Poverty, Development, and Global Inequality

SOCIAL STRATIFICATION

  • Definition: A system through which a society ranks categories of people in a hierarchy.

POVERTY

  • General Definition: A lack of access to basic resources deemed normal in a society.
Types of Poverty
  • Absolute Poverty:
    • Definition: The lack of resources leading to hunger and physical deprivation.
  • Relative Poverty:
    • Definition: A deficiency in material and economic resources compared with some other population.

MULTIDIMENSIONAL ASPECTS OF POVERTY

  • Key Factors:
    • Food insecurity
    • Poor housing
    • Unemployment
    • Psychological distress
    • Powerlessness
    • Access to healthcare
    • Education
    • Transportation

POVERTY IN CANADA (2020)

  • Statistics:
    • 6.4% of Canadians lived in poverty.
    • 11.2% of Canadians faced moderate to severe food insecurity.
    • Marginalized groups, especially women, recent immigrants, people with disabilities, and Indigenous peoples, are disproportionately affected by poverty.

GLOBAL POVERTY

  • Statistics:
    • 2.5 billion people live on less than $2 a day.
    • ~1 billion people live on less than $1 a day.
    • ~half the population of sub-Saharan Africa lives on less than $1 a day.
    • ~18% of the world's population experiences daily hunger.

GLOBAL STRATIFICATION

  • Definition: A global system ranking countries hierarchically.
How are Countries Ranked?
  • Key Indicators:
    • Gross Domestic Product (GDP): Total goods and services produced by a country's economy in a year.
    • Gross National Income (GNI): Includes income earned by residents or corporations outside the country.

WORLD BANK GLOBAL STRATIFICATION SYSTEM

  • Categories:
    • High Income countries
    • Upper-Middle Income Countries
    • Lower-Middle Income Countries
    • Low Income countries

FACTORS IMPACTED BY GLOBAL INEQUALITY

  • Health
  • Hunger, malnourishment, and famine
  • Education and literacy
    • Child labour
    • Urbanization
  • Access to technology

THE FEMINIZATION OF POVERTY

  • Definition: The disproportionate distribution of poverty among women.
  • Statistics from U.S. (2005):
    • 30% of families with a female householder are in poverty.
    • 5.1% of married couples are in poverty.

MATERNAL MORTALITY

  • Trends:
    • Fell annually by 2.7% since 2003.
    • 293,000 global maternal deaths reported.
    • Major causes include abortion complications, hypertension, and hemorrhage.

MODERNIZATION THEORY

  • Concept: The transition of nations from traditional to modern social organizations through major historical shifts.
  • Assumption: All societies can achieve modernization, with tradition seen as a barrier.

DEPENDENCY THEORY

  • Concept: Industrialized nations exploit developing countries for profit.
  • Outcomes:
    • Multinationals exploit local workers;
    • Increased economic inequality in developing nations.
    • Continuous indebtedness to IMF and World Bank prevents financial independence.

WALLERSTEIN'S WORLD SYSTEM ANALYSIS

  • Concept: Division of the global economic system into industrialized countries (core) and developing countries (periphery) that are exploited.
Economic Categories:
  • Core Countries: Canada, US, Germany, Japan
  • Semiperiphery Countries: China, India, Mexico
  • Periphery Countries: Afghanistan, Haiti, Chad

DEVELOPMENT

  • Definition: The transformation process of countries from underdeveloped to developed status.

THE BRETTON WOODS AGREEMENT

  • Historical Context: Formed post-WWII to improve foreign exchange efficiency and promote international economic growth.
  • Institutions Established:
    • International Monetary Fund (IMF)
    • World Bank

STRUCTURAL ADJUSTMENT PROGRAMS (SAPS)

  • Purpose: Loans for poverty alleviation and financial growth accompanied by mandatory policies for borrowing nations.

THE PARADOX OF POVERTY

  • Observation: Many so-called poor countries are rich in natural resources.

ARTURO ESCOBAR

  • Profile: Leading development theorist, professor at UNC.
  • Major Work: "Encountering Development: The Making and Unmaking of the Third World."
Main Arguments:
  • Development often serves as neocolonialism.
  • Categorization of nations as developed vs underdeveloped is socially constructed.
  • Focus on economic development overshadows exploitation of resources in poorer countries.