Download Impacts of gloablistaion in India

Globalisation: The Impacts of Change in India.
Head for the city!
By moving to a city, Rashmi is part of a big change in India. In 1990, 25% of India’s
population was urban (lived in towns and cities) – 200 million people. By 2015, this
had risen to 33% - 400 million people! The change results from the increase in jobs,
which has led to rural-urban migration – the movement of people to live in cities like
New Delhi.
A time social change!
Economic development has social impacts including urbanisation.
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Urban expansion, particular the
Population indicators
1991
2014
construction of new apartments
Birth rate (per 1000 people)
30
19.9
Death rate (per 1000
10
7.35
for single professionals.
people)
For educated urban women,
Fertility rate
4.0
2.5
developing a career results in later
% population aged 0-14
37.7
28.5
marriage, and fewer children. Birth
% population aged 65 and
3.8
5.8
and fertility rates fall.
over
Dependency ratio.
70.4
51.8
Population structure changes, with
reduced younger age groups and a
lower dependency ratio.
Social customs change, especially in cities. In traditional rural villages, the Hindu
caste system determines a person’s status (and job), and a person marries within
their caste. In cities, away from their families, young urban Hindus are freer to
marry outside their caste.
Changes in health and education have also followed economic growth. India’s infant
mortality rate has fallen by over 50% since 1991. This is due to:
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Increased access to safe water supplies, as waterborne diseases (e.g. diarrhoea)
are one of the biggest child killers.
Rapid expansion of hospitals in rural areas.
HDI, Health and Education Indicators
HDI
Life expectancy (years)
Infant mortality per 1000 births
Maternal mortality per 100 000 births
Number of doctors per 100 000 population
Average number of years in school
Literacy rate %
Average age of first marriage for women.
1991
0.38
59.7
89
550
41
2.4
50
18.7
2014
0.59
68
43.2
200 (2010)
70 (2012)
12 (2011)
74 (2011)
20.2 (2009)
Although the data show improvements, women’s literacy remains 17% lower than
men’s. However, there is evidence that the gender gap has narrowed since 2011.
Economic change – winners and losers.
India’s middle class – its managers, university lectures, or well-paid IT workers like
Rashmi – is growing. There will be 200 million middle class people by 2020! They
benefit from good salaries and employment opportunities in India’s cities. But that
leaves a billion who are not well paid. Most have jobs, but these are mostly low paid.
Garment workers.
After 1991, India’s government allowed large TNCs to set up factories, taking advantage
of low wages. By 2015, clothing was India’s largest manufacturing industry, employing
80 million people and earned US$ 300 billion in GDP. For TNCs, India’s minimum wage is
87% lower than in the UK, and many clothing companies don’t even pay that much.
European and American clothing retailers, which buy Indian clothing, include Walmart
(ASDA), Gap and Zara.
This employment trend is controversial:
 Poverty is widespread in India. There is no shortage of people willing to work
100 hours a week in factories for an average of £35, including overtime.
 Most textile jobs are unskilled, and there’s no equal pay agreement, so 70% of
employees are young women on lowest pay.
 Many sweatshops discriminate against older women returning to work after
raising children.
Looking forward – can it last?
Some believe that India’s economic growth might soon peak. Between 2000 and 2050,
all those born during the 1990s (when birth rates were higher) will be working adults.
Economists call this a ‘window of opportunity’ – when the economically active
population is at its highest. This only lasts so long – by 2050, India’s population will be
aging. If birth rates fall further, its dependency ratio will rise. But for now, India’s
economy booms!
Task
Answer these question in full sentences in your book
1. Explain why economic growth leads to rural-urban migration.
2. Using both the tables, describe recent changes in population, health and education in
India.
3. Explain how economic growth has contributed to any three of these changes.
4. Do you think companies such as Walmart, Gap and Zara should use cheap labour in
India?