the G20, it is still unclear what these summits do and if they are even useful. Similar to criticisms of other international institutions, such as the United Nations, these summits have been viewed as generating lots of ideas while offering fewer actual benefits. Additionally, these summits have been met with significant backlash, as evidenced by the mass protests that follow them around, year after year, from country to country. This unpopularity has only increased following the 2008 financial crisis.
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While these criticisms may have merit, they also lack nuance. The G8 and G20 were specifically designed to be forums, not supranational deciding bodies. As unpopular as they are now, it is easy to imagine how much more so they would be if they actually made policy. For an example, look at the E.U. and the way that many of its member states have taken issue with its top-down style of rule-making. Instead, they are a place for leaders and ministers to gather and discuss. Sometimes they can be used as political tools, but they can also offer a chance at dialogue that otherwise does not exist. Thus, the meetings are likely to continue because at the very least they offer prestige to the host (see China in 2016) and at best, they create the international community leaders need to address problems.
2019 G20 Japan

Organization of the Petroleum Exporting Countries’ (OPEC)

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Further reading
OPEC: What is the international oil cartel and why has Qatar left its ranks?
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For each organization complete the following worksheet
Powerful Organizations or Groups
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      • Option B: Oceans and coastal margins >
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        • 2. Interactions between oceans and coastal places
        • 3. Managing coastal margins
        • 4. Ocean management futures
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        • 1. Population and economic development patterns
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        • 1. Causes of global climate change
        • 2. Consequences of global climate change
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      • Unit 3: Global resource consumption and security >
        • 1: Global trends in consumption
        • 2: Impacts of changing trends in resource consumption
        • 3: Resource stewardship
    • Part 3: HL Core Extensions >
      • Unit 4: Power, places and networks >
        • 1. Global interactions and global power
      • Unit 5: Human development and diversity
      • Unit 6: Global risks and resilience
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    • Why should I study IB Geography?
  • IB Geography (Old Syllabus)
    • IB Core >
      • 1. Populations in Transition
      • 2. Disparities in Wealth and Development
      • 3. Patterns in Environmental Quality and Sustainability
      • 4. Patterns in Resource Consumption
    • Part 1: Geographical Themes >
      • Oceans and their Coastal Margins
      • Hazards and disasters - risk assessment and response
      • Freshwater - issues and conflicts
      • Urban Environments
    • Global Interactions - HL >
      • Measuring Global Interactions
      • Changing Space - The Shrinking world
      • Economic Interactions and Flows
      • Environmental Change
      • Sociocultural Exchanges
      • Political Outcomes
      • Global Interactions at the Local Level
    • IB Guidance >
      • Syllabus Guidance
      • IB Examination Guidance
    • Extended Essay
  • IGCSE Geography
    • Theme 1: Population and settlement >
      • Population Dynamics
      • Migration
      • Settlements
      • Urban Settlements
      • Urbanisation
    • Theme 2: The natural environment >
      • Plate Tectonics
      • Coasts
      • Rivers
      • Weather and Climate
      • Climate and Ecosystems
    • Theme 3: Economic development >
      • Development
      • Food Production
      • Industry
      • Energy
      • Tourism
      • Water
      • Environmental Risks of Economic development
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    • IGCSE Geography Examination Advice
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    • Year 6 >
      • My Place
      • Rivers
      • Brazil
    • Year 7 >
      • Maps and the world
      • Rocky Landscapes
      • Settlement
      • Weather & Climate
    • Year 8 >
      • Maps Introduction
      • Plate Tectonics
      • Economic Activity
      • Biomes
    • Year 9 >
      • Map Skills - review
      • Development
      • Coasts
      • Tourism
      • Paradise lost - Tourism in Thailand
  • AS Level Geography
    • World at Risk
    • Crowded Coasts
  • Geography Skills
  • Donations & Contact
  • YouTube Channel
  • Essential computer programs