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THESCALEOFGLOBALINEQUALITYSomefacts:Worldpopulationismorethan6billion1.3billionpeopleliveonlessthanonedollaradaytheyareinabsolutepoverty**richest20percentofworldpopulationreceives80percentofworldincome**poorest20percentofworldpopulationreceives1percentofglobalincome!!!Someterms:GDP:grossdomesticproduct:allthegoodsandservicesproducedonrecordinacountryinayearGNP:Grossnationalproduct:allthegoodsandservicesproducedinacountryplusallforeignearningsinagivenyear(incomefiguresinyourbookarebasedontheUN’sconceptof“purchasingpowerparity.”PPPreflectsthelocalpurchasingpowerofeachcountry’scurrency.)Highincomecountries40countries(WesternEurope,USA,Canada,Japan,Australia,NewZealand)Percapitaannualincome:USD9,360andabove15percentofworldpopulation(870millionpeople)Morethanhalftheworld’stotalincomeMiddleIncomeCountriesAbout90countriesfallinthiscategory.Onethirdofhumanitylivesinmiddleincomecountries.LatinAmerica,theMiddleEast,EastAsia,WestAfricaPercapitaannualincomebetweenUSD760and9,360.Halfofthepopulationlivesincities.Theyhavemoderatelevelsofindustrialization.Severaldistinctgroupswithinthiscategory:*NewlyIndustrializingCountries(NICs):Brazil,Argentina,Mexico,SouthKorea,Taiwan.*Oil-producingnationsoftheMiddleEast*formerSovietbloccountriesLowincomecountriesHalfofhumanitylivesinlowincomecountriesAbout60countries,mostlyincentralandeasternAfricaandSouthAsiaPercapitaannualincomelessthanUSD76025percentofthepopulationlivesincitiesLittleindustrialization,mostlyagriculturalTheworldaccordingtoincomesAtlasofGlobalInequalitiesGoto/formapsdemonstratingglobalpovertyaccordingtovariousindicesTHEEXTENTOFPOVERTYGLOBALLYPovertyexistsinallcountriesoftheworld;butitismostsevereinlowandmiddleincomecountriesPovertyratesarehighestincountriesthathaveweakeconomies,weakindustrialization,andhighratesofpopulationgrowthRelativepoverty:alevelofpovertyinwhichapersonlacksresourcesthatothermembersofhersocietyhasaccessto.Absolutepoverty:lessthan1$percapitaincomeperdayThisisalife-threateninglevelofpoverty,asituationinwhichapersonfacestheprospectofhungeranddiseaseonadailybasisAmartyaSen’sdefinitionofpoverty:itshouldbeseenasa“deprivationofbasiccapabilitiesratherthanmerelyalownessofincomes”TheHumanDevelopmentIndex(HDI)makesmoresenseaccordingtothisdefinitionHDImeasuresacombinationoflifeexpectancy,percapitaincome,andeducation(numberofyearsofschoolingandadultliteracy)(seechapter4)Somefactsonabsolutepoverty20percentofworldpopulation(1.3billion)isinabsolutepoverty.Theyareseriouslymalnourished.Amongthese,800millionareatriskoftheirlives.Eachyear,15millionpeopledieofstarvation.Sub-SaharanAfricaishardesthitbyabsolutepoverty.InTurkey,about1.3millionpeoplelivewithaboutadollaraday.(absolutepoverty)GroupsmostaffectedbypovertyWomenChildrenRefugeesanddisplacedpeople(peopleaffectedbywarsanddisasters)“Feminizationofpoverty”Inallcountries,womenareoverrepresentedamongthepoor.500millionoftheworld’spoorest800millionarewomen.Why?--womenarepaidlessthanmeninmanywage-payingjobs--theyhavelesseducationthanmen(inthepoorercountries)--lesseducatedwomenhavemorechildren--theburdenofchild-rearingfallsonwomen--menownmostincome-generatingpropertyandrealestateinmiddleandlow-incomecountries(suchasfarms,farmanimals,tractors,homes,etc.)--Whenpovertyhitsafamily,menmightleavewomen.childrenandwomenarelefttofendforthemselves--Inapoorcommunity,poorwomenmightbeunabletogetsupportfromfamilyandfriendsChildrenandpovertyPovertyforceschildrentoworkortodeserttheirfamiliesResults--childrenworkingonthestreets--streetchildren(livingonthestreets)--exploitationofchildlabor--sexualexploitation--criminalactivitiessuchasdrugabuseandtheftChildlaborinTurkeySeveralcategoriesofchildlaborexist--childrenworkingonthestreets(garbagecollection,saleoffood,tissuepaper,flowers,etc.)(youngerchildren)--childrenworkinginsweatshopproduction(textile,garments,leather,autorepair,etc.)(“older”children,butstillworkingillegally)--childrenlivingonthestreetsSeveralstudiesshowthatthisisnotalargegroup,althoughitattractsmorepublicattention(suchas“tinerci”kids,beggars,etc.)DisplacedpeopleEveryyear,millionsofpeoplearedisplacedfromtheirhomesandlandsbecauseofarmedconflictsandwars,naturaldisastersand“developmentprojects”Refugees:arethepeoplewhofleetheirowncountryandcrossinternationalborderstoavoidwarorpolitical/economicoppression.Currently,therearemorethan20millionrefugeesintheworld.Examplesofrecentrefugeeflows:Afghanistan,Rwanda,Bosnia,Kosovo,IraqiKurdsRefugeesWhymightrefugeesbepoor?Becausetheyleaveeverythingbehind.Andoften,theymightnotgetsufficientaidandbasicservicesinthecountriestheyarrive.Since,notallrefugeesaregrantedasylum.Currentinternationalrefugeeregimewasestablishedin1951inresponsetothepopulationdisplacementafterWWII.UNHCRwasestablished.ThegreatestrefugeeflowwasbetweenIndiaandPakistaninthelate1940safterthePartitionmorethan20millionpeoplecrossedborders,thousandsdiedontheroad.InternallydisplacedpeopleIDPsfleetheirhomesbecauseofwars,disastersordevelopmentprojects,butunlikerefugees,donotcrossinternationalboundaries.Thus,theydonothavethesamerightsaspeoplewhoarerecognizedbytheUNHCRasrefugees.Today,therearenearly20millionIDPsglobally.DoyouknowwhichcountryinEuropehasoneofthegreatestnumbersofIDPsrightnow?Turkey!Anestimated350,000to1millionpeople(overwhelminglyKurds)havebeendisplacedsincethelate1980sfromtheirhomesintheSoutheast.Why?“l(fā)owintensityconflict”,fearofterror,villageevacuations,collapseoftheregionalpastoraleconomyandagricultureWhyareIDPspoor?Theyleavebehindpropertyandbelongings.Theydonothaveskillsrequiredforfindingjobsintheirnewenvironment.HOWCANPOVERTYBEEXPLAINED?Technology:mostpoornationsarestillagricultural;theydon’thavemuchindustryButdoesthisexplainpoverty?Populationgrowth:thepoorestnationshavethehighestpopulationgrowthratesButwhat’sthecorrelationbetweenpovertyandhighbirthrates?CulturalpatternsSomepoornationsaremore“traditional”.Butwhatdoesthismean?Socialstratification:incomedistributioninpoorcountriesisveryuneven.Thatiscorrect,butitisalsouneveninsomewealthynations.Genderinequality:womenaremoresubordinatedinsomepoorcountriesthaninrichones.Globalpowerrelationships:historically,wealthflowedfrompoortorichnationsColonialism:politicaldominationandeconomicexploitationofsomecountriesbyothersNeo-colonialism:economicexploitationofsomenationsbymultinationalcorporationsandwealthycountries,butwithoutpoliticaldominationThreetheoriesonglobalinequalityand“development”Modernizationtheory(W.W.Rostow)Dependencytheory(A.G.Frank)Worldsystemsapproach(I.Wallerstein)ModernizationtheoryItisatheoryofsocialandeconomicdevelopmentwhichexplainsglobalinequalitybetweencountriesintermsofdifferentlevelsoftechnologicaldevelopmentTraditionalsocietiesare“backward,”“underdeveloped,”andpoorer.SocietieswhichembracemodernityandchangearewealthierandmoredevelopedModernizationtheoryWesternEurope,andthenNorthAmerica“modernized”and“developed”thankstotheIndustrialRevolution.Iftraditionalsocietiesindustrializeandembracemodernize,theywillalsobecomedeveloped.So,thepathtomodernizationisopentoallwhowantit.Rostow’sstagetheoryofmodernizationW.W.Rostow’sbook:TheStagesofEconomicGrowth.ANon-CommunistManifesto(1960)AllsocietieswilleventuallypassthroughthefollowingstagesTraditionPreconditionsfortake-offTake-offDrivetotechnologicalmaturityHighmassconsumptionRostow’smodernizationtheoryEachcountryreachesthe“take-off”forindustrializationwhenamarketeconomyemerges.Britainreachedthatstagein1800.Non-westernnationswillreachthatstagewhentheirproductiveinvestmentsgrow.How?Throughforeignaidandtechnologytransfer.Bythe1950s,theUSreachedthestageof“highmassconsumption.”ModernizationRoleofrichnationsinthe“modernization”ofthepoor--foreignaid--industrialtechnologytransfer--transferoffoodproductiontechnologytheGreenRevolutionCriticismofModernizationTheoryModernizationtheoryistheideologicaljustificationofWestern-ledcapitalismModernizationtheorydoesnottakeintoaccountthecolonialexploitationofthenon-WesternworldbyEuropeWealthiernationsareoftenthecauseofpoverty,ratherthanbeingasolutionforitCont’dThewealthgapbetweentherichandthepoorcountriesisnotdiminishing;infact,ithasincreasedsincethe1950sIndustrializationdoesnotguaranteeanincreaseinlivingstandardsModernizationtheorylooksforinternalcausesofpoverty;doesn’tconsideranyexternalfactorsItholdsthelifestyleofWesterncountriesasayardsticktojudgethedevelopmentofothernations.Hence,itisethnocentric.DependencytheoryAmodelofeconomicandsocialdevelopmentthatexplainsglobalinequalityintermsofthehistoricalexploitationofpoorsocietiesbyWesternnations.AndreGunderFrank:TheDevelopmentofUnderdevelopment(1975)Hearguedthatcolonialandpost-colonialexploitationbyWesternEuropeandtheUSAcausedtheunderdevelopmentofnon-Westernsocieties,ratherthantheirdevelopmentWhy?DependencytheoryRichandpoornationsarelinkedeconomically.“Modernization”ofcountriescannotbeconsideredinisolationfromeachother.Duringcolonialperiod,Europeancountriesextractedrawmaterials,mineralandfoodfromtheircolonies.thisenabledthemtoindustrializeExploitationoftheirresourcesleftcolonizedsocietiespoor.TheyweredependentonimportsofindustrialgoodsfromEurope.MostofthepeasantryworkedonfarmsorminesfromwhichproductswereexportedtoEuropeUnequalexchange:theimportationofmanufacturesfromEuropeandtheexportationofrawmaterialsandfoodtoEuropewasdetrimentalfortheeconomiesofcolonialandpost-colonialnations.WHY?ManufacturesaremoreexpensivetobuythantosellrawmaterialsDidtheendofcolonization–“decolonization”–bringanendtoexploitationofthenewlyindependentstates?No.Politicalliberationhasnottranslatedintoeconomicautonomy.CriticismofdependencytheoryItonlyfocusesonexternalfactorsofglobalinequality.Itdoesnottakeintoaccountthatsomesegmentsofthepopulationinapoorcountryalsobenefitfrom“dependentdevelopment”andfromexploitingpoormembersoftheirsociety.TherapiddevelopmentofsomecountriessuchasSouthKoreacastdoubtonthethesisthat“itisrichnationswhichmakeotherspoor.”WorldsystemsperspectiveThisperspectivebuildsonthe“dependency”approach.Butithasa“worldsystemic”angle.ImmanuelWallerstein(1974):TheModernWorldEconomyWallersteinarguesthatcapitalismisa“worldeconomy.”Theunitofanalysisforstudyingtheworldeconomyisthe“world”ratherthanindividualnation-states(contramodernizationtheory)Thecapitalistworldeconomyemergedinthe16thcenturyinwesternEuropeinthewakeofthe“discovery”oftheAmericasWorldsystemsperspectiveThecapitalistworldeconomyconsistsofa“core,”a“periphery,”anda“semiperiphery.”Historically,thecorewaswesternEurope,whichbecameindustrializedby“extractingsurplus”(funnelingrawmaterialsandpreciousmetals)fromthe“periphery.”Thesemiperipherystoodin-betweenthecoreandtheperipheryintermsofincomesandlevelsofindustrialization.Inthisworldeconomy,thecoreexploited,orextractedsurplusfromtheperipheryintermsofcheaplabor,naturalresources,rawmaterialsandasmarketsforEuropeanmanufactures.Example:Inthe19thcentury,theOttomanEmpirewasanexporterofdriedfruitsandnutstoEuropeandwasdependentonimportsofmanufactures(“Englishcloth,”forexample).ItwasheavilyindebtedtoEuropeancountries.WorldsystemsperspectiveWhatisthesituationtoday?Inthepostwarperiod,manycountriesintheperipheryhavebecomerelativelyindustrializedForexample,Turkeyisarelativelyindustrializednationtoday,themajorityofwhoseexportsaremanufactures(industrialgoods)Doesthismeanthatthecorenolongerextractssurplusfromtheperiphery?Or,doesitmeanthatperipheralcountrieshaveenteredthecore?Theanswertobothquestionsisno.1)Surplusextractionfromtheperipherytothecoreisstillongoing.2)Onlyafewcountrieshaveenteredthesemiperipheryorthecore(e.g.SouthKorea)inthepostwarperiod.Wallersteincallsthissituation,“developmentbyinvitation.”“Commoditychains”Peripheralcountriesareusuallyspecializedinlow-profitandlabor-intensivelinksininternationalcommoditychains.Corecountriesareusuallyspecializedinhighprofitlinksofcommoditychains.Acommoditychain:achainofactivitiesfromthemanufacturingtothedistributionofafinalproduct.Example:theapparel(ready-to-wearclothing)commoditychainincludes,cottongrowing,textilemills,stitchingofgarments,design,marketing,distribution,retailingApparelcommoditychainMult
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