globalization
the development of social and economic relationships stretching worldwide. In current times, we are all influenced by organizations and social networks located thousands of miles away.
global inequality
the systematic differences in wealth and power between countries
per person gross national 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
high income countries
those that industrialized first, 15.5% of the population, 75.8 % of the world's annual output of wealth
ex: US, Canada, Europe, Australia
middle income countries
began to develop relatively late in the 20th century and are not quite as developed as high income countries, 46.7 % of the population, 20.8 % of the wealth produced that year
ex: East and southeast Asia, oil rich countries of Middle East and North Africa, the Americas, and the once communist republics of the Soviet Union and East European Countries
low income countries
mostly agricultural economies that are just beginning to industrialize, 36.36 % of the population, 3.33 % of wealth
ex: Eastern, western, and sub-Saharan Africa, Vietnam, Cambodia, Indonesia, and a few other East Asian countries such as India, Nepal , Bangladesh and Pakistan in South Asia, as well as eastern and central European countries such as Georgia and Ukraine, and Haiti and Nicaragua in the Western Hemisphere.
newly industrializing economies (NIEs)
Developing countries that over the past two or three decades have begun to develop a strong industrial bases, such as Singapore and Hong Kong
Four theories of global inequality
market-oriented, dependency, world system, state-centered
market-oriented theories
theories about economic development that assume that the best possible economic consequences will result if individuals are free to make their own economic decisions, uninhibited by governmental constraint
modernization theory
a version of market-oriented developmental 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 emphasize savings and productive investment
man behind modernization theory
rostow
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
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
theory emphasizes the interconnections among countries based on the expansion of a capitalist world economy. THis economy is made up of core countries, semi periphery, and periphery
world systems theory creator
Immanuel Wallerstein
core countries
according to world-systems theory, the most advanced industrial countries, which take the lion's share of profits in the world economic system
periphery
countries that have a marginal role in the world economy and are thus deponent on the core producing societies for their trading relationships
semiperiphery
countries that supply sources of labor and raw materials 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 yielding a finished product
state-centered theories
development theories that argue that appropriate government policies do not interfere with economic development, but rather can play a key role in bringing it about