Global Economic Imbalances and Demographic Shifts

Economic Globalization and Major Institutions

International trade has grown significantly, leading to new production organization models, intensified international financial flows, and increased trade agreements between countries.

Key International Institutions

• World Bank: Aims to reduce poverty.
• IMF (International Monetary Fund): Advises governments on financial matters and provides loans to member countries.

Centers of the World Economy

Major Economic Powers

• United States: Represents over 20% of total world production. The US dollar remains the most important global currency.
• European Union: Stands as a leading economic power, though behind the United States in several aspects.
• East and Southeast Asia: Japan remains a wealthy nation. China has emerged as a primary engine of the world economy, with India following suit.

Other Important Economic Centers

• Russia: Faces economic challenges, including a technology gap, unclear legal frameworks, and monopolies/oligopolies.
• Brazil: Has become the leading economic power in Latin America.
• South Africa: Holds the highest GDP in Africa.
• Australia: A successful developing country with a service-based economy, influential in the East Asia and Pacific region.

Economic Policy

Fiscal Policy

Historically, state intervention in the economy has alternated with periods of greater liberalism. The 1929 crash led to a mixed economy where the state plays a role.

Levels of State Intervention

• Microeconomic: Supports weaker sectors like agriculture, livestock, and fisheries.
• Macroeconomic: Addresses major economic problems like unemployment, stagnation, and inflation.

Fiscal policy involves government decisions on investing taxes levied on citizens, outlined in state budgets. This determines how public money is allocated across different sectors like defense, infrastructure, and healthcare.

Economic Imbalances

Economic Globalization and its Consequences

By 2030, the world population is projected to reach 9 billion, with growth concentrated in poorer countries (Africa, Asia, and Latin America), potentially leading to increased hunger and poverty. This could exacerbate the North-South divide, evident in illegal migration and underdevelopment.

Internal Imbalances in the Developed World

Millions in developed countries lack sufficient income for basic needs. In Spain, around 8 million people live in poverty, with approximately 50 million across the Mediterranean arc. This includes the unemployed, pensioners, widows, and marginalized groups. Conversely, a small group of billionaires holds immense wealth.

Characteristics of Underdevelopment

Underdevelopment is a modern concept linked to the 19th-century industrial revolution and European expansion. Economic imperialism created inequalities between colonizers and colonized nations.

Key Issues in Underdeveloped Countries

• Hunger: Malnutrition affects 70% of the global population, leading to chronic illness and hindering economic development.
• Education: Spending on education is significantly lower in developing countries, contributing to high illiteracy rates.
• Labor: Economic globalization has transformed trade and production relations, with developed countries imposing rules that impact developing economies.

Migration

Types of Migration

• Emigration: Departure of population from their place of origin.
• Immigration: Arrival of population at a destination.

Migratory balance refers to the difference between immigration and emigration.

Traditional Internal Migration (Late 19th Century - 1975)

Primarily involved rural populations moving to industrialized cities or other agricultural areas.

• Seasonal/Temporary Migration: Movement for agricultural work.
• Rural Exodus: Large-scale migration from rural areas to urban centers, driven by industrialization and later, tourism.

Current Internal Migration (Post-1975)

Involves migration between urban areas, driven by factors like housing costs, job opportunities, and quality of life.

Primary Sector

The primary sector encompasses activities related to food production, including agriculture, livestock, and the exploitation of natural resources. Technological advancements have led to increased productivity and a shift of population towards urban centers.

Demographic Sources

Demography studies population data using statistical sources. Population distribution is uneven, with high concentrations in South and East Asia, Western Europe, and the northeastern Atlantic coast of North America. Population dynamics are influenced by natural movement (births and deaths) and migration. The demographic transition describes the shift from high birth and death rates to low birth and death rates, resulting in different stages of population growth throughout history.