Chapter 8

1. Global Stratification Chapter 8

2. Questions for you… In which country were you born? How do you think your life has been influenced by the country in which you live? Consider access to educational and employment opportunities in your answer. Have you ever wondered how your life would have been if you were born and lived in a different country? How do you think people’s life chances and social realities are affected by industrialization?

3. Global Stratification Global stratification examines the ranking of different countries in terms of power, property and prestige. How are we increasingly becoming a global society?

4. Chapter Outline Wealth and Poverty in Global Perspective Problems in Studying Global Inequality Classification of Economies by Income Measuring Global Wealth and Poverty

5. Chapter Outline (con’t) Global Poverty and Human Development Issues Theories of Global Inequality Global Inequality in the Future

6. How Much Do You Know About Global Wealth and Poverty? • True or False? • The assets of the 200 richest people are more than the combined income of over 40 percent of the world’s population.

7. How Much Do You Know About Global Wealth and Poverty? • True. • Assets of the 200 richest people are more than the combined income of 41 percent of the world’s population.

8. How Much Do You Know About Global Wealth and Poverty? • True or False? • The majority of people with incomes below the poverty line live in rural areas of the world.

9. How Much Do You Know About Global Wealth and Poverty? • True. • The majority of people with incomes below the poverty line live in rural areas of the world; however, the number of poor people residing in urban areas is growing rapidly. In fact, most people living in poverty in Latin America are urban dwellers.

10. Global Stratification • 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.

11. High-income Countries Characterized by highly industrialized economies; technologically advanced industrial, administrative, and service occupations; and high levels of national and per capita income.

12. Middle-income Countries Nations with industrializing economies, particularly in urban areas, and moderate levels of national and personal income.

13. Low-income Countries Primarily agrarian nations with little industrialization and low levels of national and personal income. Many people in these countries live on less than one dollar per day.

14. Income Gap: World’s Richest and Poorest People

15. The “Three Worlds” Approach First World nations were said to consist of the rich, industrialized nations that primarily had capitalist economic systems and democratic political systems. Second World nations were said to be countries with at least a moderate level of economic development and a moderate standard of living. Third World countries have little or no industrialization and the lowest standards of living, shortest life expectancies, and highest rates of mortality.

16. Levels of Development Approach Among the most controversial terminology for describing world poverty and global stratification. Terminology based on levels of development includes concepts such as developed nations, developing nations, less developed nations, and underdevelopment.

17. World Bank Classification of Economies by Income • The World Bank classifies nations into three economic categories: • low-income economies (a GNI per capita of $935 or less in 2003) • middle-income economies (a GNI per capita between $936 and $11,455 in 2007) • high-income economies (a GNI per capita of more than $11,456 in 2007).

18. Economies in Global Perspective

19. Gross Domestic Product (GDP) All the goods and services produced within a country’s economy during a given year. The GDP does not include any income earned by individuals or corporations if the revenue comes from sources outside of the country.

20. Global Poverty Absolute poverty would be measured by comparing personal or household income or expenses with the cost of buying a given quantity of goods and services. Relative poverty exists when people may be able to afford basic necessities but are still unable to maintain an average standard of living. Subjective poverty would be measured by comparing the actual income against the income earner’s expectations and perceptions.

21. Dimensions of Defining Levels of Poverty How many people are poor. How far below the poverty line people’s incomes fall. How long they have been poor (is the poverty temporary or long term?).

22. Gini Coefficeient A measure of income inequality which ranges from zero (meaning that everyone has the same income) to 100 (one person receives all the income). Using this measure, the World Bank concluded that inequality has increased in nations such as Bulgaria, the Baltic countries, and the Slavic countries of the former Soviet Union to levels similar to those in less-equal industrial market economies, such as the United States.

23. The World’s Illiterate Population, Age 15 and Older by Region

24. Life Expectancy in Years for Persons Born in 2006

25. Per Capita Gross Domestic Product in U.S. Dollars

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

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

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

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

30. Maquiladora Plants

31. QuickQuiz

32. 1. The income gap between the richest and the poorest 20 percent of the world population ____. • A. is greater in urban than in rural areas • B. has significantly decreased   • C. is beginning to decline   • D. continues to widen

33. Answer: D • The income gap between the richest and the poorest 20 percent of the world population continues to widen.

34. 2. Some analysts in developed nations have begun to link growing social and economic inequality on a global basis to relatively high rates of ____ taking place in the underdeveloped nations. • A. divorce   • B. infant mortality   • C. population growth   • D. marriage

35. Answer: C • Some analysts in developed nations have begun to link growing social and economic inequality on a global basis to relatively high rates of population growth, taking place in the underdeveloped nations.

36. 3. The unequal distribution of wealth, power, and prestige on a global basis is referred to as: • global shift • global inequality • global stratification • global mobility

37. Answer: C The unequal distribution of wealth, power, and prestige on a global basis is referred to as global stratification.

38. 4. Dependency Theory makes a positive contribution to our understanding of global poverty by noting that: • underdevelopment is the root cause of inequality. • underdevelopment is not necessarily the cause of inequality. • none of the choices. • underdevelopment is largely overlooked, and should be the prime focus of research.

39. Answer: B Dependency Theory makes a positive contribution to our understanding of global poverty by noting that underdevelopment is not necessarily the cause of inequality.

40. 5. World Systems Theory suggests that what exists under capitalism is a truly global system that is held together by economic ties. • True. • False.

41. Answer: A World Systems Theory suggests that what exists under capitalism is a truly global system that is held together by economic ties.

42. 6. What type of poverty involves a lack of resources that is life threatening? • A. Absolute • B. Relative • C. Symbolic • D. Working

43. Answer: A • Absolute poverty means a life-threatening lack of resources. Relative poverty describes the economic condition of those who in one society might be considered below the poverty line, where in other societies that same level of income could be considered well above that line.Absolute poverty is where one is in such poor shape economically that they would be seen as below the poverty line in almost any modern society.

44. 7. Low-income countries typically have higher rates of illness and disease. • True. • False.

45. Answer: A Low-income countries typically have higher rates of illness and disease.