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SOCIOLOGYRichard T. Schaefer

Global Inequality10

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10. Global Inequality

• Stratification in the World System • Case Study: Stratification in Mexico • Social Policy and Social Inequality World

wide

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Stratification in the World System

• The Global Divide– Inequality a significant determinant

of human behavior – Divides in global wealth emerged as

result of Industrial Revolution

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Stratification in the World System

• The Legacy of Colonialism– Colonialism: when foreign power

maintains of political, social, economic, and cultural domination over people for an extended period

– Neocolonialism: continued dependence on more industrialized nations for managerial and technical expertise by former colonies

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Stratification in the World System

• The Legacy of Colonialism– Wallerstein’s World

Systems Analysis• Unequal economic

and political relationships in which certain industrialized nations and their global corporations dominate core of the world’s economic system

Dependency Theory: even as developing countries make economic advances, they remain weak and subservient to core nations and corporations

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Stratification in the World System

• The Legacy of Colonialism– Globalization: worldwide integration

of government policies, cultures, social movements, and financial markets through trade and the exchange of ideas– Multinational Corporations: commercial organizations headquartered in one country but do business throughout the world

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Stratification in the World System

Figure 10-1. FundamentalGlobal Inequality

Source:Adapted from Sutcliffe 2005:18

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Stratification in the World System

Figure 10-2 Gross National Income per Capita

Sources: Haub 2003; Weeks 2002:22-23

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Stratification in the World System

Figure 10-3 World Systems Analysis at the Beginning of the 21st Century

Sources: Haub 2003; Weeks 2002:22-23

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Stratification in the World System

• Multinational Corporations– Commercial organizations

headquartered in one country and doing business throughout the world

– Functionalist View• Through international ties, multinational

corporations make nations of the world more interdependent

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Stratification in the World System

• Multinational Corporations– Conflict View

• Multinational corporations exploit local workers to maximize profits

Investment by multinationals initially contributes to host nation’s wealth, but eventually it increases economic inequality within developing nations

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Stratification in the World System

Table 10-1 Multinational Corporations Compared to Nations

Sources: For corporate data, Hjelt 2004; World Bank 2004b:260—261

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Stratification in the World System

• Modernization– Far reaching process by which

peripheral nations move from traditional institutions to those characteristic of more developed societies•Modernization Theory: functionalist

view that modernization and development will gradually improve the lives of people in developing nations

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Stratification within Nations: A Comparative Perspective

• Distribution of Wealth and Income– In at least 26 nations around the

world, the most affluent 10 percent of the population receives at least 40 percent of all income

– Women in developing countries find life especially difficult

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Stratification within Nations: A Comparative Perspective

• Social Mobility– Mobility in Industrial Nations

• Patterns of intergenerational mobility in industrialized nations: 1. Similarities in ways parent’s positions in

stratification systems are transmitted to children

2. Mobility opportunities influenced by structural factors, such as labor market changes

3. Immigration significant factor shaping a society’s level of intergenerational mobility

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Stratification within Nations: A Comparative Perspective

• Social Mobility– Mobility in developing nations:

• Macro-level social and economic changes often overshadow micro-level movement from one occupation to another

– Gender Differences and Mobility• As country develops and modernizes,

women’s vital role in food production deteriorates

– Jeopardizes autonomy and material well-being

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Stratification within Nations: A Comparative PerspectiveTable 10-2 Three Approaches to Global Inequality

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Stratification within Nations: A Comparative PerspectiveFigure 10-4 Distribution of Income in Nine Nations

Source: World Bank 1993 to 2000a/2004:60—62

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Stratification within Nations: A Comparative PerspectiveFigure 10-5 The Borderlands

Source: Prepared by author based on Ellingwood 2001; Thompson 2001a2

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Case Study: Stratification in Mexico

– North American Free Trade Agreement (NAFTA) opened U.S. consumer market

– Collapse of peso and competition from China undercut benefits

– Mexico unquestionably poor country, but gap between richest and poorest citizens one of the widest

.

• Mexico’s Economy

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Case Study: Stratification in Mexico

– Law on Indian Rights and Culture• Allows 62 recognized Indian groups to

apply own customs in resolving conflicts and electing leaders

– Social class linked to appearance of racial purity

.

• Race Relations in Mexico: The Color Hierarchy

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Case Study: Stratification in Mexico

– Constitute 42% of labor force– More mired in lowest-paying jobs than

counterparts in industrial nations

• The Borderlands– Maquiladoras: foreign-owned factories

where companies that own them do not have to pay taxes or provide benefits to workers

.

• The Status of Women in Mexico

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Case Study: Stratification in Mexico

• Estimated at a minimum of $15 billion a year

.

• The Borderlands– Many Mexicans who have come to U.S.

send some part of their earnings back, called remittances

From Mexican point of view, U.S. too often regards Mexico as a reserve pool of cheap labor

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Social Policy and Social Inequality Worldwide

• Universal Human Rights– The Issue

•Human rights: universal moral rights belonging to all people because they are human

• Elaboration of human rights appears in Universal Declaration of Human Rights, adopted by the United Nations

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Social Policy and Social Inequality Worldwide

• Universal Human Rights– The Setting

• United Nations can condemn countries and adopt resolutions expressing concern over nations whose practices violate the Universal Declaration of Human Rights

• The U.S. used the Declaration to promote democracy abroad

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Social Policy and Social Inequality Worldwide

• Universal Human Rights– Sociological Insights

Continued...

• Cultural relativism encourages understanding and respecting the distinctive norms, values, and customs of each culture

• Conflicts arise between human rights standards and local social practices that rest on alternative views of human dignity in some countries

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Social Policy and Social Inequality Worldwide

• Universal Human Rights– Sociological Insights

• Policymakers frequently look at human rights from an economic perspective

• Functionalists point out how much more quickly we become embroiled in “human rights” concerns when oil is at stake

• Intersection of economics and human rights issues led to the creation of a Human Rights Index (HRI)

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Social Policy and Social Inequality Worldwide

• Universal Human Rights– Policy Initiatives

• 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