Global Stratification: http://www. worldbank Global Stratification: http://www.worldbank.org/en/topic/poverty/overview Patterns of social inequality in the world as a whole

Changing Terminology Old terminology Problems with old terminology First world –industrialized rich countries Second world –less industrial socialist countries Third world –non-industrialized poor countries Problems with old terminology After cold war, “second world” no longer existed Third world too economically diverse to be meaningful

Changing Terminology New terminology High-income – richest forty nations with the highest standard of living Middle-income – somewhat poorer eighty nations with economic development typical for the world as a whole Low-income – remaining sixty with lowest productivity and extensive poverty The extent of global inequality is much greater than these comparisons suggest. Well-off people in rich countries live ‘worlds apart’ from the poorest people in low-income countries

High-Income Countries Per Capita Income over $10,000 Examples United States, Western Europe, Japan, Australia, Canada, Chile, Argentina, South Africa, Israel, Saudi Arabia Characteristics: First to develop during industrial revolution two centuries ago High-income countries : Forty Nations fall into this category Economy: Enjoy over half the world’s income More income means control of world’s financial markets Control of financial markets means control of other countries Highly productive economy provides people, on average, with material plenty.

Middle-Income Countries Per Capita Income Ranging From $2,500 to $10,000 Examples Russia, Eastern European countries, Latin America, and some African countries Characteristics: Limited industrialization Middle-income countries – Eighty countries fall into this category Economy: Life is difficult: A general lack of education, medical care, and safe water One-third of the people are rural and engage in agricultural activities are less economically productive, with a standard of living about average for the world as a whole but far below that of the U.S. These nations also have a significant share of poor people who are barely able to feed and house themselves.

Low-Income Countries Per Capita Income less than $2,500 Examples Most African nations, and parts of Asia Characteristics: About one-half the world’s people Low-income countries: Sixty nations fall into this category Economy: Mostly poor, rural economies Life expectancy is very short poverty is severe and widespread. Although small numbers of elites live very well in the poorest nations, most people struggle to survive on a small fraction of the income common in the U.S.

Source: Based on data from United Nations Development Programme (2005) Source: Based on data from United Nations Development Programme (2005). Map projection from Peters Atlas of the World (1990).

The Severity of Poverty Relative poverty People lack resources that others take for granted This sort of poverty exists in every society, rich or poor Absolute poverty A lack of resources that is life threatening While some may exist in U.S. One-third or more of the people in low-income countries experience poverty at this level

Why haven’t “low-income” nations improved their status over time? Modernization simply hasn’t happened in many nations Rich nations benefit from the status quo of poor nations International relations can negatively affect these nations Ethnocentric views hold up that the richest nations as the standard to judge other societies Global poverty is blamed on the poor societies themselves Exploitation and colonization have left these countries dependent on richer nations