1. Sociology in Modules
Richard T. Schaefer

2. 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

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

4. 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

5. 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

6. 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

7. Figure 29-1: Gross National Income Per Capita7

8. Figure 29-2: World Systems Analysis8

9. 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

10. Figure 29-3: Poverty Worldwide10

11. Figure 29-4: Foreign Aid per Capita in Nine Countries11

12. 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

13. 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

14. 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

15. Figure 29-5: Multinational Corporations Compared to Nations15

16. 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

17. Table 29-1: Sociological Perspectives on Global Inequality17

18. 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

19. 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

20. 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

21. 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

22. Figure 30-1: Distribution of Income in Nine Nations22

23. 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.

24. 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

25. 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

26. 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?

27. 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?

28. Income by Race, Brazil 28

29. Income by Race, United States29