EU Economy, Globalization, and Development: An Overview
The European Union’s Industrial Landscape
Main Industrial Areas
The industrial sector employs nearly 25% of the EU workforce. A major industrial zone stretches from the UK to Northern Italy, along the Rhine Valley in Germany, encompassing cities like London, Paris, Amsterdam, Brussels, Frankfurt, and Milan. This area houses both traditional industries (textile, metallurgical, chemical) and modern ones.
Some Eastern European countries also have significant heavy industries.
Industrial Production
Currently, older industries (textiles, steel, automotive) are declining while high-tech industries (telecommunications, electronics, aerospace) are experiencing dynamic growth.
A key challenge for EU industrial production is the scarcity of energy resources (oil) and raw materials. The pursuit of lower production costs has led to industrial relocation.
The Service Economy’s Dominance
Most of the EU’s active population (65%) works in the services sector, including trade and transport. Technological advancements have enabled vast agricultural and industrial production. Advanced societies generate new activities related to social needs (elder care, childcare, leisure).
Trade and Transportation within the EU
Trade between EU member countries and the rest of the world is substantial. The EU has a robust transport network for goods and people.
Transportation Modes
Road transport is predominant, but there are plans to enhance rail transport. Maritime transport accounts for 90% of trade with non-EU countries. Air transport is crucial for the EU’s market, economic, and social cohesion.
Spain’s Integration into the EU
Initial European integrations excluded Spain due to its dictatorial regime. Negotiations for Spain’s EEC accession began in February 1979, lasting seven years. These negotiations focused on adapting the Spanish economy to the European Community.
Spain and Portugal joined the EEC in 1986, bringing the total population to 329 million.
The EEC Post-Spanish Integration
Spain held eight votes in the Council of Ministers. Spain’s current social and economic standing is partly attributed to its EU membership.
Globalization: An Interconnected World
Defining Globalization
Globalization is characterized by the interdependence of economic, political, social, and cultural developments across all countries.
Key Features of Globalization
- Global reach
- Immediacy
- Economic impact
- Transformation of societal foundations (lifestyles and governance)
- Creation of global consciousness (planetary sustainability)
Economic Globalization
Economic globalization is orchestrated by three major power centers: the US, EU, and Japan. Emerging economic centers include Australia, India, China, and Brazil. A consequence of globalization is relocation.
Notes on Economic Globalization
- Concentration of capital formation and large companies
- Advocacy for free competition
- Easy capital movement in global stock exchanges
Globalization’s Impact on Lifestyles
Globalization influences various areas, including trade (e.g., fast food consumption) and the globalization of science and culture (scientific discoveries).
Risks of Globalization
The spread of diseases and terrorism are major threats in our globalized world.
Disease Transmission
Easy and rapid communication increases the risk of disease outbreaks. Disease treatment varies significantly depending on a country’s development level.
Terrorism
Combating terrorism is challenging due to its unpredictable nature and unexpected locations. Terrorist organizations are violent armed groups.
Technology, Economy, and Development
Technology’s Role in Economic Growth
Economic growth has been fueled by scientific research. Patents are a significant source of income.
Communication, Information, and Development
Advances in electronics have made computers crucial for development. This has led to the creation of information highways—networks for circulating data and text.
Global Television
Television is a primary source of information and home entertainment. Satellite television allows programs to reach numerous countries. Information and entertainment generate wealth and influence public opinion.
Development Indicators
Types of Indicators
- Gross Domestic Product (GDP): The total value of goods and services produced within a country’s borders in a year.
- Real GDP per capita: A country’s annual wealth production divided by its population.
- Human Development Index (HDI): Considers welfare indicators like education and life expectancy.
Other Indicators
- Calorie consumption
- Human Poverty Line (HPL): Measures the number of people living below the minimum income level.
Unequal Access to Welfare
: life expectancy; L ‘ average life expectancy at birth is situated in 67 years, but there are serious inequalities in rich countries is about 78 years and the poor is about 53, the data from Africa are staggering: 46 years. Education, 82% of adults in the world can read and write, but the difference between rich and poor is abysmal.Starvation and overfeeding; Spend 850 million hungry people in Africa but especially in countries of the United States there are many cases of obesity. Demographic Imbalance: The birth rate decreases and poor countries is high, very young population (needs : food, health, etc.). that makes poverty increases, due to emigration. decolonization: poor countries dominated by European powers when they achieved independence have few material resources and the population was little prepared. The new countries have continued under the economic domination of the ancient cities and have brought a series of wars. The debt: Globalization is based on free competition and private enterprise. Pobbres countries can not compete with businesses in rich countries, trade debt makes them unequal to build infrastructure, create services and purchase machinery and patents, require credits to rich countries in exchange for paying interests we can not afford them, so the money collected through taxes.Future measures: Cancel the external debt; to expend 0.7% of Gross National Income and establish a fair trade.