key terms

capital flight: the movement (flight) of capital from one nation to another, via jobs and resources

chattel slavery: a form of slavery in which one person owns another

core nations: dominant capitalist countries

debt accumulation: the buildup of external debt, wherein countries borrow money from other nations to fund their expansion or growth goals

debt bondage: the act of people pledging themselves as servants in exchange for money for passage, and are subsequently paid too little to regain their freedom

deindustrialization: the loss of industrial production, usually to peripheral and semi-peripheral nations where the costs are lower

dependency theory: a theory which states that global inequity is due to the exploitation of peripheral and semi-peripheral nations by core nations

extreme poverty: the state where one is barely able, or unable, to afford basic necessities

first world: a term from the Cold War era that is used to describe industrialized capitalist democracies

fourth world: a term that describes stigmatized minority groups who have no voice or representation on the world stage

GINI coefficient: a measure of income inequality within a country; can be used to compare one country’s inequality to another's

global feminization of poverty: a pattern that occurs when women bear a disproportionate percentage of the burden of poverty

global inequality: the concentration of resources in core nations and in the hands of a wealthy minority

global stratification: the unequal distribution of resources between countries

gross national income (GNI): the income of a nation calculated based on goods and services produced, plus income earned by citizens and corporations headquartered in that country

modernization theory: a theory that low-income countries can improve their global economic standing by industrialization of infrastructure and a shift in cultural attitudes towards work

peripheral nations: nations on the fringes of the global economy, dominated by core nations, with very little industrialization

relative poverty: the state of poverty where one is unable to live the lifestyle of the average person in the country

second world: a term from the Cold War era that describes nations with moderate economies and standards of living

semi-peripheral nations: in-between nations, not powerful enough to dictate policy but acting as a major source of raw materials and an expanding middle class marketplace

subjective poverty: a state of poverty composed of many dimensions, subjectively present when one’s actual income does not meet one’s expectations

third world: a term from the Cold War era that refers to poor, unindustrialized countries

underground economy: an unregulated economy of labor and goods that operates outside of governance, regulatory systems, or human protections