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Chapter 9 Global Stratification
Chapter Outline
• Wealth and Poverty in Global Perspective
• Problems in Studying Global Inequality
• Classification of Economies by Income
• Measuring Global Wealth and Poverty
• Global Poverty and Human Development Issues
• Theories of Global Inequality• Global Inequality in the Future
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Wealth and Poverty in Global Perspective
• Global stratification refers to the unequal distribution of wealth, power, and prestige on a global basis, resulting in
Problems in Studying Global Inequality
Terms to distinguish nations on basis of economic development and standard of living __________: rich, industrialized nations with capitalist economies
and democratic systems __________: countries with moderate economic development and
standard of living _________: countries with the lowest standards of living, shortest
life expectancies, and highest rates of mortality.
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Low-income economies Almost half of the world's population People engage in agricultural pursuits in nonurban areas Primarily in Asia and Africa High level of feminization of poverty
Middle-income economies 1/3 of the world's population Latin American countries; India, Russia, Romania, and
Kazakhstan Formerly socialist economies are transitioning to market
economies High-income economies
65 nations United States, Canada, Japan, and Australia Relatively high standard of living Economic growth has slowed, in part, due to deindustrialization
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Measuring Global Wealth and Poverty
The World Bank has defined Absolute poverty
Relative poverty
Measured by comparing one person’s income with the incomes of others
Subjective poverty can be measured by comparing the actual income against the income earner’s expectations and perceptions
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Global Poverty and Human Development Issues
Life expectancy has increased globally. The average life expectancy of people in low-income countries
is as much as 30 years less than that of people in high income countries Higher rates of infant mortality Higher rates of infectious and parasitic illnesses
Educational attainment has increased for both men and women, but a large gap remains in many developing countries
According to the Human Development Report (2010), fewer people worldwide now lack basic reading and writing skills, but the illiteracy rate of older adults remains high The gap between the poorest nations and middle-income nations has continued to widen
Poverty for women has continued to increase
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Theories of Global Inequality• Modernization theory is a perspective that links global inequality to
different levels of economic development and suggests that low-income economies can move to middle- and high-income economies by achieving self-sustained economic growth.
• Dependency theory states that global poverty can at least partially be attributed to the fact that the low-income countries have been exploited by the high-income countries.
• The new international division of labor theory suggests that commodity production is being split into fragments that can be assigned to whichever part of the world can provide the most profitable combination of capital and labor.