1. Global and Domestic Inequalities

2. Growing Inequality between North and South
80% of world lives on 20% of worlds income
United States, 5% of world population uses 30% of worlds resources
3. Income Gap Between Rich and Poor
Rich CountriesGDP Per Capita
Luxembourg$60,228
Norway$41,420
Ireland$ 38,505
United States$41,890
Poor Countries GDP Per Capita
Ethiopia$1,055
Dem. Rep. Congo$827
Malawi$667
Nepal$1,550
4. 5. 6. 7. What is Poverty? How to Measure?
World Bank: $1.25 per day or less=Absolute Poverty
1.4 billion live in absolute poverty
However, with the exception of Sub-Saharan, most developing countries are reducing poverty
8. 9. Measures of Poverty
Literacy Rates: Illiteracy and poverty are strongly connected.
Increased literacy rate=foreign investments, reduce population growth, improve health care, create wealth
Haiti: of all school-age children have never attended school
10. 11. Measures of Poverty
Malnutrition: More obvious and important indicator of poverty than low literacy rates.
Malnutrition causes impaired vision, inability to concentrate and learn, vulnerability to dease, shorter life.
1/6 (840 million) of worlds population malnourished
1 billion malnourished 1969-1971
Decrease largely in China
12. Malnutrition
Malnutrition cause of 60% of childrens deaths in Developing World
13. Effects of Malnutrition
1980: 40,000 deaths from malnutrition a day
1990: 35,000 deaths from malnutrition a day
2010: 24,000 deaths from malnutrition a day
Access to food is often determined by gender, control of resources, and social status.
14. 15. Results of Poverty
Famine: During Ethnic conflicts, factions often use food as weapons. Deliberately restrict availability of food in order to starve population.
Example: Ethiopia, Somalia, Angola, Sudan
Famin in sudan has claimed 2.5 million lives
3 million Sudanese are starving
16. Inadequate Health Care
Inadequate Health Care in an indicator of poverty.
Poor health=no energy=no employment=no money
Infectious diseases thrive in unsanitary conditions.
17. 18. 19. Economic Inequalities in Rich Countries
Within in the US gap between rich and poorhas widened since 1977.
In 1999 richest 1% (2.7 million) earned as much as the poorest 100 million (37% of US)
2000: Top 1%=862,000
Bottom 40%= $21,350
Many unpaved roads, raw sewage runs through streets during heavy rains, rust colored water for bathing
Bayview, Virginia
20. 21. Regional Inequalities
Asia, Africa and most of Latin America in similar position 40 years ago
East Asia now occupies top position in developing world, Latin America in the middle, Africa on the bottom.
Asia and Latin industrializing and reduced dependency on primary products.
Africas economic conditions essentially the same as 40 years ago
22. Sharp Disparities within Countries
Distinct worlds within most countries
Rich people live glamorous lives similar to the West
Poor live in slums, often treated as slaves
Swaziland: King Mswati, last absolute monarch in SSA, drives between his palaces in a $500,00 luxury car
2/3 of Swazis live below UN poverty line, 40% unemployed
Last year the king spent almost $21.5 million on palaces and BMWs for his wives.
23. 50,000 virgins?
24. Causes of Inequality
Hotly debated topic
1. Colonialism and its legacies
2. Structure of world economy
3. Increasing globalization of economy
4. Overpopulation
5. Ineffective government
6. Political and Economic Instability
7. Natural Disasters
25. Colonialism
Laid foundation for economic gap between rich and poor
Inequality breeds inequality.
Does not mean the situation cannot change
Singapore, South Korea, Kuwait-all now very wealthy
26. Structure of World Economy
Many poor nations suggest that govts. And businesses in rich countries work together to maintain unfair world economyi.e Dependency Theory
Challenges to theory?
Increasing number of developing countries exporting to US and experiencing greater prosperity
Opening of MNCs in developing Countries
27. Increasing Globalization
Globalization contributes to both inequality and greater equality
Programmers and Computer Experts in India recruited to work for IBM, Motorola
Free Trade led many Mexicans to gain jobs and improve standard of living
But to compete, govts. Adopt policies that promote greater inequality (reduce spending on social services, health care, etc)
28. Growth rate or 250% in poor countries.
Children regarded as social security and labor.
Overpopulation
Government policies

North Korea vs South Korea

29. North Korea isolated self and adopted communism 30. South Korea integrated into global economy. 31. Govt. policies of China have created significant growth