w 8 stratification, class, and inequality

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    SOCIAL STRATIFICATION AND CLASS

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    Social stratification

    Social stratification is structured inequalitybetween groups.

    This inequality may be based on economics,gender, race, religion, age, or another factor

    What is at play ispower.

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    Characteristics of

    stratification systems

    Systems of inequality are organized aroundgroups with a shared characteristic.

    The social location of a group is significantin terms of the life chances of members.

    Rankings of groups change only very slowly.

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    Three basic models

    Slaveryownership of certain people

    Castestatus for life

    Classpositions based on economics

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    Class systems

    In modern societies, class systems dominate.

    While class systems do allow for social

    mobility, opportunities are not evenlydistributed across social groups.

    Class has a significant impact on manyaspects of life, including education,occupation, place of residence, marriagepartner, and more.

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    Essentials Of Sociology, 3rd Edition

    Copyright 2011 W.W. Norton & Company

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    How do stratification systems

    look today?

    In modern, industrialized societies, there islittle overt support for rigid systems ofinequality.

    Remaining caste systems appear to betransitioning into class systems.

    From the time of World War II to the 1970s,

    class boundaries appeared to soften, but theyhave been hardening since the 1970s.

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    Marx and class conflict

    Karl Marx was very interested in classrelations in capitalist societies.

    Class was determined solely by ones relation

    to the means of production. Proletariat and bourgeoisie

    Group membership utterly determined lifechances.

    Ultimately the proletariat would overthrowthe bourgeoisie, ending the reign ofcapitalism.

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    Weber: Class and status

    For Max Weber, position in a stratificationsystem was not based on economics alone:social status was also significant.

    Webers multidimensional approach isattractive to those who believe that socialprestige and power can be independent of

    economics.

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    Key Ideas of Conflict

    Theorists: Stratification1. Theres no objective measure of ajobs importance. Sanitation

    workers keep the rats away, which keep bubonic plague away.

    2. Many bright and capable people have been squeezed out ofopportunities to compete for higher paying jobs.

    3. The rewards we give to some professionals are way out ofproportion to their real contribution to the society.

    4. What motivates people once basic needs are met? Pride atwork; independence on job; Input into organisation.

    5. This great inequality leads to Hostility, Conflict. Maybe evenrevolution.

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    Functionalist approaches

    Functionalist theorists attempt to understandwhat role inequality plays in keeping societyat equilibrium.

    Davis and Moore (1945) argued thatstratification benefited society by ensuringthat the most important roles would be filled

    by the most talented and worthy people.

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    Key Ideas of Functionalists:

    Stratification

    Functionalists: Society is made up of smoothlyfunctioning parts that all work for common good.

    1. Somejobs are important and they require special

    training.2. Only a limited number of people have the ability to

    acquire the skills for these jobs.

    3. Learning these skills takes years of sacrifice.

    4. Motivate people to do this by offering them power,prestige and money = lifestyle

    5. Therefore, social inequality is good for society. ItsFunctional. Its Inevitable.

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    What is social class?

    Social class is some mixture of:

    Wealth

    Income

    Education

    Occupation

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    Race and wealth

    Though race is not an actual component ofclass, there is a clear intersection.

    Research shows that in US, African Americansgenerally have less wealth and educationthan other social groups.

    Non-whites are also much more likely to

    experience discrimination when buyinghomes.

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    Occupational prestige

    Occupation Rank (1 = most prestigious; 16 = least

    prestigious)

    Accountant _________________________________

    Cab driver _________________________________

    Carpenter _________________________________

    Classical musician _________________________________

    Engineer _________________________________

    Garbage collector _________________________________

    Journalist _________________________________

    Doctor _________________________________

    Police officer _________________________________

    Real estate agent _________________________________

    Registered nurse _________________________________

    Secretary _________________________________

    Shoe shiner _________________________________

    Social worker _________________________________

    Sociologist _________________________________

    Waiter or waitress _________________________________

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    The rankings

    1. Doctor

    2. Engineer

    3. Sociologist

    4. Accountant

    5. Nurses and other Doctors

    6. Classical musician7. Police officer

    8. Journalist

    9. Social worker

    10. Secretary

    11. Real estate agent

    12. Carpenter13. Cab driver

    14. Waiter or waitress

    15. Garbage collector

    16. Shoe shiner

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    The middle class

    Most people understand themselves as amiddle-class society.

    This fits with strongly held ideologies,including classlessness, meritocracy, and thework ethic.

    Middle-class ideologies tend to promote the

    reproduction of inequality.

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    Social mobility

    Social mobility is the movement of peopleup or down the stratification system.

    Class systems allow for more movement thanslave or caste systems.

    Even so, it remains quite difficult to achieveupward, intergenerational social mobility.

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    Social Mobility

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    Poverty

    Despite the wealth of resources andopportunities, poverty remains a significantsocial problem.

    Sociologists discuss two general types ofpoverty: absolute poverty and relativepoverty.

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    Relative poverty: a level of poverty in which a

    person lacks resources that other members ofher society has access to.

    Absolute poverty: less than 1 $ per capitaincome per day

    This is a life-threatening level of poverty, a

    situation in which a person faces the prospect ofhunger and disease on a daily basis

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    Poverty in the United States

    A full 12.5 percent of the population in 2007was in poverty (more than 37 million people);this is the highest rate among the major

    industrialized nations. One-third of these people is working.

    Poverty is calculated using a formula from the1960s, whereby the poverty line is based on an

    income three times the cost of monthlygroceries.

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    Why are the poor poor?

    Poverty is not simply the result of not workinghard.

    Explanations for poverty are diverse.

    What we know is that low earnings (often basedon a low minimum wage) make it very hard toget ahead.

    Also, the poor have less educational attainment,

    less health insurance, and more broadly,diminished life chances.

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    Explanations for poverty

    Sociologists have many empiricalexplanations for poverty, but by and largethey all fall under one of two themes:

    Blaming the victim (culture of poverty arguments)

    Blaming the system (social exclusion, structuralarguments)

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    Gender and poverty

    Sociologists often discuss what is called the

    feminization of poverty.

    Because of social changes, including divorce and

    the increasing normalization of single-parenting,there are more female-headed households today

    than throughout modern history.

    Of these families, 28 percent were poor in 2007.

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    Poverty and social problems

    Social welfare systems

    Homelessness

    Lack of basic medical care

    Educational segregation

    People turn to non-conventional means tomake money.

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    Does inequality affect you?

    The world economy is changing; that meanschanging jobs, changing wages, and newcompetition.

    Inequality has been on the rise for the pastthree to four decades.

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    SOME EXPERIMENTS

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    Paul Piff

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    30 Studies, 1000s of people, all over the U.S.

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    Rich people are more likely to break the lawwhile driving; help themselves with childrenscandy; and cheat in a game of chance.

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    Key Questions

    What is the scale of global economicinequality?

    What is the extent of poverty across the

    globe? How can we explain the existence of global

    economic inequality?

    modernization theory, dependency theory,world systems perspective

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    THE SCALE OF GLOBAL INEQUALITY

    Some facts:

    World population is more than 6 billion

    1.3 billion people live on less than one dollar aday they are in absolute poverty

    ** richest 20 percent of world populationreceives 80 percent of world income

    ** poorest 20 percent of world populationreceives 1 percent of global income!!!

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    Some Basic Terms

    GDP (gross domestic product) all the goods andservices produced on record in a country in ayear

    GNP (Gross national product) all the goods andservices produced in a country plus all foreignearnings in a given year

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    High income countries

    40 countries (Western Europe, USA, Canada,Japan, Australia, New Zealand)

    Per capita annual income: USD 9,360 andabove

    15 percent of world population (870 millionpeople)

    More than half the worlds total income

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    Middle Income Countries

    About 90 countries fall in this category.

    One third of humanity lives in middle income countries.Latin America, the Middle East, East Asia, West Africa

    Per capita annual income between USD 760 and 9,360. Halfof the population lives in cities. They have moderatelevels of industrialization.

    Several distinct groups within this category:

    *Newly Industrializing Countries (NICs): Brazil, Argentina,

    Mexico, South Korea, Taiwan.*Oil-producing nations of the Middle East

    *Former Soviet bloc countries

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    Low income countries

    Half of humanity lives in low incomecountries

    About 60 countries, mostly in central andeastern Africa and South Asia

    Per capita annual income less than USD 760

    25 percent of the population lives in cities

    Little industrialization, mostly agricultural

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    The world according to

    incomes

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    THE EXTENT OF POVERTY GLOBALLY

    Poverty exists in all countries of the world;but it is most severe in low and middleincome countries

    Poverty rates are highest in countries thathave weak economies, weakindustrialization, and high rates of population

    growth

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    Groups most affected by

    poverty Women Children

    Refugees and displaced people (

    peopleaffected by wars and disasters)

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    SOME STATISTICS(UN/WORLD BANK)

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    If you want to live their American Dream,they should go to Denmark

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    Children and poverty

    Poverty forces children to work or to desert their

    families

    Results

    -- children working on the streets

    -- street children (living on the streets)

    -- exploitation of child labor

    -- sexual exploitation

    -- criminal activities such as drug abuse and theft

    i l d l

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    Displaced people

    Every year, millions of people are displaced fromtheir homes and lands because of armedconflicts and wars, natural disasters anddevelopment projects

    Refugees: are the people who flee their owncountry and cross international borders to avoidwar or political/economic oppression.

    Currently, there are more than 20 million refugees

    in the world.Examples of recent refugee flows: Afghanistan,

    Rwanda, Bosnia, Kosovo, Iraqi Kurds

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    Refugees

    Why might refugees be poor?

    Because they leave everything behind. And often, they might not

    get sufficient aid and basic services in the countries they

    arrive. Since, not all refugees are granted asylum.

    Current international refugee regime was established in 1951 in

    response to the population displacement after WWII.

    UNHCR was established.

    The greatest refugee flow was between India and Pakistan in the

    late 1940s after the Partitionmore than 20 million peoplecrossed borders, thousands died on the road.

    ll di l d l

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    Internally displaced people

    IDPs flee their homes because of wars, disasters

    or development projects, but unlike refugees,

    do not cross international boundaries.

    Thus, they do not have the same rights as peoplewho are recognized by the UNHCR as refugees.

    Today, there are nearly 20 million IDPs globally.

    Do you know which country in Europe has one ofthe greatest numbers of IDPs right now?

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    Turkey!

    An estimated 350,000 to 1 million people(overwhelmingly Kurds) have been displacedsince the late 1980s from their homes in theSoutheast.

    Why?

    low intensity conflict, fear of terror, villageevacuations, collapse of the regional pastoraleconomy and agriculture

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    Why are IDPs poor?

    They leave behind property and belongings.They do not have skills required for finding

    jobs in their new environment.

    HOW CAN POVERTY BE

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    HOW CAN POVERTY BE

    EXPLAINED?1) Technology: most poor nations are still agricultural; they dont

    have much industry

    But does this explain poverty?

    2) Population growth: the poorest nations have the highestpopulation growth rates

    But whats the correlation between poverty and high birth rates?

    3) Cultural patterns: Some poor nations are more traditional.

    But what does this mean?

    4) Social stratification: income distribution in poor countries is very

    uneven. That is correct, but it is also uneven in some wealthynations.

    5) Gender inequality: women are more subordinated in some poorcountries than in rich ones.

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    6) Global power relationships: historically, wealth

    flowed from poor to rich nations

    Colonialism: political domination and economic

    exploitation of some countries by othersNeo-colonialism: economic exploitation of some

    nations by multinational corporations and

    wealthy countries, but without political

    domination

    Th th i l b l

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    Three theories on global

    inequality and development

    Modernization theory (W.W. Rostow)

    Dependency theory (A.G. Frank)

    World systems approach (I. Wallerstein)

    M d i ti th

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    Modernization theory

    It is a theory of social and economic development

    which explains global inequality between

    countries in terms of different levels of

    technological developmentTraditional societies are backward,

    underdeveloped, and poorer.

    Societies which embrace modernity and changeare wealthier and more developed

    M d i ti th

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    Modernization theory

    Western Europe, and then North Americamodernized and developed thanks to theIndustrial Revolution.

    If traditional societies industrialize and embracemodernize, they will also become developed.

    So, the path to modernization is open to all whowant it.

    Rostows stage theory of

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    Rostows stage theory of

    modernization

    W.W. Rostows book : The Stages of EconomicGrowth. A Non-Communist Manifesto (1960)

    All societies will eventually pass through the

    following stages1) Tradition

    2) Preconditions for take-off

    3) Take-off

    4) Drive to technological maturity

    5) High mass consumption

    Rosto s moderni ation

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    Rostows modernization

    theory Each country reaches the take-off for

    industrialization when a market economy

    emerges. Britain reached that stage in 1800.

    Non-western nations will reach that stage whentheir productive investments grow. How?

    Through foreign aid and technology transfer.

    By the 1950s, the US reached the stage of high

    mass consumption.

    Modernization

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    Modernization

    Role of rich nations in the modernization ofthe poor

    -- foreign aid

    -- industrial technology transfer

    -- transfer of food production technology theGreen Revolution

    Criticism of Modernization

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    Criticism of Modernization

    Theory

    1) Modernization theory is the ideologicaljustification of Western-led capitalism

    2) Modernization theory does not take into

    account the colonial exploitation of the non-Western world by Europe

    3) Wealthier nations are often the cause of

    poverty, rather than being a solution for it

    Contd

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    Contd

    4) The wealth gap between the rich and the poorcountries is not diminishing; in fact, it hasincreased since the 1950s

    5) Industrialization does not guarantee an

    increase in living standards6) Modernization theory looks for internal causes

    of poverty; doesnt consider any externalfactors

    7) It holds the life style of Western countries as ayardstick to judge the development of othernations. Hence, it is ethnocentric.

    Dependency theory

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    Dependency theory

    A model of economic and social development thatexplains global inequality in terms of thehistorical exploitation of poor societies byWestern nations.

    Andre Gunder Frank: The Development ofUnderdevelopment(1975)

    He argued that colonial and post-colonialexploitation by Western Europe and the USA

    caused the underdevelopment of non-Westernsocieties, rather than their development

    Why?

    Dependency theory

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    Dependency theory

    Rich and poor nations are linked economically.Modernization of countries cannot be considered inisolation from each other.

    During colonial period, European countries extracted rawmaterials, mineral and food from their colonies. thisenabled them to industrialize

    Exploitation of their resources left colonized societiespoor. They were dependent on imports of industrial

    goods from Europe. Most of the peasantry worked onfarms or mines from which products were exported toEurope

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    Unequal exchange: the importation ofmanufactures from Europe and theexportation of raw materials and food to

    Europe was detrimental for the economies ofcolonial and post-colonial nations. WHY?

    Manufactures are more expensive to buy than

    to sell raw materials

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    Did the end of colonization decolonization bring an end to exploitation of the newlyindependent states?

    No.

    Political liberation has not translated intoeconomic autonomy.

    Criticism of dependency

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    Criticism of dependency

    theory It only focuses on external factors of global

    inequality.

    It does not take into account that some

    segments of the population in a poor countryalso benefit from dependent development and

    from exploiting poor members of their society.

    The rapid development of some countries suchas South Korea cast doubt on the thesis that it is

    rich nations which make others poor.

    World systems perspective

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    World systems perspective

    This perspective builds on the dependency approach. Butit has a world systemic angle.

    Immanuel Wallerstein (1974): The Modern World Economy

    Wallerstein argues that capitalism is a world economy.The unit of analysis for studying the world economy is the

    world rather than individual nation-states (contramodernization theory)

    The capitalist world economy emerged in the 16th

    century inwestern Europe in the wake of the discovery of theAmericas

    World systems perspective

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    World systems perspective

    The capitalist world economy consists of a core, a periphery, and asemiperiphery.

    Historically, the core was western Europe, which became industrializedby extracting surplus (funneling raw materials and preciousmetals) from the periphery.

    The semiperiphery stood in-between the core and the periphery interms of incomes and levels of industrialization.

    In this world economy, the core exploited, or extracted surplus from theperiphery in terms of cheap labor, natural resources, raw materialsand as markets for European manufactures.

    Example: In the 19th century, the Ottoman Empire was an exporter ofdried fruits and nuts to Europe and was dependent on imports ofmanufactures (English cloth, for example). It was heavily indebtedto European countries.

    World systems perspective

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    World systems perspective

    What is the situation today?

    In the postwar period, many countries in theperiphery have become relatively industrialized

    For example, Turkey is a relatively industrializednation today, the majority of whose exports aremanufactures (industrial goods)

    Does this mean that the core no longer extracts

    surplus from the periphery?Or, does it mean that peripheral countries have

    entered the core?

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    The answer to both questions is no.

    1) Surplus extraction from the periphery to the core

    is still ongoing.

    2) Only a few countries have entered thesemiperiphery or the core (e.g. South Korea) in

    the postwar period.

    Wallerstein calls this situation, development byinvitation.

    Commodity chains

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    Commodity chains

    1) Peripheral countries are usually specialized inlow-profit and labor-intensive links ininternational commodity chains. Core countriesare usually specialized in high profit links of

    commodity chains.A commodity chain: a chain of activities from the

    manufacturing to the distribution of a finalproduct.

    Example: the apparel (ready-to-wear clothing)commodity chain includes, cotton growing,textile mills, stitching of garments, design,marketing, distribution, retailing

    Apparel commodity chain

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    Apparel commodity chain

    Multinational companies are concentrated in the high profitend of the apparel commodity chains such as design,brand names, high technology and marketing

    Companies in countries such as Turkey and Mexico areconcentrated in labor-intensive activities such as thestitching of garments

    Example: when Levis manufactures jeans in Turkey andsells them in Europe, it retains a higher proportion of the

    profits because of its world-popular brand name.

    What about Mavi jeans?

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    2) The South Korean miracle

    S. Korea was a special case for two reasons:

    a) having geo-political importance for the U.S.and therefore a favored economicrelationship with it

    b) having an authoritarian state which prioritized

    industrialization at the expense of workersrights and democracy until the early 1990s

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    In a nutshell, according to the world systemsperspective, the capitalist world economy isstill a system with structural inequalities

    between richer and poorer countries

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    What is the role of multinational corporations and globalfinancial institutions in perpetuating global inequality?

    Examples: the World Trade Organization and the IMF?

    WTO (established in 1995) ensures that international trade

    takes place in a liberal environment. But by doing so, itprevents poorer countries from protecting theiragricultural and manufacturing sectors.

    IMF (established in 1945) extends stabilization loans to

    countries, but in turn, it requires them to cut down onsocial spending (education, healthcare, public sectorjobs) and open up (liberalize) their economies.