The impact of free international financial markets on East Asia, as viewed through the lens of this section's framework, is complex. On one hand, these markets have stimulated economic growth in the region by facilitating investment and access to global capital, which has the potential to positively affect individuals' financial wealth and physical assets. However, the benefits have not been equally distributed, contributing to growing income disparities. According to SSRN, "growth-promoting economic freedoms hamper future progress by raising inequalities." The disparities are rooted in differences in education, gender, and social class, influenced by institutions and technology.

Therefore, while free international financial markets have brought economic opportunities to East Asia, they have also exacerbated income inequality, highlighting the need to address these disparities by considering the interplay between institutions, technology, and individual endowments to achieve a more balanced outcome in the region.

Works Cited: Ilkay Yılmaz , Mehmet Murat Balkan , Mehmet Nasih Tağ Income Inequality and Economic Freedom: The 2000s

Have free international financial markets been good or bad for East Asia?

The impact of free international financial markets on East Asia is closely linked to the discussion of income disparities, taxation, and social spending in the article. While these markets have offered opportunities for economic growth and investment in the region, their effects on market income alone don't account for the broader income landscape.

Income disparities persist in East Asia, shaped by taxation, government transfers, and access to public services like education and healthcare. Consequently, addressing these disparities requires considering not just market income but also the influence of government policies in creating a more equitable distribution of final income. In essence, this article underscores that comprehending income inequality involves examining both income sources and the redistributive role of government policies.

Free international financial markets wield influence by enabling nations to exert pressure and manipulation. Sanctions are a key tool in this dynamic, adversely affecting banking, debt, enterprises, and tech imports, thereby reducing living standards. In the long run, these sanctions can weaken critical sectors in nations, like Russia's gas, diamond, and rail transport industries. Furthermore, sanctions often involve freezing and banning bank transactions, and, importantly, some sanctions may become permanent. For instance, a recent article highlights the blacklisting of major Iranian enterprises and sanctions targeting third parties transacting with these blacklisted entities. Consequently, such measures can lead to economic suffering for those third parties and may hinder their capacity to produce military equipment, potentially impacting Russia's ability to manufacture such equipment.

https://home.treasury.gov/news/press-releases/jy1296

According to the U.S. Department of the Treasury they will be "targeting the metals and mining sector of the Russian Federation economy" under an executive order. This would hinder Russia's ability to obtain capital, materials and technology that would sustain the war against Ukraine. In addition, they recently ramped up efforts in order to impose costs on russia for as long as this war goes on for. This connects to the article, as it represents the importance of sanctions, and how through the global economy, the U.S. is able to affect Russia's financial sector (hundreds of billions of dollars) through a few policies and orders.

https://unctad.org/system/files/official-document/osg2020d1_en.pdf

This article connects to an analysis and research paper conducted by the United Nations Conference on Trade and Development. It regards the actions that the UN and also government will be taking in order to address the adverse effects of the COVID19 pandemic, specifically on how trade had led to the decline of 4.3 percent in global economic growth. In order to combat this, they implemented policies that would protect trade lines that are necessary for the survival of countries. This was related to both healthcare and also the overall economic well being of communities. In addition, it talks about the lack of foreign direct investment in small countries. This relates to how the Trump Administration does not want to significantly supply what other countries need in order to sustain their economy. In relation to the videos that we watched in class, this is because larger, more developed countries might/would be worse off if they helped other developing countries in terms of trade. I think that this ultimately relates to how "the US has not been a leader in the global response to the new coronavirus," which has reflected negatively to the overall decline in global GDP.

This answers the question: What is the relationship between trade and development?

The increased trade among countries has allowed for economic growth. This is because, they can focus on specialization, which leads to "greater efficiency." Countries are ultimately becoming more productive, and are able to benefit from comparative advantage.

Globalization has also led to the increase in overall production. This is because they are able to have cost benefits, they are able to become more productive and hence produce more. It is evident that when globalization (largely including trade) was hindered, production levels were down, as they were unable to specialize.

How does economic growth affect the environment?

Economic growth is evidently the biggest cause of the lack of and extraction of natural resources, air pollution, etc.. Companies continue to supply raw materials, despite the long term environmental impacts. The industrial revolution has led to the demand of air, water, soil, metals, hydrocarbons (e.g. oil and coal), and fish. The fishing industry in the grand Banks died, because of the extension. The fishing industry, as a result, led to an ecosystem collapse. However, due to governmental regulations, they started to recover, but not to full numbers.

Difficulties: "The depletion of commodities and global warming are two aspects of environmental degradation. But we will see that there is also an important difference between the two: commodities are priced and traded, and so over-use of some resources may self-correct as prices of scarce commodites rise."

This shows that it can be extremely difficult to combat this issue. Usually, the negative external environmental effects can only be fixed by policy or political action, which is hard to achieve (which links to my next point).

How does economic growth affect the environment?

The environment continues to be abused by a vast range of companies, including the smoking industry. Indonesia is the 4th largest producer of tobacco, which has led to significant pollution.

According to Jakarta Rendah Emisi, "Ministry of Environment and Forestry reported that 57.8% of DKI Jakarta residents were affected by various cardiovascular diseases and respiratory infections due to exposure to air pollution."

Even though smoking has led to a large amount of air pollution and littering, which has led to the rising of sea water, Indonesia continues to self-sabotage their own country. Even though I myself am not an environmentalist, I still continue to convince myself that the world won't die anytime soon. However, it is easier to target smaller countries, especially Jakarta, which will be gone in 2050.

This ultimately shows the issue of environmental "tipping points" and on a global scale, and how we are ultimately self-sabotaging ourselves by hurting the environment. It is just easier to pinpoint current issues rather than a long term, future issue.

Works cited:

Jakarta, DLH DKI. Dampak Polusi Udara Bagi Kesehatan Warga Jakarta - Jakarta Rendah Emisi, rendahemisi.jakarta.go.id/article/174/dampak-polusi-udara-bagi-kesehatan-warga-jakarta. Accessed 29 Aug. 2023.

Leaders make decisions that were based on ignorance. Many believe that they could enrich themselves by the expense of others.

In addition, they might have thought that it was a good way to keep power or it was good politics.

This is evident in Nigeria, where leaders are more focused on meeting their family/friends needs rather then their own people. This causes the hindering of socio-economic growth, according to Premium Times NG.

Olaoye, Wole. “Nigeria: The Democratisation of Ignorance.” Premium Times - Nigeria Leading Newspaper for News, Investigations, www.premiumtimesng.com/opinion/531591-nigeria-the-democratisation-of-ignorance-by-wole-olaoye.html?tztc=1. Accessed 22 Aug. 2023.

The geographic concentration of poverty and prosperity supports the geography hypothesis.

They used to believe (Montesquieu) that "tropical climates" caused workers "to be lazy and to lack inquisitiveness" hence they "didn't work hard and were not innovative"

This is wrong. In the tropics, disease has a huge impact on health and hence labor/human capital. In addition, they mention that the soil doesn't allow for fertile land. BUT, this is not entirely true. Tropical poverty isn't a fact, instead it is based on how these areas were colonized. Sickness may be due to tropical diseases, but they mainly persist due to the government unable/unwilling to address public health.

This shows why healthcare is important to the economy, and how it can effect the labor force. Singapore, for example, has always invested in healthcare. the Singapore General Hospital was built and was fully established around the 1870-1880s. In addition, Tan Tock Seng Hospital was built during the 1840s and KKH and KK (a children's hospital) was built during the 1850s (Roots). Not only were healthcare institutions prominent in Singapore, but businessman and the government set up a 10 year plan to establish maternity/child clinics and hospitals (Roots). Just a few years later, the Ministry of Health was strongly established in order to unify health services. They enforced immunisation drugs and also vaccinations (Roots).

It is evident, that part of the success of Singapore was the strong healthcare systems that they had in place. Although Singapore is in a tropical area, they have one of the highest life expectancies today, and highest GDP (and GDP per capita).

Gov., SG. “Our History of Healthcare.” ROOTS, www.roots.gov.sg/en/stories-landing/stories/history-of-healthcare-sg. Accessed 22 Aug. 2023.

What causes economic growth?

The lack of awareness/spread of technology, and ultimately labor specialization.

In Spain, they had the technology of "steam power, railroads, electricity, mechanization , and factory production." Peru did not, and the gap continues to be reflected today.

What causes economic growth?

The type of beliefs, values and ethics. Lack good work ethic, and still believe in magic. In additoin, they may resist western technology.