Implications for the Majority world

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  • Implications for the majority of the world
    • Some periphery nations have gained economic independence through 2 ways
      • 1) Nationalisation - state has taken control of the company or its land owning
      • 2) Cartels - formation of cartels e.g. OPEC
    • Named Example: OPEC an oil cartel
      • Organization of petroleum exporting countries was created in 1960 to counter oil price cuts from American and European oil companies
      • 1979, OPEC countries produced 65% of the world oil but in 2007 only 35%
      • Concerns that they had reached peak oil but it has allowed them to control the price of oil within a range of $22-28 per barrel
      • They can control the amount of crude oil they export to avoid flooding or squeezing the international market place
      • Profits made from oil have allowed member countries to invest and diversify their economies and generate wealth
      • Also ensured that countries maintained favourable relationships with the OPEC countries
    • Named Example: China's investment in Africa
      • Growth of the emerging powers has been seen by many to provide the developing world with new opportunities to develop
      • Around 30% of all raw materials used in China comes from Africa
      • In 2007 Chinese investment in Africa totalled $30 billion
      • Many believe China have little interest in developing Africa
        • 45% ownership of Nigerias oil field
        • Mineral investment in Zimbabwe
        • $175 million invested in copper mining in Zambia

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