Transcript Chapter 8: Global Stratification

Sociology 101
Chapter 8
Global Stratification
Introduction
World population is approx. 7 billion
 Most of the world’s population growth is in
countries outside developed nations
 79% of the world’s population live in
underdeveloped nations

Soucrce: World Population Data Sheet 2012
(http://www.prb.org/Publications/Datasheets/2012/world-population-data-sheet/fact-sheet-world-population.aspx)
Economies in Global Perspective
Global Inequality
Type of Country
Key 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 Country
Key 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.

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:
– 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.

The GDP does not include any income earned by individuals or
corporations if the revenue comes from sources outside of the country.
Source: http://www.newgeography.com/content/003271-the-expanding-economic-pie-grinding-poverty
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.

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.
Dimensions of Defining Levels of
Poverty
1.
2.
3.
How many people are poor.
How far below the poverty line people’s incomes
fall.
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).

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
Source: http://www.project.org/info.php?recordID=465
The Quality of Life Index


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:
–
–
–
–
–
–
Health
Education
Wealth
Democracy
Peace
Environment.
Source: Nation Ranking: (http://nationranking.wordpress.com/2011/03/06/2011-qli/)
The 3rd World


Most were once colonies
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)
Family planning (e.g. birth control)
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
» Gap between rich & poor nations is increasing
» Consequences of world poverty

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
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Disease
Malnutrition
Emergence of extremist groups
Generates anti-American sentiments by poor countries
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
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
– 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

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?
U.S. Involvement in the 3rd World

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 3rd world countries
– Does this for humanitarian and self-serving reasons
» U.S. has often set up and/or supported dictatorships

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.
– Much of the profits are channeled to developed countries

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 3rd world countries

Furthermore, they don’t provide a lot of jobs because the tend to use labor
saving machinery
» Multicorps use 3rd world countries to “dump” dangerous and inferior
products

Cigarettes, Dalkon Shield, Toxic Waste
» Hard for 3rd 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
Modernization Theory
Low-income, less
developed countries can
move to middle- and highincome economies by
achieving self-sustained
economic growth.
Dependency Theory
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 3rd world
 This can be achieved if:

– Population growth is slowed
– Hunger & poverty is alleviated
– Developed nations & megacorps stop exploiting 3rd
world countries