Globalisation

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Globalisation

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Sectors

Pre-industrial (Primary): subsistance farming for cash crops e.g. tea or cotton , fishing, mining grow and export raw materials: Ethiopia-Hard labour, intesive farm work, crops vulderable to the weather e.g. floods, droughts, workers depend on producing enough food for their family, children in the family often have to work.

Industrial(secondry): as a country inductralises; manufacturing goods in factories and work. A factory worker in China; long hours, repetitive work, lots of overtime, Unions are often banned so employees have limited rights, most factories anly want workers under 30 years of age. £1000-£3000 per year

Post-industrial(Tertiary): country invested more money in education and training; services such as education, retail, banking, health service and travel: UK-Nurse in NHS; Good working conditions with health and safety regulations and union representation, paid holidays and pensions, Unsociable working hours and high stress working enviroment. £20,000-£40,000 per year

Quaternary-scientific reserch such as biotechnology and computer science.Very good working conditions however high stress job with TNC demand to develop new products.

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Impacts of Globalisation on different groups of pe

Positives+Negatives: in the developed world such as the uk; well paid worker are losing their jobs as factories are closing down such as Tata Steels as the company is relocating; moving to developing countries such as India This will benifit the economy of the developing country as it create more jobs for women and men who don't have to rely on their husbands to earn a living as these jobs can provide them with income which they can comfortably live from. These jobs would also be a benifit to women, as they can have better access to eductaion for their children and for themselves. Furthermore poorer people will be able to achieve qualifications that they otherwise would not be able to do. This means women will be able to provide food for their families and have better access to things like medical care. This would mean more equality in the workplaces, immigrants will pe able to come to the UK making it easier for them to find a job.

In addition, In the developed world, High prices can be charged for products. Everone benifits from goods and services, good working conditions, more flexibility and choice in where and when people work e.g. from home,

In the developing world, workers can now sell and provide services to a greater number of places, they can pay high prices for the developed world's services and products. People get lower prices for its products than developed world, however wages are generraly low plus there is a continuing exploitation of workers and use if child labour, few people can afford the goods and services a global economy provides. 

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Impacts of Globalisation on different groups of pe

HICS (high-income-countries-UK) , MICs (China-medium incom countries) and LICs (Bangladesh)

Male car factory workers in the USA; companis like Ford have shut down factories in Detroit in the USA and moved them to Mexico and Brazil. Thousands of male, well paid workers lost their jobs as these jobs moved overseas to cheaper locations 

Male coal miners in China; coal has pwered China's economic growth, providing jobs for 5 million coal miners though it is dangerous about 2000 miners have died while working underground for only £5-£8 a day.

Male TNC executives; Most of the top jobs at TNCs are taken by men, with women making up only 18% of senior mangers. TNCs have grown because of globalisation and so have wages.

Female factory workers in China; Women who work for Foxconn, the company that makes IPads and IPhones for Apple earn about £180 per month. Most live in dormitiries within the factory and work up to 60 hours overtime a month, but pay is much higher than in rural areas from which most workers migrate

Female call centre workers in the UK;  about 900,000 people in the UK work in call centres. Many are part time and most are women. They can earn around £15,000 a year. This industry has grown in the last 20 years and has provided women with jobs although it is lowskilled and promotion prospects are limited.Female textile worker in Bangladesh; women working up to 80 hours a week but only earning as little as £12. Accidents, factory fieres and exploitation are common.

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Positives and Negatives of TNCs

Negatives: workers are not allowed lunch breaks--workers get tiered easily and may injur themselves. Workers are paid insufficient wages--this means they cannot meet the basic needs of living standard e.g. food and water--they will not be able to feed their children and will starve themselves so they may get ill. Workers are not allowed to organise independent Unions--workers cannot input their own ideas or experiances--Things cannot improve n the workplace--workers willsuffer as a result. Neglect of health and safety regulations means workers may be exposed to physical and sexual exploitation--workers cannot afford medical care or supervisions --they will have no voice or help.

Positives: Nike train young people to gain qualifications--this makes it easier to get a good job for graduates elsewhere--graduates can work and improve their skills in the developed world jobs that pay high salaries. TNCs employ 40,000 people world wide--products made quickly--this means increased trade--employing people who would otherwise be unemployed--this means better standard of living.

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Outsourcing

Using examples explain how outsourcing can affect different countries in different ways (6)

One way outsourcing affects the UK is the loss of jobs means increased unemployment and a higher number of people claiming benifits this means there will be fewer people paying taxes this will put more pressure on the economy. On the other hand, it will provide high paid jobs in India which means higher quality of life for workers as more money is given to spend on other expenses and luxuaries. Furthermore, both TNCs such as BT and workers will continue to contribute to Inda's economy as they will pay taxes which means more funding can be spent on healthcare, education and improving roads and buildings.

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International trade and capital flows

Transport: Jet aircraft have reduced the cost of travel and connected up distant places, container ships have become bigger so large amount of goods can be transported making in cheap and efficient to move products from producer to consumer. (containerization). airlines operate with fewer staff making it cheaper.

Communication: Email, text fax and phone made possible by undersea fibre optic cables making it cheap and instant.with phones and computers.

 The World Trade Organisation (WTO) has promoted free trade by persuading countries to reduce or remove trade barriers like taxes, tariffs and quotas.

 The International Monetary Fund (IMF) has given loans to developing countries for infrastructure and encourages countriesto allow foreign investment to create new jobs.

 Transnational Corporations (TNCs) reduce costs and increase profits by moving factories to cheaper locations. This has created new jobs in developing countries.

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LIC case study-Ethiopia

LIC case study - Ethiopia

The primary sector is the largest employment sector in Ethiopia. 75% of people work in this sector, mainly working in agriculture and as subsistence farmers who need the food to support their families. They will often work long hours and in harsh physical conditions to produce just enough food to for their family to survive on. There is a small amount of commercial agriculture, mainly growing coffee which is a major export crop.

The secondary sector is very small with mainly men working in factories receiving little pay. Foreign investment has created these jobs in textile and leather factories.

The tertiary sector accounts for around 15% of the population, men and women, working in services including tourism.Due to Ethiopia's level of poverty and the lack of work which isn't farming, many people are working in the informal sector. People (including children) who work in this sector work on the streets of towns and cities trying to make some money by selling goods or providing services for passers by such as shoe polishing). The wide range of jobs in the informal sector aren't officially recognised and the people working in them are often subject to abuse and exploitation.

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MICs case study-China

MIC case study - China

The primary sector is the largest employment sector in China, but unlike Ethiopia it also involves mining as well as agriculture. Coal mining, worked by men, is significant and mining accidents are common showing the consequences of weak safety regulations. Women will often work in farming.

 The secondary sector is not as large as the primary sector but generates the most money; driving China's economy. Both men and women work in this sector, manufacturing goods which are sold around the world. The hours are long and the working conditions are quite unsafe but the pay is better than farming.

 The tertiary sector is similarly large to the primary sector however people working in this sector and the secondary sector are earning more money, and are able to spend it on services and leisure. Although the working hours are long, the working conditions are much safer than those found in the secondary sector.

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HICs case study-UK

HIC case study - UK

The primary sector accounts for roughly only 2% of the UKs employment structure. There is very little fishing or mining and mechanisation in farms means there is no need for large labour forces on farms.

 The secondary sector isn't as small as the primary sector but is still quite small at 18%. This is down to the deindustrialisation of the UK and the relocation of traditional industries. Despite there still being some factories in the UK, they are now very high-tech and automated reducing the need for a large work force.

The tertiary sector dominates the UK, with people using technology to work from home, known as tele-working. More than 2 billion people are self-employed and work from home, relying on phones, internet and computers. This technology has benefitted many people who live in rural areas who would have to make long commutes to go to work.Overall, the working conditions in the UK are of a high standard thanks to strict safety regulations and trade-unions representing employees. There is also a national minimum wage and equal opportunities laws to ensure there is no discrimination on the basis of gender, ethnicity or age.

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FDIs

Foreign Direct Investment (FDI)

FDI is when a company (normally a TNC) in one country makes an investment in another country. This investment could be buying a business or factory in another country, or expanding their own business in that country. They will make the investment to take advantage of cheaper labour or resources and increase their profit.

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TNC-Secondary sector case study-Nike

Secondary sector case study - Nike

  • Nike was founded in Oregon, USA in January 1964 as Blue Ribbon Sports and was later renamed Nike in 1978. Its HQ is still in Beaverton, Oregon, USA
  • They produce and sell a vast range of sports clothing and equipment
  • They have offices in 45 countries and 700 stores worldwide
  • The majority of their products are outsourced and manufactured in Asia, but they also own some factories where their goods are manufactured.
  • The components for their goods are sourced from various different countries around the world.
  • Their annual turnover continues to rise
  • Nike maintains its market and reputation by sponsoring and promoting sports events and sports stars.
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Case study TNC-BT

Tertiary sector case study - BT

BT is one of the largest telocommunications in the world operating in over 170 different countries. BT is a British owned TNC and deals in telocommunications for domestic (home) and industries/businesses. BT usually opens call centres in an English speaking country where the wages are low, like India. They are also located near universeties, cities and research centres.since there's likely to be high-tech businesses and educational facilites around.

The skills required to work in a call centre only takes one month of training to aquire. Many Indian call-centre employees are graduates earning around £3000 per year 20% less than the amount in the UK. Foreign nationals speaking Englsih as a second languagewith administrative skills (typing,). TNCs (like BT) are also based on selling services like manufatured goods. BT like to move where high communication links are availiable.

TNCs are constantly move to places where raw materials are available, or ports where goods are shipped.

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Case study-Volkswagen-Secondary

The TNC Volkwagen has its HQ in Germany. It produces a range of vehicles

It has 94 production sites in 24 countries. It employs over 500,000 people. It sold 9.2 million vehicles in 2012, worth £160 billion. It has expanded and become the 3rd largest car company in the world. It ownes a vast number of companies becoming bigger. VW cars have been outsourced to production plants abraod.

VW provides many skilled, relatively well-paid jobs worldwide.1949-Volkswagen typle 1 beetle is exhibited and sold to the US for the first time. 1955-Volkswagen is sold reaching 1 million units. 1969-Volkwagen merges two previous purchases, Audi and NSU to create the modern day Audi.1978-Volkswagen opens its frist US factory in New stanton.2008 In July, Volkswagen announces plans for a $1 billion assembly plant in Chattanooga, Tennessee. On October 26, 

Some complanies do mergers beacausee thery're stronger together than apart, aslo because they may be going out of business. One company may not want to form a merger but they have to keep their business going.

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China's investment in Africa

China investment in Africa

China currently has a huge demand for oil and natural resources and is now in search of these resources in Africa. They are investing a lot of money into the search of these raw materials, and part of this project involves building new infrastructure in Africa to transport these materials out of Africa. This includes building new roads, railways and ports. Despite this, critics say that all China wants is Africa's resources and is doing little to help Africa's development as most of the investment goes to Africa's governments, TNCs and Chinese companies, not to local companies. Also, the majority of the workers, close to one million, are Chinese and there are few local workers.

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Development Dilemmas

Defining human develpoment:

Economic: An increase in the number of people working in the secondary sector and tertiary employment sectors, leading to rising incomes

Social: Rising life expectancy, better healthcare and access to education; improved equality wor women and minorities-leading to improved quality of life

Political: Improving political freedom and the right to vote; a free press and freedom of speech leading to greater control over who governs you.

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Factors to consider when evaluating development

Factors to consider when evaluating development

Economic-income- type of industries - security of jobs

Physical wellbeing- diet- access to clean water- environment (including climate, hazards, etc.)

Mental wellbeing - freedom- security- happiness

Social- access to education- access to health care- access to leisure facilities

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Measuring Development

Gross Domestic Product (GDP): Gross Domestic Product per capita is the total income of a country in a year divided by its population. It shows the average money per person in the population and can be used to measure development.

Advantages- Available for every country with an economic structure

Disadvantages- Because GDP is the average money per person, it covers up any gaps between the rich and poor.

Human Development Index (HDI)

The Human Development Index is scale combining several different factors of development, including income, education and life expectancy. In 2011 the UK ranked 28th in the HDI out of 187 countries, while Brazil ranked 84th and Tanzania 152nd.

Advantages- Covers a wide range of aspects of development, e.g. social and economic

Disadvantages- Some data is not available for all countries, Does not recognise the natural environment, Doesn't consider inequalities 

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Measuring Development

Political Freedom

Political freedom measures political rights and civil liberties, including the freedom of elections, the number of people voting or the number of people with the right to vote, freedom of speech and individual rights. Advantages Disadvantages  - Uses 7 different measures as well as  25 key questions judged by experts.
- Data has been collected since 1973, so trends can be identified. - Bias towards western ideas of freedom

Corruption Perception Index

The Corruption Perception Index looks at perceived corruption in governments and their departments. Governments should be working for their people for development to happen. The reason perceptions are used is because if corruption was happening, it would often be hidden and data would be difficult to find.

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Development Gap

The gap between the most developed coutries and the least developed countries in the world in called the delopment gap. The development gap also occurs within countries e.g. between regions or between urban and rural areas

The North-south divide: is cocnsidered a socio-economic and political divide.The North includes the US, Cannada, Europe, Israel and developed parts of East Asia. The South is made up of Africa, Latin America and developing Asia.

Brandt line excludes New Zealand and Australia

The North South Divide

MEDCs are countries which have a high standard of living and a large GDP. LEDCs are countries with a low standard of living and a much lower GDP.

The map shows the locations of LEDCs and MEDCs. Most of the southern hemisphere is less developed, while countries in the northern hemisphere are more developed. 

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Uganda: case study

Uganda is in sub-saharan Africa located on the equator 

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Theories of development

Dependancy theory: countries become more dependent upon more powerful countries, frequently colonial powers, as a result a interaction & development. As the more powerful country exploits the resources of its weaker colony, the colony becomes dependent on the stronger power. 

Rostow's theory: He believed poverty was the reason why China and other countries had overthrown their governments and become communist he belived that countries should pass through 5 stages of development.

Traditional society

Pre-Take off society

Take off stage

Drive to Maturity

High mass consumption

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Green Revolution

Green Revolution:  this changed rice growing in developing countries such as India by providing farmers with HYVs

High yielding Varieties: These are dwarf varieties that are shorter and less likely to fall over with the wind and fertiliser and they grow more quickly and produce more grain than traditional rice and this means 1 crop per year turned to 2 to 3 crops every year almost.

How did the Green revolution improve yields?

This meant that crop yields were much higher than traditional varieties so the incomes rose for the wealthy.

How have GM crops improved yields?

GM crops have meant that rice can resist disease and drought so they have a higher crop yield.

What were the negative impacts of the Green Revolution?Farmers had to buy seeds instead of using them from the previous harvests. Though the seeds are high yielding, they need irrigation water, fertiliser and pesticides which means only larger and wealthier farmers can afford them.

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Urban core-Maharashtra and Rural periphery-Bihar

Maharashtra - richest core region in India, has Mumbai. Economic wealth comes from...

  • Manufacturing - booming industries are steel, cement, computer software + textiles
  • Bollywood produces feature films, which are viewed worldwide
  • Services - banking, IT, insurance, hotels
  • IT graduates employed by large Western companies e.g. BT
  • Bihar - rural periphery •is India’s poorest state where 86% of its population live in rural areas and most work in farming
  • Women - rarely own land, have few rights, are poorly paid landless labourers
  • Farming - most are subsistence farmersrent land + when there is little work, they rent moneyLow incomes + debt lead to malnutrition, + eventually deathChildren are needed for farming, so many are uneducated + illiterate (low primary school attendance).
  • Cycle of poverty = subsistence farming -> little/ no surplus farm produce -> little/ no income -> no investment in machinery/ fertilisers
  • Differences between the core + the rural periphery are: Maharashtra has a higher literacy rate + lower IMR than Bihar. Bihar has a higher fertility rate (due to less access to contraception), Maharashtra has a larger urban population + a higher life expectancy (better health care).
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Bottom up development

A bottom up development; an NGO Wateraid which installs wells and hand pumps inAfrica. These only cost £292 each, and use intermediate technology that can be maintained and repared by the local people. They provide clean water for a village, improve health and reduce the time women and children spend collecting water. However, thousands of wells needed across Africa, so progress in slow for getting clean water to everyone

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Impact of Large Top Down project: Three Gorges Dam

Positives: 

produces 3% of China's total electricity, aslo helping to power China's industries and cites. It also provides flood control on the lower Yangtze River below the dam in order to reduce flood damage. There is improved trade with China's interior by allowing easier navigation on the river. Howeverit cost $26 billion, took 14 years to build but generate 22,500 MW of energy. The large scale top down project has led to the creation of jobs with the power companies.

Negatives:

1.3 million people were forced to relocate, 1300 archaeological sites were flooded. Species like the Chinese river dolphin and Siberian crane are threatened to extinction. Furthermore, the reservoir may become polluted with farm and industrial waste. Rice farmers below the dam no longer benefit from annual flood irrigating their fields. Additionally, the dam is build on faultlines in an earthquake zone-catastrophic failure would put some of the 75 million people who live downstream at risk. Fishing communities are angry as the dam has prevented samon migration .

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Changing settlements in the UK

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Urbanisation

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Liverpool's regeneration

Liverpool is still an important port, despite its decline in the 1970s. But the UK now relies on Europe for 70% of its trade. It unemployment is high it has 5 of the 10 poorest communities in England. Since 2004 Liverpool's polulation has started to rise again following a regeneration of the city centre and the Kings Waterfront (a new concert arena, restaurants and apartments) attracting people in their 20s.

Since the 1980s there have been a number of different approaches to regenerating the city which have radically changed the urban environment and its brand image. After race riots in 1981 in Toxteth, the Merseyside Development Corporation set about reclaiming 4km2 of derelict land by creating new housing and thousands of new jobs in the city. The first flagship regeneration projection in Liverpool was the Albert Dock, a former derelict dock that opened as a tourist attraction in 1988. Today it attracts over 4 million visits a year. 

 Liverpool was awarded the status of European Capital of Culture 2008, the city centre has been transformed by major investment. In addition to the nearly $4 billion invested in regeneration, the city’s economy is said to have been boosted by £800 million of additional income in 2008 aloneThe whole of the Waterfront has now been regenerated for a second time and the Albert Dock has once again re-invented itself following the departure of a number of financial services and media companies

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Rural settlements in the UK

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Roseland Parc retirement village

Is a new type of 'village'. It's a retirement village-built within the village of Tregony in south Cornwall. It consists of one and two bedrrom flats that are sheltered. The Parc include a restaurant, a gym, a library, and a care home with full nursing facilites. However it isn't cheap-a flt costs about £300,000 and care home provisions can add an extra £4000 per month

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Terling commuter village

Terling in Essex, is a traditional-looking English village near Chelmsford with a population of about 1600. People who lived in the village used to work on local farms, but now the farms employ contractors. Because of its location terling has become a commuter village. The nearby railway station at Hatfield Peverel, has 1/2 hourly trains to London. Terling is also close to the A12-the main road from London to Colchester.

However, Terling's accessibilityto other towns and cities, is causing problems. Many of Terling's residents work, and shop, elsewhere so local services are struggling. The village shops has fewer customers, the doctor's surgery only opens 5 hours a week, the bus only runs twice a week and the village pub has closed. Houses in the village have also become expensive.

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Kinoch Rannoch -Scottish Highlands

Kinloch Rannoch is an area in the Scottish Highlands which is suffering from some levels of deprivation, this is due to the fact that there is a lack of jobs available due it being located in a rural area, this means that many people will be forced to leave to find jobs. This therefore means the overall local economy falls as there aren't jobs meaning people move away. There's also a lack of of schools, this then causes people to move as parents have to travel miles to get their children to school. There is also a lack of transport meaning that people will have to get up early to go by train to work. As there are poor transport links and often depending on farming.

For two contrasring rural regions in the UK examine the reasons for the differences in their levels of deprivation.In cornwall there are low incomes; 25% below the rest of the UK. The remoteness prevents large companies investing in the area this contributes to the lack of jobs. As a result there is a declining industry few jobs for skilled and many now work in seasonal part-time jobs. In addition access to services in poor; many ill people have to travel a long way for healthcare. Some may not be able to access transport. This causes many families to relocate for easier access to services and amenities: education, healthcare and for jobs.

In the Scottish Highlands there is also a declining population because young people move away for jobs/university. As there a fewer people to work, businesses and services close this is similar to Corwall in terms of the long distances to travel for services and healthcare. Both, southwest England and the Sottish Highlands experiance deprivation. In Corwall incomes are low (annual income is 25% below uk average). One reason may be due to its remoteness, preventing companies from locating there meanign full time jobs in farming, fishing and mining have declined 

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Combined uni's in Cornwall (CUC)+Eden Project

The Eden project has hugely benefitted the Cornish economy. Since in opened in 2001 it has generated an extra £430 million for the economy and has directly led to the creation of over 3000 permanent jobs for the local people. These employment opportunities are at a range of skill levels, varying from jobs ijn gardening and construction to mangerial, legal and research positions. This has reduced the outward migration of Cornwall's young people as there are now employment opportunities for them in the area. Socially the CUC has also beniftted cornwall as it has led to the creation of higher education opportunities for young people in the area and has created a knowledge economy. This in turn has attracted businesses to base themselves in the area (e.g. in Exeter), resulting in 38% of graduates staying in the area. One key weakness of this scheme is that it hasn't accounted for the other pressures on young people such as the high house prices in the county resulting from tourism. This means young people are often priced out of the property market and still have no choice but to move away.

In terms of the economy, the Eden Project has had a much greater impact than the CUC, raising £430 million compared to £70 million. The Eden Project has done this by attracting over 13 million visitors since it opened and trading with 2500 local business. Although both schemes have had positive economic impacts, the Eden Project has impacted the area on a much larger scale.Both the Eden Project and the CUC have led to increased traffic and noise pollution to the country as a result of either tourist or students travelling through the area. The CUC has had an overall negative impact on the enviroment as it has also resulted in increased construction on Greenfield sites for additional housing and university buildings, distrupting habitats. However, the Eden Project avoided this by using a Brownfield site for its location (built in an old quarry).Overall both schemes have had positive impacts socially and economically in Cornwall.

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ASTRA in India

ASTRA ia a recent development project in rural India (Application of Sience and Technology in Rural Areas) listening to their problems.

Positive impacts: cowdung produces biogas-produced for cooking and powering homes of electricity. Less time is spent on collecting fuelwood means more time to persue education

Problems: daily routine takes time-for women+girls. Fetching water, preparing and cooking food is all done before paid work is done in fields. Rural girls have little education+few primary schools. Most time is spent collecting fuel wood  

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Positive Multiplier Effect

As there is more investment there is also a growth of industry. This means that a larger workforce is needed and so people move there because of all the job opportunities. When people move there is a need for houses, water and services and workers need to build and provide these. More food is needed, and basic things to live on so more shops open since more services are needed. This means that even more workers are needed and the growth continues and the settlement and economy only continue to expand.

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Conserving Rural areas

Greenbelts: 

Planning rules are very strict in greenbelt areas so very little new development is allowed. This has been attacked as a very rigid policy that protects low value farmland rather than allowing land for new homes, which are needed as the UK's population grows. Greenbelts can be partly blamed for the UK's very high house prices. On the other hand, lack of greenfield sites close to cites means brownfield land (old quarries and abandoned industrial sites) is more likely to be redeveloped.Developers often build and develop new homes just beyond it (leap frog) this means longer commuter journeys and some villages becoming dormitory settlements. Greenbelts have stopped urban sprawl and conserved rural areas.

National parks:

National parks have strict planning guidelines for homeowners, farmers and businesses. This means very little new housing. Because many national parks contain honeypot sites, pressures from tourism (litter, congestion, trespassing) are big problems . Although many local people depend on seasonal tourism for a living. House prices are often high due to second home buying, so locals cannot afford to buy. However national parks have successfully conserved valuable rural landsapes.

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London Docklands+Newham Canning Town

Canning Town, Newham: is one of London's most deprived areas-Housing in too expensive for residents on low incomes. In 2001, 43% of working age adults had no qualifications at all. That means they tend to work in low unskilled jobs. Canning town has a high percentage of an ethnic minority residents who were born outside the UK. If their english is poor it can prevent them from getting good jobs. Also, the qualifications they gained in their home country might not be recognised in the UK. However, Newham was transformed by the recent development of Queen Elizabeth's  Olympic Park. By choosing Newham to hold the Olympic Games during 2012 the intention was that it would help to regenerate the area an create a positive multipier effect.

London's 2012 Games were planned with sustainable principles in mind:

It was built on brownfield sites. It should minimise waste, energy use, water and pollution, it should create affordable housing, it should benefit people from all communities, it should help people to have a good quality of life, by including features such as parks

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