Chapter 8: Global Inequality
globalization - increased economic, political, social interconnectedness of the world
produced opportunities for wealth, technological development, and social resources
however widespread poverty in suffering in countries in Asia, Africa, Latin America, Caribbean
global inequality - systematic differences in wealth and power that have resulted from globalization
emerging economy - developing countries over past two/three decards begun to develop strong industrial base
most middle income moved up to high income
ex. Singapore, Hong Kong
interdependence - require other nations to survive to survive
increased in importance as switched to agrarian, capitalist-based lifestyles
depend on labor of people who live far outside communities
ex. clothes, tech, food created thousands of miles away
when one aspect of global system is disrupted, chain reaction of disasterous consequences may occur
decreases power poor states have in maintaining own welfare
neoliberalism - belief that best possible economic consequences result if consumers and producers are entirely free from any gov constraint
make own economic decisions in free market
gov doesn’t dictate which goods to produce, what prices to charge, how much workers are paid, if business should be prevented from pollution
associated with conservative politics and economics
ex. Reagan/Clinton-era politics
globalization increased influence of neoliberal ideologies
increases spread of capitalism, core tenet of neoliberal thought
International Monetary Fund, World Bank, World Trade Org increase economic power of hegemonic states who benefit most from spread of neoliberalism
universalization - weakening of state sovereignty with rise of international corps and powerful nongov orgs
orgs challenge state authority by providing what state cannot
strengthened by spread of neoliberal policies
corps cannot completely usurp states, require states to enfore various trade agreements and keep order
may change as corps take over more essential state institutions
Westernization - gradual homogenization of non-Western culture with Western ideals and cultural images
western nations tend to produce massive number of cultural products and overrepresent themselves globally
ex. music, art, games, news programs, religious messages, films, fashion, tv
clash between existing culture and Westernized cultures can lead to anger and nationalist movements
concern that Westernized ways of thinking and viewing the world may be seen as natural and other worldviews as uncivilized
pushback against concept as nations not traditionally considered Western become more dominant
ex. China, South Korea, India
capitalism - globalization greatly beneficial for capitalists
have greatly expanded reach, can utlize labor from any coutnry in world
Keynesian economics - gov intervention in economy
protect workers by create stability in employment and prices
focus on equality over liberty
ex. social welfare programs, tax cuts for poor and middle class, Obama and Biden
supply-side economics - little gov intervention in market
liberty for individuals, corps
lead to innovation as corps move to US to create jobs and industries
largely affect people from low-income communities with little political power
ex. tax cuts for corps and welathy, deregulation, Trump and Reagan
modernization theory - low-income societies could become modern if adopted modern economic institutions, technologies, cultural values that emphasize savings and productive investment
low-income countries economies overregulated by ineffective corrupt govs
believed that poverty reflected God’s will, live for today rather than invest in future
(W. W. Rostow)
dependency theory - global capitalist economic relations made poor countries dependent on rich countries
locked in downward spiral of exploitation and poverty
core - advanced industrial countries extract lions share of profits from weaker countries
periphery - low-income agriculutral countries have marginal role in world economy
dependent on core countries for trading relationships
colonialism - political-economic system where powerful countries establish rule over weaker countries for own porift
procure raw materials and control markets for products manufactured in factories
ended most of world after WWII
dependent development - dependent countries can still develop economically shaped by reliance on wealthier countries
ending dependency didn’t require revolutionary changes
ex. rise of East Asian economies
(Fernando Henrique Cardoso)
global commodity chains - worldwide networks of labor and production processes that extend from raw materials to final consumer
emphasizes increasingly globalized nature of production
lower-income countries compete to get factories
brands that design goods we consume and giant retailers that sell products in high-income countries are most proffitable
ex. Apple products are priced more than amount it takes to make it
semiperiphery - countries that supply labor and raw materials to core industrial countries in world economy while profit from extracting labor and raw materials from peripheral countries
world middle class
offers promise of economic growth to poorer countries in periphery
ex. Mexico, Argentina, Brazil, Chile
world-systems theory - world capitalist economic system as single economic unit
not collection of independent countries engaged in diplomatic and economic relations
theory of global capitalism - transnational capitalist class increasingly major player in global economy
not national oriented capitalists of major countries
transnational capitalist class - social class whose economic interests are global not national
economic interests global rather than national
have global shareholders, workers, markets
provide goods and services sourced globally
believe in neoliberalism and free trade
cosmopolitan, citizens of world rather than of country
corporate fraction - owns and controls major transnational corporations
state fraction - bureaucrats and politicians who staff transnational organizations
technical fraction - lawyers, accountatns, engineers, professionals who work for transnational corporations
consumerist fraction - merchants, advertising media, marketing specialists who sell corporations products
(Leslie Sklair)
global capitalism theory - emergence of new capitalist class with global business concerns
reshaping world economy in interests by dominating global institutions that oversee and manage world economy
managerial theory - corporate, political, military elites control economy, large corps guide economic development
state protects institutions maintain elite dominance
corporate sector - banks, investment companies
public interest sector - mass media, law, education, civic and cultural organizations
gov sector - less than 4% of power elite postions
class-domination theory - two major coalitions exist that majorly influence lives, argue over key economic issues (wages, taxation, unions, gov regulation)
corporate-conservative coalition - supported by patriotic, anti-tax, single-issue orgs
liberal-labor coalition - supported by unions, universities, minority advocacy groups
power elite popularize views because they’re individualistic (blame citizens for own problems) and downplay structural influences on economic welfare
elites valorized and envied