Chapter 9 Stratification in the World system What created these differences between developed and developing nations o World system Theory Core Nation The first to industrialize Semiperiphery Countries that are dependent on trading with core nations Periphery Countries excluded from the development of capitalism o Colonialism o Multinational Corporations One nation takes over another nation Usually for the purpose of exploiting its labor resources Colonialism Foreign power maintains political social economic and cultural domination for an extended period Neocolonialism Continued dependence on more industrialized nations for managerial and technical expertise capital and goods Globalization Worldwide integration of government policies cultures social movements and financial markets through trade and exchange of ideas Commercial organizations head quartered in one country but doing business throughout the world Total revenue of many multinational corporations is equivalent to the value of the goods and services in entire nations Functionalist perspective Multinational corporations are good for developing nations o Bring jobs and industry o Multinationals get to take advantage of the best technology while still reducing cost and boosting profit o Make nations more interdependent and less likely to go to war Conflict Perspective multinational corporations are bad for developing countries o Exploitation of local workers to maximize profit o Investment by the companies initially increases the nation s o But eventually increases the inequality within the wealth developing nations Case Study Stratification in Mexico o Mexico Vs US In 2009 gross national income per person in the US was 46 970 Mexico was 14 240 About 88 of US adults have highschool education while only 21 of Mexicans do Gap between Mexicos poorest and richest citizens one of the widest o Race Relations in Mexico The Color Hierarchy Subordinate status of Mexico s Indians one reflection of nation s color hierarchy Social class linked to appearance of racial purity Denial of any prejudice or discrimination against people of color Marked growth in the last decade of organizations and associations fighting for the rights of indigenous Indians o The status of Women in Mexico Constitute 46 of labor force More in lowest paying jobs than counterparts in industrial nations When Mexican women work outside home often not recognized as active and productive household members o Borderlands Area of common cultures along the border of US and Mexico Maquiladoras foreign owned factories that do not have to pay taxes or provide benefits to workers Remittances Estimated to be at least 25 billion a year Universal Human Rights o Initiating Policy Many national policymakers hesitate to interfere in worldwide human rights issues Most initiatives come from international bodies Universal human rights remain an ideal not a reality o Poverty worldwide UN launched the Millennium Project in 2000 Goal was to eliminate extreme poverty worldwide by 2015 Estimated that if industrialized nations set aside 51 of their Gross National Income the project would succeed The Global Divide o Inequality a significant determinant of human behavior o Divides in global wealth emerged as result of the Industrial Revolution and rising agricultural productivity Stratification in the World System o Stark contrasts between industrial and developing nations Legacy of colonialism Multinational corporations Modernization o How did the World s nations become stratified 1 World System Theory Immanuel Wallerstein Core nations those that industrialized first Semi periphery countries dependent on trade with core nations 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 The Legacy of colonialism Economic colonies o Colonialism Foreign power maintains political social economic and cultural domination for an extended period o Neocolonialism Continued dependence on more industrialized nations for managerial and technical expertise by former colonies o Globalization Worldwide integration of government policies cultures social movements and financial markets through trade and exchange of ideas Universal Human Rights o Initiating Policy Many national policymakers hesitate to interfere in worldwide human rights issues Most initiatives come from international bodies Universal human rights remain an ideal and not a reality Multinational corporations o Multinational corporations commercial organizations headquartered 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 Functionalist View countries o Multinational corporations help developing nations Jobs and industry Maximum advantage of technology while reducing costs and boosting profits Conflict View Make nations more interdependent and less likely to enter conflicts o Multinational corporations exploit local workers to maximize profits Investment by multinationals initially contributes to host nation s wealth Eventually increases economic inequality within developing nations Global Stratification Three Words o 1 The most industrialized nations U S Canada Great Britian France Germany o 2 The Industrializing nations nations of the former Soviet Union Spain Greece Portugal Thailand o 3 The least industrialized nations Algeria Jamaica Cuba Albania Congo Sudan Case Study Stratification in Mexico o Mexico s Economy In 2009 gross national income per person in the U S was 46 970 Mexico was 14 270 About 885 of U S adults have high school education 21 of Mexicans Gap between Mexico s poorest and richest citizens one of the widest o Race Relations in Mexico The Color Hierarchy Subordinate status of Mexico s Indians one reflection of nations color hierarchy 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 of indigenous Indians The Status of Women in Mexico Constitute 46 of labor force More mired in lowest paying jobs than counterparts in industrials nations When Mexican women work outside home often not recognized as active and productive household members Organizing to
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