Sociology 101 Chapter 8 Global Stratification

Introduction World population is approx. 7 billion World population is approx. 7 billion Most of the world’s population growth is in countries outside developed nations Most of the world’s population growth is in countries outside developed nationspopulation growth population growth 79% of the world’s population live in underdeveloped nations 79% of the world’s population live in underdeveloped nationsworld’s population world’s population

Soucrce: World Population Data Sheet 2012 (

Economies in Global Perspective

Global Inequality Type of CountryKey Characteristics High-Income Highly industrialized economies; high levels of national and per capita income. Middle-Income Industrializing economies, particularly in urban areas, and moderate levels of national and personal income. Low-Income Primarily agrarian nations with little industrialization and low levels of national and personal income.

The “Three Worlds” Approach Type of CountryKey Characteristics First World consist of the rich, industrialized nations that primarily had capitalist economic systems and democratic political systems Second World at least a moderate level of economic development and a moderate standard of living Third World little or no industrialization and the lowest standards of living, shortest life expectancies, and highest rates of mortality

Levels of Development Approach Among the most controversial terminology for describing world poverty and global stratification. Among the most controversial terminology for describing world poverty and global stratification. Terminology based on levels of development includes concepts such as developed nations, developing nations, less developed nations, and underdevelopment. Terminology based on levels of development includes concepts such as developed nations, developing nations, less developed nations, and underdevelopment.

World Bank Classification of Economies by Income The World Bank classifies nations into three economic categories: The World Bank classifies nations into three economic categories: –low-income economies (a GNI per capita of $935 or less in 2003) –middle-income economies (a GNI per capita between $936 and $11,455 in 2007) – high-income economies (a GNI per capita of more than $11,456 in 2007).

Gross Domestic Product (GDP) All the goods and services produced within a country’s economy during a given year. All the goods and services produced within a country’s economy during a given year. The GDP does not include any income earned by individuals or corporations if the revenue comes from sources outside of the country. The GDP does not include any income earned by individuals or corporations if the revenue comes from sources outside of the country.

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Global Poverty Absolute poverty would be measured by comparing personal or household income or expenses with the cost of buying a given quantity of goods and services. Absolute poverty would be measured by comparing personal or household income or expenses with the cost of buying a given quantity of goods and services. Relative poverty exists when people may be able to afford basic necessities but are still unable to maintain an average standard of living. Relative poverty exists when people may be able to afford basic necessities but are still unable to maintain an average standard of living. Subjective poverty would be measured by comparing the actual income against the income earner’s expectations and perceptions. Subjective poverty would be measured by comparing the actual income against the income earner’s expectations and perceptions.

Dimensions of Defining Levels of Poverty 1. How many people are poor. 2. How far below the poverty line people’s incomes fall. 3. How long they have been poor (is the poverty temporary or long term?).

Gini Coefficeient A measure of income inequality which ranges from zero (meaning that everyone has the same income) to 100 (one person receives all the income). A measure of income inequality which ranges from zero (meaning that everyone has the same income) to 100 (one person receives all the income). Using this measure, the World Bank concluded that inequality has increased in nations such as Bulgaria, the Baltic countries, and the Slavic countries of the former Soviet Union to levels similar to those in less-equal industrial market economies, such as the United States. Using this measure, the World Bank concluded that inequality has increased in nations such as Bulgaria, the Baltic countries, and the Slavic countries of the former Soviet Union to levels similar to those in less-equal industrial market economies, such as the United States.

Life Expectancy for Persons Born in 2010

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The Quality of Life Index The Quality of Life Index (QLI) is an attempt to quantify a nation’s livability for its average inhabitant The Quality of Life Index (QLI) is an attempt to quantify a nation’s livability for its average inhabitant It is a composite of six sub-indexes, each describing one of the elements which objectively influence the quality of life: It is a composite of six sub-indexes, each describing one of the elements which objectively influence the quality of life: –Health –Education –Wealth –Democracy –Peace –Environment.

Source: Nation Ranking: (

The 3 rd World Most were once colonies Most were once colonies Characterized by: Characterized by: –Relative powerlessness –High levels of illiteracy –High birth rates –High Infant mortality –Disease –Rapid population growth »The poor have many children because they are a source of labor and they take care of parents later in life »Can be curbed by: Economic development (modern demographic transition) Economic development (modern demographic transition) Family planning (e.g. birth control) Family planning (e.g. birth control) Societal changes Societal changes –Govt. incentives for fewer children –Educate women

–Poverty »Over a billion people live in absolute poverty Those making less than $1.25/day Those making less than $1.25/day »Gap between rich & poor nations is increasing »Consequences of world poverty Disease Disease Malnutrition Malnutrition Emergence of extremist groups Emergence of extremist groups Generates anti-American sentiments by poor countries Generates anti-American sentiments by poor countries Countries controlled by dictatorships Countries controlled by dictatorships –High levels of hunger »The major problem with food shortages is not production, We can produce enough to feed everyone in the world We can produce enough to feed everyone in the world Discussion Question Discussion Question Discussion Question Discussion Question »Instead, it is the way that the world’s political economy is currently structured Most of the land in poor countries is controlled by elites Most of the land in poor countries is controlled by elites –Elites like to produce crops that have high export values but don’t meet local needs. Why? –Because they can be exported to rich countries like the U.S. –We consume more than any other country

Discussion Question Discussion Question Economist Robert L. Heilbroner, in Inquiry into the Human Project, suggests it is unlikely that we would willingly make sacrifices in order to improve the well-being of people around the world who at present live in abject poverty. Economist Robert L. Heilbroner, in Inquiry into the Human Project, suggests it is unlikely that we would willingly make sacrifices in order to improve the well-being of people around the world who at present live in abject poverty. Do you agree with Heilbroner? Why or why not? Do you agree with Heilbroner? Why or why not?

U.S. Involvement in the 3 rd World As recently as 1914, 70% of the world’s population lived in colonies As recently as 1914, 70% of the world’s population lived in colonies –Previous economic domination has helped to keep former colonies economically dependent The U.S. Govt. spends about $48 billion yearly on foreign aid and billions on loans to 3 rd world countries The U.S. Govt. spends about $48 billion yearly on foreign aid and billions on loans to 3 rd world countries –Does this for humanitarian and self-serving reasons »U.S. has often set up and/or supported dictatorships Often promise dictators favors Often promise dictators favors –U.S. supported Castro until he said no to the banana companies –One Senate report has shown the CIA was involved in more than 900 foreign interventions, including paramilitary operations, manipulation of foreign governments, and assassinations between 1945 and 1965

Multinational Corporations Many of the multicorporations that control the world economy are headquartered in the U.S. Many of the multicorporations that control the world economy are headquartered in the U.S. –Much of the profits are channeled to developed countries Problems Problems –Indigenous corporations cannot compete »Multicorps have access to the latest technology »Multicorps receive better terms for borrowed money »Multicorps are able to control demand through advertising »Multicorps are able to exploit the resources of 3 rd world countries Furthermore, they don’t provide a lot of jobs because the tend to use labor saving machinery Furthermore, they don’t provide a lot of jobs because the tend to use labor saving machinery »Multicorps use 3 rd world countries to “dump” dangerous and inferior products Cigarettes, Dalkon Shield, Toxic Waste Cigarettes, Dalkon Shield, Toxic Waste »Hard for 3 rd world countries to subsidize their corps to compete with multicorps These countries spend a lot of their GNP to service their debts to developed countries These countries spend a lot of their GNP to service their debts to developed countries

Modernization Theory Low-income, less developed countries can move to middle- and high- income economies by achieving self-sustained economic growth.

Dependency Theory Poor nations are trapped in a cycle of dependency on richer nations. Poor nations are trapped in a cycle of dependency on richer nations.

World Systems Theory How a country is incorporated into the global capitalist economy is the key feature in determining how economic development takes place in that nation.

New International Division of Labor Theory Commodity production is split into fragments, each of which can be moved to whichever part of the world can provide the best combination of capital and labor.

Conclusion It is in our best interest if there is peace & stability in the 3 rd world It is in our best interest if there is peace & stability in the 3 rd world This can be achieved if: This can be achieved if: –Population growth is slowed –Hunger & poverty is alleviated –Developed nations & megacorps stop exploiting 3 rd world countries