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Global Inequality

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University of Toronto St. George
Robert Brym

-there is extreme inequality across nations AVERAGE ANNUAL INCOME -NA, west Europe, Australia, new Zealand, japan, Saudi Arabia I think are high income countries -there is also middle upper, middle lower and low on the map -low income countries are concentrated in Africa -most Africans engaged in substinence agriculture, don’t engage in market relations -7 billion ppl in the world, 60 million ppl are in the top 1 percent of income earners USA GERMANY FRANCE … -most of these 1 percenters are in the US, germany, etc… -they earn 34 000 or more after taxes per year GROSS DOMESTIC -orange is sub subsaharn Africa, prurple is the rich countire like the western world and japan -from 1975 to 2005 = africa’s GDP fell but the rich countries’ GDP shot up so much -growing global inequality ^ GDP GROWTH -china’s economy from 75 to 2005 grew so much more than other countries like Canada THREE CONCEPTS -whether we think inequality is growing depends on how we measure that -bottom line = inequality between countires has increased, the gini index for this has gone up -middle line = some countries are bigger than others, cant compare china to Luxembourg, this line = we make china and India count a lot more than small countires like Luxembourg, according to this inequality in the world has fallen in the world. Weighing country size indicated decreasing inequality -top line= possibly most important line, it doesn’t look at countries, only looks at individuals. It indicates that gini index is 7.5. inequality among individuals is growing (Brazil has .52 gini index and is most unequal country in world, ^this is huge) there are gaps within countries as well, there are rich ppl in Africa and poor ppl in France. -we spend more on cat and dog food than we spend on providing global sanitation -we spend more on beer than we do on providing health services for the poor parts of world -2 explanations for why such inequalities developed and why they exist -1 is modernization theory = reason for existence of poor countries is cause they lack sufficient capital to invest as to develop -don’t have western technology, financial structures, etc.. -their productivity is very low, they produce little -they have no capital for investment, no stable westernized gov’ts, (u don’t wanna invest in stable, war torn or something like that countries) -also most ppl in poor countries don’t have western mentality of working hard, going to school, and only having a few kids -modernization country says the best thing we rich countires can do is transfer our capital, our culture + knowledge to the poor countries and they ll be productive and democratic -gov’ts can give em some money, but mostly it’s important that western businesses invest in poor countries MODERNIZATION THEORY -mt ignores that rich countries have systsmeetacilly impoverished the poor ones -before industrial revolution = china and India were manufacturing centre of the world -china produced so many finished products like clothes -C and I were equally productive to Europe but more than us -C and I were economic powers -today the 12 richest countries of world produce almosat everything -industrilaization allowed the west to produce so much -from 1750 (ind) to 1913 = the west grew soooo mich richer and productive -increased wealth gave us big life expectancies VIDEO -1810 = all countires were poor and died young -gap between west and others is closing -poor countries started doing well and catching up after they were de-colonized after ww2 -decolonization = increased life expectancy -wealth increases = high life expectancy, women are liberated and can work and use birth control, participate in polictis INDICATORS of GEMDER INEQUALITy -equality = women equally go to school, are politicians, work and don’t get gentially mutilated - MAIN DETERMINANTS -1. GDP, rich countires have gender equality, this happens as for a country to get rich it must mobilize women into the workforce -2. percent muslim = lot of muslims in country = govt prevents women from driving, going to school, voting, etc… muslims are associated with gender inequality -former communist regimes = if a country was or is now communist there is more gender equality, commie countries want to get women to work, go to school, and be politicians as to economically grow -e.g. soviets lost lots of men in ww2 and realized they had to mobilize women into education and the workforce -these 3 have indepenendent effects -economic development (GDP) is most important but economic and political governance is also very important and has independent effects -industrialization = countries that underwent it made lots of profit = used profit to make army = used army to take over non-industrialized countries = made them into colony = used them for ra
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