Introduction: The World in Motion
In this chapter, we are going to look at how the world’s "economic centre of gravity" has moved over the last few decades. Imagine a giant map where all the money and manufacturing jobs in the world are represented by weights. For a long time, those weights were focused on Europe and North America. Recently, they have slid across the map towards Asia. This movement is called the Global Shift.
We will explore how this shift creates "winners" (people and places that gain jobs and wealth) and "losers" (people and places that face job losses and environmental damage). Don't worry if it sounds complicated; we’ll break it down into simple pieces!
What is the "Global Shift"?
The global shift is the movement of manufacturing (factories) and service industries (like call centres) from Developed countries (very high human development, like the UK or USA) to Emerging countries (high and medium human development, like China or India).
This happens because Transnational Corporations (TNCs) often choose to move their operations to places where costs are lower. This process involves:
1. Outsourcing: When a company pays another company to do work for it (e.g., a UK bank using a call centre in India).
2. Offshoring: When a company builds its own factories or offices in a different country to take advantage of lower costs.
Did you know? The "economic centre of gravity" used to be in the middle of the Atlantic Ocean in the 1950s. Today, it has moved thousands of miles East towards Asia!
The Winners: Emerging Nations
When the global shift moves factories and services to Asia, many people in these Emerging countries benefit significantly.
Economic Benefits
The primary "win" for these regions is poverty reduction. As TNCs move in, they create millions of jobs. This leads to:
- Investment in infrastructure: Governments use new tax money to build better roads, railways, and power grids.
- Education and training: People learn new skills to work in factories or offices, leading to a more productive workforce.
- Wages: Even if wages seem low by UK standards, they are often much higher than what people could earn through traditional farming.
The Physical Environment: A Mixed Bag
While the economy "wins," the environment often "loses." Rapid industrialisation in Asia has led to environmental loss, including:
- Air and water pollution: Factories and power plants often release chemicals into the air and rivers.
- Habitat loss: Building new cities and factories often means cutting down forests or destroying natural landscapes.
Key Takeaway: For emerging nations, the global shift is usually an economic win but can be an environmental disaster.
The Losers: Deindustrialised Regions
While Asia has been gaining jobs, many regions in the UK and North America have been losing them. This is called deindustrialisation.
Economic and Social Restructuring
When a factory closes down in a developed country because the work has been moved to Asia, the local area undergoes restructuring. This often leads to:
- Structural unemployment: Workers who spent 30 years in a steel mill find that their skills aren't needed for new jobs in technology or finance.
- Dereliction: Old factory buildings are left empty and decaying. This can make an area look "run down" and unattractive to new businesses.
- Depopulation: Young people often leave these areas to find work elsewhere, leaving behind an older population.
Environmental "Wins" for Losers?
Surprisingly, deindustrialisation can have a small environmental benefit. As the heavy, polluting factories close, the local air and water quality often improve. However, these areas are often left with contaminated land (brownfield sites) that is expensive to clean up and reuse.
Quick Review: Think of a town in the North of England that used to make textiles. The global shift moved those jobs to Asia. The town's environment might be cleaner now, but many people are out of work—this is the "loser" side of the shift.
Summary Table: Winners vs. Losers
To help you remember, here is a quick breakdown of the impacts:
| Feature | Emerging Nations (Winners) | Deindustrialised Regions (Losers) |
|---|---|---|
| Jobs | Massive increase in manufacturing and service jobs. | Job losses in traditional industries (e.g., coal, steel). |
| Economy | Rapid growth and investment in infrastructure. | Economic decline and need for "restructuring." |
| Environment | Loss of biodiversity; high levels of pollution. | Reduction in pollution, but issues with derelict land. |
| People | Reduced poverty; better education. | Unemployment; social tensions; depopulation. |
Common Pitfalls to Avoid
- Mistake: Thinking the global shift only involves factories.
Correction: It also includes services, like IT support and call centres, which often move to countries like India. - Mistake: Thinking that "Winners" have no problems.
Correction: While they win economically, they often face "environmental loss" and poor working conditions. - Mistake: Assuming deindustrialised areas stay "losers" forever.
Correction: These areas can "restructure" and find new ways to grow, though this is often a difficult process (linked to Topic 4: Shaping Places).
Key Terms for Your Exam
Global Shift: The movement of the global economic centre of gravity towards Asia via the movement of manufacturing and services.
Outsourcing: Hiring an outside company to perform services or create goods that were traditionally performed in-house.
Deindustrialisation: The decline of industrially based activities in a region or country.
Restructuring: The process of an economy changing from one focused on industry to one focused on services.
Environmental Loss: The degradation of the natural environment (air, water, land) due to industrial activity.
Note: For more on how we measure these changes, see the chapter on "Measuring globalisation and switched-off places." For more on how people move because of these jobs, see "Economic migration and its consequences."