Chapter 9: Global Stratification

Table of Contents

1. Wealth And Poverty In Global Perspective
2. Problems In Studying Global Inequality
3. Classification Of Economies By Income
4. The Impact Of Debt And Foreign Aid
5. Measuring Global Wealth And Poverty
6. Global Poverty And Human Development Issues
7. Theories Of Global Inequality
8. Global Inequality In The Future

I. Wealth And Poverty In Global Perspective

1. Global stratification refers to the unequal distribution of wealth, power, and prestige on a global basis, resulting in people having vastly different lifestyles and life chances both within and among the nations of the world.
   1. Differences between developed (high-income) nations and developing (low-income) nations is increasing.
      
      
   2. By 1994, the wealthiest 20 percent of the world's population had 78 times the income of the poorest 20 percent.
      
      
2. Inequality and Individuals
   1. The 225 richest people in the world have a net worth of more than $1.3 trillion. This is equal to the annual incomes of the poorest 2.5 billion people.

II. Problems In Studying Global Inequality

1. The "Three Worlds" Approach
   1. The terms "First World," "Second World," and "Third World" have been used to distinguish among nations on the basis of their levels of economic development and standard of living.
      
      
2. The Levels of Development Approach
   1. Terminology based on levels of development includes concepts such as developed nations, developing nations, less developed nations, and underdevelopment.
      
      
   2. This approach defines developed largely in economic terms. It assumes that quality of life will increase as a direct result of economic development.
      
      
   3. Economic aid is often used to bolster the economic development of poorer nations. This aid can lead to political influence.

III. Classical Perspectives On Social Class

1. Low-Income Economies
   1. Approximately one-half of the world's population lives in the fifty-one low-income economies.
      
      
   2. Most people in low-income economies work in agricultural and rural areas.
      
      
   3. Women and children are often the most affected by poverty in low-income economies.
      
      
2. Middle-Income Economies
   1. Approximately one-third of the world's population lives in the fifty-seven low-income economies.

3. High-Income Economies
   1. Twenty-five nations are considered high-income.
      
      
   2. Countries like Canada, the U.S., and Germany exert an unequal control over the world economy.

IV. The Impact Of Debt And Foreign Aid

1. A. Debt and Global Stratification
   1. Private banks, governments, and international organizations have lent more money to poor countries than these countries can afford to pay back.
      
      
   2. The cost of paying off these debts can hamper efforts by poor countries to develop their economies.
      
      
2. Foreign Aid and Global Stratification
   1. High-income nations regularly provide various forms of aid to poorer nations.

2. Despite the obvious benefit of such aid, it can create long-term problems. In particular, this aid can decrease the political and cultural autonomy of the recipient nation.

V. Measuring Global Wealth And Poverty

1. Absolute, Relative, and Subjective Poverty
   1. Absolute poverty refers to poverty in which people do not have the means to secure the most necessities of life.

2. Relative poverty exists when people may be able to afford necessities but are still unable to maintain an average standard of living. This level of wealth is calculated by comparing one person's income with the incomes of others.
   
   
3. Subjective poverty is measured by comparing the actual income against the income earner's expectations and perceptions.
   
   
2. The Gini Coefficient and Global Quality of Life Issues
   1. The World Bank uses the Gini Coefficient to measure income inequality. Countries are rated between 0 and 100. A score of 0 is accorded those countries in which there is complete income equality.

VI. Global Poverty And Human Development Issues

1. Income disparities are not the only measure of well-being.
2. The Human Development Index (HDI) measures life expectancy, education, and living standards.
   
   
1. Life Expectancy
   1. Average life expectancy has increased by about one-third in the past three decades.
      
      
   2. However, each year over 40 million people die from hunger-related diseases.

2. Health
   1. Health is defined by the World Health Organization as "a state of complete physical, mental, and social well-being and not merely the absence of disease or infirmity."
      
      
   2. Factors such as malnutrition, poor sanitation, and lack of access to clean water reduce the level of health in poorer nations.

3. Education and Literacy
   1. A literate person, according to the UNESCO, is someone who "can, with understanding, both read and write a short, simple statement on their everyday life."
      
      
   2. The adult literacy rate in low-income countries is approximately one-half that of high-income countries. Women constitute about two-thirds of those who are illiterate.

VII. Theories Of Global Inequality

1. Development and Modernization Theories
   1. Development and modernization theories assume that industrialization and economic development are essential stages that all countries must go through in order to reduce poverty and improve living standards.
   2. Modernization theory links global inequality to different levels of economic development and suggests that low-income economies can move to middle- and high-income economies by achieving self-sustained economic growth.

2. Dependency Theory
   1. Richer nations have an interest in maintaining the dependent status of poor countries, as this ensures them a source of raw materials and an essentially captive market for manufactured goods exported to the dependent nations.
      
      
   2. Dependency theory states that global poverty can at least partially be attributed to the fact that the high-income countries have exploited the low-income countries.
      
      
3. World Systems Theory
   1. This perspective suggests that what exists under capitalism is a truly global system held together by economic ties. The capitalist world is divided into a hierarchy of three major types of nations-core, semi-peripheral, and peripheral.
      
      
   2. Core nations are dominant capitalist centres characterized by high levels of industrialization and urbanization.
      
      
   3. Peripheral nations are dependent on core nations for capital, have little or no industrialization, and have uneven patterns of urbanization.
      
      
   4. Semiperipheral nations are more developed than peripheral nations but less developed than core nations.

4. The New International Division of Labour Theory
   1. Commodity production is split into fragments that can be assigned to whichever part of the world can provide the most profitable combination of capital and labour.

VIII. Global Inequality In The Future

1. Sociologists do not agree as to future prospects for increased equality between nations and peoples.
   
   
2. Economic development has actually declined during the last decade in about one hundred countries.
   
   
3. Optimistically, modern technology and worldwide economic growth may serve to reduce absolute poverty and increase opportunities.

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