Week 11 - Chapter 9

Global Inequality

The 2016 Billionaires

• World's Richest Contestants: In 2016, the title of the world's richest person alternated between Bill Gates and Amancio Ortega.

  • Bill Gates: Co-founder of Microsoft with a net worth of $75 billion, primarily from stock ownership in Microsoft.

  • Amancio Ortega: Founder of Inditex, known for the Zara retail brand, with a net worth of $67 billion.

• Other Notable Billionaires: Mark Zuckerberg reached 6th place, and Jeff Bezos climbed to 5th.

• Global Billionaires: 1,810 billionaires worldwide with a combined net worth of $6.5 trillion; 540 from the U.S. and 320 from China (including Hong Kong).

Basic Concepts of Global Inequality

• Systematic Differences: Global inequality refers to wealth and power disparities among countries.

• Global Business Growth: Globalization has led to increased wealth for some while others face rising inequality.

Theories of Global Inequality

1. Market-Oriented Theories: Suggest free-market economies result in economic growth. Emphasize minimal government intervention.

2. Dependency Theories: Argue that the poverty of low-income nations stems from exploitation by wealthy nations and multi-nationals.

3. World-Systems Theory: Sees the world as a capitalist system influenced by economic interdependence among nations. Discusses core, peripheral, and semi-peripheral countries.

4. Global Commodity-Chains Theory: Focuses on interconnected economic activities worldwide that yield consumer goods.

Research on Global Inequality

• Health: People in high-income countries enjoy better health care and life span than those in low-income countries. Poor health is linked with poverty and malnutrition.

• Education: Higher literacy rates and education levels in affluent countries correspond with better job opportunities.

• Hunger: Chronic undernourishment affects 795 million globally, mostly in developing countries due to social and environmental factors.

Unanswered Questions

• Experts ponder over causes of inequality and the future direction of global poverty, aiming for equitable solutions for sustainable growth.

• The impact of technology and globalization on jobs and inequality remains a focal point of discussion, particularly as automation rises.

Key Takeaway Points

• Global inequality is a complex and multi-faceted issue, influenced by historical, economic, and social factors.

• Understanding the interplay between globalization, economic theories, and inequality is crucial for developing strategies to address global disparities.