Chapter 9 Global Inequality The Global Divide 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 Stratification in the World System Stark contrasts between industrial and developing nations o Legacy of colonialism o Multinational corporations o Modernization How did the world s nations become stratified 1 World System Theory Immanuel Wallerstein a Core nations b Semi periphery c Periphery those that industrialized first countries depended on trade with core nations countries left out of the development of capitalism 2 Colonialism the purpose of exploiting its labor resources the process by which one nation takes over another nation usually for a Economic colonies The Legacy of Colonialism Colonialism domination for an extended period of time managerial and technical expertise by former colonies Neocolonialism Continued dependence on more industrialized nations for Foreign power maintains political social economic and cultural Globalization Globalization movements and financial markets through trade and exchange of ideas Worldwide integration of government policies cultures social Universal Human Rights Initiating Policy issues o Many national policymakers 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 Multinational corporations but doing business throughout the world Commercial organizations headquarted in one country o Total revenue of multinational businesses on par with total value of goods and services exchanged in entire nations o Over 10 of U S goods and services relates to exports to foreign countries Functionalist View Multinational corporations help developing nations 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 nation s wealth o Eventually increases economic inequality within developing nations Case Study Stratification in Mexico Mexico s Economy was 14 270 o In 2009 gross national income per person in the U S was 46 970 Mexico o About 88 of U S adults have high school education 21 of Mexicans o Gap between Mexico s poorest and richest citizens one of the widest Race relations in Mexico The Color Hierarchy o Subordinate status of Mexico s Indians one reflection of nation s color hierarchy Widespread denial of prejudice and discrimination against people of Social class linked to appearance of racial purity color in Mexico Marked growth in last decade of organizations and associations for The status of women in Mexico rights 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 Borderlands Are of common cultures along border of Mexico and U S Foreign owned factories that do not have to pay taxes or o Maquiladoras provide benefits to workers o Remittances migradollars Estimated to be minimum of 22 billion a year
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