unit 11. Socioeconomic inequalities

1. UNIT 11. SOCIECONOMIC INEQUALITIES
AND GLOBAL CONFLICTS

2. INDEX
● HOW ARE INEQUALITIES MEASURED?
● DEGREES OF DEVELOPMENT
● CAUSES OF DEVELOPMENT INEQUALITIES
● RECENT EVALUATION OF GLOBAL
INEQUALITIES
● SOCIOECONOMIC INEQUALITIES IN EUROPE
● SOCIOECONOMIC INEQUALITIES IN SPAIN
● HUMAN DEVELOPMENT'S ISSUES AND THEIR
SOLUTIONS
● ARMED CONFLICTS AND INEQUALITY

3. LOOK AT THE IMAGE AND THINK
ABOUT IT...

4. LOOK AT THE IMAGE AND THINK
ABOUT IT...

5. LOOK AT THE IMAGE AND THINK
ABOUT IT...

6. 1. HOW ARE INEQUALITIES
MEASURED?
● According to Wealth According to Welfare
(Traditional indicators)
GDP (PIB)
Producto
Interior Bruto
GDP per capita (renta
per capita)
Contemporary indicators
HUMAN
DEVELOPMENT
INDEX (HDI)
(IDH)
MULTIDIMENSION
AL POVERTY INDEX
(MPI) (IMP)
Indicators used by the World Bankd and the Monetary
Fund

7. GDP (PIB)
GDP: Gross Domestic Product. It is
the total value of all the services
and goods produced by a country
during a specific period of time,
usually one year.

8. GDP map

9. GDP per capita
GDP Per capita: The total value of all the goods and services produced by a
country in a particular year, divided by the number of people living there

10. GDP per capita in Europe

11. 1. HOW ARE INEQUALITIES
MEASURED?
● WEALTH (The traditional indicator)
– Analysing exclusively the differences in wealth and
access to material goods (econmic analysis)
– The most widely used indices are:
● GDP (Gross Domestic Product):
● GDP per capita. It is the division between a country's GDP
by its number of inhabitants.
Calculate these GDP's per capita that belong to different countries. Could
you guess wich kind of country are?
A) GDP: 1.232 billion $ Nº of inhabitants: 46,347,576 people.
B) GDP: 6, 22 billion $ Nº of inhabitants: 14,320,000 people

12. 1. HOW ARE INEQUALITIES
MEASURED?
● WELFARE (some contemporary indicators)
– Development is understood as welfare, or the sense of
satisfaction by the vast majority.
– This concept includes other dimensions apart from
wealth, such as:
● The provision of basic needs
● Social cohesion → social equality
● Social relations and participation: freedom, rights,
political participation, safety.
● Environmental quality.
The most significant indices used to measure welfare
are:
● HUMAN DEVELOPMENT INDEX (HDI)
● MULTIDIMENSIONAL POVERTY INDEX (MPI)

13. WORLDWIDE GEOECONOMIC
AREAS
● Another rate to measure development is the HDI: Human
development index (IDH → Índice de Desarrollo Humano)
The Human Development Index (HDI) was developed by the
United Nations as a metric to assess the social and economic
development levels of countries. Three principal areas of
examination are used to rank countries: mean years of
schooling, expected years of schooling: (EDUCATION); life
expectancy at birth (HEALTH) and gross national income per
capita (STANDARD OF LIVING)

15. HDI 2016
NAME 3 COUNTRIES WITH A VERY HIGH HDI
NAME 3 COUNTRIES WITH A HIGH HDI
NAME 3 COUNTRIES WITH A MEDIUM HDI
NAME 3 COUNTRIES WITH A LOW HDI

16. MULTIDIMENSIONAL POVERTY
INDEX
This index lists the deprivations suffered by the
most disadvantaged people with their
corresponding indicators of:
- Living standards
- Education
- Health
A person is clasified as poor when he/she is
deprived of more than 33% of the indicators.
Indeed, this index measures the proportion of
indicators that they do not have Access to.
Deprivations – Carencias / Privaciones

17. MPI

19. MPI 2013
NAME 3 COUNTRIES WITH A VERY HIGH MPI
NAME 3 COUNTRIS WITH A HIGH MPI

20. MPI

21. 2. DEGREES OF DEVELOPMENT
Traditionally, differences in development distinguish between developed countries and
underdeveloped ones. Today's situation is more complex, due to the extraordinary
economic growth of emerging countries, which are developing their economies, living
standars and services.
Some emerging countries are: Brazil, Russia, India, China, Southafrica (BRICS)
We also name emerging countries as developing countries

22. 2. DEGREES OF DEVELOPMENT

23. 2. DEGREES OF DEVELOPMENT
● HIGH DEVELOPMENT
COUNTRIES
– High GDP per capita
– Extensive middle class
– Consolidated democratic
political systems.
– Major carbon footprint
● LOW-DEVELOPMENT
COUNTRIES
– Low GDP per capita
– Huge social differences
– Authoriatiarian political
systems are
encountered.
● Corruption
● Lack of respect of
Human Rights
● Lack of freedom.
– Minor carbon footprint
Sub-saharan Africa, Central Asia, and
some Latin American and Caribbean
countries
Carbon footprint
(huella de carbono):
the amount of carbon
dioxide released into
the atmosphere

24. 2. DEGREES OF DEVELOPMENT
● EMERGING COUNTRIES
– Modest GDP per capita (based on)
● Export of cheap merchandise
● Abundant labour force (people in working age)
● Low salaries → Moderate purchasing power
– Major contrasts between classes. But their middle
class has grown.
– Recently established democratic systems.
– Increasing carbon footprint.
This group includes: BRICS, México, Argentina, The Middle East, some
Northern African countries, and the New Industrial Countries (Singapore, South
Korea, Indonesia.

25. 1) Which countries have the major GDP in industry?
2) Which countries have more obese adults? Which is the least in obesity?
3) Which country has the minor literacy rate (tasa de alfabetización)?
4) Which country has the highest life expectancy?
5) Which country has the highest infant mortality rate?
6) Try to guess the HDI of this countries (VERY HIGH; HIGH; MEDIUM; LOW)

26. 3. CAUSES OF DEVELOPMENT
INEQUALITIES
● Do you already know any cause of development?
● Could you guess any reason?
Reasons for development

27. 3. CAUSES OF DEVELOPMENT
INEQUALITIES
NATURAL CONDITIONS
Very humid or dry climates;
more likely to happen
hurricanes, floods, eartquakes,
tsunamis, etc.
DOMESTIC CAUSES
LACK OF EXPLOITATION OF
RESOURCES. Despite having
abundant natural resources,
they don't have the capacity to
exploit them.
IMBALANCE BETWEEN
POPULATION AND
RESOURCES. High
demographic growth and
lack of resources available.
POLITICAL INSTABILITY.
Armed conflicts, corrupted
governments

28. 3. CAUSES OF DEVELOPMENT
INEQUALITIES
Corruption Perception around the world

29. 3. CAUSES OF DEVELOPMENT
INEQUALITIES

30. 3. CAUSES OF DEVELOPMENT
INEQUALITIES
● What's more expensive 1 kg of oranges or a mobile phone?
● What countries are selling more manufactured goods?
● What will be the income of someone who sells basicaly agricultural products
or raw materials and buy manufactured goods?
● What types of countries are earning more money with this distribution in
exportation?

31. 3. CAUSES OF DEVELOPMENT
INEQUALITIES
INTERNATIONAL CAUSES
FOREIGN DOMINATION
-In the past they were colonies
Rulling countries structured their
economies. They exported raw
materials and imported manufactured
products and they became dependant
of rulers.
This situation grew, and it was maintained
after colonisation with neo-colonialism
(economic control of the previous
colonies)
In some cases this situation is currently
maintained.
FOREIGN DEBT
Unequal trading relationships
They need to request International
Credit
High levels of Foreign debt
High interest payments
Less money to invest in
public services, infrastructure

33. 3. CAUSES OF DEVELOPMENT
INEQUALITIES

34. COLONIALISM
In the 19th century, and part of the 20th century, european countries were in control of Africa.

35. COLONIALISM

37. UNEQUAL TRADE
The cost of agricultural
products or natural
resources is lower than the
cost of manufactured
products.
Most underdeveloped
countries just export
manufactured products and
import agricultural or natural
resources,
The cost of imports is
higher than the cost of
exports. They have a
negative balance of
payments
This economic situation
generates INDEBTED
COUNTRIES
Balance of payments: The difference between how much a country earns and their
payments.
They need to
ask for loans
and credits
Loans have
interests they
have to pay.
STRUCTURAL
PROBLEM FOR
UNDERDEVELOPED
COUNTRIES'
ECONOMIES
EX. 4. A - B – C – page. 233

38. 4. RECENT EVALUATION OF GLOBAL
INEQUALITIES
● Stagnation (estancamiento) in the
Developed countries (crisis of 2008)
They cut expenditure on social welfare.
●
High progress in emerging countries:
– Benefited from globalisation (cheaper
labour force attract the creation of
industries)
– Improvment in welfare
– Creation of advanced industries using
the capital and technology
●
Progress made by low development
countries
– Trading with emerging countries using
their natural resources. Then they
invested their fonds in infrastructure
and insdustry.
– The poorest countries are those with
no natural resources and no access to
the sea (far from the global market)

39. 4. RECENT EVALUATION OF GLOBAL
INEQUALITIES
1) Since 2010, where are produced most of the goods we consume?
2) What is expected to be tendency by 2050?
3) When did the low developed countries started to increase their GDP per capita?
4) How did the sub-saharan african countries improve their economic situation?
5) According to these graphs... can you say that in the future decades we will have
reduced some of the economic equalities between countries?

40. 5. SOCIOECONOMIC
INEQUALITIES
IN EUROPE
CAUSES BEHIND INEQUALITIES:
● Historic causes: Countries with a most
prosperous economy are those who
established before the Industrial
Revolution or based their economies
on maritime trade.
● Contemporary causes: The most
prosperous regions are the most
advanced in terms of technological
innovation.
1) Where are located the european
countries in the top 5 in HDI?
2)Where are located the european
countries with a lower HDI?
3)According to the HDI, how is Spain in
comparision with the rest of Europe?

41. MOST DEVELOPED
REGIONS:
- The “Pentagon”, it runs
between London-Paris-
Milan-Munich and Berlin.
This is where the most
advanced activities are
undertaken.
- Alpine Arc or
Mediterranean Arc have
also achieved an increasing
level of economic growth.
LESS DINAMIC REGIONS:
(The Balkans and Eastern
Europe) are industrialised
areas in decline or with
economies based on
tradicional agrarian
systems.
5. SOCIOECONOMIC
INEQUALITIES
IN EUROPE

42. WHAT THE EUROPEAN UNION DOES TO
AVOID THESE INEQUALITIES BETWEEN
COUNTRIES?
5. SOCIOECONOMIC
INEQUALITIES
IN EUROPE
- EUROPEAN REGIONAL DEVELOPMENT FUND
-EUROPEAN SOCIAL FUND
-COHESION FUND
Link the 3 funds with their
corresponding spheres of action.
• Improving
employment, training
and social integration.
• Improving to the
environment and
transportation
• Invest in
techonological,
economical and
social
improvement.

43. 6. SOCIAL INEQUALITIES IN SPAIN
FULL EQUALITY FOR WOMEN
ECONOMY - THE SALARY GAP
DOMESTIC
VIOLENCE
SPEND MORE TIME IN
HOUSELHOLDTSK
AND TAKING CARE OF
CHILDREN

44. 6. SOCIAL INEQUALITIES IN SPAIN
UNEMPLOYMENT
Since 2008 the rate of unemployment
has grown, specially for those with less
qualifications, women and younge
people.
Unemployment reduces standars of
living, levels of consumptions,
therefore state incomes (payment of
unemployment benefit: Paro)

45. 6. SOCIAL INEQUALITIES IN SPAIN
POVERTY AND SOCIAL EXCLUSION
Both increased since 2008, reaching its peack in 2012. Since then, the
situation started to improved due to integration policies implemented.
However a relevant % of people are still at riskf of poverty. Those with a
wage that can't satisfy their faimiliar needs.
MOST EXCLUDED
GROUPS IN SPAIN
● Underprivileged
● Inmigrants
● Elderly
Why are they the
Most excluded
Groups?

46. 6. REGIONAL IMBALANCES IN
SPAIN
CAUSES
- Unequal distribution of resources
- Location
- Dynamic economic activities:
innovation: high-technology sector,
tourism.
MOST DYNAMIC REGIONS:
- Madrid,
- Basque Country,
- The Ebro Valley
- The Mediterranean coast
LESS DYNAMIC REGIONS:
- Western cantabrian coast: primary
secor or traditional secondary sector.
- The Interior of Spain (C-León, C-La
Mancha, Extremadura)
- Galicia
Whythe GDP p.c in Madrid is the double than the one in Extremadura?

47. HUMAN DEVELOPMENT ISSUES AND
THEIR SOLUTIONS
● INCREASING ECONOMIC AID
– ODA (Official Development
Assistance): Economic contribution
made by the governments of developed
countries. The UN agreed that all donor
would provide 0,7 % of their GDP. (Just
5 countries do)
– UNDP (UN Development programme). It
sets the Sustainable Development
Goals. (AIM--> Improve the situation of
poor countries)
– The WORLD BANK and the
Intenrational Monetary Fund, they
provide credit for development
projects. In return of economic
measures.

48. ● IMPROVING HUMAN DEVELOPMENT
– Avoid employment exploitation
– Avoid child labour
– Avoid the waste of resources
– Introduce fairer global trading relations with poor
countries.
– Debt reduction for high indebted countries
– Greater investments in underdeveloped countries.
HUMAN DEVELOPMENT ISSUES AND THEIR
SOLUTIONS

49. HUMAN DEVELOPMENT ISSUES AND
THEIR SOLUTIONS
● INCREASING CITIZEN
PARTICIPATION
– In authoritarian governments
it is well-known the lack of
freedom and participation in
domestic decisions. This
leads to citizens'
dissatisfaction.
– More demonstrations,
protest, strikes, and in some
cases civil wars (Arab
spring)
ARAB SPRING VIDEO
– Solution: Reform the
institutions to achieve a
greater citizen participation
in decision making.
AS CNN

50. THE ARAB
SPRING
1) What is the Arab
Spring?
2)Why was it caused?
3)Where did it begin?
4)Where was it spread?
5)Do you think that a
new “arab spring”
could happen?

51. THINK ABOUT IT...
● Which kind of country is...?
– Most people belong to the middle class.
– Abundant natural resources
– The upper class control almost all the money
– Export manufactured products at a high price
– Export natural resources and primary products
– Low salaries and abundant labour force.
– High levels of corruption
– Major carboon footprint
– High demographic growth.
– High infant mortality rate
– Public services are being improved.

52. EXTREME POVERTY
EX 4. PAGE 241

53. EXTREME POVERTY

54. ECONOMIC INEQUALITIES
● What's economic inequality?
CAUSES
Unemployment, low salaries
Lack of education and public services in general
Wealth is not fairly shared
SOLUTIONS
Policies that redistribute wealth
Provide better welfare (services,
employment, standard of living)
Granting microcredits to families
Provide aim to invest in social conditions
(children attend school f. ex)
Avoid discrimination of ethnic
minorities, inmigrants, or women.
to be a woman in Saudi Arabia

55. 5. DIFFERENCES