With the changing times...
And increasing impacts from globalization, the world’s economies are starting to shift in ways that are unfamiliar to the current global markets and those that take responsibility for maintaining them. As economies begin to transform and head into new directions, governments are starting to seek different methods to maintain their country’s economy; some nations are having to expand more into the global markets and are putting a greater reliance on international economies, while others are looking for stability inside their own borders but in smaller, more localized regions. As the geographical locations begin to branch out into new directions in terms of the economy, nations and societies will have to learn to adjust to these alterations and may, in the end, reemerge with an entirely new economical and societal system.
When observing the rescaling of the economy and the various government systems behind it, there is a noticeable relationship between the economic governance modifications and the changes in geographical regions of a particular market system. Both the global economy and economies of specific nations, including their more regionalized economies, are undergoing drastic changes that will affect the current economic geographies. The relationship between the two means that as the control on the economy shifts, so will the geographical regions in which it affects. As a consequence to these changes, regions can experience drastic fluctuations in their societies and local economies; both negative and positive shifts can occur.
A prime example of a change in economic power over the recent years is China and its climb to the top of the global market, replacing Japan as the world’s second largest economy. China was able to increase its economy by tenfold in such a short amount of time because outside economic drivers and forces moved into the country in search for new, cheap, and exploitable land and labor; both of which China had in surplus. Not only did China provide all of the necessities needed to bring in large corporations, but as the global market slowly made its way into the country and its exports and overall profits greatly increased, China found itself owning a large percentage of the U.S. national debt (approximately $900 billion worth). By looking at China, a direct correlation can be seen between the change in geographical regions and the reshaping of economic control.
This particular reshaping in economic governance impacted different nations and geographies in various ways. China itself experienced multiple results from the shift in economic power; the change leaving some of the country’s regions in a flourishing state, while others remained almost untouched. Because of China’s sudden economic spur, the already prospering cities and their residents saw an escalation in wealth, while the more rural areas in the nation’s countryside were forced to pay increasing costs for goods and services as a result of the dispersed economic growth. This unbalance in the economic structure in China can lead to greater tension and unease in the Chinese people and could cause them to seek methods of reforming their own society in order to benefit the masses, rather than just a small percentage. Taking a look at the shift of global economic governance over to China is one of the best representations of the impacts that economic control can have on geography, and how it can affect a nation as a whole.
The world market is currently undergoing a shift in economic governance, and the impacts that the shift is having on economic geographies and national societies are beginning to be felt. As many of the world’s most powerful nations are struggling economically, the normal governors of the economy have to step down and let smaller players take charge for a while. Many outside factors affect this occurrence of power change, such as, in recent news, the earthquake in Japan.
As one of the world’s largest economies, Japan had been struggling to keep its stance in the number three spot ever since China pushed it down the ladder, but in the middle of March 2011 the country suffered a large earthquake that has left the nation in disarray. Japan must now find the best way to keep its people satisfied and content, but also build its economy back up from one of the biggest hurts it has had since World War II. When looking at the current state of Japan, the country is torn between fixing the economy and trying to maintain its societal structure and strict rules. At a first glance, one may not recognize the implications on the society or economy of Japan from both the change in economic power and the earthquake (which has only declined its contribution level in the global market even more), but after taking a closer look, it is obvious that this change only puts pressure on a nation.
There are also ways in which the rescaling of economic governance can have a positive impact on a nation, though they are not as well known or talked about as the negative impacts. Through the process of globalization, the economic governing has spread from being solely one nation’s personal business to a web of connections both local and international. Inventions and uses of particular machines or devices have increased the connections between national economies and have strengthened their bonds. Not only has the use of large cargo ships and carrier planes increased trade and expanded economies beyond their national borders, but simpler items, such as the container that is used to hold mass amounts of goods, has also had its positive influences on the changes of global and local economies.
National economies have benefited largely from the changing economic governance because, when looking at the US for example, it has provided smaller government systems within a nation to step up to the plate and take responsibility for their local regions. Florida’s state government, for example, has had to conquer numerous obstacles to try and find ways to restore the state’s economy to the way it was before there was a shift in the economic power. Having to come up with ways to raise money on its own has allowed the state’s government to become more knowledgeable and experienced with dwindling economic times.
After analyzing the entire picture of the shifts in economic governance, it becomes obvious that these sorts of changes can greatly impact both local and more expansive regions, from state to international. From having to overcome smaller obstacles, like Florida and its diminishing tourist and realist market, to trying to keep order and avoid chaos, such as Japan and its current earthquake disaster, it is seen that all types of geographies feel the impacts and changes of the economy. What these changes mean to particular economies and societies, however, varies within region. A nation like Japan, whose society is raised and run on obedience and order, as well as hard work, is more likely to adjust to a larger shift in the market than a region such as Florida. It is difficult to tell at first, unfortunately, how such occurrences will affect a nation or society in the long run, and it’s especially hard to know how both the region’s local economy and the global economy will recover from such events. Therefore, the implications on a nation’s economy is never really known until the event is long over with because time is such a large influence on which way the economy will turn next.