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Stratification in World System• Inequality in life chances differentiates nations
around the world.• Simple measures of well-being reveal
consequences of a global system of inequality:– life expectancy– infant mortality– access to health services
Terminology of Stratification
• A familiar model for describing global stratification developed after world war 2.
• Rich industrial countries were labelled as first world.
• Less industrialised socialist countries were second world.
• Non-industrialised poorer countries were Third world.
The Severity of Poverty• Poverty in poor countries is more severe than it is
in rich nations like the US in part because economic productivity is lowest in regions of the largest population growth
Global Income• High income countries earn 79% (18% of population)• Middle income countries earn 20% (70% of population)• Low income countries earn 1% (12% of population)
Relative vs Absolute Poverty
• The lack of resources by some people that are taken for granted by others
• Rich societies tend to focus on this type of poverty
• A lack of resources that is life-threatening
• 1/3 or more of people living in low income countries experience absolute poverty
• Median death age can be an indicator of absolute poverty.
Poverty and Children• Death comes earlier to children from poorer countries.• Almost 100 million children living in poor conditions
beg, steal, sell sex and work for drugs.• Poorer children and teens are also at greater risk for
poor academic achievement, school dropout, abuse and neglect, behavioural, physical health problems and developmental delays.
• Economists estimate that child poverty costs an estimated $500 billion a year to the U.S. economy; reduces productivity and economic output by 1.3 percent of GDP; raises crime and increases health expenditure.
Poverty and Women
• Worldwide much of women work is undervalued, underpaid or overlooked entirely.
• In conservative societies cultural norms hamper women from schooling and many professions.
• UN estimates: Men own more than 90% of land in poorer countries, depicts gender disparity.
• The empowerment of women is a critical factor in the eradication of poverty.
Slavery• Many societies ended slavery after industrial
developments. British empire banned slavery in 1833 and USA banned in 1865.
• In poor nations, 400 million, (7% of humanity) live in poverty.
• Chattel: one person owns another person.• Child slavery: poor families sell their children.• Debt bondage: to be slave for paying debts• Servile marriage: marriage against will• Human trafficking: trading the people
Modernization Theory
• Economic development is a process by which traditional societies become more complex.
• To develop, countries must embrace new technologies and market driven values.
• Poverty results from adherence to traditional values and customs that prevent competition in a modern global economy.
Role of Rich nations
• Helping control population• Increasing food production• Introducing industrial technology• Providing foreign aid
Dependency Theory
• Exploits the least powerful nations to the benefit of wealthier nations.
• Poverty of the low-income countries is a direct result of their political and economic dependence on the wealthy countries.
Wallerstein’s Capitalist World Economy
• Economic development is explained by understanding each country’s place and role in the world economic system.
• Poverty is the result of core nations extracting labor and natural resources from peripheral nations.
Women and economic inequality
• 26% of the world’s population is poor according to the world bank’s measure of world poverty.
• Women perform 2/3 of all working hours, receive 1/10 of the income, and own less than 1% of the world’s wealth.