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The New Global Inequalities

The New Global Inequalities. David Brady Duke University. BLUE JEANS SOLD AT WALMART (Jennifer Bair). Sent over land from Mexico to Wal-Mart DC in Bentonville, Ark. Retailer (Wal-Mart). Brand (Levi’s). U.S. Manufacturer. Taiwanese Manufacturer. Shipped by container from

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The New Global Inequalities

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  1. The New Global Inequalities David Brady Duke University

  2. BLUE JEANS SOLD AT WALMART (Jennifer Bair) Sent over land from Mexico to Wal-Mart DC in Bentonville, Ark. Retailer (Wal-Mart) Brand (Levi’s) U.S. Manufacturer Taiwanese Manufacturer Shipped by container from Shenzhen to West Coast ports Inputs: Cotton (Texas) Thread (S. CA) Denim (Mexico) Dominican Manufacturer Inputs: Cotton (India) Thread (China) Denim (China) Factory in Mexico Factory in China Factory in DR Factory in Haiti Shipped by container from Santo Domingo to Miami

  3. OUTLINE • What is Globalization? • Trends in Globalization • Traditional Global Inequalities • Newly Emerging Global Inequalities • Possibilities for Global Social Justice?

  4. What Is Globalization? • Growth of ties/connections; compression of world; reduction of international barriers • Growing irrelevance of geographical distance • Growing Flows across national borders • people, capital, information, goods & services • including greater share of world and leading to increasing integration across spaces • -Timing: • long history of international economic integration that began with the rise of capitalism in 1500s • Early wave peaked in early 20th century: before WWI • Recent wave rising since early 1970s

  5. Globalization’s First Wave: Steamship Routes, 1900

  6. Globalization’s Second Wave: The Internet, 2002

  7. Dimensions of Globalization • Diffusion • Interdependence • Organization • Culture Concrete Economic Aspects -int’l exchange and flows of goods, services, people, information and capital across nation-states -Exports & Imports -Direct & Portfolio Investment -Migration

  8. Concrete Organizations 1) Global Actors International Monetary Fund (IMF) -goal: monetary cooperation & coordination -job: credit-rating agency BUT lends money with conditions World Bank -goal: poverty reduction, development and reconstruction -job: lend to poor countries BUT debt relief and research 2) Global Institutions World Trade Organization -goal: promote free trade, fair competition, dispute resolution -job: forum for negotiations BUT administers agreements European Union -goal: avoid conflict and enable free movement -job: manage EU BUT growing judiciary and bureaucracy

  9. Trends in Globalization: Trade 1820-1995 (% of World GDP)

  10. Trends in Globalization: Trade & FDI 1960-2006 (% World GDP)

  11. Trade % GDP in Key Regions

  12. % Immigrant in Key Regions

  13. Net Migration (Thousands) in Key Regions

  14. Persistent Global Inequalities (Ravallion & Wade Readings): GDP 2005 Billions US Dollars

  15. GDP Per Capita ($) & Population (Billions) 2005

  16. Three Ways to Measure Global Income Inequality

  17. Life Expectancy in Years

  18. Under-5 Mortality Rate per 1,000

  19. Newly Emerging Global Inequalities • From Dependency to New International Division of Labor • Historically, poor countries were source of natural resources and agricultural products for rich countries • Natural Resource Trap: drive up currency, volatile boom-bust cycles, corrupt governments • In past 30 years, poor countries have industrialized because of FDI and exports

  20. Triggered Massive Social Changes • Migration to cities in poor countries • Migration to rich countries • Dramatic advances in technology for communication, transportation and travel • Rapid and Uneven Urbanization (Goldman & Longhofer Reading)

  21. Urbanization Rate

  22. Dharavi in Mumbai, India

  23. Landfill New Delhi India 2007

  24. HIV Prevalence Rate (% 15-49) 2007

  25. Possibilities for Global Social Justice? • Economic Growth? • World composed of rich billion, middle four billion and “bottom billion” • Middle four billion grew 2.5% annually in 1970s, 4% annually in 1980s & 1990s, and 4.5% annually since 2000 • Bottom billion grew only .5% in 1970s, DECLINED .4% in 1980s, and DECLINED .5% in 1990s • Bottom billion was poorer in 2000 than 1970 • Paul Collier “Growth is not a cure-all, but the lack of growth is a kill-all.

  26. 350 300 IGOs 250 200 States 150 100 50 0 1820 1840 1860 1880 1900 1920 1940 1960 1980 2000 The World Polity (Meyer & Lerner Readings) • Canopy of international governmental organizations (IGOs) and international non-governmental organizations (INGOs) • United Nations, Amnesty International, etc. • Global civil society and superstates have potential to improve world well-being

  27. Secondary School Enrollment Rate

  28. Fertility Rate

  29. Aid as % of GDP in 2007

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