SOC101YSOC101Y

Introduction to SociologyIntroduction to SociologyProfessor Robert BrymProfessor Robert Brym

Lecture #13Lecture #13Global InequalityGlobal Inequality

23 Jan 1323 Jan 13

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Manila, Philippines

Dhaka, Bangladesh

Cairo, Egypt

Average Annual Income, Average Annual Income, by Country, 2008by Country, 2008

Half the world’s people have after-tax income below $1,225 a year. In contrast, a person with after-tax income of $34,000+ per year is in the world’s top 1 percent of income earners (= 60 million people). This graph shows how those 60 million people are distributed geographically.

USA Germany France Italy UK Canada S. Korea Japan Brazil Others*

= 1 million people

* Switzerland, Spain, Australia, Netherlands, Taiwan, Chile, Singapore, etc.

Region

GD

P p

er

pers

on (

US d

olla

rs)

Gross Domestic Product Per Person, Sub-Saharan Africa and High-Income Countries, 1975-2010

Note: Gross Domestic Product is the dollar value of goods and services produced in a region in a year. Data are in 2005 dollars.

11.6% shrinkage

143% growth

GDP Growth in 2000 Dollars, GDP Growth in 2000 Dollars, 1969-20081969-2008

0

5

10

15

20

25

30

Chin

a

Indi

a

Braz

il

Cana

da

USA

Growth in00s of %

The Chinese economy was 27.2 times bigger in 2008 than in 1969.

The Canadian economy was 3.4 times bigger in 2008 than in 1969.

Gin

i Ind

ex o

f In

equa

lity

Year

Inequality of average income for each country

Inequality of average income for each country, weighted for population size

Inequality of income for each individual in the world

Brazil

Note: A Gini index of 0 indicates that every income recipient receives exactly the same amount of income. A Gini index of 1.0 indicates that a single income recipient receives all of the income. To put things in perspective, note that the Gini index of inequality for individuals worldwide is about .70, while the Gini index for individuals in Brazil, which has one of the highest levels of inequality of any country, is about .52.

Three Concepts of World Inequality

Global Priorities, 2011 (in US$ billions)

Additional annual cost, basic education for everyone in the world 6.3

Additional annual cost, water and sanitation for everyone in the world 12.4

Annual dog and cat food sales, USA 18.6

Additional annual cost, reproductive health care for all women in the world 18.6

Additional annual cost, basic health and nutrition for everyone in the world 20.1

Annual global perfume sales 27.5

Annual TV advertising, USA 60.0

Annual global revenue, strip clubs 75.0

Annual global revenue, cocaine sales (2008) 88.0

Annual beer sales, USA 96.0

Annual global arms sales 1,700.0

Life Expectancy and Income, 200 Countries over 200

Years

http://projects.chass.utoronto.ca/soc101y/brym/videos/200.m4v

Ratio of males to females in primary, secondary, and tertiary education. The higher the ratio, the higher the level of gender inequality.

Men as a percent of parliamentarians in the lower house (or the single house in unicameral political systems). The higher the ratio, the higher the level of gender inequality.

Participation rate of women in the paid labour force. The lower the rate, the higher the level of gender inequality.

Prevalence of female genital mutilation. The higher the prevalence, the higher the level of gender inequality.

Indicators of Gender InequalityIndicators of Gender Inequality

Main Determinants of Gender Inequality Worldwide: Multiple Regression Analysis

Variation in gender inequality

Effect of variation in economic development

for countries matched on percent Muslim and

former communist regime

Effect of variation in former communist

regime for countries matched on economic

development and percent Muslim

Effect of variation in percent Muslim for countries matched oneconomic development and formercommunist regime

1. GDP per capita (-)

2. Percent Muslim (+)

3. Former communist regime (-)

Modernization TheoryModernization TheoryGlobal inequality results from

inadequacies in poor societies themselves, including lack of:

capital Western business techniques stable governments a Western mentality emphasizing

savings, investment, innovation, education, high achievement, and self-control in having children

Dependency Theory IDependency Theory I

For 250 years, the most powerful countries in the world have impoverished the least powerful countries as a matter of state policy.

Thus, the countries of the “Third World” or “Global South” accounted for 73% of world industrial production in 1750 but only 7.5% in 1913; in 1913, the world’s 12 richest country accounted for 90% of world industrial production.

Dependency Theory IIDependency Theory II Why? The Industrial Revolution enabled

Britain, France, Spain, Portugal, the Netherlands, Belgium, Italy, Russia, and the United States to amass enormous wealth, which they used to establish powerful armed forces to subdue and then annex or colonize most of the rest of the world between the middle of the 18th and the middle of the 20th century.

Main exception: Japan (considered less valuable than China and India)

Dependency Theory IIIDependency Theory III

Neo-colonialism established by creating a system of dependency involving three main elements:

Substantial foreign investment Support for authoritarian

governments Mounting debt

Core, Periphery and Core, Periphery and SemiperipherySemiperiphery(Wallerstein)(Wallerstein)

Core: major sources of capital and technology (USA, Japan, Germany)

Periphery: major sources of raw materials and cheap labour (most former colonies)

Semiperiphery: former colonies that are making considerable headway in their attempts to become prosperous (South Korea, Taiwan, Singapore; Israel; more recently, China, India, Brazil)

How Semi-Peripheral Countries How Semi-Peripheral Countries Differ from Peripheral Differ from Peripheral

CountriesCountriesType of colonialism

infrastructural support?Geopolitical position

helpful to USA?State policy

statist, pro-growth?Social structure

land reform; homogeneous?