5.10 - Constraints on Global Interactions
Government and militia control over internet freedom
Internet access and freedom are significantly influenced by government and militia control in various countries. These controls limit global interactions by restricting the flow of information and communication, often as a means to maintain political power or suppress dissent.
Restrictions on internet access in communist regimes
China's Great Firewall:
- A sophisticated system that blocks access to websites and social media platforms deemed critical of the government.
- A leaked government document from 2014 highlighted the media's role in supporting state authority, reinforcing strict censorship.
North Korea's isolation:
- Access to the internet is virtually non-existent for the general population, with only a controlled intranet available in select institutions.
- Less than 10% of citizens own mobile phones, and those that exist are often smuggled from neighbouring regions.
- Radio and television sets are pre-set to receive only government-approved frequencies.
Cuba and Vietnam:
- Similar to China and North Korea, these countries impose heavy restrictions on internet access to control information and maintain governmental dominance.
Eritrea's extreme censorship:
- Recognised as one of the most censored nations globally, alongside North Korea.
- Independent journalism is banned, and internet access is limited to slow dial-up connections, with under 1% of the population online.
- Mobile phone usage stands at a mere 5.6%, and state-run telecommunications block independent online content.
Impacts of internet censorship on populations
Human rights concerns in Eritrea:
- A United Nations inquiry reported systemic human rights violations, including widespread detention and forced indefinite military service.
- Most earn just $1 to $2 daily.
- This oppressive control has led to around 320,000 Eritreans fleeing, many risking dangerous journeys to Europe, becoming the second-largest group arriving in Italy in 2015 after Syrians.
North Korea's mobility restrictions:
- Beyond internet control, the government restricts internal and international travel, with only the political elite permitted vehicle ownership.
- Residence in the capital, Pyongyang, is limited to politically loyal and physically fit citizens.
Violent suppression in North Korea:
- The regime's extreme measures include publicised acts of violence, such as the alleged assassination of a high-profile figure in 2017 using a banned chemical weapon, VX nerve gas.
- This highlights the lengths to which control is enforced.
Global internet freedom statistics
| Status | Number of countries (2016) |
|---|---|
| Free | 17 |
| Partly Free | 28 |
| Not Free | 20 |
| Total Assessed | 65 |
This data indicates a significant variation in internet freedom worldwide, with many countries imposing restrictions that hinder global connectivity and information exchange.
National trade restrictions and protectionism
National trade restrictions are policies implemented by governments to protect domestic industries by limiting foreign competition. Often referred to as protectionism, these measures can impact global interactions by reducing international trade and affecting economic efficiency.
Forms of trade restrictions
- Tariffs - Taxes imposed on imported goods to make them more expensive, thereby encouraging consumers to buy domestically produced items. For instance, in 2015, a major economy levied tariffs as high as 256% on certain steel imports and 522% on specific steel products from another country.
- Quotas - Limits on the quantity of goods that can be imported, restricting supply to protect local markets.
- Administrative barriers - Regulations such as strict food safety or environmental standards that can act as indirect barriers to imports.
- Subsidies - Financial support given to domestic producers to lower their costs and make their goods more competitive against foreign products.
- Anti-dumping legislation - Laws to prevent foreign companies from selling goods below cost to undercut local businesses.
- National campaigns - Initiatives encouraging consumers to purchase locally made products, further reducing demand for imports.
Impacts of protectionism on global trade
- Economic inefficiency - Most economists argue that trade barriers lead to reduced efficiency in markets and limit consumer choice by restricting access to diverse goods.
- Disadvantage to lower-income countries (LICs) - Protectionist policies often disproportionately harm LICs, which rely on exporting to wealthier nations for economic growth.
- Response to economic downturns - Since the 2008 global economic slowdown, around 70% of a group of 20 major economies have introduced restrictive trade policies to shield their domestic industries.
- Regional trade blocs - While many higher-income countries (HICs) promote free trade within specific trading blocs, broader global free trade remains limited by protectionist measures.
Resource nationalism and its impact on global mining
Resource nationalism refers to a government's decision to assert greater control over its natural resources, often by placing them under state ownership or increasing taxes and royalties. This approach affects global interactions by altering the dynamics between resource-rich countries and transnational mining corporations.
Examples of resource nationalism in Africa
- South Africa - With mineral wealth estimated at $2.3 trillion, the government has considered imposing a 50% tax on mining profits and a 50% capital gains tax on the sale of prospecting rights. Post-apartheid laws also mandated that mining firms sell at least 26% of stakes to black shareholders by 2014 to promote economic empowerment.
- Ghana - In 2012, a review of mining contracts was announced to maximise national benefits, alongside plans to increase mining taxes from 25% to 35%.
- Zambia - The government doubled royalties on copper production to 6%, aiming to retain more revenue from its resources.
- Guinea - Home to vast bauxite reserves, the state claims 15% of mining profits to benefit national development.
- Namibia - All new mining operations have been transferred to a state-owned company to ensure greater control over resources.
Benefits and challenges of resource nationalism
Benefits for host countries:
- By increasing state control or revenue from resources, countries can fund national development and infrastructure.
- This ensures that wealth from natural resources benefits the local population.
Challenges for mining companies:
- The mining industry requires significant capital investment, often costing billions and taking up to a decade to yield returns.
- Companies fear that resource nationalism could reduce profitability and deter future investments due to higher taxes and ownership requirements.
Balancing act:
- While resource nationalism can empower countries, it does not equate to complete control over resources.
- Many nations still depend on transnational corporations (TNCs) for the technology and expertise needed to extract and process raw materials.
- This requires a balance to maintain investment incentives.