Globalization
The development of social and economic relationships stretching worldwide
Key part of the study of globalization
The emergence of a world-system
-we need to regard the world as forming a single social order
Global inequality
The systematic differences in wealth and power between countries
Market-orientated theories
Theories about economic developmental that assume that the best possible economic consequences will result of individuals are free to make their own economic decisions, uninhibited by governmental constraint
Modernization theory
A version of market-oriented development theory that argues that low-income societies develop economically only if they give up their traditional ways and adopt modern economic institutions, technologies, and cultural values that emphasizes savings and productive investment
W.W. Rostow
Modernization theory
Neoliberalism
The economic belief that free-market forces, achieved by minimizing government restrictions on business, provide the only route to economic growth
Dependency theories
Marxist theories of economic development arguing that the poverty of low-income countries stems directly from their exploitation by wealthy countries and by the multinational corporations that are based in wealthy countries
Colonialism
The process whereby Western nations established their rule in parts of the world away from their home territories
Dependent development
The theory that poor countries can still develop economically, but only in ways shaped by their reliance on the wealthier countries
World-systems theory
this theory emphasizes the interconnections among countries based on the expansion of a capitalist world economy. This economy is made up of core, semiperiphery, and periphery countries
Immanuel Wallerstein
pioneered the world-systems theory
Core
According to world-sysyems theory, describes the most advanced industrial countries, which take the lion's share of profits in the world economics systems
Periphery
Describes countries that have a marginal role in the world economy system
Semiperiphery
Countries that supply sources of labor and raw material to the core industrial countries and the world economy but are not themselves fully industrialized societies
Global commodity chains
Worldwide networks of labor and production processes yeilding a finished product
Evaluating Theories of Global Inequality
1. Market-oriented theories recommend the adoption of modern capitalist institutions to promote economic development
2. Dependency theories emphasize how wealthy nations have exploited poor ones
3. World-systems theory analyzes the world economic as a whole, looking at the complex global web of political and economic relationships that influence development and inequality in poor and rich nations alike
4. The theory of global commodity chains focuses on global businesses and their activities rather than relationships between countries
Newly industrializing economies (NIEs)
Developing countries that over the past two or three decades have begun to develop a strong industrial base, such as Singapore and Hong Kong
globalization
The increased economic, political, and social interconnectedness of the world is called:
neoliberal
According to the text, the belief that free-market forces, unimpeded by government restrictions on business, provide the only route to economic growth, is referred to as:
a global commodity chain
In April 2013 in Savar, Bangladesh, 1,129 workers were killed when a building housing several garment factories collapsed. Workers in the factories produced clothing for Walmart, Mango, and Bonmarch�, among many others. These workers were part of ______.
The experiences and fates of workers within the United States are connected to those of workers in peripheral countries.
Kati left Haiti several years ago for New York City because she was unable to support her family on the extremely low wages she made working in a textile factory that made clothes for a large, transnational company. Even though she entered the United States without a visa, she believed she could make more money in New York than in Haiti. However, the only work she was able to find was in a small garment factory, where she made less than minimum wage making clothing for the same company as she had in Haiti. What can be concluded from Kati's experience?
Because of drastic increases in population, drops in percentage of extreme poverty may hide an actual increase in the numbers of people experiencing extreme poverty.
Why might changes of the percentage of regional populations in extreme poverty not accurately represent changes in the number of actual people in poverty?
Asia
Where are the vast majority of newly industrializing economies (NIEs) found?
Colonialism and Dependent development
What are the dependency theories
Core, Periphery, Semiperiphery
World-systems theory examples
Core
Made up of the most advanced industrial countries that share most of the profits of the world economic system
Market-oriented, Dependency, World-systems, global commodity chains
What are the four theories of global inequality?
increasing
Global inequality is
most of Europe, the US, Canada, Australia, Japan, Singapore, Hong Kong, Taiwan
Examples of high income countries
(primarily found in) East and Southeast Asia, the Middle East, North Africa, Mexico, Central America, Cuba
Examples of middle income countries
High-Income Countries
those that industrialized first
(much of eastern, western, and sub-Saharan) Africa, Cambodia, North Korea (in East Asia), Nepal, Bangladesh (in South Asia), Haiti (in the Carribean)
Examples of low income countries
Traditional stage, Takeoff to economic growth, Drive to technological maturity, High mass consumption
Rostow's Economic Growth Stages
inadequate health facilities, lack proper sanitation, drink polluted water,
Low-income countries health issues:
...
What defines their economy, health systems?
Gross nation income (GNI)
a measure of a country's yearly output of goods and services per person
The World Bank
an international lending organization that provides loans for development projects in poorer countries
higher fertility, larger families
Why is global inequality increasing?
Technology innovators, Technology adopters, and the technology disconnected
The world in divided into three classes:
It measures a country's yearly output of goods and services per person
How does gross national income work?
health, hunger, education and literacy in all 3 levels
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