Unit 1: Measuring Global Interactions

The KOF Index

This index was fist introduced in 2002 & then updated in 2008.  It focuses on 3 main factors of globalisation:

Economic Globalisation

This looks at the actual flows of goods, capital and services between countries.  It also considers restrictions to trade such as tariffs & quotas – higher trade restrictions reduce the ranking.

Social Globalisation

This focus on 3 areas.

  • Personal contacts: (international telecom traffic, tourism levels, Government workers transfers & volume of international letters sent & recieved).
  • Information flows: identifying flow of ideas & images ( no of internet users/100 people, % of households with tv set, trade on international newspapers).
  • Cultural proximity: adoption of cultural products services in other countries (import & export of books, no of McDonalds restaurants & Ikeas/country.

Political Globalisation

This takes into account how many international organisations the country is involved with.  Its contribution to UN peace keeping missions.  The number of high commissions & embassies that are in a country.

Source: http://globalization.kof.ethz.ch/static/pdf/method_2011.pdf

Global Core & Periphery

Traditionally there has existed a North/South core and periphery divide in global senses.  In recent decades this distinction has become increasingly blurred.  With trade blocs being established, industrialisation in China, Brazil & India and the current financial crisis & recessions in Europe & USA there is much less of a distinct core/periphery.

Western Europe, North America and Australia can still be considered the core regions: high consumption, high output, high levels of education, significant intellectual property rights, strong influence in World Organisations (WTO, IMF, WB, UN).

Brazil China, India & Middle East can be considered as an intermediate stage (semi-periphery). They are industrialising, attracting FDI from the core, have large export earnings, rising GNI/capita & increasing levels of consumption.

Many African countries and parts of Latin America are still peripheral in the world economy.  They rely on primary industry exports, lack industrialisation & still have low GNI/capita & consumption levels.