In addition, it assumes that the goal of all countries is to be as developed as possible (i.e., like the model of capitalist democracies provided by Canada or the United States). When Canadians seek the lowest possible price, shop at big box stores for the biggest discount they can get, and generally ignore other factors in exchange for low cost, they are building the market for outsourcing. The Covid Crisis in the UK increased inequalities in several different ways such as: School closures disrupted the education of poorer students more than students from wealthier backgrounds. What factors come into play? U.S. Department of State. Does it mean being a single mother with two kids in Toronto, waiting for her next paycheque before she can buy groceries? B | 2. Castells, Manuel. Because of the high value of Canadas oil exports, international investors have driven up the value of the Canadian dollar in a process referred to as Dutch disease, the relationship between an increase in the development ofnatural resourcesand a decline inmanufacturing. How is it the same or different in peripheral nations? Western nations, however, decry the practice and are working to stop it. U.S. Department of State. For more information about global affairs, check the Munk School of Global Affairs website at http://munkschool.utoronto.ca/, Learn more about the anti-globalization movement from Naomi Kleins website: http://www.naomiklein.org/main. Social inequality is the extent to which there are differences between groups in society. 2012. This means that as emerging economies create their own industrial zones, global companies see the opportunity for existing infrastructure and much lower costs. 112-113). When travel is involved, people can arrive in debt for their travel expenses and be unable to work their way free, since their wages do not allow them to ever get ahead. Background Note: Argentina. Retrieved January 3, 2012 (http://www.state.gov/r/pa/ei/bgn/26516.htm). Introduction to Global Inequality; 10.1 Global Stratification and Classification; 10.2 Global Wealth and Poverty; 10.3 Theoretical Perspectives on Global Stratification; Key Terms; Section Summary; Section Quiz; Short Answer; Further Research; References Is it fair for powerful countries to make rules that make it difficult for less-powerful nations to compete on the global scene? 2009. Although the United States differs from most European . World Bank. Social inequality is the state of unequal distribution of valued goods and opportunities. In 2010, the average GNI of a high-income nation that did not belong to the OECD was $23,839 per capita and 83 percent was urban. But these tiny sums mark the difference between survival and extinction for the worlds poor. How did wealth become concentrated in some nations? Myrdal, Gunnar. The globalization of production makes it difficult to follow the links between the purchasing of a T-shirt in a Canadian store and the chain of agents, garment workers, shippers, and agricultural workers whose labour has gone into producing it and getting it to the store. Like most versions of modernization theory,Rustows schema describes a linear process of development culminating in the formation of democratic, capitalist societies. [Solved] What Is Global Inequality - Introduction To Sociology (SOC 110 Answer A A sociologist working from a symbolic interaction perspective would: study how inequality is created and reproduced study how corporations can improve the lives of their low-income workers try to understand how companies provide an advantage to high-income nations compared to low-income nations Within the context of this recession, some see the underground economy as a key player in keeping people alive. And with the global recession having slowed both institutional and personal funding, the attainment of the goals is very much in question (United Nations 2010). Throughout the 1990s, data indicated that while overall poverty rates were rising, especially in peripheral nations, the rates of impoverishment increased nearly 20 percent morefor womenthan for men (Mogadham 2005). Perhaps the most pressing issue for middle-income nations is the problem of debt accumulation. 2007. They know everything about your phone or your modem, often using a remote server to log in to your home computer to accomplish what is needed. While global inequality is nothing new, several factors, like the global marketplace and the pace of information sharing, make it more relevant than ever. Social Stratification in Canada, Chapter20. Social Movements and Social Change, 10.1. This means that a family subsisting on a few dollars a day in Nepal might think of themselves as doing well, within their perception of normal. Social inequality can be related to: differences in incomes. At the same time, the issue is more complex than the numbers might suggest. 2001. Global inequality, as opposed to inequality inside or between nations, is one approach to comprehending the various lived realities of our fellow humans, wherever they may reside. Researchers try to understand global inequality by classifying it according to factors such as how industrialized a nation is, whether it serves as a means of production or as an owner, and what income it produces. Development has been redefined from the model of nationally managed economic growth to participation in the world market according to the World Banks World Development Report 1980 (cited in McMichael 2012, pp. Since the 1970s, capital accumulation has taken place less and less in the context of national economies. Retrieved January 5, 2012 (http://edu.learnsoc.org/Chapters/3%20theories%20of%20sociology/11%20modernization%20theory.htm). October 12. Global inequality is the unequal distribution of resources, opportunities, and power that shape well-being among the 8 billion individuals on our planet. Faith is experiencing _________________. Why is Africa in such dire straits? Semi-peripheral nations are in-between nations, not powerful enough to dictate policy but nevertheless acting as a major source for raw material. 10.3 Theoretical Perspectives on Global Stratification Understand how different classification systems have developed. Check the label of your jeans or sweatshirt and see where it was made. Much of the continents poverty can be traced to the availability of land, especially arable land (land that can be farmed). Not surprisingly, the consequences of poverty are often also causes. Why does this make it difficult to resolve or address the issue? There is no international agency that can enforce compliance with safety or working standards. How might a symbolic interactionist approach this topic? As we consider the global effort to meet these ambitious goals, we can think about how the worlds people have ended up in such disparate circumstances. Since he does not have a regular job, he does not own a car. For example, Wallerstein contends that the United States is an economic powerhouse that can support or deny support to important economic legislation with far-reaching implications, thus exerting control over every aspect of the global economy and exploiting both semi-peripheral and peripheral nations. (Credit: Alicia Nijdam/Wikimedia Commons) Chapter Outline 10.1 Global Stratification and Classification 10.2 Global Wealth and Poverty Those born into these conditions are incredibly challenged in their efforts to break out since these consequences of poverty are also causes of poverty, perpetuating a cycle of disadvantage. Again, as with the ongoing inequality, the effects of poverty on mental and physical health become more entrenched as time goes on. 1 in 2 Black adults have accrued credit card debt during the past three months. Manufacturing that used to take place in Canada moved overseas. 2007. The demographics of racial inequality in the United States Global Inequality - NSCC Introduction to Sociology The majority of economically active women in peripheral nations are engaged in the informal sector, which is somewhat buffered from the economic downturn. Just as North Americas wealth is increasingly concentrated among its richest citizens while the middle class slowly disappears, global inequality involves the concentration of resources in certain nations, significantly affecting the opportunities of individuals in poorer and less powerful countries. A critical sociologist would likely address the systematic inequality created when core nations exploit the resources of peripheral nations. When you see a homeless person, is your reaction different if he or she is seemingly content rather than begging? Reasons why income and wealth inequality exists - BBC Global economic inequality at lowest level in nearly 150 years - Axios D| 6. Cross-nationally, crime rates are higher, particularly with violent crime, in countries with higher levels of income inequality (Fajnzylber, Lederman, and Loayza 2002). Global Wealth and Poverty Many models of modernization and development are functionalist, suggesting that societies with modern cultural values and beliefs are able to achieve economic development while traditional cultural values and beliefs hinder development. Poverty in Latin America, Foreign Aid Debt Burdens. Retrieved January 2, 2012 (http://world-poverty.org/povertyinlatinamerica.aspx). Between the lines: The part of that number due to inequality within countries has ticked up slightly it now stands at about 13, up from 7 in the 1990s. Chapter 10. Global Inequality - Introduction to Sociology - 1st Why or why not? Dependency theorists explain global inequality and global stratification by focusing on the way that____________________________________. For Canadian and multinational companies, the equation makes sense. By 2001, so much money was leaving the country that there was a financial panic, leading to riots and ultimately, the resignation of the president (U.S. Department of State 2011a). Such issues have plagued middle-income countries in Latin America and the Caribbean, as well as East Asian and Pacific nations (Dogruel and Dogruel 2007). According to modernization theory, low-income countries are affected by their lack of industrialization and can improve their global economic standing through: Critics point out the inherent ethnocentric bias of this theory. 1 in 3 Black children live in poverty. She is homeless and often does not know where she will sleep or when she will eat. Social justice advocates generally argue that inequality is unfair, as it leaves some individuals with greater life chances and higher standards of living than others, regardless of . How can we address the needs of the worlds population? Others maintain that these claims are patently incorrect, arguing that globalization has disintegrated national borders and prompted economic . Use terminology from Wallerstein's world systems approach. Chapter nine Global Stratification, in our text book Sociology in Our Times by Diana Kendall gives us a deep insight on the perspectives and theory's that help us to view wealth, poverty, and global inequalities from different sides. The chapter that addresses globalisation and the global dimensions of inequality is a strength, in particular the way it problematises the subjective nature of inequality on a global scale. When looking at the worlds poor, we first have to define the difference between relative poverty, absolute poverty, and subjective poverty. Maya is a 12-year-old girl living in Thailand. And certainly when you are shopping for a cheap T-shirt, you probably do not turn over the label, check who produced the item, and then research whether or not the company has fair labour practices. Some of these countries include Canada, the United States, Germany,and the United Kingdom (World Bank 2011). Income inequality is a major dimension of social stratification and social class. In fact, most poverty is concentrated in South Asia. Cold War terminology was developed during the Cold War era (19451980) when the world was divided between capitalist and communist economic systems (and their respective geopolitical aspirations). As in Africa, Asia finds itself with disparity in the distribution of poverty, with Japan and South Korea holding much more wealth than India and Cambodia. Social Inequality - an overview | ScienceDirect Topics Background Note: Rwanda. Retrieved January 3, 2012 (http://www.state.gov/r/pa/ei/bgn/2861.htm#econ). World Poverty. That means that multinational corporations that might earn billions in offices and factories around the globe are considered part of acore nations GNI if they have headquarters in the core nations. Contrary to relative poverty, people who live in absolute poverty lack even the basic necessities, which typically include adequate food, clean water, safe housing, and access to health care. Eve of Destruction by Rick Harris (https://www.flickr.com/photos/37153080@N00/62624493/) use under CC BY SA 2.0 (https://creativecommons.org/licenses/by-sa/2.0/). 2000. Lockdowns and social distancing meant less work for the less well educated and those in lower paid jobs compared . They are an expanding middle-class marketplace for core nations, while also exploiting peripheral nations. However, as the cost of Chinese labour has incrementally increased since the 1990s, the Chinese have moved into the role of connecting Western retailers and designers with production centres elsewhere. Roeleveld, and Adriaan Roeleveld. The other is the stratification of the world's people into rich and poor countries, or inequality among countries. The flip side, of course, is that it is equally buffered from the possibility of economic growth. Examples of these countries include Saudi Arabia and Qatar (World Bank 2011). PDF Global Inequality: Is globalisation a solution to world poverty? Gross national income equals all goods and services plus net income earned outside the country by nationals and corporations headquartered in the country doing business out of the country, measured in U.S. dollars. Definition of Global Inequality. Many years later, what has happened? Social inequality is the existence of unequal opportunities and rewards for different social positions or statuses within a group or society. Social inequality is the state of unequal distribution of valued goods and opportunities. Does it mean living with almost no furniture in your apartment because your income does not allow for extras like beds or chairs? India and other semi-peripheral countries have emerging infrastructures and education systems to fill their needs, without core nation costs. Theoretical Perspectives on Global Stratification 2012a. What is Really Happening with Global Inequality? | Sociology of While there are myriad variables affecting womens poverty, research specializing in this issue identifies three causes: In short, this means that within an impoverished household, women are more likely to go hungry than men; in agricultural aid programs, women are less likely to receive help than men; and often, women are left taking care of families with no male counterpart. Theoretical Perspectives on Global Stratification At the end of 2013, only 11 percent of the labour force worked in manufacturing. The move hurt the nations ability to be competitive in the world market and ultimately created chronic deficits that could only be financed by massive borrowing from other countries and markets. Buvini, M. 1997. For example, we can compare Chinas average workers wage to Canadas average wage. 3. Although there is a large amount of foreign investment in this part of the world, it tends to be higher-risk speculative investment (rather than the more stable long-term investment Europe often makes in Africa and Asia). This is up from 45.8 percent of total wealth share in 2020. Anja Wei View all authors and affiliations. Chances are it was a peripheral nation such as Guatemala, Bangladesh, Malaysia, or Colombia. Consider the controversy surrounding female genital mutilation. While the majority of the worlds poorest countries are in Africa, the majority of the worlds poorest people are in Asia. When this nomenclature was developed, capitalistic democracies such as the United States, Canada, and Japan were considered part of the first world. 2012b Poverty in Asia, Caste and Progress. Retrieved January 2, 2012 (http://world-poverty.org/povertyinasia.aspx). While there is often criticism of the World Bank, both for its policies and its method of calculating data, it is still a common source for global economic data. Look at the manufacturing industries in Ontario. 1970. USAS. 1979. In fact, many believe that Chinas success in recent times has much to do with its draconian population control rules. In fact it can be very difficult to discover where exactly the items we use everyday have come from. Retrieved April 9, 2014, from https://www.policyalternatives.ca/sites/default/files/uploads/publications/Ontario%20Office/2014/03/Seismic%20ShiftFINAL.pdf. Global Stratification and Classification Although Changs study is based in a town many have never heard of (Dongguan), this city produces one-third of all shoes on the planet (Nike and Reebok are major manufacturers here) and 30 percent of the worlds computer disk drives, in addition to a wide range of apparel (Chang 2008). The free trade agreements such as the North American Free Trade Agreement (NAFTA) are examples of how a core nation can leverage its power to gain the most advantageous position in the matter of global trade. Official statistics before the 2008 worldwide recession posit that the underground economy accounted for over 50 percent of non-agricultural work in Latin America; the figure went as high as 80 percent in parts of Asia and Africa (Chen 2001). ( noun) When resources are limited to a few core nations and a wealthy minority of corporations or individuals. A major concern when discussing global inequality is how to avoid an ethnocentric bias implying that less developed nations want to be like those who have attained postindustrial global power. Introduction to Global Inequality 10.1. Why do you think worker safety standards and factory building inspections have to be imposed by government regulations rather than being simply an integral part of the production process? Sociology is the scientific and systematic study of groups and group interactions, societies and social interactions, from small and personal groups to very large groups. However, global income inequality between countries has recently lessened. Yet the topic is complex and uncertain. Retrieved January 17, 2012 (http://www.globalissues.org/print/article/4). The existence of inequality depends on socially recognised difference. Rather, as we saw in the example of the garment industry, capital circulates on a global scale, leading to a global reordering of inequalities both between nations and within nations. Cultures are either functional or dysfunctional for the economic development of societies. Armer, J. Michael and John Katsillis. Data show that core nations tend to have lower maternal and child mortality rates, longer lifespans, and less absolute poverty. Learn how BCcampus supports open education and how you can access Pressbooks. In the past, Canada manufactured clothes. Sexual Orientation and Gender Identity. Retrieved January 3, 2012 (http://www.amnesty.org/en/sexual-orientation-and-gender-identity). Cambridge, England: Cambridge World Press. North America and Europe are home to fewer of the worlds poor than Africa, which has highest number of poor countries, or Asia, which has the most people living in poverty. D, Figure 10.2. As the uncertainties of the global economy make repaying these debts, or even paying the interest on them, more challenging, nations can find themselves in trouble. Global Inequality and Global Poverty | SpringerLink However, every part of Asia has felt the global recession, from the poorest countries whose aid packages were hit, to the more industrialized ones whose own industries slowed down. When using the World Bank categorization to classify economies, the measure of GNI, or gross national income, provides a picture of the overall economic health of a nation. Why do you think some scholars find Cold War terminology (first world and so on) objectionable? Power, inequality and conflict are . This was the era when the idea of geopolitical noblesse oblige (first-world responsibility) took root, suggesting that the so-called developed nations should provide foreign aid to the less-developed and underdeveloped nations in order to raise their standard of living. How would you manage the necessitiesand how would you make up the gap between what you need to live and what you can afford? Argentina is one nation that suffered from increasing debt load in the early 2000s, as the country tried to fight hyperinflation by fixing the peso to the U.S. dollar. 2011. According to the Credit Suisse Global Wealth Report, in 2021 the world's richest 1 percent, those with more than $1 million, own 47.8 percent of all the world's wealth. Every time you see a fellow student with a new laptop and smartphone you might feel that you, with your ten-year-old desktop computer, are barely keeping up. 11. D| 4. How we understand the cause of global inequality in these indicators depends on how we understand development and . 2011a. Do you think dependency theory and globalization theory are also biased? Such themes involve economics. As mentioned in the introduction, power, inequality and conflict have been central themes of sociology, including inequality in wealth and income. Between 2000 and 2013,290,000 manufacturing jobs were lost (Tiessen 2014). 2010. Inequality causes direct harm to us all. Social inequality in education is universally observed in countries in which children are brought up in unequal families; they enter school with unequal linguistic, cognitive, and cultural assets and attain unequal levels of achievement. Consider the example of Rwanda. In general, time is one of the few luxuries the very poor have, but study after study has shown that women in poverty, who are responsible for all family comforts as well as any earnings they can make, have less of it. Having a global perspective on wealth and poverty allows members of society to . L.A.: Sage. What Can You Do With a Sociology Degree? - U.S. News Inequality | UN Global Compact Poverty has a thousand faces and a thousand gradations; there is no single definition that pulls together every part of the spectrum. The underground economy has never been viewed very positively by global economists. For example, how many Canadian companies move operations offshore to take advantage of overseas workers who lack the constitutional protection and guaranteed minimum wages that exist in Canada? But before we complain too bitterly, we must look at the culture of consumerism that Canadians embrace. This is an example of ________________. Outsourcing shifts production to low-wage enclaves, displacement leads to higher unemployment rates in the traditionally wealthy global north, people migrate from rural to urban areas and slum cities and illegally from poor countries to rich countries, while large numbers of workers simply become redundant to global production and turn to informal, casual labour. global stratification : The unequal distribution of resources between countries. Inequality is thus, without any surprise, an important issue for the IMF in all three of its core activities: (1) lending to support macroeconomic adjustment programs; (2) macroeconomic surveillance, including related policy analysis; and. 2012c. Since the introduction of the North American free trade agreements (the Free Trade Agreement (FTA) in 1988 and the North American Free Trade Agreement (NAFTA) in 1994), the ending of the tariff system that protected branch plant manufacturing in Canada has enabled U.S. companies to shift production to low-wage regions south of the border and in Mexico. Globalization and Inequality | European Sociological Review | Oxford Canadian-manufactured products are too expensive as a result. The extreme concentration of money, power, and influence of a few at the very top has pernicious effects on the rest of us. Poor people face physical health challenges, including malnutrition and high infant mortality rates. The global economy as a whole, not modernized national economies,emerges as the site of development. With the concept of subjective poverty, the poor themselves have a greater say in recognizing when it is present. Dependency theory states that as long as peripheral nations are dependent on core nations for economic stimulus and access to a larger piece of the global economy, they will never achieve stable and consistent economic growth. In Canada, unemployment is high. What theoretical perspective might you use? Those opportunities lead to businesses closing the factories that provide jobs to the middle-class within core nations and moving their industrial production to peripheral and semi-peripheral nations.
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