Economic and social inequalities (unit 12)

1. R I C H A N D P O O R
Economic and Social
Inequalities (Unit 12)

2.  Rich, developed north
 Poor, underdeveloped south – “the global south”

3. Characteristics of Rich Countries
 Developed
 Industrial
 Northern hemisphere
 High productivity
 Stable political systems;
democratic traditions
 High level of education
 Little reliance on other
countries
 Independent foreign
policy

4. Characteristics of Poor Countries
 Less developed
 Agricultural
 Southern hemisphere
 Low level of productivity
 Unstable political systems
 Reliance on agriculture and
primary resource exports
 Imperfect markets (corruption)
 Dependence & vulnerability in international
relations

5. Theories Explaining Inequalities
 High demographic growth
 Decolonization
 Globalization

6. Theory 1: High Demographic Growth
 High birth rate
 Children needed to work and help support families
 Many children die at young ages
 Low life expectancy
 Poor sanitation
 Diseases spread quickly
 Lack of medical resources

7. Theory 2: Decolonization
 Countries that became independent after decolonization
did not become economically independent
 Instead, they continued to rely on their former colonial
powers which controlled their mining, trade, and
agricultural production
 Neo-colonialism: decolonized countries remained
economically and sometimes politically dependent on
their former colonial powers

8. Theory 3: Globalization
 As the world’s economy became globalized, countries
specialized in different aspects
 Developing countries became assigned the role of
providing raw materials for developed countries –
and so their advanced industries did not develop
Globalization: tendency of businesses,
technology, and philosophies to spread
throughout the world; the global economy is
characterized as an interconnected
marketplace

9. Underlying Problems
 Unfair distribution of wealth
 Inability to take part in international economic
decisions (ie IMF!!)

10. GDP per capita

11. Indicators of Inequality
 HDI (human development idex)
 GDP (gross domestic product)
 Daily consumption of calories (UNICEF)
Can you guess which country has the highest
HDI? The lowest?

12. Causes of Inequality: Internal Factors
 Climate
 Availability of resources
 Relationship between resources and population

13. Causes of Inequality: External Factors
 Colonization
 Trade imbalance
 Importing cheap raw materials
 Exporting expensive manufactured goods
 Industrial Revolution
 Decolonization
 Globalization (1990s)

14. The Center and Periphery
 Central areas: concentrate wealth, main
multinational companies, decision-making
bodies
• World Triad
• United States
• European Union
• Japan
 Emerging countries
• China
• India
• Brazil
• Periphery: export raw materials, heavily
indebted

15. The Center and Periphery
• Regional Powers
• Russia
• Australia
• South Africa
• Peripheral areas
• Sub-saharan Africa
• Numerous Asian countries
• Numerous Latin American countries

16. Core (Center)/Periphery Map