Sociology in Modules Richard T. Schaefer

Stratification in the World System The Global Divide Inequality is a significant determinant of human behavior Divides in global wealth emerged as result of the Industrial Revolution and rising agricultural productivity Resulting rise in living standards not evenly distributed across the world

Stratification in the World System Stark contrasts between industrial and developing nations Legacy of colonialism Multinational corporations Modernization

The Legacy of Colonialism Colonialism: foreign power maintains political, social, economic, and cultural domination for an extended period of time Neocolonialism: continued dependence on more industrialized nations for managerial and technical expertise by former colonies

The Legacy of Colonialism Wallerstein’s world systems analysis Interdependent global economy rests on unequal economic and political relationships Nations do not constitute whole systems They exist within a larger, global social context Dependency theory: even as developing countries make economic advances, they remain weak and subservient to core nations and corporations

The Legacy of Colonialism Growing share of human and natural resources of developing countries redistributed to core industrialized nations Globalization: worldwide integration of government policies, cultures, social movements, and financial markets through trade and exchange of ideas Can be interpreted positively and negatively

Figure 29-1: Gross National Income Per Capita 7

Figure 29-2: World Systems Analysis 8

Poverty Worldwide Poverty is worldwide problem that blights the lives of billions of people Millennium Project asked industrial nations to set aside 0.51% of gross national income for developing nations Gross national income: total value of a nation’s goods and services (GNP), plus or minus income received from and sent to other nations U.S. contribution among lowest of industrialized countries

Figure 29-3: Poverty Worldwide 10

Figure 29-4: Foreign Aid per Capita in Nine Countries 11

Multinational Corporations Multinational corporations: commercial organizations headquartered in one country but doing business throughout the world Total revenue of multinational businesses on par with total value of goods and services exchanged in entire nations Over 12% of U.S. goods and services relate to exports to foreign countries

Multinational Corporations Functionalist Perspective Multinational corporations help developing nations Jobs and industry Maximum advantage of technology while reducing costs and boosting profits Make nations more interdependent and less likely to enter conflicts

Multinational Corporations Conflict Perspective Multinational corporations exploit local workers to maximize profits Investment by multinationals initially contributes to host nation’s wealth Negative social impact on workers in both industrialized and developing nations Some studies have shown investment by multinationals at first contributes to a host nation’s wealth but eventually increases economic inequality within developing nations

Figure 29-5: Multinational Corporations Compared to Nations 15

Modernization Modernization: process by which peripheral nations move from traditional institutions to those characteristic of developed societies Modernization theory: functionalist view that modernization and development will gradually improve lives of people in developing nations

Table 29-1: Sociological Perspectives on Global Inequality 17

Stratification within Nations: A Comparative Perspective At the same time that gap between rich and poor nations widening, so too is gap between rich and poor citizens within nations Stratification in developing nations closely related to weak, dependent position in global economy

Distribution of Wealth and Income Richest 2 percent worldwide own more than 50 percent of world’s household wealth In at least 22 nations around the world, most affluent 10 percent of the population receives at least 40 percent of all income

Social Mobility Mobility in Industrial Nations Substantial similarities in ways parents’ positions in stratification system transmitted to children Mobility opportunities in other nations influenced by structural factors Immigration continues to be significant in shaping a society’s level of intergenerational mobility

Social Mobility Mobility in Developing Nations Macro-level social and economic changes often overshadow micro-level movement from one occupation to another Gender Differences in Mobility As country develops and modernizes, women’s vital role in food production deteriorates

Figure 30-1: Distribution of Income in Nine Nations 22

Social Policy and Global Inequality: Rethinking Welfare in Europe and North America Looking at the Issue 1996: Personal Responsibility and Work Opportunity Reconciliation Act Major change in how welfare is administered Much higher expenditures in housing, social security, welfare, health care, and unemployment compensation in other developed countries than in U.S.

Social Policy and Global Inequality: Rethinking Welfare in Europe and North America Applying Sociology Critics of welfare reform: nation’s economic problems unfairly blamed on welfare spending and the poor Conflict theorists: “welfare scapegoating” ignores lucrative federal handouts to affluent, and enables administrative sanctions Corporate welfare: tax breaks, bailouts, direct payments, and grants the government gives to corporations

Social Policy and Global Inequality: Rethinking Welfare in Europe and North America Initiating Policy Government likes to highlight welfare-reform success stories Families that have left the rolls are modestly better off now; most of their breadwinners continue to hold low-paying, unskilled jobs European governments have encountered many of the same citizen demands as in North America

Sociology in the Global Community 29-1: Walking the Last Mile in Uganda: The Avon Approach Do you know anyone who is a representative for Avon, Amway, or some other direct seller? How would you compare the challenge of direct selling in a developed country to direct selling in a developing country? Why don’t aid organizations establish their own direct-selling networks to offer only health-related products?

Sociology in the Global Community 30-1: Stratification in Brazil Look at the bottom of each of the graphs on the following slides. Which income distribution, Brazil’s or the United States’, appears to be more unequal? Now look at the top of each graph. Which income distribution appears to be more unequal? What aspect of these graphs do you find most striking? Race-based college admissions quotas have been the subject of hot debate in the United States. Why do you think they have been accepted as law in Brazilian society?

Income by Race, Brazil 28

Income by Race, United States 29