Chapter 11—Global Inequality Jon Witt

The Global Divide Global resource divide is immense Industrial Revolution and increased agricultural productivity resulted in explosive economic growth Ensuing rise in living standards not evenly distributed across world Divide within countries in terms of income, wealth, poverty, and social mobility also significant The Global Divide

Note: In this comparison, industrial nations include the United States and Canada, Japan, western Europe, and Australasia. Developing nations include Africa, Asia (except Japan), Latin America, eastern Europe, the Caribbean, and the Pacific. Source: Adapted from Sutcliffe 2002:18.

Perspectives on Global Stratification The Rise of Modernization Modernization Far-reaching process by which nations pass from traditional forms of social organization toward forms characteristic of post– Industrial Revolution societies Modernization and development contain an ethnocentric bias Such modernization represents form of cultural imperialism Perspectives on Global Stratification

Perspectives on Global Stratification The Legacy of Colonialism Colonialism Maintenance of political, social, economic, and cultural dominance over a people by a foreign power for an extended period Neocolonialism Continuing dependence of former colonies on foreign countries Perspectives on Global Stratification

Perspectives on Global Stratification The Legacy of Colonialism World Systems Analysis View of the global economic system as one divided between certain industrialized nations that control wealth and developing countries that are controlled and exploited (Wallerstein) Dependency Theory Contends that industrialized nations continue to exploit developing countries for their own gain Growing share of human and natural resources of developing countries redistributed to core industrialized nations Perspectives on Global Stratification

Perspectives on Global Stratification The Legacy of Colonialism Globalization Worldwide integration of government policies, cultures, social movements, and financial markets through trade and exchange of ideas Perspectives on Global Stratification

Perspectives on Global Stratification The Growth of Multinational Corporations Multinational Corporation Commercial organization headquartered in one country but does business around the world Total revenue of multinational businesses are on a par with total value of goods and services exchanged in entire nations Over one-fourth of U.S. goods and services related to export or import of goods Perspectives on Global Stratification

Perspectives on Global Stratification Modernization Relationships between multinationals and developing countries beneficial Industries and jobs Promote rapid development Facilitate exchange of ideas and technology around the world, making world more interdependent Perspectives on Global Stratification

Perspectives on Global Stratification Dependency Multinationals exploit local workers to maximize profits Cheap foreign labor bad for industrialized country labor (loses jobs) and developing nation labor (“climate of investment” may include repressive antilabor laws) Investment by multinationals initially contributes to host nation’s wealth, but eventually increases economic inequality within developing nations Perspectives on Global Stratification

Stratification Around the World Income and Wealth In at least 20 nations, most affluent 10% of the population receives at least 40% of all income Top 10% of world’s population own 85% of global household wealth, and top 1% own 40% Women in developing countries face significant obstacles Stratification Around the World

Note: Data are considered comparable although based on statistics covering 2000 to 2008. Source: World Bank 2009d, 2010e.

Stratification Around the World Poverty UN Millennium Project aims to eliminate global poverty by 2015 Goal of cutting the developing world’s poverty rate in half is on track Industrial nations must set aside 0.7% of gross national product for developing nations Gross National Income (GNI) Total value of a nation’s goods and services U.S. delivers more total aid dollars than any other nation, but rate of GNI is only ahead of Korea, Italy, and Japan among 22 industrialized nations Stratification Around the World

Stratification Around the World Social Mobility Intergenerational Mobility Across Countries Varies across countries Macrolevel social and economic changes often overshadow microlevel movement from one occupation to another Gender Differences and Mobility Effects of development on women’s social standing and mobility not necessarily positive Stratification Around the World

Stratification Around the World Social Stratification in Mexico Mexico’s Economy In 2008, gross national income per person in the U.S. was $47,930; in Mexico it was $9,990 About 36% of U.S. adults have bachelor’s degree compared to 18% of Mexicans Gap between Mexico’s poorest and richest citizens is one of the widest in the world Castañeda (1995:71): Mexico is a “polarized society with enormous gaps between rich and poor, town and country, north and south, white and brown (or criollos and mestizos )” Stratification Around the World

Stratification Around the World Social Stratification in Mexico Race Relations in Mexico: The Color Hierarchy Social class linked to appearance of racial purity Widespread denial of prejudice and discrimination against people of color Marked growth in past decade of formal organizations and voluntary associations representing indigenous Indians Stratification Around the World

Stratification Around the World Social Stratification in Mexico The Status of Women in Mexico Constitute 45% of labor force More mired in lowest-paying jobs than counterparts in industrial nations Rarely occupy top decision-making positions, but women have significantly increased their representation in national legislature to 28% In recent decades, Mexican women have organized to address an array of economic, political, and health issues Stratification Around the World

Stratification Around the World Social Stratification in Mexico The Borderlands Borderlands Area of common culture along border between Mexico and U.S. Maquiladoras Foreign-owned factories established just across Mexican border; do not have to pay taxes or provide benefits for workers With China’s entry into the WTO in 2001, some companies switching operations to China Stratification Around the World

Stratification Around the World Social Stratification in Mexico Emigration to the United States Some suggest immigration problems more labor market issue than law enforcement issue Social impact of immigration to U.S. felt throughout Mexico Many Mexicans send some part of their earnings back Remittances (migradollars) Estimated to be minimum of $22 billion in 2009 Stratification Around the World

Universal Human Rights Defining Human Rights Human Rights Universal moral rights that all people possess by virtue of being human Universal Declaration of Human Rights, adopted by United Nations in 1948 1990s introduced ethnic cleansing into world vocabulary as euphemism for forcible expulsion and murder Transnational crime of human trafficking is ongoing concern Universal Human Rights

Universal Human Rights Principle and Practice U.S. war on terrorism has raised additional concerns about human rights Cultural insiders and outsiders can disagree about what constitutes a violation In 1993, U.S. opted for absolute definition of human rights, insisting Universal Declaration of Human Rights set single standard for acceptable behavior around the world Universal Human Rights

Universal Human Rights Human Rights Activism Most initiatives come from social movements, not governments Awareness has been growing of lesbian and gay rights as aspect of universal human rights Universal Human Rights

Note: Table is incomplete; each tier lists only sample nations. Source: U.S. Department of State 2010.