Global Inequality Chapter 9 Inequality a significant determinant of human behavior Divides in global wealth emerged as result of the industrial revolution and rising agricultural productivity Resulting rise in living standards not evenly distributed across the world Stratification on the world system Stark contrast between industrial and developing nations o Legacy of colonialism o Multinational corporations o Modernizations How did the world nation become stratified 1 World systems Theory Immanual Wallerstein a Core nations those that are industrialized first b Semi periphery countries dependent on trade with core nations c Periphery countries left out of the development of capitalism 2 Colonialism the process by which one nation takes over another nation usually for the purpose of exploiting its labor resources a Economic colonies The Legacy of Colonialism Colonialism foreign power maintains political social economic and cultural dominations for an extended period Neocolonialism continued dependence on more industrialized nations for managerial and technical expertise by former colonies Globalization worldwide integration of government policies cultures social movements and financial markets through trade and exchange of ideas Universal Human Rights Initiating Policy issues o Many national policy makers hesitate to interfere in worldwide human rights o Most initiatives come from international bodies o Universal human rights remain an ideal and not a reality Multinational Corporations Commercial organizations headquarters in one country but doing business throughout the world Total revenue of multinational businesses on par with total value of goods and services exchanged in entire nations Over 10 of U S goods and services relates to exports to foreign countries Multinational corporations help developing nations through o jobs and industry o maximum advantage of technology while reducing costs and boosting profits o make nations more interdependent and less likely to enter conflicts Conflict View multinational corporations exploit local workers to maximize profits o Investment by multinationals initially contributes to host nations wealth o Eventually increases economic inequality within developing nations Case Study Stratification in Mexico Mexico s Economy o In 2009 gross national income per person in the US was 46 970 Mexico was o About 88 of adults have high school education in the US while only 21 have a high school education in Mexico o Gap between Mexico s poorest and richest citizens is one of the widest in the 14 270 world o 20 of Mexican population lived on 2 dollars a day Race Relations in Mexico The Color Hierarchy o Subordinate status of Mexico s Indians one reflection of nations color hierarchy o 90 live in a house without a sewer or running water Social class linked to appearance of racial purity Widespread denial of prejudice and discrimination against people of color in Mexico Marked growth in last decade of organizations and associations for rights The Status of women in Mexico of indigenous Indians o Constitute 46 of labor force o More mired in lowest paying jobs than counterparts in industrial nations o When Mexican women work outside home often not recognized as active and productive household members o Organizing to address economic political and health issues o Borderlands areas of common cultures along border of Mexico and the U S o Maquiladoras Foreign owned factories that do not have to pay taxes or provide benefits to workers Remittances Estimated to be minimum of 22 billion a year Stratification of Brazil o 3 Nations in one Rich Country about 34 million people Poor Country about 111 million people Indigents totally impoverished about 40 million people Social Inequality Compounded by racial distinctions that originated in slavery
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