The New Global Inequalities David Brady Duke University

Brand (Levi’s) Factory in Haiti Retailer (Wal-Mart) Factory in Mexico Factory in DR Dominican Manufacturer U.S. Manufacturer Inputs: Cotton (India) Thread (China) Denim (China) Inputs: Cotton (Texas) Thread (S. CA) Denim (Mexico) Taiwanese Manufacturer Factory in China Sent over land from Mexico to Wal-Mart DC in Bentonville, Ark. Shipped by container from Santo Domingo to Miami Shipped by container from Shenzhen to West Coast ports BLUE JEANS SOLD AT WALMART (Jennifer Bair)

OUTLINE 1.What is Globalization? 2.Trends in Globalization 3.Traditional Global Inequalities 4.Newly Emerging Global Inequalities 5.Possibilities for Global Social Justice?

What Is Globalization? Growth of ties/connections; compression of world; reduction of international barriers Growing irrelevance of geographical distance Growing Flows across national borders –people, capital, information, goods & services –including greater share of world and leading to increasing integration across spaces -Timing: –long history of international economic integration that began with the rise of capitalism in 1500s –Early wave peaked in early 20 th century: before WWI –Recent wave rising since early 1970s

Globalization’s First Wave: Steamship Routes, 1900

Globalization’s Second Wave: The Internet, 2002

Dimensions of Globalization 1)Diffusion 2)Interdependence 3)Organization 4)Culture Concrete Economic Aspects -int’l exchange and flows of goods, services, people, information and capital across nation-states -Exports & Imports -Direct & Portfolio Investment -Migration

Concrete Organizations 1)Global Actors International Monetary Fund (IMF) -goal: monetary cooperation & coordination -job: credit-rating agency BUT lends money with conditions World Bank -goal: poverty reduction, development and reconstruction -job: lend to poor countries BUT debt relief and research 2)Global Institutions World Trade Organization -goal: promote free trade, fair competition, dispute resolution -job: forum for negotiations BUT administers agreements European Union -goal: avoid conflict and enable free movement -job: manage EU BUT growing judiciary and bureaucracy

Trends in Globalization: Trade (% of World GDP)

Trends in Globalization: Trade & FDI (% World GDP)

Trade % GDP in Key Regions

% Immigrant in Key Regions

Net Migration (Thousands) in Key Regions

Persistent Global Inequalities (Ravallion & Wade Readings): GDP 2005 Billions US Dollars

GDP Per Capita ($) & Population (Billions) 2005

Three Ways to Measure Global Income Inequality

Life Expectancy in Years

Under-5 Mortality Rate per 1,000

Newly Emerging Global Inequalities From Dependency to New International Division of Labor –Historically, poor countries were source of natural resources and agricultural products for rich countries –Natural Resource Trap: drive up currency, volatile boom-bust cycles, corrupt governments –In past 30 years, poor countries have industrialized because of FDI and exports

Triggered Massive Social Changes –Migration to cities in poor countries –Migration to rich countries –Dramatic advances in technology for communication, transportation and travel Rapid and Uneven Urbanization (Goldman & Longhofer Reading)

Urbanization Rate

Dharavi in Mumbai, India

Landfill New Delhi India 2007

HIV Prevalence Rate (% 15-49) 2007

Possibilities for Global Social Justice? Economic Growth? –World composed of rich billion, middle four billion and “bottom billion” –Middle four billion grew 2.5% annually in 1970s, 4% annually in 1980s & 1990s, and 4.5% annually since 2000 –Bottom billion grew only.5% in 1970s, DECLINED.4% in 1980s, and DECLINED.5% in 1990s –Bottom billion was poorer in 2000 than 1970 –Paul Collier “Growth is not a cure-all, but the lack of growth is a kill-all.

The World Polity (Meyer & Lerner Readings) –Canopy of international governmental organizations (IGOs) and international non-governmental organizations (INGOs) –United Nations, Amnesty International, etc. –Global civil society and superstates have potential to improve world well-being IGOs States

Secondary School Enrollment Rate

Fertility Rate

Aid as % of GDP in 2007