SOCIOLOGY Richard T. Schaefer

1. SOCIOLOGYRichard T. Schaefer 10 Global Inequality

2. 10. Global Inequality • Stratification in the World System • Case Study: Stratification in Mexico • Social Policy and Social Inequality Worldwide

3. Stratification in the World System • The Global Divide • Inequality a significant determinant of human behavior • Divides in global wealth emerged as result of Industrial Revolution

4. Stratification in the World System • The Legacy of Colonialism • Colonialism: when foreign power maintains of political, social, economic, and cultural domination over people for an extended period • Neocolonialism: continued dependence on more industrialized nations for managerial and technical expertise by former colonies

5. Stratification in the World System • The Legacy of Colonialism • Wallerstein’s World Systems Analysis Dependency Theory: even as developing countries make economic advances, they remain weak and subservient to core nations and corporations • Unequal economic and political relationships in which certain industrialized nations and their global corporations dominate core of the world’s economic system

6. Stratification in the World System • The Legacy of Colonialism • Globalization: worldwide integration of government policies, cultures, social movements, and financial markets through trade and the exchange of ideas • MultinationalCorporations: commercial organizations headquartered in one country but do business throughout the world

7. Stratification in the World System Figure 10-1. Fundamental Global Inequality Source:Adapted from Sutcliffe 2005:18

8. Stratification in the World System Figure 10-2 Gross National Income per Capita Sources: Haub 2003; Weeks 2002:22-23

9. Stratification in the World System Figure 10-3 World Systems Analysis at the Beginning of the 21st Century Sources: Haub 2003; Weeks 2002:22-23

10. Stratification in the World System • Multinational Corporations • Commercial organizations headquartered in one country and doing business throughout the world • Functionalist View • Through international ties, multinational corporations make nations of the world more interdependent

11. Stratification in the World System • Multinational Corporations • Conflict View • Multinational corporations exploit local workers to maximize profits Investment by multinationals initially contributes to host nation’s wealth, but eventually it increases economic inequality within developing nations

12. Stratification in the World System Table 10-1 Multinational Corporations Compared to Nations Sources: For corporate data, Hjelt 2004; World Bank 2004b:260—261

13. Stratification in the World System • Modernization • Far reaching process by which peripheral nations move from traditional institutions to those characteristic of more developed societies • Modernization Theory: functionalist view that modernization and development will gradually improve the lives of people in developing nations

14. Stratification within Nations: A Comparative Perspective • Distribution of Wealth and Income • In at least 26 nations around the world, the most affluent 10 percent of the population receives at least 40 percent of all income • Women in developing countries find life especially difficult

15. Stratification within Nations: A Comparative Perspective • Social Mobility • Mobility in Industrial Nations • Patterns of intergenerational mobility in industrialized nations: • Similarities in ways parent’s positions in stratification systems are transmitted to children • Mobility opportunities influenced by structural factors, such as labor market changes • Immigration significant factor shaping a society’s level of intergenerational mobility

16. Stratification within Nations: A Comparative Perspective • Social Mobility • Mobility in developing nations: • Macro-level social and economic changes often overshadow micro-level movement from one occupation to another • Gender Differences and Mobility • As country develops and modernizes, women’s vital role in food production deteriorates • Jeopardizes autonomy and material well-being

17. Stratification within Nations: A Comparative Perspective Table 10-2 Three Approaches to Global Inequality

18. Stratification within Nations: A Comparative Perspective Figure 10-4 Distribution of Income in Nine Nations Source: World Bank 1993 to 2000a/2004:60—62

19. Stratification within Nations: A Comparative Perspective Figure 10-5 The Borderlands Source: Prepared by author based on Ellingwood 2001; Thompson 2001a2

20. Case Study: Stratification in Mexico • Mexico’s Economy • North American Free Trade Agreement (NAFTA) opened U.S. consumer market • Collapse of peso and competition from China undercut benefits • Mexico unquestionably poor country, but gap between richest and poorest citizens one of the widest .

21. Case Study: Stratification in Mexico • Race Relations in Mexico: The Color Hierarchy • Law on Indian Rights and Culture • Allows 62 recognized Indian groups to apply own customs in resolving conflicts and electing leaders • Social class linked to appearance of racial purity .

22. Case Study: Stratification in Mexico • The Status of Women in Mexico • Constitute 42% of labor force • More mired in lowest-paying jobs than counterparts in industrial nations • The Borderlands • Maquiladoras: foreign-owned factories where companies that own them do not have to pay taxes or provide benefits to workers .

23. Case Study: Stratification in Mexico • The Borderlands • Many Mexicans who have come to U.S. send some part of their earnings back, called remittances • Estimated at a minimum of $15 billion a year From Mexican point of view, U.S. too often regards Mexico as a reserve pool of cheap labor .

24. Social Policy and Social Inequality Worldwide • Universal Human Rights • The Issue • Human rights: universal moral rights belonging to all people because they are human • Elaboration of human rights appears in Universal Declaration of Human Rights, adopted by the United Nations

25. Social Policy and Social Inequality Worldwide • Universal Human Rights • The Setting • United Nations can condemn countries and adopt resolutions expressing concern over nations whose practices violate the Universal Declaration of Human Rights • The U.S. used the Declaration to promote democracy abroad

26. Social Policy and Social Inequality Worldwide • Universal Human Rights • Sociological Insights • Cultural relativism encourages understanding and respecting the distinctive norms, values, and customs of each culture • Conflicts arise between human rights standards and local social practices that rest on alternative views of human dignity in some countries Continued...

27. Social Policy and Social Inequality Worldwide • Universal Human Rights • Sociological Insights • Policymakers frequently look at human rights from an economic perspective • Functionalists point out how much more quickly we become embroiled in “human rights” concerns when oil is at stake • Intersection of economics and human rights issues led to the creation of a Human Rights Index (HRI)

28. Social Policy and Social Inequality Worldwide • Universal Human Rights • Policy Initiatives • Many national policymakers hesitate to interfere in worldwide human rights issues • Most initiatives come from international bodies • Universal human rights remain an ideal and not a reality