GLOBAL INEQUALITY What is the scale of economic inequality and poverty across countries? What are the key correlates of this inequality? What are some of the major explanations for ‘underdevelopment’? What role does globalization play? In this chapter we turn to some global dimensions of stratification

Gross National Income Per Capita Note: Size based on 2000 population estimates. Sources: Haub 2006; Weeks 2002:22–23, 2005:32–33

High, low and middle income societies High-income countries (40): 15% of world population 55% of global income High technology, profitable services (e.g., finance) Middle-income countries (90): 33% of world population 37% of global income Limited industrialization, more agricultural Low-income countries (60): 52% of world population 8% of global income Primarily agrarian with little industry

World poverty All countries have poverty, but the extent and severity of poverty is worse in low income countries Over 20% of the people (about 1.3 billion) lack the nutrition they need to work regularly. They are in absolute poverty. Of these, at least 800 million are at risk of their lives. Some 35000 children die each day from preventable or easily treatable diseases.

Who are the Global Poor? Children Women Refugees

Causes and correlates of global poverty Technology Population growth Cultural patterns Social stratification Gender inequality Global power relationships

The Legacy of Colonialism Economic and political consequences of colonialism and neocolonialism are apparent Colonialism: when foreign power maintains political, social, economic, and cultural domination over people for an extended period Neocolonialism: continued dependence on more industrialized nations for managerial and technical expertise by former colonies

The Problem of Development: Theoretical Debates Modernization theory Dependency theory Historical view Causes of global poverty Role of rich nations What needs to be done? Criticisms

A New Actor the Global Stage: Multinational Corporations Chart not updated to with textbook; Turkey GDI was just below Sweden and Walmart, Exxon/Mobil Sources: For corporate data, Fortune 2005:119; for GDP data, World Bank 2005a:202–204.

Multinational Corporations Dfn: Large commercial organizations headquartered in one country, who do business throughout the world Functionalist View Through international ties, multinational corporations make nations of the world more interdependent Conflict View Multinational corporations exploit local workers to maximize profits Investment initially contributes to host nation’s wealth, but eventually increases economic inequality within developing nations

Debates on Globalization The Globalizers – development through greater participation in the global economy The Skeptics – globalization is creating more global inequality