Globalization, Inequality, and Development. Chapter Outline Globalization Global Inequality Theories...
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Transcript of Globalization, Inequality, and Development. Chapter Outline Globalization Global Inequality Theories...
Globalization, Inequality, and Development
Chapter OutlineGlobalizationGlobal InequalityTheories of Development and
UnderdevelopmentNeoliberal versus Democratic Globalization
Indicators of Globalization
Triumph and Tragedy of GlobalizationIn 1930 a 3-minute call from New York to
London cost $250 and only a minority of Americans had telephones.
Today the same call costs 5¢ and telephones seem to be everywhere.
The Internet did not exist in 1982, but by 2009 it comprised 681 million servers connecting people around the world.
Foreign Visits to Top Ten Visited Countries
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.
The Sources of GlobalizationTechnology - commercial jets, telephone,
fax, and emailPolitics -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.
McDonaldizationThe spread of the principles of fast-food
restaurants, such as efficiency, predictability, and calculability, to all spheres of life.
McDonald’s 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.
Media ImperialismThe domination of a mass medium by a single
national culture and the undermining of other national cultures.
GlocalizationThe simultaneous homogenization of some
aspects of life and the strengthening of some local differences under the impact of globalization.
RegionalizationThe 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.
RegionalizationThree main trading blocs exist—an 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.
Regionalization of World Trade
Anti-GlobalizationSome groups (e.g., Islamic fundamentalists)
have become uncomfortable with the effects of globalization on their society
Some groups have resisted with violence (e.g., al Qaeda and the September 11, 2001 attacks)
Other groups have been non-violent (e.g., WTO street protests in 2001)
Levels of Global InequalityThe UN calls the level of inequality
worldwide “grotesque”20 richest countries in the world spend
more on cosmetics or alcohol or ice cream or pet food than it would cost to provide basic education or water and sanitation for everyone in the world
Global Priorities
Global InequalitiesIndividual income inequality was
astoundingly steep in 1985 and rose even higher over the next 20 years.
Today, the riches 1% of the world’s population (about 70 million) earn as much as the bottom 66% (about 4.6 billion)
Of the world’s 7 billion people, more than 1 billion live on less than $1/day and more than 3 billion live on less than $2/day
Three Concepts of World Inequality
Theories of Development and Under DevelopmentModernization theory (Functional approach)
Global inequality results from dysfunctional characteristics of poor societies.
Dependency Theory (Conflict approach)Economic underdevelopment is the result of
exploitative relations between rich and poor countries.
Modernization and Dependency Theories
ColonialismThe political control of developing
societies by more developed, powerful societies.
World Systems TheoryImmanuel Wallerstein argues that capitalist
development resulted in a world system composed of three tiers:core capitalist countries - major sources of
capital and technologyperipheral countries - major sources of raw
materials and cheap laborsemiperipheral countries - former colonies
that are becoming prosperous
Characteristics of Countries That Emerged From Poverty1. Have a colonial past that left them with
industrial infrastructures.2. Enjoy a favorable geopolitical position.3. Implement strong, growth-oriented
economic policies and have socially cohesive populations.
4. Socially cohesive populations whereby policy makers can garner consensus regarding development policies
Polling Question The citizens of poorer nations are more
likely to be lazy when compared to the citizens of richer nations.
a. Strongly agreeb. Agree somewhatc. Unsured. Disagree somewhate. Strongly disagree
Neoliberal GlobalizationA 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.
Polling Question Global environment problems can be solved
without any international agreements to handle them.
a. Strongly agreeb. Agree somewhatc. Unsured. Disagree somewhate. Strongly disagree
Globalization ReformForeign Aid: can be beneficial but strict
oversight is required to ensure it is helpfulDebt Cancellation: would help poor countries
build infrastructure to compete in global economy
Tariff Reduction: stimulate economic growth to developing countries as they could export their goods
Democratic Globalization: democratization lowers inequality and promotes economic growth
1. Which of the following factors do sociologists consider sources of globalization?
a. technological progress in such areas as transportation and communication
b. political developments such as democratization
c. economic developments such as the formation of global commodity chains
d. all of these choices
Answer: dSociologists 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
2. Transnational corporations:a. rely on domestic labor and domestic
productionb. sell to domestic marketsc. are increasingly autonomous from
national governmentsd. all of these choices
Answer: c Transnational corporations are
increasingly autonomous from national governments.
3. The term “global commodity chain” refers to:
a. a worldwide network of labor and production processes whose end result is a finished commodity
b. rationalization involving efficiency, predictability, and calculability
c. division of the world into competing economic, political, and cultural areas
Answer: a The term “global commodity chain” refers to
a worldwide network of labor and production processes whose end result is a finished commodity.
4. George Ritzer coined the term "McDonaldization" to describe:a. a worldwide network of labor and
production processes whose end result is a finished commodity
b. the economic domination of one country by another
c. a form of rationalization involving efficiency, predictability, and calculability
d. the homogenization of life worldwide
Answer: c George Ritzer coined the term
"McDonaldization" to describe a form of rationalization involving efficiency, predictability, and calculability.
5. Regionalization is:a. a worldwide network of labor and
production processes whose end result is a finished commodity
b. a form of rationalization involving efficiency, predictability, and calculability
c. the division of the world into often competing economic, political, and cultural areas
d. the homogenization of many aspects of life worldwide
Answer: cRegionalization is the division of the world
into often competing economic, political, and cultural areas.
6. According to dependency theorists, rich nations now rely on which of the following to exercise domination and control over poor nations:a. military occupationb. support for authoritarian governmentsc. substantial foreign investmentd. all of these choicese. military occupation and support for
authoritarian governments
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.
7. Peripheral countries are:a. capitalist countries that are the major
sources of capital and technology in the world
b. former colonies that are major sources of raw materials and cheap labor
c. former colonies that are making considerable headway in their attempts to industrialize
d. colonies that have not yet gained independence and are therefore subject to exploitation
Answer: b Peripheral countries are former colonies
that are major sources of raw materials and cheap labor.