Chapter 8 Global Inequality and Globalization

Chapter Outline  Inequality and Development  Economic Development and the Environment  Forms and Consequences of Economic Dependence  Competition, Change and International Relationships  Globalization

Most-to-least Developed Countries  Most developed - countries of North America and Western Europe along with Australia and New Zealand.  Less-developed - the former Soviet Union’s sphere of influence along with nations in Asia and Latin America.

Most-to-least Developed Countries  Least-developed - the remaining 75% of the world’s political entities. Includes populous nations like India and China, along with many nations of Asia, the Middle East, and especially, Sub- Saharan Africa.

Human Development Around the World

International Inequality: Most- developed countries Life Expectancy Infant Mortality Rate Canada795 Japan813 Norway794 Singapore783 United States777

International Inequality: Less- developed countries Life Expectancy Infant Mortality Rate Brazil6831 China7131 Ecuador7124 Russian Federation6718 Saudi Arabia7223

International Inequality: Least developed countries Life Expectancy Infant Mortality Rate Congo, Dem. Rep Haiti4979 Nepal5966 Pakistan6084 Sierra Leone35182

Theories of Development  Modernization: Less-developed countries will adopt the technology and social institutions used by the developed countries.  World system theory: views the world as a single economic system in which core societies control world resources at the expense of peripheral societies.

Sustainable Development Necessary to:  Reduce levels of absolute poverty so that more people can produce and consume.  Reduce rates of population growth.

Forms of Economic Dependency Banana republic  Dependent on producing agricultural commodities for export.  The costs of imported goods exceeds the returns on exports  “banana republics” become less able to attend to domestic production necessary for their own people.

Forms of Economic Dependency Industrial dependency  Occurs when least developed nations provide cheap labor to foreign industrial corporations. Foreign capital dependency  Occurs in the least developed nations when a powerful local elite invites foreign investment.

Globalization  The process through which ideas, resources, practices, and people increasingly operate in a worldwide rather than local framework.  Globalization stems from a combination of political and technological forces.