Week 5: Globalization and Global Inequality

Globalization

the increasing interconnectedness of people and places that results from advances in transport, communication, and information technologies and causes political, economic, and cultural convergence or integration of different people and places around the world.

1. physical

2. spatio-temporal (ex: making the world feel smaller)

3. cognitive

Three major dimensions of globalization:

Global village

The increasing interconnectedness and unified global community that comes from the growth of international communication

Not all individuals agree that becoming more interconnected is a good idea r beneficial for all. It can lead to a waning of culture, increased unemployment, and loss of autonomy over national services and resources.

How is globalization not always a harmonious process?

Modernization theory

Globalization theory that contends that countries are poor because they cling to traditional and inefficient attitudes, technologies, and institutions. Modern societies embrace industrial capitalism, modern tech, and modern institutions.

Predicts that, given enough time and with the “correct” behaviours, all societies can become modernized and develop like Western societies.

What does the modernization theory predict?

In that they have little economic mobility and prioritize stability overchange.

How are traditional societies static and rigid?

Cash crops

Crops that are sold for profit. This type of agriculture contrasts wih substinence farming

Subsistence farming

Farmers grow crops for their own consumption

1. Traditional stage

2. Pre-conditions to takeoff

3. economic takeoff

4. technological maturity

5. Mass consumption

Stages of modernization:

Monocropping

The agricultural practice of producing high yields by growing a single crop on the same land each year. Corn, soybeans, and wheat are examples of this.

Ethnocentric

Judging other cultures by the standards of ones own culture

World systems theory

a main theory of globalization that views the world as a transnational division of labour, which classifies countries as core, semi-periphery, or periphery.

core countries

The most economically diversified, wealthy, and powerful nations in the world. are highly industrialized and tend to produce manufactured goods rather than extract raw materials for export.

1. Northwest europe

2. Canada

3. US

4. Japan

Core countries: [4]

Periphery countries

s The world’s least economically diversified and industrialized nations. These countries focus on one type of economic activity (mostly extracting and exporting raw materials to core nations)

1. Latin america

2. Sub-saharan africa

Periphery countries are found in: [2]

Semi periphery countries

Countries that are moving towards industrialization and a ore diversified economy. During this transition, such countries are not usually dominant in international trade.

China, india, brazil, south africa

Semi-periphery countries: (4)

Commodity chain:

A proces used by companies to gather resources, transform them into goods and commodities, and distribute them to customers; the connected path from which a good travels from producers to consumers.

World society theory

A main theory of globalization the emphasizes the significance of institutions and culture in forming the structure and beliefs of nation-states, organizations, and individuals worldwide. Seejs to explain global change as a result of the post-World War II emergence of global institutions and international organizations, as well as an increasingly shared world culture.

Gini index

A measure used to compare income inequality across countries. The index ranges from zero (perfect equality) to one (total inequality). The lower it is, the more equal the country. Can also be from 0-100

Human Development Index (HDI)

A number that combines a variety of measure (life expectancy, educaton, and income) rearding the health and quality of life in a country

1. development assistance

2. debt relief

3. micro-financing

Three main strategies to address global inequality:

Development assistance

financial aid give by governments and some non-gov charitable agencies to support a country’s economic, social, and political deelopment.

Reduce global poverty

Primary goal of development assistance:

micro-financing:

A system of offering financial services to individuals who are not served by the tradidional financial system. These services provide small amounts of fstart-up capital to assist people with their entrepreneurial projects and thus to lift individuals, families, and communities out of poverty.

Fair trade certification

An official certification that tells consumers that a product is produced in a way that is consistent with principles of ethical fair trade