3.3c - Switched Off Locations
There are physical, political, economic and environmental regions why some locations remain largely 'switched off' from globalisation. (North Korea, Sahel countries)
Most of the world is increasingly integrated into the global economy, but some regions are switched off, lacking strong flows of trade and FDI.
Political
- North Korea is a hereditary autocracy ruled by Kim Jong-Un.
- It's run as a one-party system with a command economy organised on the communist system.
- Since 1955 it has followed the policy of Junche 'self-sufficiency', minimising trade with other countries.
- Emigration and foreign tourism by ordinary North Koreans is prohibited.
- Ordinary North Koreans have no access to internet or social media. There are no undersea data cable connections.
- This is because there is a personality cult where all successes are attributed to the wide leadership of Kim, and the internet and foreign travel would not maintain this.
- NK had GNI per capita (PPP) US$ 4,600 in 2014 & medium human development (no official UN HDI figure).
- However, it does trade with China, and set up the Kaesong Special Economic Zone, employing 52,000 people on the border with South Korea.
The Sahel Region is an area of west Africa just south of the Sahara Desert, e.g. Chad, Mali, Niger, Burkina Faso...
They all have low GDI per capita - Chad $2100, Burkina Faso and Mali $1600, Niger $908.
And low HDI - Mali, 0.419; Burkina Faso, 0.402; Chad, 0.392; Niger, 0.348
- Colonial era borders divide/combine different ethnic/religious groups
- Political parties based on ethnicity/religion lead to political instability with frequent coups or civil wars, e.g. Tuareg attempted succession in Mali in 2012.
- This leads to poor long-term investment, slowing development.
- High level of corruption and uncertainty over contract enforcement makes it unattractive for FDI
Economic
- Sahel region
- poor infrastructure and low literacy levels of the working age population make it unattractive for offshoring FDI
- low income levels mean it lacks market size to attract retail outlet FDI. Few households other than elite can afford to purchase imported goods or engage in foreign tourism.
- Rural parts of Sub-Saharan Africa, especially the Sahel, are dominated by a subsistence farming economy with food produced to eat, not sell. These places are also poor, and their capacity to create connections is limited.
Physical
- All four Sahel region countries are landlocked, rely on poor quality roads, and freedom of passage through neighbouring countries to access coastal ports.
- Resulting high transport costs may make exports unattractive in foreign markets and deter FDI
- The Himalaya mountain countries of Nepal, Bhutan and Chinese Tibet are isolated by terrain and winter snow, limiting their connections to the outside world - although tourism is changing this.
Environmental
- Sahel region countries have a semi-arid climate with 200-400 mm of precipitation p.a., making agricultural exports reliant on a good rainy season.
- Climate change is increasing aridity, leading to desertification as savanna gives way to desert.
- This reduces land area available for producing agricultural exports.
- Harsh desert climates, extreme polar cold and dense tropical forests all limit the development of transport and trade connections meaning continental interiors and polar regions are less well connected than coastal locations.
Extra
- However, some TNCs have invested in primary resource extraction e.g. cotton production in Mali.
- Although only 4% population have access to internet nearly 8% own mobile phones & higher proportion have access to one.
- Mali folk music have large Youtube following.
- Niger is active participant in UN Peacekeeping operations.