Chapter 10

Chapter 10 – Global Inequality

10.1 Global Stratification and Classification

  • Global stratification: Compares wealth, power, and resources across nations.

  • Inequality = gap between rich and poor countries.

  • Measures used:

    • GNP (Gross National Product): Goods/services produced by citizens, anywhere.

    • GDP (Gross Domestic Product): Goods/services produced inside a country.

    • GNI (Gross National Income): Goods/services + international income.

    • PPP (Purchasing Power Parity): Adjusts for cost of living differences.

  • Classifications:

    • Old model: First World, Second World, Third World (Cold War terms, outdated).

    • Modern model: Developed vs. Developing nations.

    • World Systems Theory (Wallerstein):

      • Core nations: Rich, industrialized, powerful.

      • Peripheral nations: Poor, dependent, exploited.

      • Semi-peripheral nations: Middle ground; some industry, exploited by core but exploit periphery.

10.2 Global Wealth and Poverty

  • Poverty types:

    • Relative poverty: Poor compared to others in the same society.

    • Absolute poverty: Cannot meet basic needs (food, shelter).

    • Subjective poverty: Feeling poor compared to expectations.

  • Human Development Index (HDI): Measures health, education, and standard of living.

  • Feminization of poverty: Women make up a large share of the world’s poor.

    • Reasons: Single mothers, gender pay gap, discrimination, fewer rights.

  • Global poverty causes:

    • Lack of education, unstable governments, weak economies, corruption, exploitation.

10.3 Theoretical Perspectives on Global Stratification

  • Modernization Theory:

    • Poor countries can develop if they adopt modern practices (tech, values, industries).

    • Criticism: Blames poor nations for being poor.

  • Dependency Theory:

    • Poor nations are kept poor by rich nations (colonialism, exploitation, debt).

    • Resources flow from poor (periphery) to rich (core).

  • World Systems Theory:

    • Global economy is one system; nations unequal but connected.

    • Core dominates trade/technology, peripheral supplies cheap labor/resources.

  • Neocolonialism:

    • Economic domination replaces political colonialism.

    • Example: Rich nations loan money → poor nations stuck in debt.

10.4 How Global Inequality Is Maintained

  • Colonialism: Past conquest and exploitation shaped today’s inequality.

  • Neocolonialism: Rich countries still control poor ones through loans, debt, and trade rules.

  • Multinational corporations: Operate across nations, profit from cheap labor and weak regulations.

  • Capital flight: Jobs/money move from rich to poor countries (outsourcing).

  • Deindustrialization: Loss of manufacturing in rich countries; moves to poorer countries with cheaper costs.

Key Takeaways

  • Global inequality is not random; it is structured.

  • Rich nations benefit most from global trade and politics.

  • Poor nations face systemic barriers that keep them dependent.

  • Women and children are the most vulnerable in global poverty.