Aid and the Chinese economy - The Qinghai community development project Case Study Student Activities Teacher's Notes Overview This case study provides some idea of the time scale involved when selecting, planning, implementing and evaluating an Australian Government's overseas aid project. The Qinghai community development project will also be explored in the context of globalisation and the ways in which well-planned aid programs can lead to both increased trade and capital flows between nations and enable isolated regions of the world to become more integrated into the world economy. Students will also gain an understanding of the time-scale involved in planning, implementing and evaluating an aid project, particularly one that has a range of (inter-related) objectives. Level Upper secondary Links with nationally-developed statements and profiles Note: this Case Study has been written with particular attention to the VCE Economics Study Design (Unit 2: Australia and the Global Economy) as outlined below. VCE Economics Unit 2: Australia and the Global Economy This case study is relevant to the following areas of study: Australia's external relationships This area of study includes: reasons why nations trade and the significance of these relationships for Australia. Economic globalisation This area of study includes: the meaning of globalisation and the reasons for its emergence; the effects of globalisation on a range of economic participants e.g. consumers, workers and governments; a case study of a multinational/transnational company and its relationship with the host economies. Other economies (at least one of the following topics should be studied). Asian Economies A case study of an Asian economy including: its predominant values and economic objectives; the ownership and allocation of resources; the influence of the market and the government; its economic performance and development strategies. The case study also links with nationally developed statements and profiles as follows: Strand - SOSE Resources: Use of resources; people and work; management and enterprise Natural and Social Systems: Economic systems; natural systems Place and Space: People and places Objectives Students should be able to: Understand the meaning of the term 'globalisation' Discuss and evaluate a range of theories explaining the emergence of globalisation Assess the impact of globalisation on economic participants including economies in transition to a market economy Evaluate economic arguments about contemporary global issues Appreciate the importance of access to new information and new ideas in a global market place Discuss the theory of competitive advantage and apply the theory in a number of different ways Speculate about the possible consequences of the changing distribution of income and wealth between economic regions Research the impact of globalisation on the Chinese economy over the past 20 years Outline a range of aid strategies which could be used to help create a cash economy Assess the possible costs as well as benefits of a shift from a traditional to a market economy Empathise with people living in poverty Understand the key principles and priority areas which govern the Australian Government's overseas aid program Assess the effect of aid projects on: the allocation of resources; the influence of market forces; economic performance in the region; and relations between the two nations involved in the aid project Acquire resources from a range of sources, including the Internet Think creatively about aid and design their own aid project. Preparation Maps of China (one per student) showing the provinces and regions. Copies of the case study (one per student). Textas, drawing materials, butcher's paper and poster paper. Procedure Before starting on the case study students will need an understanding of the term 'globalisation' - what it means, the theories explaining its emergence, the economic and social effects of globalisation on different regions and economic decision-makers i.e. who are the 'winners' and 'losers'. A useful way to start the topic would be to find out what opinions students already have about globalisation and its impact on the world economy. The class could do a PMI exercise on globalisation. This creative thinking tool* is a very simple but powerful technique designed to enlarge the students' views on a particular situation or issue. It encourages them to consider an issue in more depth than they might otherwise have done through a balanced exploration of the topic. After students have been introduced to the topic they could then make a list of the plus points about globalisation, then the minus points. After this they would then make a list of 'interesting' points about globalisation or speculate about its likely impact e.g. it would be interesting to know what the impact will be on different countries, it would be interesting see who the winners and losers will be and so on. The PMI technique could, later on, also be applied to the Qinghai Aid Project. Following the introduction to globalisation, the concept of competitive advantage could be discussed using the Porter 'diamond' model and applied to some of the world's most successful trading regions. The case study explores an extremely poor, isolated region in northern China where the population has been trapped in poverty. Some revision of subsistence economies may be needed to remind students of the poverty traps such as - lack of money and access to credit, indebtedness and lack of infrastructure. Students could create a concept map and show the links between the problems. Once the case study has been read and discussed, students could try an OPV exercise (other peoples' views). This creative thinking technique is designed to encourage some empathy by students and enable them to view issues from different perspectives. Either on their own or in groups, students could make a list of all the groups involved in the aid project and outline their point of view. They can include any other interested parties who may not have been mentioned in the case study. Another useful technique would be a C & S (consequence and sequel). This encourages students to think about both short and long term consequences. Working in small groups, the class could list the immediate consequences of the aid project (up to a year), then the short term impact (1 - 5 years), followed by the medium-term (5 - 20 years) and finally the long term (20+ years). This is an excellent technique as it focuses the students' thinking and also makes them aware, for example, the short and long term consequences can be very different. * creative thinking techniques devised by Dr. Edward de Bono Resources Details of other development projects designed to alleviate poverty can be found on the Global Education website (http:globaled.ausaid.au) and in the Australian Government's overseas aid agency's quarterly magazine, Focus. Websites http://www.ausaid.gov.au/country/country.cfm?CountryId=36 AusAID's main website provides information on the Australian Government's aid program to China. http://www.worldbank.org View the country brief on China and the country data table for key social, economic and environmental indicators for useful background information. See also China, Competitiveness Indicators - a good starting point for discussing trade/globalisation issues. Good links also to a range of other relevant sites on China, development and trade. http://www.undp.org The United Nations Development Program site. See in particular its Human Development Index and range of articles on globalisation. htttp://www.unctad.org A major goal of The United Nations Conference on Trade and Development is to maximise trade, investment and development opportunities for developing nations facing the challenges of globalisation. See in particular its latest World Investment Report (which contains very useful and up-to-date trade and investment data and the Least Developed Countries Report (a discussion of the effects of globalisation on the less developed economies). On the topic of micro-finance see: http://www.zip.com.au/~haqmf/grameen.htm The Grameen Bank of Bangladesh is a well known micro-finance organisation. Maps The following sites will provide maps of the Qinghai Province although none are very detailed. http://www.multimap.com http://www.maps.expedia.com http://www.nationalgeographic.com (maps and satellite photographs) * Further information and resources can be obtained from the Professional Development Providers. Top © Commonwealth of Australia