Category Archives: Superpowers

Russia

  1. Major player in energy industry
  2. 32% of worlds natural gas
  3. Significant reserves of oil, coal and uranium
  4. Mainly located in East Russia
  5. Used as a political weapon (Ukraine)
  6. Very energy secure nation
  7. State owned Monopoly Gazprom has 94% market share in Russia
  8. Energy cause of Superpower status

Future World Scenarios

  1. The political power of TNC’s will rise
  2. The appeal of Terrorism will decline, however cyber terrorism will increase
  3. Dominant beliefs systems will become increasingly important in geopolitics
  4. Continued shift in influence from West to East
  5. US likely to remain dominant power however its significance declined

Bolivia

  1. Supplies ¾ of the world’s Brazil nuts
  2. 80% of the country live in poverty
  3. In 1999, EU Health and Safety investigated nuts sources
  4. Deemed the Amazon was relatively unclean compared to European Sources
  5. Bolivian Government investigated and proved no scientific risk
  6. Appealed to the World Trade Organisation, however too long term
  7. EU Production increased relative to Bolivia decrease
  8. EU Conspiracy to boost internal production possibility

Ghana

Colonialism in Ghana

In 1957 Ghana gained independence from British colonialism, the first colony in sub-Saharan Africa to do so. This move was the first sign of the end of the British Empire, with other nations following in years to come.

Impacts of the British Rule

  • Benefits:
    • Schools
    • Hospitals
    • Costs:
      • Best paid jobs held by the British
      • Ghana’s crops and minerals were exported to Britain in a raw state – so Britain collected the added value after processing.

Ghana in the World

Ghana’s main export is Cocoa, and is heavily dependent on it. As cocoa is a commodity, world prices are set. There are three external influences:

  1. Commodity Traders
  • From 1991 – 1995 the price of Cocoa changed 60 times
  • From 1996 – 2002 it changed 90 times
  • From Jan 1991 to December 1993 it increased by 112%

Where prices are fluctuating like this, it impacts on exporting countries and their workers.

  1. Overseas Tariffs
  • Ghana are unable to develop and process the Cocoa themselves
  • This ‘value added’ would really boost their economy.
  • Most processing and packaging in done in Europe
  • EU Import tariffs are much higher for processed Cocoa than for raw Cocoa beans.
  1. The World Trade Organisation
  • Ghana joined in 1995
  • The aim was to increase global trade
  • However, WTO introduced entrance condition that farmers could no longer be subsidised
  • Consequently, they are suffering – and losing out to cheaper imports.

The Rise of BRIC’s

The global superpower status today is in a period of transition. The USA is being rivalled by the growth of the BRIC nations. These countries have been grouped together by Jim O’Neill at Goldman Sachs: Brazil, Russia, India and China. By 2050, they are expected to emerge as the dominant world power. Over the past 5 years, over 25% of Global growth is from these four nations.

Wealth, however, is not as great for BRIC’s. As this is a measure of GDP per capita, and these countries are all heavily populated, the GDP share is less. Russia is the one BRIC nation that may see its wealth equal other G7 nations, due to its large proportion of the world’s valuable resources.

As emerging superpowers, BRIC’s will have a selection of impacts on the globe. These will mainly apply to the middle classes (those with disposable income). This demographic is set to fourfold in the next decade within BRIC nations. Car sales are set to rise dramatically:

  • China: 200 Million
  • Brazil: 90 Million
  • Russia: 80 Million
  • India: 75 Million

Demand for commodities such as energy, is also set to rise in this trade bloc. This suggests that prices for oil and coal are set to stay strong, causing demand pull inflation. Demand for oil is set to rise similar to general BRIC demand. The demand for energy within these nations are growing, however these are the nations that control the energy. Consequently, the power will go to these nations first – and could end up with Europe and USA being shut out.

Facts and Stats from BBC News Sources:

  • China set to overtake USA by 2041
  • India could outgrow China in terms of population and growth rate.
  • Brazil and Russia are huge suppliers of the raw materials: iron ore, soya beans and energy the other two nations demand.
  • BRIC’s could end up like Japan, with only regional influence.
  • Chinese attempts to buy western TNC’s caused alarm bells in the United States.
  • Growth of BRIC’s = Social divide
    • Rich get richer
    • Poor get poorer
    • BRIC’s = 50% of the total global population
    • Global institutions will have to change to reflect the new economic distribution of power.

India

  1. Service driven economy
  2. Technological Boom
  3. Healthcare system overloaded
  4. Rapid growth causing inflation of 4.6% (easing currently)
  5. Urbanisation causing habitat destruction
  6. Becoming FDI opportunity for developed nations such as the USA
  7. Its growth is proportional to China’s slowdown
  8. Has a demographic advantage over China