Globalization, Inequality, and Development

1
Chapter 9

• Globalization, Inequality, and Development

2
Chapter Outline

• The Creation of a Global Village
• Globalization
• Global Inequality
• Theories of Development and Underdevelopment
• Neoliberal versus Democratic Globalization

3
Globalization

• In 1980 just 3.5 of the worlds population
  traveled internationally.
• By 2001 that figure had more than tripled to
  11.3.
• In 1980 about 14,000 international organizations
  existed in the world.
• By 1999, there were three-and-a-half times as
  many.

4
Indicators of Globalization, Early 1980s Circa
2003
5
Indicators of Globalization, Early 1980s Circa
2003
6

7

• ImperialismThe economic domination of one
  country by another.
• Global commodity chainA worldwide network of
  labor and production processes whose end result
  is a finished commodity.

8
The Sources of Globalization

• Technology - commercial jets, telephone, fax, and
  email
• Politics -countries that are politically isolated
  have less integration with the rest of the world.
• Economics- industrial capitalism is always
  seeking new markets, higher profits, and lower
  labor costs.

9
Features of Transnational Corporations

• Depend increasingly on foreign labor and foreign
  production.
• Emphasize skills and advances in design,
  technology, and management.
• Depend increasingly on world markets.
• Depend increasingly on massive advertising
  campaigns.
• Are increasingly autonomous from national
  governments.

10
Question

• The term global commodity chain refers to
• a worldwide network of labor and production
  processes whose end result is a finished
  commodity
• rationalization involving efficiency,
  predictability, and calculability
• division of the world into competing economic,
  political, and cultural areas

11
Answer a

• The term global commodity chain refers to a
  worldwide network of labor and production
  processes whose end result is a finished
  commodity.

12

13
McDonaldization

• The spread of the principles of fast-food
  restaurants, such as efficiency, predictability,
  and calculability, to all spheres of life.
• McDonalds now does most of its business outside
  the United States.
• McDonaldization has come to stand for the global
  spread of values associated with the United
  States and its business culture.

14
Glocalization

• Simultaneous homogenization of some aspects of
  life and the strengthening of some local
  differences under the impact of globalization.

15
Regionalization

• The division of the world into different and
  often competing economic, political, and cultural
  areas.
• World trade is not evenly distributed around the
  planet or dominated by just one country.
• Three main trading blocs existan Asian bloc
  dominated by Japan, a North American bloc
  dominated by the United States, and a Western
  European bloc dominated by Germany.
• Each bloc competes against the others for a
  larger share of world trade.

16
Question

• Regionalization is
• the economic domination of one country by another
• a form of rationalization involving efficiency,
  predictability, and calculability
• the division of the world into often competing
  economic, political, and cultural areas

17
Answer c

• Regionalization is the division of the world into
  often competing economic, political, and cultural
  areas.

18
Levels and Trends in Global Inequality

• The total worth of the worlds 358 billionaires
  equals that of the worlds 2.3 billion poorest
  people.
• The 3 richest people in the world own more than
  the combined GDP of the 48 least-developed
  countries.
• The richest 1 of the worlds population earns as
  much as the bottom 57.

19
Levels and Trends in Global Inequality

• According to the UN
• 800 million people in the world are malnourished.
• 4 billion people lack the ability to obtain
  adequate food, clothing, shelter, and basic
  needs.
• 1/5 of the developing worlds population goes
  hungry every night.

20
Global Priorities Annual Cost of Various Goods
and Services
21
Global Priorities Annual Cost of Various Goods
and Services
22
Gross Domestic Product

• Total value of goods and services produced by
  labor and property located in the United States
  during a specific period. In 1991, GDP became the
  US government's primary measure of economic
  activity in the nation, replacing gross national
  product (GNP), which is the total value of goods
  and services produced by labor and property
  supplied by US residents (but not necessarily
  located within the country).

23
Gross Domestic Product per Capita, World Regions
24
Number Living on Less Than 1 a Day
25
Number Living on Less Than 1 a Day
26
Question

• Terrorism is more likely to take place in the
  wealthy nations.
• Strongly agree
• Agree somewhat
• Unsure
• Disagree somewhat
• Strongly disagree

27
Theories of Global Inequality

• Modernization theory
• Global inequality results from dysfunctional
  characteristics of poor societies.
• Dependency Theory
• Economic underdevelopment is the result of
  exploitative relations between rich and poor
  countries.

28
Core, Periphery, and Semiperiphery

• Immanuel Wallerstein argues that capitalist
  development resulted in a world system composed
  of three tiers
• core capitalist countries - major sources of
  capital and technology
• peripheral countries - major sources of raw
  materials and cheap labor
• semiperipheral countries - former colonies that
  are becoming prosperous

29
Characteristics of Countries That Emerged From
Poverty

• Have a colonial past that left them with
  industrial infrastructures.
• Enjoy a favorable geopolitical position.
• Implement strong, growth-oriented economic
  policies and have socially cohesive populations.

30
Question

• The citizens of poorer nations are more likely to
  be lazy when compared to the citizens of richer
  nations.
• Strongly agree
• Agree somewhat
• Unsure
• Disagree somewhat
• Strongly disagree

31
Neoliberal Globalization

• A policy that promotes private control of
  industry, minimal government interference in the
  running of the economy, the removal of taxes,
  tariffs, and restrictive regulations that
  discourage the international buying and selling
  of goods and services, and the encouragement of
  foreign investment.

32
National Priorities, U. S. 2002
33
National Priorities, U. S. 2002
34
Question

• Global environment problems can be solved without
  any international agreements to handle them.
• Strongly agree
• Agree somewhat
• Unsure
• Disagree somewhat
• Strongly disagree

35
Democratic Globalization

• Research shows democracy lowers inequality and
  promotes economic growth
• Makes it more difficult for elite groups to
  misuse their power.
• Increases political stability and provides a
  better investment climate.
• Encourages broad political participation.

36
Neoliberal Globalization to Democratic
Globalization

• Four Reforms
• Stronger support for democracy in the developing
  world.
• More and better foreign aid.
• Forgiving debt owed by developing countries to
  rich countries.
• Eliminating tariffs that restrict exports from
  developing countries.

37
Quick Quiz
38

• 1. Which of the following factors do sociologists
  consider sources of globalization?
• technological progress in such areas as
  transportation and communication
• political developments such as democratization
• economic developments such as the formation of
  global commodity chains
• all of these choices

39
Answer d

• Sociologists consider all of the following to be
  sources of globalization
• technological progress in such areas as
  transportation and communication.
• political developments such as democratization
• economic developments such as the formation of
  global commodity chains

40

• 2. Transnational corporations
• rely on domestic labor and domestic production
• sell to domestic markets
• are increasingly autonomous from national
  governments
• all of these choices

41
Answer c

• Transnational corporations are increasingly
  autonomous from national governments.

42

• 3. George Ritzer coined the term
  "McDonaldization" to describe
• a worldwide network of labor and production
  processes whose end result is a finished
  commodity
• the economic domination of one country by another
• a form of rationalization involving efficiency,
  predictability, and calculability
• the homogenization of life worldwide

43
Answer c

• George Ritzer coined the term "McDonaldization"
  to describe a form of rationalization involving
  efficiency, predictability, and calculability.

44

• 4. Regionalization is
• a worldwide network of labor and production
  processes whose end result is a finished
  commodity
• a form of rationalization involving efficiency,
  predictability, and calculability
• the division of the world into often competing
  economic, political, and cultural areas
• the homogenization of many aspects of life
  worldwide

45
Answer c

• Regionalization is the division of the world into
  often competing economic, political, and cultural
  areas.

46

• 5. According to dependency theorists, rich
  nations now rely on which of the following to
  exercise domination and control over poor
  nations
• military occupation
• support for authoritarian governments
• substantial foreign investment
• all of these choices
• military occupation and support for authoritarian
  governments

47
Answer d

• According to dependency theorists, rich nations
  now rely on military occupation, support for
  authoritarian governments and substantial foreign
  investment to exercise domination and control
  over poor nations.

48

• 6. Peripheral countries are
• capitalist countries that are the major sources
  of capital and technology in the world
• former colonies that are major sources of raw
  materials and cheap labor
• former colonies that are making considerable
  headway in their attempts to industrialize
• colonies that have not yet gained independence
  and are therefore subject to exploitation

49
Answer b.

• Peripheral countries are former colonies that are
  major sources of raw materials and cheap labor.

50

• 7. According to ______________, global inequality
  results from various dysfunctional
  characteristics of poor societies themselves.

51
Answer modernization theory

• According to modernization theory, global
  inequality results from various dysfunctional
  characteristics of poor societies themselves.

52

• 8. In a survey conducted in 2000 in which
  Americans were asked to list spending priorities,
  foreign aid ranked
• first on the list
• in the top half of the list
• in the bottom half of the list
• last on the list
• foreign aid did not make the list

53
Answer d

• In a survey conducted in 2000 in which Americans
  were asked to list spending priorities, foreign
  aid ranked last on the list.

54

• 9. A large body of research shows that democracy
  lowers inequality and promotes economic growth.
• True
• False

55
Answer a

• A large body of research shows that democracy
  lowers inequality and promotes economic growth.

56

• 10. Which of the following policies have been put
  forward by sociologists and others as effective
  ways of helping developing countries?
• increasing the amount of foreign aid and
  redesigning its delivery
• debt cancellation
• elimination of tariffs by the worlds rich
  countries
• all of these choices

57
Answer d

• Each of the following policies have been put
  forward by sociologists and others as effective
  ways of helping developing countries
• increasing the amount of foreign aid and
  redesigning its delivery
• debt cancellation
• elimination of tariffs by the worlds rich
  countries