HL6: Political outcomes

Political outcomes

Loss of sovereignty

Sovereignty: The state of being independent and being able to make your own decisions.
Globalisation has meant that many political borders are now much more porous, with goods, ideas, money and people able to travel much more freely between locations. The increased movement can bring both positive and negative impacts. Below is a table of some of these impacts.

	HOW AND WHY	ADVANTAGES	DISADVANTAGES
GOODS	Air freight Growth of TNCs including offshoring Growth of global brands Greater advertising Containerisation and air freight	Greater choice (although local brands may be lost) Possible cheaper products (economies of scale) Year round choice for seasonal and perishable products e.g. food More reliable availability	Growth of monopolies or near monopolies e.g. Microsoft Small businesses close Homogenisation Cultural dilution Loss of seasonality Dependence on TNCs and their services
CAPITAL (MONEY)	Global banks e.g. HSBC Internet and telephone banking Credit cards and services like Paypal ATMs Range of products e.g. loans, mortgages and overdrafts Trade in stocks, bonds, etc.	Online shopping e.g. Amazon Ease of travel e.g. travellers cheques and ATMs Transfers between accounts and countries	Global credit crunch Limited access for poor (more micro-loans offered no by banks like Grameen) Credit card fraud Overspending and debt Collapse of pension funds Collapse of financial institutions e.g. Glitnir and Landsbanki in Iceland
LABOUR	Greater passport ownership Visa relaxation Cheap flights TNCs (global division of labour - footloose workers) Global business language - English?	Remittances sent back to friends and family Reduced unemployment as people move to jobs Sharing of ideas and skills (division of labour) Possible "Brain Gain' for receiving countries Production of cheaper products because of cheaper labour Spread of job skills and knowledge	Reliance on foreign labour Racial tension between ethnic groups e.g. Poles in the UK Economic leakage as earning are sent home Possible 'Brain Drain" for losing countries Lack of skills and training amongst home workers
IDEAS	Internet Media organisations e.g. CNN, BBC and Al Jazeera TNCs Diplomacy (Embassies and Consulates) Global organisations e.g. World Bank, IMF Economic migrants Military e.g. occupation of Iraq by US and its allies	Shared technology e.g. nuclear and renewable energy Improved human rights through campaigning of governments and NGOs Improved freedom of press and speech	Cultural imperialism - ideas imposed rather than voluntarily adopted Loss of sovereignty Ideologies might not always been suitable Prescribed policies like SAPs can sometimes cause problems.

Many people blame globalisation and the associated development of TNCs and international organisations (including trading blocs) on reduced national sovereignty. Below is a list of some of the World's major trading blocs and a summary of the impacts that the EU has had on Europe (positive and negative).

Source: http://greenfieldgeography.wikispaces.com/Loss+of+sovereignty

The European Union

The EU started life with six members (Belgium, The Netherlands, Luxembourg, France, Italy and West Germany) in 1957 when they signed the Treaty of Rome to create the European Economic Community (EEC). In 1973 the community (now the EC) extended to include Denmark, the United Kingdom and Ireland. In 1981 Greece joined and in 1986 Spain and Portugal joined. In 1993 the Maastricht Treaty created the European Union (EU) and in 1995 Austria, Finland and Sweden joined. In 2004 the EU saw its largest increase in size when Cyprus, Malta, Slovenia, Slovakia, Hungary, Latvia, Lithuania, Estonia, Poland and the Czech Republic all joined. In 2007 Romania and Bulgaria joined making 27 countries in the EU. Croatia is due to be the next country to join in 2013. Other countries like Serbia, Macedonia and Montenegro are official candidates, while Turkey and Iceland are negotiating their status.

The EU started off life with the aim of improving economic cooperation. However, it has now developed into a much bigger and more developed economic and political union. The single market, which allows the free movement of most goods, services, money and people to move freely between countries is still at the centre of the EU, but the EU now also looks at development, aid, resources, equality, democracy, transport, the environment, working regulations, etc. Membership of the EU means that some decision making is handed to the EU and its seven main institutions (there are other more specialised institutions); the European Parliament, the Council of the EU, the European Council and the European Commission, the European Central Bank, the European Court of Auditors and the Court of Justice of the EU. Decision making is sometimes known as competence in the EU - this means responsibility and autonomy.

In 2007 (coming into force in 2009) all EU members signed the Treaty of Lisbon. The treaty updates the Maastricht and forms a constitutional framework for the operating of the EU. Amongst other things the treaty created a new foreign minister, redistributed voting power, removed the veto on many policies and created a new European Council President. The treaty was unpopular amongst many euroskeptics who said that it handed too much power to the EU. The treaty had to be ratified by each member state (either a vote in parliament or a national referendum). Some countries like the UK and Ireland asked for opt outs in order to pass the treaty. The UK and Ireland asked for opt outs on asylum, visas and immigration.

Source: http://greenfieldgeography.wikispaces.com/Loss+of+sovereignty

How the EU works

The European Union is a unique economic and political partnership among 28 diverse democracies united in their commitment to peace, democracy, the rule of law, and respect for human rights.

EU Member States have transferred part of their sovereignty to EU institutions, with many decisions made at the EU level. The legal foundation of the EU is built on a complex system of treaties among its members, which have been adapted over the years to meet the needs of a changing world and an evolving and expanding EU.

Who Does What? Shared Responsibility between the EU & Its Member States

The EU operates according to the principle of subsidiarity, which means that the European Union does not take action (except in the areas which fall within its exclusive jurisdiction) unless it is more effective than action taken at the national, regional, or local level.

Exclusive EU jurisdiction: Only the EU may legislate and adopt legally binding acts in fields including the customs union, the common commercial policy, competition rules, and monetary policy for euro countries.

Shared EU-Member State jurisdiction: Jurisdiction is shared between the EU and the Member States in specified areas including internal market rules; aspects of social policy; economic, social, and territorial cohesion; agriculture and aspects of fisheries; the environment; consumer protection; transport; trans-European networks; energy; freedom, security, and justice; aspects of public health; aspects of research and technological development and space; and aspects of development cooperation and humanitarian aid.

Member State jurisdiction with support from the EU: Although Member States retain jurisdiction in areas related to the protection and improvement of human health; industry; culture; tourism; education, vocational training, youth and sport; civil protection; and administrative cooperation, EU actions can support, coordinate, or supplement Member State activities.

The EU also coordinates economic employment policy and a common foreign and security policy, but these areas are managed separately from the framework above.

Making Decisions in the EU

The European Council, made up of the heads of state or government of the EU Member States, the president of the European Commission, and the president of the European Council, sets overall EU policy and is the highest political authority in the EU.

The EU’s law-making process involves three main institutions:

• European Commission: The executive branch of the EU, the European Commission proposes legislation, manages the Union’s day-to-day business and budget, enforces the rules, and negotiates international trade agreements on behalf of the EU.
• Council of the European Union: Made up of ministers from the 28 Member State governments, the Council adopts laws in conjunction with the European Parliament, coordinates the Member States’ broad economic policies, concludes international agreements between the EU and other countries or international organizations, and approves the EU budget (jointly with the European Parliament).
• European Parliament: The voice of European citizens, Members of the European Parliament are directly elected for five-year terms. The Parliament, jointly with the Council of the EU, passes laws and adopts the EU’s annual budget. The Parliament also approves the membership of the European Commission and its leadership.

Other major EU institutions include the Court of Justice of the EU, the highest EU judicial authority; the European Central Bank, which is responsible for monetary policy in the 19-nation euro area; and the European Court of Auditors.

The European External Action Service is the EU’s official diplomatic service.

Source: http://www.euintheus.org/who-we-are/how-the-eu-works/

Below is a list of some of the ways that EU member states lose sovereignty:

Exclusive Competence: The Union has exclusive competence to make directives and conclude international agreements.	Shared Competence: Member States cannot exercise competence in areas where the Union has done so.	Supporting Competence: The Union can carry out actions to support, coordinate or supplement Member States.
Monetary policy for members of the Eurozone e.g. interest rates Members must follow a common fisheries policy to preserve marine biodiversity Members must follow a common customs union Competition rules must be followed with the internal market (reduced protectionism)	Agriculture policy Consumer protection and rights Energy e.g. renewable targets Transport Security and justice Workplace safety Environment	Tourism Education Culture Sport Industry Public health Disaster prevention

ADVANTAGES OF EU MEMBERSHIP

DISADVANTAGES OF EU MEMBERSHIP

Member citizens can travel freely between other members to go on holiday (saves space in your passport too!) The above should increase tourism revenue for all member countries Member citizens can choose to work freely in other countries Within the Eurozone it is not necessary for currency conversions, easing trade and tourism Undeveloped areas of the EU can receive support and assistance from the EU Reduced risk of internal conflict and stronger military bloc to defend external borders Bailouts for poorer countries e.g. Greece from stronger members e.g. Germany Subsidies from the common agricultural policy (CAP) for farmers Voice in the G20 for smaller members of the EU

Countries in the Eurozone lose control over their monetary policy e.g. interest rates Free movement of members may lead to influxes of workers leading to racial tension e.g. Poles in the UK Economic problems in one country e.g. Greece, Ireland and Portugal can cause Europe wide recessions and the need for bailouts Enforced fishing quotas which may harm fishing industry e.g. Spain and UK Imposition of working regulations e.g. working week Imposition of metric measurements e.g. The UK being forced to use kilograms instead of pounds Growth of independence and nationalist parties e.g. UKIP and BNP in the UK Brain drain from poorer eastern European countries Cost of supporting weaker nations

http://greenfieldgeography.wikispaces.com/Loss+of+sovereignty

Brexit: All you need to know about the UK leaving the EU

Shift of power from nation states to TNCs

TNCs: Transnational corporations are companies that operate in more than one country. TNCs will normally locate their headquarters in their home country, for example Toyota has its headquarters in Japan. Headquarters are normally located in the TNCs country of origin because this is where the company was first established, where most of the profits will return to and where most of top management team is from. Most TNCs will also have R&D (see definition above) facilities which they will locate in developed country where there is a skilled workforce and a high level of technology. However, TNCs will often chose to offshore there manufacturing plants to LEDCs where productions costs are lower (cheaper labour, cheaper land, etc.)

ADVANTAGES OF TNCs IN LEDCs

DISADVANTAGES OF TNCs IN LEDCs

Creates jobs for local people Locals with jobs then spend money in their local economy at local businesses and therefore there is a positive multiplier effect as extra money gets added to the local economy. TNCs will pay local and government taxes and therefore increase the government budget. Jobs at a TNC will be in the formal economy, so hopefully better regulated in terms of safety, pay, etc. Improves workers skill and education level They introduce new technology into the country Infrastructure like roads and ports are often upgraded and benefit the whole economy Diversifies the economy, might move away from the reliance on one industry like farming or tourism The country receives prestige for attracting TNCs and investment into the country.

Many of the best paid managerial jobs go to foreigners Local workers often do manual jobs which are poorly paid and often workers suffer exploitation (long shifts, no breaks, etc.) There will be some economic leakage as profits from TNCs go back to their home country Increasingly manufacturing processes are becoming more mechanised so less workers are needed in factories. Many top jobs may go to workers from abroad One of the attractions of LEDCs is cheap labour, but as a country develops labour costs increase and TNCs may move to cheaper locations. Products produced by TNCs maybe too expensive for locals to buy. TNCs may also use local raw materials. Products may not even be intended for local market place. Electricity and water supplies maybe diverted away from local population The increased demand created by TNCs may cause local inflation. Land may also become privatised and unavailable to locals. If the government is building new roads or a port for a TNC it probably means that they can't spend as much money on education or healthcare. New roads, ports, etc. may increase congestion on roads. TNCs may cause environmental damage and pollution e.g. Union Carbide in Bhopal (Transboundary pollutionand The effects of transnational manufacturing and services) TNC decision makers are often foreign so policies of TNCs may not always benefit local people. Increased dependency on foreign companies. Local domestic companies may close.

TNCs are often criticised for having too much power. Below is a list of 25 of the world's biggest TNCs, based on their market value (share price). Nearly half of the companies are headquarted in the US, but China already has four and this figure will only increase in the future as the Chinese economy continues its rapid growth. The TNCs are have a turnover more than many LEDCs. For example ExxonMobil employs about 84,000 people, has a turnover of about $383 billion and a profit of about $30 billion (this is nearly twice El Salvador's total GDP). They are criticised because they employ so many people and earn so much money that they hold power over countries who fear losing the investment of TNCs. Because they can afford the best technology, the most skilled workers, the best lawyers they can also draw up very favourable contracts which may exploit poorer countries.

Source: http://greenfieldgeography.wikispaces.com/Loss+of+sovereignty

25 US Mega Corporations: Where They Rank If They Were Countries

Responses to loss of sovereignty

Resurgence of nationalism - The National Front in France

The National Front (French: Front national) is a socially conservative, nationalist political party in France. Its major policies include economic protectionism, a zero tolerance approach to law and order issues, and opposition to immigration. A eurosceptic party, the FN has opposed the European Union since its creation in 1993. Most political commentators place the FN on the right to far right but party representatives reject this. 

The party was founded in 1972 to unify a variety of French nationalist movements of the time. Jean-Marie Le Pen was the party's first leader and the undisputed center of the party from its start until his resignation in 2011. Marine Le Pen, his daughter, was elected as the current leader. While the party struggled as a marginal force for its first ten years, since 1984 it has been the major force of French nationalism.

Source: https://en.wikipedia.org/wiki/National_Front_(France)

Source: https://twitter.com/Sedulia/status/671007661039738880/photo/1

The National Front runs on a harshly anti-immigrant and anti-Muslim platform. Le Pen, who vociferously opposes France providing asylum to Middle Eastern refugees, wants to reduce immigration by 2,000 percent and make it much more difficult for migrants already in the country to attain citizenship. The FN says it has zero tolerance for undocumented immigrants, and hopes to ban dual nationality for non-Europeans. The far-right party also wants priority to be given to French citizens over foreigners for jobs and social programs.

Since the January and November Paris attacks, the latter for which ISIS claimed responsibility, the National Front has rapidly grown in popularity. The extreme-right party has capitalized upon the incidents, portraying them as confirmation of its narrative that Muslims, and even the religion of Islam itself, have supposedly declared war upon the West.

The party has employed such xenophobic, right-wing populist rhetoric for years. In 2010, Le Pen compared French Muslims praying in the street to Nazis in German-occupied Vichy France. The irony of this comparison is that the founder of the National Front, Marine’s father Jean-Marie Le Pen, is himself a Holocaust denier with ties to neo-Nazi groups.

During the 2012 presidential campaign, French socialist politician Jean-Luc Mélenchon called Le Pen and her party fascist. She subsequently sued him for defamation, yet a French court ruled in 2014 that it is indeed appropriate to call Le Pen and the National Front “fascist.”

FN supporters often chant slogans like “France to the French.” In court, a National Front supporter referred to foreign-born French citizens as “dogs” and “barbarians.”

In the past few years, with the influx of refugees from the Middle East and the rise of ISIS, Le Pen’s party has continued to demonize immigrants and Muslims as enemies of French secularism. France has a long and proud history of laïcité (secularism), going back more than a century. Although the FN uses laïcité when it is to its political advantage, however, the far-right party has not been consistent.

Marion Le Pen, another leading figure in the extreme-right party — and a granddaughter of Jean-Marie and niece of Marine — has characterized France as a Christian nation, and even gone so far as to insist that Muslims “cannot have exactly the same rank” as Catholics in society.

Source: http://www.salon.com/2015/12/08/is_france_going_fascist_extreme_right_national_front_is_now_the_most_popular_party/

Le Pen Will Be Mightier

Anti-globalization movements

Anti-globalisation: Opposition to the emergence of a single world market dominated by large TNCs.

The anti-globalisation movement began life in the late 1980's and early 1990's in protest to the OECD's call for greater liberalisation of global markets. In 1988 in Berlin and later in 1994 in Madrid there were protests held at IMF and World Bank meetings. In 1999 more coordinated protests took place in London and Eugene in the US. Later that same year protests took place in Seattle in the US during the meetings of the WTO. Protesters managed to stop on the opening ceremony taking place. Since 1999 protests have taken place at most global meetings and conferences of international organisations like the OECD, WTO, IMF and World Bank. Also May 1st has become widely used an international day of protest against many national and global issues, including globalisation.

Anti-globalisation movements protest against a number of issues include:

• War and nuclear proliferation
• Exploitation of workers (including trafficking)
• Rising levels of government debt
• Rising power of TNCs
• Environmental damage (greenhouse effect, acid rain, deforestation)
• Rising power of global institutions (WTO, IMF and World Bank)
• Loss of culture
• Corporate bailouts
• Corporate pay and bonuses
• Inequalities between groups (racism, sexism, etc.)
• Loss of national sovereignty
• Polarisation between rich and poor

Because the anti-globalisation is so broad, protesting against many different aspects of globalisation there are thousands of groups and individuals involved encompassing every socio-economic group. Recent protests in Wall Street, New York attracted the support of people ranging from the unemployed to the writer and director Michael Moore. Two groups that we will look at more detail in the next section are the "Focus on the Global South Group" and "People's Action Group" as well as the role of trade unions.

Source: http://greenfieldgeography.wikispaces.com/Responses

What is anti-globalisation?

Attempts to control migration - UK/France border, Calais jungle 

Calais migrants: How is the UK-France border policed?

French politicians tell Britain 'take back your borders' after EU vote