2.1 - Global Shift

Question 1

What is the global shift?

Answer 1

Shift of global economic centre to Asia
- due to global shift in manufacturing (China)
- outsourcing of services (India)

Question 2

What is the World Bank definition of extreme poverty?

Answer 2

• income of less than $1.25 per day

Question 3

How much are people in low skilled positions paid in Dhaka?

Answer 3

• $40 per month
• better paid than subsistence farming
• allows women to gain independence

Question 4

What are the issues of the pay in low skilled positions in Dhaka?

Answer 4

• living costs average $60 per month
• there are no other choices so must accept whatever they’re paid

Question 5

How has the global shift benefitted those who live in Asia?

Answer 5

• less people living in extreme poverty (one of UN MDGs)
• families are able to afford more due to higher availability of opportunities in secondary sector
• education improves as investment into this sector comes from manufacturing jobs + FDI
• will eventually result in better QOL
• connectivity to other cities increases as Asian cities become more important to trade
• increased trade may encourage improvements socially and legally (foreign pressures can push)

Question 6

Downsides of global shift?

Answer 6

• encourages RUM, which places pressure on construction of housing, utilities, healthcare and other services in cities, quality deteriorates as a result
• increased presence of migrants means that jobs maybe paid less as migrants are willing to be paid less than current rates as still better than subsistence farming
• housing prices rise due to influx of migrants, pushing those at bottom into slums
• lower wages could lead to increase in child labour
• factories pollute environment (water + air), corruption prevents this from improving

Question 7

What was Primarks response to the Rana Plaza collapse?

Answer 7

• stated that they will work with NGOs to review Bangladeshi industry approach to factory standards
• focussing on environmental impact as well as building integrity