1. © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Slide 1 Richard T. Schaefer

2. Slide 2 © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Global Inequality The Global Divide Stratification in the World System Stratification within Nations: A Comparative PerspectiveStratification within Nations: A Comparative Perspective Case Study: Stratification in Mexico Social Policy and Global Inequality: Rethinking Welfare in Europe and North AmericaSocial Policy and Global Inequality: Rethinking Welfare in Europe and North America 10

3. Slide 3 © 2012 The McGraw-Hill Companies, Inc. All rights reserved. █ What economic and political conditions explain the divide between rich and poor nations? A Look Ahead █ Within developing nations, how are wealth and income distributed? –How much opportunity does the average worker have to move up the social ladder? –How do race and gender affect social mobility in these countries?

4. Slide 4 © 2012 The McGraw-Hill Companies, Inc. All rights reserved. The Global Divide █ Inequality is a significant determinant of human behavior █ Divides in global wealth emerged as result of the Industrial Revolution and rising agricultural productivity Resulting rise in living standards was not evenly distributed across the world

5. Slide 5 © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Stratification in the World System █ Stark contrasts between industrial and developing nations –Legacy of colonialism –Multinational corporations –Modernization

6. Slide 6 © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Figure 10-1: Fundamental Global Inequality Note: In this comparison, industrialized nations include the United States and Canada, Japan, western Europe, and Australasia. Developing nations include Africa, Asia (except for Japan), Latin America, eastern Europe, the Caribbean, and the Pacific. Source: Adapted from Sutcliffe 2002:18.

7. Slide 7 © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Figure 10-2: Gross National Income per Capita Note: Country sizes and incomes based on 2010 estimates. Includes only those countries with 3 million or more people. Sources: Haub 2010; Weeks 2012.

8. Slide 8 © 2012 The McGraw-Hill Companies, Inc. All rights reserved. The Legacy of Colonialism █ Colonialism: Foreign power maintains political, social, economic, and cultural domination for an extended period █ Neocolonialism: Continued dependence on more industrialized nations for managerial and technical expertise by former colonies

9. Slide 9 © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Dependency Theory: Even as developing countries make economic advances, they remain weak and subservient to core nations and corporations The Legacy of Colonialism █ Wallerstein: World Systems Analysis –Unequal economic and political relationships in which certain industrialized nations and their global corporations dominate core of the world’s economic system

10. Slide 10 © 2012 The McGraw-Hill Companies, Inc. All rights reserved. The Legacy of Colonialism █ Globalization: Worldwide integration of government policies, cultures, social movements, and financial markets through trade and exchange of ideas

11. Slide 11 © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Figure 10-3: World Systems Analysis Note: Figure shows only a partial listing of countries, selected by the author.

12. Slide 12 © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Multinational corporations █ Multinational corporations: Commercial organizations headquartered in a country but doing business throughout the world –Total revenue of multinational businesses on par with total value of goods and services exchanged in entire nations –More than 10% of U.S. goods and services related to export or import of goods

13. Slide 13 © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Functionalist View █ Multinational corporations can help developing nations –Jobs and industry –Maximum advantage of technology while reducing costs and boosting profits –Make nations more interdependent and less likely to enter conflicts

14. Slide 14 © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Conflict View █ Multinational corporations exploit local workers to maximize profits –Investment by multinationals initially contributes to host nation’s wealth –Eventually increases economic inequality within developing nations

15. Slide 15 © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Sociology in the Global Community █ 10.1: Income Inequality: A Global Perspective –How much money do you think you spend on your pet every year? How does that compare to the average income in India and China? –By itself, do you think Korzeniewicz and Moran’s income-based measure is a sufficient indicator of global inequality?

16. Slide 16 © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Figure 10-4: Multinational Corporations Compared to Nations Sources: Ranking prepared by author. Revenue from corporate quarterly report statements (Q2 2009 through Q2 2010). GNI from World Bank 2010a:32–34.

17. Slide 17 © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Worldwide Poverty █ Poor in developing countries destitute –Millennium Project asks industrial nations to give 0.51% of GNP for developing nations Gross national product (GNP): Value of nation’s goods and services –Denmark, Luxembourg, the Netherlands, Norway, and Sweden Privileged people in industrialized nations tend to assume worlds’ poor lack assets

18. Slide 18 © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Modernization █ Modernization: Process through which peripheral nations move from traditional institutions to those characteristic of more developed societies –Modernization Theory: Functionalist view that modernization and development will gradually improve lives of people in developing nations

19. Slide 19 © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Figure 10-5: Poverty Worldwide Sources: Chronic Poverty Research Centre 2009.

20. Slide 20 © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Figure 10-6: Foreign Aid per Capita in Nine Countries Note: Actual net development assistance in 2009. Source: Organisation for Economic Co-operation and Development 2011:2.

21. Slide 21 © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Table 10-1: Sociological Perspectives on Global Inequality

22. Slide 22 © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Distribution of Wealth and Income █ Worldwide, richest 2% of adults own more than half the world’s household wealth █ In at least 24 nations around the world, most affluent 10% of population receives at least 40% of all income

23. Slide 23 © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Social Mobility █ Patterns of intergenerational mobility in industrialized nations: 1.Similarities in ways parent’s positions in stratification systems transmitted to children 2.Mobility opportunities influenced by structural factors 3.Immigration significant factor in shaping society’s level of intergenerational mobility

24. Slide 24 © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Social Mobility █ Mobility in developing nations: –Macrolevel social and economic changes often overshadow microlevel movement from one occupation to another █ Gender Differences and Mobility As country develops and modernizes, women’s vital role in food production deteriorates

25. Slide 25 © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Sociology in the Global Community █ 10.2: Stratification in Brazil –Based on the graphs in the book, which income distribution appears to be more unequal? –Race-based college admissions quotas have been the subject of hot debate in the U.S. Why do you think they have been accepted as law in Brazilian society?

26. Slide 26 © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Figure 10-7: Distribution of Income in Nine Nations Note: Data are considered comparable although based on statistics covering 1993 to 2008. Source: World Bank 2010a: 94–96.

27. Slide 27 © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Case Study: Stratification in Mexico █ Mexico’s Economy –In 2008, 8.2% of Mexico’s population survived on $2 per day –Castañeda: Mexico a “polarized society with enormous gaps between rich and poor, town and country, north and south, white and brown

28. Slide 28 © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Case Study: Stratification in Mexico █ Race Relations in Mexico: The Color Hierarchy –Subordinate status of Mexico’s Indians one reflection of nation’s color hierarchy Social class linked to appearance of racial purity Widespread denial of prejudice and discrimination against people of color in Mexico Marked growth in last decade of organizations and associations for rights of indigenous Indians

29. Slide 29 © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Case Study: Stratification in Mexico █ The Status of Women in Mexico –Constitute 46% of labor force –More mired in lowest-paying jobs than counterparts in industrial nations –When Mexican women work outside home, often not recognized as active and productive household members –Have begun to organize to address economic, political, and health issues

30. Slide 30 © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Case Study: Stratification in Mexico █ Borderlands: Area of common cultures along border of Mexico and U.S. –Maquiladoras: Foreign-owned factories that do not have to pay taxes or provide benefits to workers Remittances (migradollars): Minimum is $22 billion a year

31. Slide 31 © 2012 The McGraw-Hill Companies, Inc. All rights reserved. Figure 10-8: The Borderlands Source: Prepared by the author based on Archibold and Preston 2008; Department of Homeland Security 2008; Marosi 2007; and Ratha et al. 2010.

32. Slide 32 © 2012 The McGraw-Hill Companies, Inc. All rights reserved. –Governments in all parts of the world are searching for the right solution to welfare –How much subsidy should they provide? –How much responsibility should fall on shoulders of poor? Rethinking Welfare in North America and Europe █ Looking at the Issue

33. Slide 33 © 2012 The McGraw-Hill Companies, Inc. All rights reserved. –1996: Personal Responsibility and Work Opportunity Reconciliation Act passed in U.S.  Ended long-standing federal guarantee of assistance to every poor family that meets eligibility requirements –Most industrialized nations devote higher proportions of expenditures to housing, social security, welfare, health care, and unemployment compensation than the U.S. Rethinking Welfare in North America and Europe █ Looking at the Issue

34. Slide 34 © 2012 The McGraw-Hill Companies, Inc. All rights reserved. –Many sociologists view debate over welfare from conflict perspective Backlash against welfare recipients reflects deep fears and hostility toward nation’s urban and predominantly African-American and Hispanic underclass Corporate welfare: Tax breaks, direct payments, and grants government makes to corporations Rethinking Welfare in North America and Europe █ Applying Sociology

35. Slide 35 © 2012 The McGraw-Hill Companies, Inc. All rights reserved. –It is too soon to see if “workfare” will succeed Prospects for hard-core jobless faded European governments encountered same citizen demand—keep taxes low In North America and Europe, people turning to private means for support Rethinking Welfare in North America and Europe █ Initiating Policy