Global inequality

Global Inequality Overview

  • Global Inequality: A pervasive issue impacting economic and social structures across various countries.

Globalisation Characteristics

  • Societal Interconnectedness:

    • Over the last 300 years, societies have become increasingly interconnected through:

      • Major explorations

      • Colonialism

      • Slavery

      • Mass migration

    • Recently, the world is more linked than ever.

  • Cultural Dominance:

    • High-income nations (primarily in the West) impose their way of life globally.

  • Economic Structures:

    • Dominance of global corporations and financial markets.

Global Perspective

  • Definition:

    • The study of societal roles within the larger global framework.

    • An extension of the sociological viewpoint.

  • Individual Experiences:

    • Personal experiences are significantly influenced by societal positions within a global context.

Income Inequality

  • Global Perspective on Income Inequality:

    • Notable differences are observed globally.

    • Significant progress in reducing poverty:

      • Since 1990, over 1.2 billion people have moved out of extreme poverty.

      • Currently, 9.2% of the global population survives on less than $1.90 a day, down from approximately 36% in 1990.

Extreme Poverty Insights

  • Definition of Extreme Poverty:

    • Living on less than $1.90 per day, adjusted for price differences and inflation.

  • Historical Data (1820-2015):

    • A significant number of people lived in extreme poverty throughout history; however, recent data indicates progress.

Wealth Disparity

  • Percentage Distributions:

    • The richest 1% own 43% of the world's wealth.

    • Billionaires gained significant wealth during the COVID-19 pandemic while labor income declined.

    • Men possess approximately 50% more wealth than women globally.

Impacts of Inequality

  • Education:

    • Approximately 258 million children are unable to access primary education, especially girls.

  • Public Services:

    • Insufficient funding leads to exclusive services that the wealthy can afford.

  • Health Disparities:

    • Access to healthcare is limited for the poor, directly affecting life expectancy.

  • Care Economy:

    • Women's unpaid care work significantly contributes to economies but remains unrecognized.

Historical Context of Global Inequality

  • Terminology Changes Post World War II:

    • Once defined in terms of First, Second, and Third World.

  • Current Classifications:

    • High-Income Countries: Major wealth and industrial output.

    • Middle-Income Countries: Varied industrialization with marked inequalities.

    • Low-Income Countries: Extreme poverty and low industrial output.

Economic Measures

  • Gross Domestic Product (GDP): Measures goods and services produced by a country's economy.

  • Gross National Income (GNI): Includes foreign earnings beyond domestic output.

Categorization of Countries

  • High-Income Countries: Early industrialization, urban-centric, and capital-intensive.

  • Middle-Income Countries: Limited industrialization, primarily urban dwellers but still with rural populations.

  • Low-Income Countries: Extreme productivity disparities exist compared to high-income nations.

Causes of Global Poverty

  • Technology: Limited specialized production in low-income countries affects productivity.

  • Population Growth: High birth rates and density in poor nations complicate poverty alleviation.

  • Cultural Patterns: Traditional lifestyles resist modernization and innovation.

  • Social Stratification: Wealth inequality perpetuates economic disparities.

  • Gender Inequality: Women face significant disparities in opportunities and income, often controlling minimal wealth.

  • Neocolonialism: Economic exploitation without direct political control.

Theoretical Explanations for Global Inequality

  • Modernisation Theory:

    • Economic growth as a historical process tied to the Industrial Revolution.

    • Claims that not all societies adopt modern technologies equally.

    • Criticized for oversimplifying the developmental process and blaming culture.

  • Dependency Theory:

    • Rooted in historical exploitation of poor societies by rich ones; emphasizes structural inequalities.

    • Highlights the continued economic dependency of poor nations despite political liberation.

Factors in Dependency Theory

  1. Narrow Economies: Dependency on inexpensive labor and raw materials limits development.

  2. Lack of Industrial Capacity: Poor nations depend on rich nations for manufactured goods.

  3. Foreign Debt: Increased financial burdens on poor nations, leading to further impoverishment.

Conclusion**

  • Global inequality is not a natural phenomenon but a result of political choices and historical exploitation. A fairer world is possible through strategic reform.