SOCA2400 Lecture Notes - Lecture 7: Social Democracy, International Inequality, Economic Inequality
25 May 2018
School
Department
Course
Professor
SOCA2400
Globalization, Social Justice, and Development
April 24, 2018
WEEK 7
Capitalist Globalization, Inequality, and Poverty
Myth 5: Economic growth achieved through economic liberalization/globalization
alleviates poverty and brings about social equality/justice
Alternative: Social justice, solidarity, and equity are the preconditions of
economic development
Alternative Systems
• Socialism (21st century)
• Social democracy (Post-Keynesianism)
o Pretty successful until Arab oil prices went up, interest rates went up
o Upper class blamed welfare state for this situation, “move back to extreme
version of capitalism”
o 1980s, when Reagan and Thatcher came into power
o Wasn’t able to be continued
• Commons (Populism?)
• Post-Colonialist Feminisms
• Socialist Feminism
Research Question: Has the globalization of capitalist relations or economic
liberalization been associated with more economic equality or social justice?
• Discuss examples of increasing or decreasing inequality as the result of
economic growth
• To further challenge the myth, examine an alternative system/movement
• Is the alternative significantly different from neoliberal capitalism? In what ways?
Can this offer a feasible/viable solution to the crises of global Capitalism?
• Has it been tested in practice?
• What are the limitations and obstacles?
• Can this alternative finally replace capitalism globally?
Trickle-down economics. Let the rich grow, accumulation of wealth will trickle down to
bottom levels and everyone will benefit.
Alternatives: No, make sure the pie doesn’t disappear. Will be a much bigger pie if we
bring everyone on board.
Key Questions
• Have the recent global changes affected inequality between and within nation
states?
o Economic – free trade and capitalist market expansion
find more resources at oneclass.com
find more resources at oneclass.com
o Social – growth of interactions due to the proliferation of new ICTs, and
the transnational population mobility
o Political – transformation in nation-states autonomies, sovereignty,
territoriality
o Cultural changes – divergence + convergence + hybridization
Welfare State
Neo-liberal
1945-1973 – Keynesian policy regime
• Interventionist
• Full employment
• High income
• Stabilize accumulation (social
democracy)
1980-2008 – Neoliberal regime, economic
liberalization
(excluding Scandinavians)
Growth: Is it good?
• OECD countries had 3.5% rate a
year (1961-1989)
More social and economic equality
Growth rate of OECD countries
= 2% a year (1891-1999) heydays of
neoliberal regime
Developing countries (excluding China)
= 3.2% rate of economic growth a year
Developing countries (excluding China)
= 0.7%
Every income category in the US
experience real income growth
Poorest families have the highest rate
Average real income remained stagnant
High income growth for the top 20%
Significant income decline for lowest 20%
Gap is growing
US most unequal from OECD countries
Capitalist Globalization – the best of times?
Poverty Rates Keep Declining
Poverty in decline
Unemployment statistics
• Problematic data obtainment
• Cannot relate liberalization to reduction in poverty, increase in life expectancy
World Economy is Growing
• BrICs is growing
Human Development Gaps are Shrinking
• Depends where you put the poverty line
o Absolute to extreme?
• You can play with numbers
• Depends on what conclusion you want to achieve
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Myth 5: economic growth achieved through economic liberalization/globalization alleviates poverty and brings about social equality/justice. Alternative: social justice, solidarity, and equity are the preconditions of economic development. Let the rich grow, accumulation of wealth will trickle down to bottom levels and everyone will benefit. Alternatives: no, make sure the pie doesn"t disappear. Will be a much bigger pie if we bring everyone on board. 1980-2008 neoliberal regime, economic liberalization (excluding scandinavians) = 2% a year (1891-1999) heydays of neoliberal regime. Interventionist: full employment, high income, stabilize accumulation (social democracy) Growth: is it good: oecd countries had 3. 5% rate a year (1961-1989) = 3. 2% rate of economic growth a year. Every income category in the us experience real income growth. Unemployment statistics: problematic data obtainment, cannot relate liberalization to reduction in poverty, increase in life expectancy. World economy is growing: brics is growing.
