GLOBAL INCOME

INEQUALITY
 The first trend is that
growth rates in poor
economies have accelerated
and are higher than growth
rates in rich countries for
the first time in modern
history.
 2 TYPES OF
ECONOMIC
INEQUALITY
WEALTH INEQUALITY
AND
INCOME INEQUALITY
 WEALTH
Accumulated assets,
minus liabilities.
( Pensions, Savings, Real
state and Stocks.)
WEALTH INEQUALITY
The unequal
distribution of
accumulated assets,
minus liabilities.
INCOME INEQUALITY

The extent to which

income is
distributed in an
uneven manner.
Global wealth is
estimated about
$260 trillion.
THE THIRD WORLD
AND THE GLOBAL
SOUTH
 FIRST WORLD
(WESTERN BLOC)
 USA
 JAPAN
 SOUTH KOREA

SECOND WORLD
(EASTERN BLOC)
 SOVIET UNION
 CHINA
 CUBA

THIRD WORLD (NON-
ALIGNED/NEUTRAL
COUNTRIES)
AGRIAN AND POOR
SOCIETY (ALL OTHER
NATIONS)
NORWAY IS THE
HIGHEST GROSS
DOMESTIC
PRODUCT (GDP
THE GLOBAL CITY
(SASKIA SASSEN)
Also called a power
city, world city, alpha
city or world center
THE GLOBAL CITY
 NEW YORK
 LONDON

 CHARACTERISTICS OF
GLOBAL CITY
A variety of international financial services,
notably in finance, insurance, real
estate, banking, accountancy,
and marketing
Headquarters of several multinational
corporations

Domination of the trade and
economy of a large surrounding
area
Major manufacturing centers
with port and container facilities

Centres of new ideas and innovation
in business, economics, culture, and
politics
Centres of media and
communications for global networks
Dominance of the national region
with great international significance
High percentage of residents
employed in the services
sector and information sector.
High-quality educational institutions,
including renowned universities,
international student attendance, and
research facilities
Multi-functional infrastructure
offering some of the best legal, medical,
and entertainment facilities in the
country
High diversity in language, culture,
religion, and ideologies.
 GLOBAL
STRATIFICATION
Refers to the unequal
distribution of wealth,
power, prestige, resources,
and influence among the
world's nations.
 THEORIES OF
GLOBAL
STRATIFICATION
 MODERNIZATION
THEORY
Modernization refers to a
model of a progressive
transition from “pre-
modern” or “transitional”
to a “modern” society.
WALT ROSTOW’S FOUR
STAGES OF
MODERNIZATION
TRADITIONAL STAGE
This refers to societies that
are structured around
small, local communities
with production typically
being done in family
settings.
 THE TAKE-OFF STAGE

This innovation creates new

markets for trade. In turn,
the greater individualism
takes hold and social status is
more closely linked with
material wealth.
 TECHNOLOGICAL
MATURITY
Nations in this phase typically
begin to push for social change
along with economic change,
like implementing basic
schooling for everyone and
developing more democratic
HIGH MASS CONSUMPTION

When your country is

big enough that
production becomes
more about wants than
needs.
 DEPENDENCY THEORY
Dependency theory is the
notion that resources flow from
a "periphery" of poor and
underdeveloped states to a
"core" of wealthy states,
enriching the latter at the
expense of the former.