Hello,

classmates!
 5th
Topic
GLOBAL INCOME INEQUALITY
 Globalization and inequality are closely related. We can see how
different nations are divided between the North and the South,
developed and less developed, and the core and the periphery.
These differences mainly reflect one key aspect of inequality in the
contemporary world – global economic inequality
There are two main types of economic inequality:

1. Wealth Inequality - speaks about unequal distribution of assets

in a group of people.
2. Income Inequality - is how evenly income is distributed
throughout a population.
•According to the Global Wealth Report 2016 by the Credit
Sulsse Research Institute, global wealth today is estimated to
be about 3.5 trillion dollars and it is not distributed equally.

•Branko Milanovic (2011), an economist who specializes in

global inequality, explained all this by describing an "economic
big bang" wherein the Industrial Revolution caused the
differences among countries. Through this "explosion" of
industry and modern technology, some nations became
economically developed while others were developing.
•Economic globalization and international trade are the forces
responsible in today's global income inequality. Many economists
believe that the world's poorest people gained something from
globalization. The rich, on the other hand, earned a lot more.
•Harvard economist Richard Freeman (2011) noted, "The triumph
of globalization and market capitalism has improved living
standards for billions while concentrating billions among the
few" (as presented in OECD Policy Forum, Paris, May 2).
Access to technology also contributed to
worldwide income inequality. It complemented
skilled workers but replaced many unskilled
workers. In modernized economies, jobs are more
technology-based, generally requiring new skills.
As a result, workers who are more educated and
more skilled would thrive in those jobs by
receiving higher wages. On the other hand, the
unskilled workers will fall behind. They will be left
and overtaken by machines or more skilled
workers.
6th
Topic
THE THIRD WORLD
AND THE GLOBAL
SOUTH
The term "Third World" arose during the Cold War
and it was used to define countries that remained
non-aligned with either NATO or the Warsaw Pact.
The United States, Canada, Japan, South Korea,
Western European nations and their allies
represented the "First World", while the Soviet
Union, China, Cuba, North Korea, Vietnam and
their allies represented the "Second World".
This terminology provided a way of broadly
categorizing the nations of the Earth into three
groups based on political divisions. Due to the
complex history of evolving meanings and
contexts, there is no clear or agreed-upon
definition of the Third World. Strictly speaking,
"Third World" was a political, rather than an
economic, grouping.
Because many Third World countries
were economically poor and non-
industrialized, it became a stereotype to
refer to developing countries as "third
world countries". Some countries in the
third world are relatively poor but, many
are not.
For example, lumping Botswana and Rwanda into
the same category does not make much sense
because the average income per capital in
Botswana is nine times larger than in Rwanda.
Nowadays, social scientists sort countries into
groups based on their specific levels of economic
productivity. To do this, they use the Gross
Domestic Product (GDP), which measures the
total output of a country, and the Gross National
Income (GNI), which measures GDP per capital.
A new and simpler classification, North-
South, was created. First World countries,
such as the United States, Canada, Western
Europe, and developed parts of Asia are
regarded as the "Global North," while the
"Global South" includes the Caribbean, Latin
America, South America, Africa, and parts of
Asia. These countries were used to be called
the Third World during the Cold War.
The terms "Global North" and "Global
South" are a way for countries in the
South to make a stand about the
common issues, problems, and even
causes in order to have equality all
throughout the world.
These distinctions point largely to racial
inequality, specifically between the Black
and the White. According to Ritzer (2015),
"At the global level, whites are
disproportionately in the dominant North,
while blacks are primarily in the south;
although this is changing with South-to-
North migration".
In other words, the differences between
the Global North and the Global South are
shaped by migration and globalization.
Nevertheless, the economic differences
between the wealthy Global North and
poor Global South "have always possessed
a racial character".
THE GLOBAL CITY
GLOBAL CITY
(also known as a power city, world city, alpha city,
or world center)
is a city that serves as a primary node in the global
economic network.
 The concept originates from geography and urban
studies, based on the thesis that globalization has
created a hierarchy of strategic geographic
locations with varying degrees of influence over
finance, trade, and culture worldwide.
The global city represents the most
complex and significant hub within
the international system,
characterized by links binding it to
other cities that have direct, tangible
effects on global socioeconomic
affairs.
The criteria of a global city have varied over time and
depending on the source;[2] common features include
a high degree of urban development, a large
population, the presence of major multinational
companies, a significant and globalized financial
sector, well developed and internationally linked
transportation infrastructure, local or national
economic dominance, high quality educational and
research institutions, and a globally influential output
of ideas, innovations, or cultural products.
Quintessential examples, based
on most indices and research,
include New York City, London,
Paris, and Tokyo.
7th
TopicTheories of Global
Stratification
 Global Stratification
• unequal distribution of wealth, power, prestige,
resources, and influence among the world’s
nations.
• Difference between richest and poorest nations.
 Modernization theory
• the belief that industrialization and economic
development lead directly to positive social and
political change -- has been a subject of intense
scholarly and policy interest for more than half a
century.
 Modernization theory

• that increases in technology will increase wealth

throughout the globe, and that low-income
nations can follow the path taken by wealthier,
modernized nations.
 Modernization theory

• this theory frames global stratification as a

function of technological and cultural
differences between nations.
 Two Historical
events:
1. Columbian Exchange
2. Industrial Revolution in the eighteenth and
nineteenth centuries.
1. Columbian Exchange

• Refers to the spread of goods, technology,

education, and diseases between the Americas
and Europe after Christopher Columbus’s so
called “discovery of Americans”.
2. Industrial Revolution in the eighteenth and
nineteenth centuries.
• this is when new technologies, like steam power
and mechanization, allowed countries to replace
human labor with machines and increase
productivity.
Dependency theory
• holds that some nations gained wealth at the
expense of other nations, especially through
colonization
.
8th
Topic
WALT ROSTOWS
Using these ideas, Rostow penned his classic Stages
of Economic Growth in 1960, which presented five
steps through which all countries must pass to
become developed:
1) traditional society,
2) preconditions to take-off, 3) take-off,
4) drive to maturity and
5) age of high mass consumption.
1.Traditional
society
• mainly use subsistence farming
and have little surplus outcuts to sell
• there is a limited ability for growth
due to lack of modern technology
• trade is done locally
Uncontacted tribe
• the tribe has had zero contact with modern
technology other than an airplane that has
flown over them
• they use the plants around to create shelter
• in the picture the boy has collected peeled
manioc, this indicates that the tribes uses
subsistence farming
2.Preconditions to take off
• industrial) manufacturing begins
• trade expands overseas creating an
international market
• this stage is the preparation for take off
• agriculture becomes commercialized and
mechanized due to technological
improvements
3.Take off
• productive investment rises 5-10% of
national income
• Substantial manufacturing sectors become
developed so there is a high rate of growth
• technology breakthrough occurs. For.
Example, great britains industrial revolution
and the agriculture / Green revolution
Great britains industrial
revolution
• the textile industry had launch as did the
economy of Britain when the industrial
revolution occured

• the power loom (Picture ), spinning jenny,

sewing machine , and water loom are only
couple inventions that fueled the textile
industry to launch
4.Drive to Maturity
• Rostows defines this " as the period when a
society has effectively applied the range of
modern technology to bulk of its resource's "
• steadily growing economy and modern
technology
• agriculture workers decrease drastically.
Workers acquire greater skills and are paid
higher wages
5.High Mass Consumption
• High valued foods become normalized to
purchase
• Consumers have beyond their basic needs
• people live in cities creating an urban
society
• society is able to focus on military, security
issues, equality, and welfare issues
• tertiary sector activity increases
Japan becoming Ahead

• after 1950 japan entered the High Mass

Consumption stage after signing the san
Francisco peace treaty
• this puts japan ahead of russia
• russia fell behind due to their own political
system which totalitarian communism
9th
Topic
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.
Dependency theory focused on individual nations,
their role as suppliers of raw materials,
cheap labor, and markets for expensive
manufactured goods from industrialized
countries. The
unequal exchange relationship between developed
and developing countries was viewed as
contributing to poor economic growth.
Dependency theorists can typically be divided into two
categories:
Liberal reformists and Neo-Marxists

Liberal reformists
-typically advocate for targeted policy interventions,
Neo-Marxists
-believe in a command-centered economy.
ACCORDING TO ANDRE GUNDER FRANK
What is dependency theory by Andre Gunder
Frank?

According to dependency theory, the people of less-

developed countries are not to blame for the failure of
their societies to develop. Instead, he suggested that
Western nations deliberately failed to develop these
countries
10th
Topic
THE MODERN WORLD
SYSTEM
World System Theory

The world systems theory,

developed by sociologist Immanuel
Wallerstein, is an approach to world
history and social change that
suggests there is a world economic
system in which some countries
benefit while others are exploited.

Immanuel Wallerstein
World Systems Theory is a view of the
world in which countries are placed
into different economic classes to
explain their economic relationships
with one another. These classes include
Core, Semi-Periphery, and Periphery.
Core
Describes dominant capitalist countries
which exploit the peripheral countries for
labor and raw materials.
This core is the manufacturing base of the
planet where resources funnel in to become
the technology and wealth enjoyed by the
western world today.
Peripheral/Periphery
Peripheral/Periphery countries are
dependent on core countries for capital
and have underdeveloped industry. This is
the low income contries, whose natural
resources and labor, support the welthier
contries
.
Semi-peripheral
Countries that share characteristics of
both core and periphery countries. This is
the middle income contries, such as
India and Brazil. They are considered a
Semi-peripheral contries due to their
closer ties to the global economic core.
Any Questions?

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