'Switched Off' Places
Geography: Edexcel A Level, topic 4.2.1
Why Are Some Places 'Switched Off' From Globalisation?
There are physical, political, economic, social and environmental reasons why some locations remain largely ‘switched-off’ from globalisation and the global economy.
Physical reasons
- If a country is landlocked and has no access to a port, participating in global trade is difficult.
- If a country has a harsh climate and so struggles to grow crops, its exports can be limited.
- E.g. The Sahel region.
Political reasons
- If a country is run by a dictator who chooses to exclude the country from the global economy, it will be switched off.
- E.g. North Korea.
- If a country has a corrupt government or a high presence of organised crime or terrorist groups, this will reduce FDI and could lead to it being switched off.
Economic reasons
- If a country is excluded from trade blocs or is disadvantaged by trade rules, it will be switched off.
- If a country has high levels of government debt and is not able to spend on infrastructure as a result, it will be switched off. High levels of debt may also stop other countries from investing there.
Environmental reasons
- If a country lacks energy resources to trade or use for manufacturing, it could be switched off.
- But nations that export a lot of raw materials like oil, can suffer from Dutch Disease, where their exports become uncompetitive because their exchange rate has 'appreciated too much'.
Social reasons
- If a country or region has a poorly-educated population, a TNC is unlikely to set up production there. This can result in the area being switched off.
- If there isn't enough skilled labour, then TNCs may not invest in a nation.
Examples of 'Switched Off' Places
North Korea and the Sahel region in North Africa are two good examples of 'switched off' regions.
North Korea
- North Korea is perhaps the best example of a truly 'switched off' location. It is switched off because of political reasons.
- North Korea is a communist dictatorship, run by one family who has total control over the population.
- The current leader is Kim Jong-un.
- People in North Korea are not able to access the internet, move abroad or benefit from most cheap goods that could be imported from abroad.
Sahel region
- The Sahel region (a group of countries including Mali and Niger) in North Africa is a 'switched off' region because of physical and environmental reasons.
- This region of the world is dry with severe water scarcity. There are regular droughts and famines. Because of this, conditions for agriculture are bad and the Sahel produces very few crops for export.
- The Sahel region includes landlocked countries that struggle to export goods without access to their own ports. This means they are switched off from global trade flows.
Test yourself on 'Switched Off' Places
Nations that export a lot of raw materials like oil can suffer from what when their exports become uncompetitive?
Which region in Africa suffers from a harsh climate and struggles to grow crops?
Which of these nations is switched off for political reasons?
Why do the landlocked countries of the Sahel region struggle to export goods?
Why is North Korea 'switched off' from globalisation?