Chapter 9: Global Inequality and Poverty
POL 102, Payne, Miami University
Terms in this set (61)
Extreme inequality perpetuates poverty and concentration of economic and political power. It strengthens inequality-perpetuating institutions in three ways:
1. Inequality discourages the political participation of poor people. Diminishing their access to education, health care and other services
2. Inequality prevents building of proper functioning of impartial institutions and observance of rule of law
3. Enables wealthy to refuse to compromise politically or economically. Further weakening poor societies.
remain poor and unequal. this traps inhabitants in destructive cycles
Huge inequalities fuel...
resentment, global crime, general disregard for rules, violence, ethnic and regional conflicts, refugees, global drug trade
cause of inequality and poverty is relatively low level of globalization. openness to foreign trade, investments, technology will accelerate economic growth
Organization for Economic Cooperation and Development (OECD)
organization focusing on global economic development
globalization is widening the gap between the haves and the have-nots
globalization is a zero-sum game
globalization only benefits rich countries such as the United States.
tide that lifts a few boats while leaving the majority mired to the bottom.
weakens governments commitment to the public sector.
the rich are winning at the expense of the poor
leading financier, philanthropist, and critic of corporate globalization. Believes that globalization drains surplus capital from developing countries to the US.
race to the bottom
labor standards and wages for workers. results in poor being unable to escape poverty
emphasis on integrating poor nations into the global economy diverts resources from more urgent development needs, such as education, public health, industrial capacity, and social cohesion
African Growth and Opportunity Act
Trade agreement to strengthen apparel trade between the U.S. and African states
Europe's economic success
major factor is Freedom of Expression, social values
restrictions on women in china
hampered growth, women in europe were less confined and therefore more integral to industrial development.
Free market and institutionalized property rights
rights to private property protected under the market system. help the economic success of europe
Separating of secular from the religious
another factor for economic success.
the gap between the richest and the poorest countries has widened a great deal in the last 100 years.
Global digital divide
contrast between this ehwo have and those who don't have access to the Internet and other forms of digital communication. access to internet will not automatically fix the issue
Factors that contribute to Inequality
2. colonialism and its legacies
3. the structure of global economy
4. population growth
5. government policies
6. political instability
7. natural disasters
Factors that contribute to Inequality: Geography
Certain characteristics such as tropical regions, or high transportation costs. Southern Hemisphere tend to suffer from being landlocked, which hurts economic equality. lacking physical infrastructure.
essential systems, such as education, roads, and hospitals, needed by nation-states in order to provide necessary public services
Factors that contribute to Inequality: Colonialism
European colonized of Africa, Asia, Latin America laid foundations for disparities. Those that settled have great economic advantages over the indigenous people.
Factors that contribute to Inequality: Structure of the Global Economy
leaders of poor countries believe that governments and multinational corporations in rich countries co-operate to maintain an unfair global economy.
Scottish economist and historic proponent of the capitalist system. Wrote Wealth of Nation
concept that poor countries' over reliance on exports puts them at an economic disadvantage
Factors that contribute to Inequality : Population Growth
Rich countries grew by about 50% while poor countries grew by 250%. Large families perpetuate poverty in most cases
Factors that contribute to Inequality: Government Policies
Saudi Arabia tolerates monopolies to keep the rich rich, Some places emphasize religion instead of science and technology. inadequate investment in the education of women.
Factors that contribute to Inequality Political Instability
Example: Angola- filled with petroleum, diamonds, fish, and fresh water. but for 27 years country was devastated by ethnic conflicts. discourages foreign investment
geographic location directly affects wealth and poverty. natural disasters routinely destroy important economic sectors, increase infrastructure problems, force relocation of large number of people, and lead to greater impoverishment
German thinker who pioneered the theories of socialism and communism.
Social welfare system created in the 1930s to help the poor and restore trust in capitalism and government
greatest degree of income inequality among industrialized countries.
15% live below the poverty line
great spread of unequal income distribution
large difference between urban and rural areas
the income level under which people cannot adequately sustain themselves; a measure of need
poverty stricken rural areas
proposed refuge for wildlife and Native American populations
Mexican native and the world's richest man. In comparison to the 60% of Mexicans that make $15 or less per day
Inequality in poor countries
lack of a large middle class to merge the very rich and very poor.
inequality is extreme
North American Free Trade Agreement: Trade agreement signed by Canada, United States, and Mexico aiming at economic integration under the capitalist system.
"Family Fund" Brazil's model poverty reduction program. Gives financial assistance and helps parents send children to school and give them medical care. Poverty has declined by more than 50% since 2003.
Examples of Legally enforced inequality
Apartheid, Indian caste system, etc.
Laws that legally and forcibly separate people of different ethnic and racial backgrounds. South Africa.
Black Empowerment Initiative
South African government effort to encourage the expansion of black-owned businesses in South Africa after the abolishment of apartheid.
India's Caste System
religiously driven ideology and social system that promote hierarchy and inequality. Hindu. determines status, rights, privileges occupations, and social interactions of each person from birth. One of four castes: Brahmans, Ksatriyas, Vaisyas, and Sudras.
400 million poor Indians, 43% children under 5 are malnourished, 35% are illiterate
priests and scholars at the top of the caste system
the second-highest group in the caste system includes those in the military, lawmakers, and rulers
the third-highest group in the caste system includes merchants, landowners, industrialists, and artisans
Laborers and farm workers at the bottom of the caste system
outcasts excluded from the caste system.
poorest of the poor are women in all countries
In some countries cultural beliefs and practices make family planning difficult and women have too many children.
gender inequality is decreasing
Beliefs, values, perceptions, and ideas about the roles of men and women and power relations between them.
Indicators of poverty
per capita income, infant mortality rates, access to clean water, illiteracy.
the very poorest of the poor, or those living on less than $1 a day. on the decline.
Factors to take into account to reduce poverty
1. Weak political support for foreign assistance in most rich countries
2. Uncertainty of commitment from World Bank, IMF, WTO, etc.
3. Ongoing armed conflicts that impede efforts to help poor
types of poverty
Absolute Poverty: the absolute number of poor people below the defined poverty line
Relative Poverty: level of poverty based on the society in question
Consumer Price Index (CPI)
released by the U.S. Department of Labor to measure the price of consumer goods and services as well as the rate of inflation.
Six Dimensions of Poverty
2. Psychological Dimensions (powerlessness, dependency, humiliation, and shame)
3. Inadequate Infrastructure
4. Low levels of Literacy
5. Health Problems
6. Inadequate Income
Closing the Gap
1. Education and Family Planning
3. Government Policies and Free Trade
4. Reduce Corruption
5. Pay attention to women
6. Improve Agriculture in Poor Countries
7. Think Small (micro lending)
8. Remittances and Foreign Aid Help
Education and Family Planning
Women's education is directly correlated to amount of kids they have.
analysis of national budgets to determine how spending priorities affect women
Dramatic increase in agricultural production involving hybrids, fast-growing plants, and the use of fertilizer and insecticides
practice of granting small loans to help those who do not have access to conventional financial loan services
Founder of the Grameen Bank micro lending institution