Sociology 101Sociology 101

Chapter 8

Global Stratification

IntroductionIntroduction

World population is approx. 7 billionWorld population is approx. 7 billion Most of the world’s Most of the world’s population growth is in is in

countries outside developed nationscountries outside developed nations 79% of the 79% of the world’s population live in live in

underdeveloped nationsunderdeveloped nations

Soucrce: World Population Data Sheet 2012 Soucrce: World Population Data Sheet 2012 (http://www.prb.org/Publications/Datasheets/2012/world-population-data-sheet/fact-sheet-world-population.aspx) (http://www.prb.org/Publications/Datasheets/2012/world-population-data-sheet/fact-sheet-world-population.aspx)

Economies in Global PerspectiveEconomies in Global Perspective

Global InequalityGlobal Inequality

Type of Country Key Characteristics

High-Income

Highly industrialized economies; high levels of national and per capita income.

Middle-Income

Industrializing economies, particularly in urban areas, and moderate levels of national and personal income.

Low-Income

Primarily agrarian nations with little industrialization and low levels of national and personal income.

The “Three Worlds” The “Three Worlds” ApproachApproach

Type of Country Key Characteristics

First World

consist of the rich, industrialized nations that primarily had capitalist economic systems and democratic political systems

Second World

at least a moderate level of economic development and a moderate standard of living

Third World

little or no industrialization and the lowest standards of living, shortest life expectancies, and highest rates of mortality

Levels of Development ApproachLevels of Development Approach

Among the most controversial terminology for describing world poverty Among the most controversial terminology for describing world poverty and global stratification.and global stratification.

Terminology based on levels of development includes concepts such as Terminology based on levels of development includes concepts such as developed nations, developing nations, less developed nations, and developed nations, developing nations, less developed nations, and underdevelopment.underdevelopment.

World Bank Classification of World Bank Classification of Economies by IncomeEconomies by Income

The World Bank classifies nations into three The World Bank classifies nations into three economic categories: economic categories: – low-income economies (a GNI per capita of $935 or less in low-income economies (a GNI per capita of $935 or less in

2003)2003)

– middle-income economies (a GNI per capita between $936 and middle-income economies (a GNI per capita between $936 and $11,455 in 2007)$11,455 in 2007)

– high-income economies (a GNI per capita of more than high-income economies (a GNI per capita of more than $11,456 in 2007).$11,456 in 2007).

Gross Domestic Product (GDP)Gross Domestic Product (GDP)

All the goods and services produced within a country’s economy during All the goods and services produced within a country’s economy during a given year. a given year.

The GDP does not include any income earned by individuals or The GDP does not include any income earned by individuals or corporations if the revenue comes from sources outside of the country.corporations if the revenue comes from sources outside of the country.

Source: http://www.newgeography.com/content/003271-the-expanding-economic-pie-grinding-povertySource: http://www.newgeography.com/content/003271-the-expanding-economic-pie-grinding-poverty

Global PovertyGlobal Poverty

Absolute poverty would be measured by comparing personal or Absolute poverty would be measured by comparing personal or household income or expenses with the cost of buying a given quantity household income or expenses with the cost of buying a given quantity of goods and services. of goods and services.

Relative poverty exists when people may be able to afford basic Relative poverty exists when people may be able to afford basic necessities but are still unable to maintain an average standard of living.necessities but are still unable to maintain an average standard of living.

Subjective poverty would be measured by comparing the actual income Subjective poverty would be measured by comparing the actual income against the income earner’s expectations and perceptions.against the income earner’s expectations and perceptions.

Dimensions of Defining Levels of Dimensions of Defining Levels of PovertyPoverty

1.1. How many people are poor.How many people are poor.

2.2. How far below the poverty line people’s incomes How far below the poverty line people’s incomes fall.fall.

3.3. How long they have been poor (is the poverty How long they have been poor (is the poverty temporary or long term?).temporary or long term?).

Gini CoefficeientGini Coefficeient

A measure of income inequality which ranges from zero (meaning that A measure of income inequality which ranges from zero (meaning that everyone has the same income) to 100 (one person receives all the everyone has the same income) to 100 (one person receives all the income). income).

Using this measure, the World Bank concluded that inequality has Using this measure, the World Bank concluded that inequality has increased in nations such as Bulgaria, the Baltic countries, and the increased in nations such as Bulgaria, the Baltic countries, and the Slavic countries of the former Soviet Union to levels similar to those in Slavic countries of the former Soviet Union to levels similar to those in less-equal industrial market economies, such as the United States.less-equal industrial market economies, such as the United States.

Life Expectancy for Persons Born in Life Expectancy for Persons Born in 20102010

Source: http://www.project.org/info.php?recordID=465Source: http://www.project.org/info.php?recordID=465

The Quality of Life IndexThe Quality of Life Index

The Quality of Life Index (QLI) is an attempt to The Quality of Life Index (QLI) is an attempt to quantify a nation’s livability for its average inhabitantquantify a nation’s livability for its average inhabitant

It is a composite of six sub-indexes, each describing one It is a composite of six sub-indexes, each describing one of the elements which objectively influence the quality of of the elements which objectively influence the quality of life: life: – HealthHealth

– EducationEducation

– WealthWealth

– DemocracyDemocracy

– PeacePeace

– Environment.Environment.

Source: Nation Ranking: (http://nationranking.wordpress.com/2011/03/06/2011-qli/)Source: Nation Ranking: (http://nationranking.wordpress.com/2011/03/06/2011-qli/)

The 3The 3rdrd World World Most were once coloniesMost were once colonies Characterized by:Characterized by:– Relative powerlessnessRelative powerlessness– High levels of illiteracyHigh levels of illiteracy– High birth ratesHigh birth rates– High Infant mortalityHigh Infant mortality– DiseaseDisease– Rapid population growthRapid population growth

» The poor have many children because they are a source of labor and they take care The poor have many children because they are a source of labor and they take care of parents later in lifeof parents later in life

» Can be curbed by:Can be curbed by: Economic development (modern demographic transition)Economic development (modern demographic transition) Family planning (e.g. birth control)Family planning (e.g. birth control) Societal changesSocietal changes

– Govt. incentives for fewer childrenGovt. incentives for fewer children– Educate womenEducate women

– PovertyPoverty» Over a billion people live in absolute povertyOver a billion people live in absolute poverty

Those making less than $1.25/dayThose making less than $1.25/day

» Gap between rich & poor nations is increasingGap between rich & poor nations is increasing» Consequences of world povertyConsequences of world poverty

DiseaseDisease MalnutritionMalnutrition Emergence of extremist groups Emergence of extremist groups Generates anti-American sentiments by poor countriesGenerates anti-American sentiments by poor countries Countries controlled by dictatorshipsCountries controlled by dictatorships

– High levels of hungerHigh levels of hunger» The major problem with food shortages is not production, The major problem with food shortages is not production,

We can produce enough to feed everyone in the worldWe can produce enough to feed everyone in the world Discussion Question

» Instead, it is the way that the world’s political economy is currently structuredInstead, it is the way that the world’s political economy is currently structured Most of the land in poor countries is controlled by elitesMost of the land in poor countries is controlled by elites

– Elites like to produce crops that have high export values but don’t meet local Elites like to produce crops that have high export values but don’t meet local needs. Why?needs. Why?

– Because they can be exported to rich countries like the U.S.Because they can be exported to rich countries like the U.S.– We consume more than any other countryWe consume more than any other country

Discussion Question

Economist Robert L. Heilbroner, in Economist Robert L. Heilbroner, in Inquiry into Inquiry into the Human Projectthe Human Project, suggests it is unlikely that we , suggests it is unlikely that we would willingly make sacrifices in order to would willingly make sacrifices in order to improve the well-being of people around the improve the well-being of people around the world who at present live in abject poverty. world who at present live in abject poverty.

Do you agree with Heilbroner? Why or why not?Do you agree with Heilbroner? Why or why not?

U.S. Involvement in the 3U.S. Involvement in the 3rdrd World World As recently as 1914, 70% of the world’s population lived As recently as 1914, 70% of the world’s population lived

in coloniesin colonies– Previous economic domination has helped to keep former Previous economic domination has helped to keep former

colonies economically dependentcolonies economically dependent The U.S. Govt. spends about $48 billion yearly on The U.S. Govt. spends about $48 billion yearly on

foreign aid and billions on loans to 3foreign aid and billions on loans to 3rdrd world countries world countries– Does this for humanitarian and self-serving reasonsDoes this for humanitarian and self-serving reasons

» U.S. has often set up and/or supported dictatorshipsU.S. has often set up and/or supported dictatorships Often promise dictators favorsOften promise dictators favors

– U.S. supported Castro until he said no to the banana companiesU.S. supported Castro until he said no to the banana companies– One Senate report has shown the CIA was involved in more than 900 One Senate report has shown the CIA was involved in more than 900

foreign interventions, including paramilitary operations, manipulation foreign interventions, including paramilitary operations, manipulation of foreign governments, and assassinations between 1945 and 1965of foreign governments, and assassinations between 1945 and 1965

Multinational CorporationsMultinational Corporations Many of the multicorporations that control the world Many of the multicorporations that control the world

economy are headquartered in the U.S.economy are headquartered in the U.S.– Much of the profits are channeled to developed countriesMuch of the profits are channeled to developed countries

ProblemsProblems– Indigenous corporations cannot competeIndigenous corporations cannot compete

» Multicorps have access to the latest technologyMulticorps have access to the latest technology» Multicorps receive better terms for borrowed moneyMulticorps receive better terms for borrowed money» Multicorps are able to control demand through advertisingMulticorps are able to control demand through advertising» Multicorps are able to exploit the resources of 3Multicorps are able to exploit the resources of 3rdrd world countries world countries

Furthermore, they don’t provide a lot of jobs because the tend to use labor saving Furthermore, they don’t provide a lot of jobs because the tend to use labor saving machinerymachinery

» Multicorps use 3Multicorps use 3rdrd world countries to “dump” dangerous and inferior products world countries to “dump” dangerous and inferior products Cigarettes, Dalkon Shield, Toxic WasteCigarettes, Dalkon Shield, Toxic Waste

» Hard for 3Hard for 3rdrd world countries to subsidize their corps to compete with multicorps world countries to subsidize their corps to compete with multicorps These countries spend a lot of their GNP to service their debts to developed These countries spend a lot of their GNP to service their debts to developed

countriescountries

Modernization TheoryModernization Theory

Low-income, less Low-income, less developed countries can developed countries can move to middle- and high-move to middle- and high-income economies by income economies by achieving self-sustained achieving self-sustained economic growth.economic growth.

Dependency TheoryDependency Theory

Poor nations are Poor nations are trapped in a cycle trapped in a cycle of dependency on of dependency on richer nations.richer nations.

World Systems TheoryWorld Systems Theory

How a country is How a country is incorporated into the incorporated into the global capitalist economy is global capitalist economy is the key feature in the key feature in determining how economic determining how economic development takes place in development takes place in that nation.that nation.

New International Division of New International Division of Labor TheoryLabor Theory

Commodity production is Commodity production is split into fragments, each split into fragments, each of which can be moved to of which can be moved to whichever part of the whichever part of the world can provide the best world can provide the best combination of capital and combination of capital and labor.labor.

ConclusionConclusion

It is in our best interest if there is peace & It is in our best interest if there is peace & stability in the 3stability in the 3rdrd world world

This can be achieved if:This can be achieved if:– Population growth is slowedPopulation growth is slowed– Hunger & poverty is alleviatedHunger & poverty is alleviated– Developed nations & megacorps stop exploiting 3Developed nations & megacorps stop exploiting 3rdrd

world countriesworld countries