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GEOECONOMICS –
GLOBAL INEQUALITIES
D E S I K U S U M A N I N G T Y A S - G S P A
DEVELOPMENT POLICIES IN THE
GLOBAL CONTEXT
CONTENT
1. Geoeconomics
2. Global inequalities of income and wealth
• General features of Global Income Inequality
• Some Outstanding areas of dispute about Global Inequality
3. Global Social Inequality
 Human Development and Global Equity
 Life Expectancy and health
 Existencial Inequalities: Gender, race and ethnicity
4. Indonesia Inequality
GEOECONOMICS
1. Branch of geopolitics
2. Political Aspects of Economies and resources
Geopolitical consequences
Economic consequences
3. Inequality by Robert J Holton
Difference
Social Inequality
Prof Robert
Holton
GLOBAL INEQUALITIES BY ROBERT J. HOLTON
GLOBAL INEQUALITIES OF INCOME AND WEALTH
General features of Global Income
Inequality
1. High levels Income and Wealth
Inequalities between countries and
within countries
Gini coefficient (0<Inequality>1)
2. Economic inequality is spatial
concentrated
3. Inequality has always existed
4. the scale and composition of global
inequality income and wealth has
changed over time
TRENDS IN HIGH AND LOW WITHIN-NATION INEQUALITY
Source: Figure 2 in Unveiling Inequality: A World-Historical Perspective
(Korzeniewicz and Moran (Russell Sage Foundation, 2009)).
GLOBAL INEQUALITIES OF INCOME AND WEALTH
Some Outstanding areas of dispute about Global Inequality
1. Optimistic Vs Pessimistic
2. The Milanovic Work
household disposable income is the best unit analysis for global inequality
1) Census data and national account don’t provide individual income
2) Disposable income measure total income available for consumption
3) It adds sociological point like children or elderly as income less who lives
in multiple-person household
4) It measures the domestic labor like women who is mostly excluded from
official statistic.
Cont…
GLOBAL INEQUALITIES OF INCOME AND WEALTH
Some Outstanding areas of dispute about Global
Inequality
2. The Milanovic Work
Three Trends in Income Inequality
1) Changes in within country inequality
2) Changing trends in economic growth and
income between rich and poor countries
3) Changing trends in economic growth and
income between China and India and rich
countries
GLOBAL INEQUALITIES OF INCOME AND WEALTH
Some Outstanding areas of dispute about Global Inequality
2. The Milanovic Work result
 (1) Greater inequality within nations
 (2) Greater differences between countries’ mean incomes (unconditional
divergence between 1980 and 2000)
 (3) But catching up of large and poor countries(China and India)
 Therborn (2012)
GLOBAL INEQUALITIES OF INCOME AND WEALTH
Some Outstanding areas of dispute about Global Inequality
3. Top down Vs Bottom Up Approach
 Bottom Up (Portfolio of The Poor by Collins, et all)
 Top down (World Bank)
4. Reliability of procedures and methods typically used in analyzing global
inequality.
Two ways
1) Purchasing Power Parity
2) Foreign currency conversion rate (FX)
Therborn (2006)
Inequality
Aspects:
1. Resources 
Income, Asset,
skills
2. Vital  Bodily
health, sense of
well being
3. Existential 
Freedom, respect,
right to social and
political
participants
GLOBAL SOCIAL INEQUALITIES
GLOBAL SOCIAL INEQUALITIES
Human Development and Global Equity
GLOBAL SOCIAL INEQUALITIES
Human Development and Global Equity
GLOBAL SOCIAL INEQUALITIES
Human Development and Global Equity
Source: UNDP (2013)
http://hdr.undp.org/en/content/table-1-human-development-index-and-
its-components
GLOBAL SOCIAL INEQUALITIES
Human Development and Global
Equity
Critics to HDI:
1. The ideal indicators
2. Diminishing qualitative aspects of
development
3. Ignores within-country
inequalities
4. The high degree correlation
between the three different
dimension of development
5. The index contains little on human
right including sexual and
reproductive rights.
GLOBAL SOCIAL INEQUALITIES
Life Expectancy and Health-Life expectancy at birth
Source: World Health Statistics 2014, WHO
http://gamapserver.who.int/gho/interactive_charts/mbd/life_expectancy/atla
s.html
GLOBAL SOCIAL INEQUALITIES
Life Expectancy and Health-Mortality and Morbidity
Source: World Health Statistics 2014, WHO
http://apps.who.int/iris/bitstream/10665/112738/1/9789240692671_eng.pdf?ua=1
GLOBAL SOCIAL INEQUALITIES
Life Expectancy and Health - What is the Determinant of Health? Does
Income Strongly effect the health?
1. Strong correlation (between health and income) Vs Low correlation
Strong Correlation
Preston (1975) strong correlation between Income and health levels
WHO: income growth influence less than 50% Global health improvement
Liberalist: economic growth increase income and reduce inequality
Low Correlation (Income is not a single factor)
Deaton (2006) Low Income isn’t always followed by health problem.
Economic growth isn’t automatically health improvement.
1. Some countries improved their life expectancy while experiencing little
or no growth.
2. Richer countries have recently continued to improve their health even
their growth rates have declined in recent decades
3. Countries are poor because they are sick and this impedes growth
Marmot (2005) non-communicable disease cause is more than poverty
Dawson (2005) low state capacity couldn’t make good health programs
(Political factor)
GLOBAL SOCIAL INEQUALITIES
Existential Inequalities – Gender
Existing Inequality data Note
Gender – Economic (wages
for comparable work)
continued lessening of the pay gap. But there is a technical problem
which may lead into under-
estimating inequality.
Gender – participation rates specific policies in areas like discrimination and in child care
affect the proportion rates
Gender - ceiling limiting
women’s access to the highest
paid job
The strongest glass ceiling isn’t always at the higher hierarchies
Gender - ceiling limiting
women’s access to the highest
paid job
Social – Gender - ceiling limiting women’s access to the highest
paid job
Gender - Political Participation Inequality is declining but still more extreme than on the other
quantifiable measures
Gender – Literacy Rates Even Global literacy rate has increase but women still become
the majority of illiterate adults.
Gender – School enrolments Reduction of gender inequality in school enrolment is faster
compare to other indicator
Gender – Women right over
sexuality and reproduction
It is difficult to measure the indicator. Published data represent
only the tip of the iceberg case
Gender – Violence against
women
Gender – Gender focus policy It has been a wider extension policy addressing the inequalities
issue
GLOBAL SOCIAL INEQUALITIES
Existential Inequalities – Gender
Source: Data World Bank
http://datatopics.worldbank.org/gender/
GLOBAL SOCIAL INEQUALITIES
Existential Inequalities – Gender
Economic Inequality – income level between man and woman
Technical problem which may lead into under-estimating inequality.
 Declining male wages
 Walby (2009) smaller pay gaps arise in countries with low historic female participation, where women
only found in higher paid sector.
 Another indicators are needed to explain the gender gap in economic
Gender – Literacy Rates
 Even global literacy rate has increase but women still become the majority of illiterate adults. two-thirds
of the global adult illiterate population.
 Therborn’s Analysis: literacy is asset to increase human well-being and to tranform existential
inequalities.
http://tellmaps.com/uis/literacy/
Gender –School enrolments
 Reduction of gender inequality in school enrolment is faster compare to other indicator. Dorius and
Firebaugh (2010) argue the gender inequality gap has narrowed about 30%.
 Gender gap in school enrolments for primary and secondary education is eliminated in post-secondary
enrolment.
http://www.uis.unesco.org/Education/Pages/mind-the-gap.aspx
GLOBAL SOCIAL INEQUALITIES
Existential Inequalities – Race and Ethnicity
 Historical sociology influence (Empire, Colonization and slavery).
 In 19th century pseudi-scientific notion Belief that racial characteristics involved a hierarchy of capacity,
intelligence and social worth
Racial and Ethnic Inequalities Indicator
1. Inequalities in income and wealth between cultural groups
2. Higher level of unemployment by race and ethnicity
3. Discrimination in access to employment, education, and housing
4. Social segregation in residential location and public space
5. Inequalities in health outcomes
6. Subjection to violence and interpersonal hostility
7. Racialized constructions of crime leading to higher levels of criminal conviction and
incarceration
8. Intersection of racial, ethnic and gender disadvantage
GLOBAL SOCIAL INEQUALITIES
Existential Inequalities – Race and Ethnicity
1. Optimistic Vs Pessimistic
 Optimistic: Smith and Welch (1989) Couch and Daly (2002) Racial wage gap is declining significance
 Pessimistic: Western and Pettit (2005 ) narrowing of the racial wage gap is not indicator of general
decline in racial inequality. Wage differences do not measure relative differences in unemployment.
2. Ethnic penalty Vs Ethnic Premium
 Ethnic penalty: unemployment, lack access to better job
3. Educational opportunity itself can’t reduce inequality
4. Contemporary Public Policies deal with inequality
 Equal Opportunities Policies (US) Vs Anti-racist Policies (EU) / Neo Liberal Policies Vs Social
Democratic
5. Inequalities base on race and ethnicity still remain
CONCLUSION
 The multiple dimensions of inequality
 Greater inequality “within nations” and “between countries” in term of
incomes and wealth
 Sociological attention to inequalities :
A global life expectancy at birth has increased yet there remain huge
differences between countries. the same result for inequalities of health.
The General trend of gender inequalities has been declining. Women have
slight advantage on longevity but much more disadvantage in political
representation (Dorius and Firebaugh, 2010).
Inequalities base on race and ethnicity still remain.
 Global capitalism as “Cause” or “Key” of global inequality
INDONESIA INEQUALITY
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
GINI RATIO 0.364 0.35 0.37 0.38 0.41 0.41 0.413
Relative Poverty
(percentage of
population)
17.75 16.58 15.42 14.15 13.33 12.36 11.66 11.47
UNEMPLOYME
NT
10.28 9.11 8.39 7.87 7.14 6.56 6.14 6.25
LABOR FORCE 66.16 66.99 67.18 67.23 67.72 68.34 67.88 66.90
LIFE
EXPECTANCY
http://data.worldbank.org/indicator/SP.DYN.LE00.IN/countries/ID-4E-XN?display=graph
SCHOOL
ENROLLMENT
http://data.worldbank.org/indicator/SE.PRM.ENRR/countries/ID-4E-XN?display=graph
THANK YOU

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Global inequalities

  • 1. GEOECONOMICS – GLOBAL INEQUALITIES D E S I K U S U M A N I N G T Y A S - G S P A DEVELOPMENT POLICIES IN THE GLOBAL CONTEXT
  • 2. CONTENT 1. Geoeconomics 2. Global inequalities of income and wealth • General features of Global Income Inequality • Some Outstanding areas of dispute about Global Inequality 3. Global Social Inequality  Human Development and Global Equity  Life Expectancy and health  Existencial Inequalities: Gender, race and ethnicity 4. Indonesia Inequality
  • 3. GEOECONOMICS 1. Branch of geopolitics 2. Political Aspects of Economies and resources Geopolitical consequences Economic consequences 3. Inequality by Robert J Holton Difference Social Inequality
  • 5.
  • 6. GLOBAL INEQUALITIES OF INCOME AND WEALTH General features of Global Income Inequality 1. High levels Income and Wealth Inequalities between countries and within countries Gini coefficient (0<Inequality>1) 2. Economic inequality is spatial concentrated 3. Inequality has always existed 4. the scale and composition of global inequality income and wealth has changed over time
  • 7. TRENDS IN HIGH AND LOW WITHIN-NATION INEQUALITY Source: Figure 2 in Unveiling Inequality: A World-Historical Perspective (Korzeniewicz and Moran (Russell Sage Foundation, 2009)).
  • 8. GLOBAL INEQUALITIES OF INCOME AND WEALTH Some Outstanding areas of dispute about Global Inequality 1. Optimistic Vs Pessimistic 2. The Milanovic Work household disposable income is the best unit analysis for global inequality 1) Census data and national account don’t provide individual income 2) Disposable income measure total income available for consumption 3) It adds sociological point like children or elderly as income less who lives in multiple-person household 4) It measures the domestic labor like women who is mostly excluded from official statistic. Cont…
  • 9. GLOBAL INEQUALITIES OF INCOME AND WEALTH Some Outstanding areas of dispute about Global Inequality 2. The Milanovic Work Three Trends in Income Inequality 1) Changes in within country inequality 2) Changing trends in economic growth and income between rich and poor countries 3) Changing trends in economic growth and income between China and India and rich countries
  • 10. GLOBAL INEQUALITIES OF INCOME AND WEALTH Some Outstanding areas of dispute about Global Inequality 2. The Milanovic Work result  (1) Greater inequality within nations  (2) Greater differences between countries’ mean incomes (unconditional divergence between 1980 and 2000)  (3) But catching up of large and poor countries(China and India)  Therborn (2012)
  • 11. GLOBAL INEQUALITIES OF INCOME AND WEALTH Some Outstanding areas of dispute about Global Inequality 3. Top down Vs Bottom Up Approach  Bottom Up (Portfolio of The Poor by Collins, et all)  Top down (World Bank) 4. Reliability of procedures and methods typically used in analyzing global inequality. Two ways 1) Purchasing Power Parity 2) Foreign currency conversion rate (FX)
  • 12. Therborn (2006) Inequality Aspects: 1. Resources  Income, Asset, skills 2. Vital  Bodily health, sense of well being 3. Existential  Freedom, respect, right to social and political participants GLOBAL SOCIAL INEQUALITIES
  • 13. GLOBAL SOCIAL INEQUALITIES Human Development and Global Equity
  • 14. GLOBAL SOCIAL INEQUALITIES Human Development and Global Equity
  • 15. GLOBAL SOCIAL INEQUALITIES Human Development and Global Equity Source: UNDP (2013) http://hdr.undp.org/en/content/table-1-human-development-index-and- its-components
  • 16. GLOBAL SOCIAL INEQUALITIES Human Development and Global Equity Critics to HDI: 1. The ideal indicators 2. Diminishing qualitative aspects of development 3. Ignores within-country inequalities 4. The high degree correlation between the three different dimension of development 5. The index contains little on human right including sexual and reproductive rights.
  • 17. GLOBAL SOCIAL INEQUALITIES Life Expectancy and Health-Life expectancy at birth Source: World Health Statistics 2014, WHO http://gamapserver.who.int/gho/interactive_charts/mbd/life_expectancy/atla s.html
  • 18. GLOBAL SOCIAL INEQUALITIES Life Expectancy and Health-Mortality and Morbidity Source: World Health Statistics 2014, WHO http://apps.who.int/iris/bitstream/10665/112738/1/9789240692671_eng.pdf?ua=1
  • 19. GLOBAL SOCIAL INEQUALITIES Life Expectancy and Health - What is the Determinant of Health? Does Income Strongly effect the health? 1. Strong correlation (between health and income) Vs Low correlation Strong Correlation Preston (1975) strong correlation between Income and health levels WHO: income growth influence less than 50% Global health improvement Liberalist: economic growth increase income and reduce inequality Low Correlation (Income is not a single factor) Deaton (2006) Low Income isn’t always followed by health problem. Economic growth isn’t automatically health improvement. 1. Some countries improved their life expectancy while experiencing little or no growth. 2. Richer countries have recently continued to improve their health even their growth rates have declined in recent decades 3. Countries are poor because they are sick and this impedes growth Marmot (2005) non-communicable disease cause is more than poverty Dawson (2005) low state capacity couldn’t make good health programs (Political factor)
  • 20. GLOBAL SOCIAL INEQUALITIES Existential Inequalities – Gender Existing Inequality data Note Gender – Economic (wages for comparable work) continued lessening of the pay gap. But there is a technical problem which may lead into under- estimating inequality. Gender – participation rates specific policies in areas like discrimination and in child care affect the proportion rates Gender - ceiling limiting women’s access to the highest paid job The strongest glass ceiling isn’t always at the higher hierarchies Gender - ceiling limiting women’s access to the highest paid job Social – Gender - ceiling limiting women’s access to the highest paid job Gender - Political Participation Inequality is declining but still more extreme than on the other quantifiable measures Gender – Literacy Rates Even Global literacy rate has increase but women still become the majority of illiterate adults. Gender – School enrolments Reduction of gender inequality in school enrolment is faster compare to other indicator Gender – Women right over sexuality and reproduction It is difficult to measure the indicator. Published data represent only the tip of the iceberg case Gender – Violence against women Gender – Gender focus policy It has been a wider extension policy addressing the inequalities issue
  • 21. GLOBAL SOCIAL INEQUALITIES Existential Inequalities – Gender Source: Data World Bank http://datatopics.worldbank.org/gender/
  • 22. GLOBAL SOCIAL INEQUALITIES Existential Inequalities – Gender Economic Inequality – income level between man and woman Technical problem which may lead into under-estimating inequality.  Declining male wages  Walby (2009) smaller pay gaps arise in countries with low historic female participation, where women only found in higher paid sector.  Another indicators are needed to explain the gender gap in economic Gender – Literacy Rates  Even global literacy rate has increase but women still become the majority of illiterate adults. two-thirds of the global adult illiterate population.  Therborn’s Analysis: literacy is asset to increase human well-being and to tranform existential inequalities. http://tellmaps.com/uis/literacy/ Gender –School enrolments  Reduction of gender inequality in school enrolment is faster compare to other indicator. Dorius and Firebaugh (2010) argue the gender inequality gap has narrowed about 30%.  Gender gap in school enrolments for primary and secondary education is eliminated in post-secondary enrolment. http://www.uis.unesco.org/Education/Pages/mind-the-gap.aspx
  • 23. GLOBAL SOCIAL INEQUALITIES Existential Inequalities – Race and Ethnicity  Historical sociology influence (Empire, Colonization and slavery).  In 19th century pseudi-scientific notion Belief that racial characteristics involved a hierarchy of capacity, intelligence and social worth Racial and Ethnic Inequalities Indicator 1. Inequalities in income and wealth between cultural groups 2. Higher level of unemployment by race and ethnicity 3. Discrimination in access to employment, education, and housing 4. Social segregation in residential location and public space 5. Inequalities in health outcomes 6. Subjection to violence and interpersonal hostility 7. Racialized constructions of crime leading to higher levels of criminal conviction and incarceration 8. Intersection of racial, ethnic and gender disadvantage
  • 24. GLOBAL SOCIAL INEQUALITIES Existential Inequalities – Race and Ethnicity 1. Optimistic Vs Pessimistic  Optimistic: Smith and Welch (1989) Couch and Daly (2002) Racial wage gap is declining significance  Pessimistic: Western and Pettit (2005 ) narrowing of the racial wage gap is not indicator of general decline in racial inequality. Wage differences do not measure relative differences in unemployment. 2. Ethnic penalty Vs Ethnic Premium  Ethnic penalty: unemployment, lack access to better job 3. Educational opportunity itself can’t reduce inequality 4. Contemporary Public Policies deal with inequality  Equal Opportunities Policies (US) Vs Anti-racist Policies (EU) / Neo Liberal Policies Vs Social Democratic 5. Inequalities base on race and ethnicity still remain
  • 25. CONCLUSION  The multiple dimensions of inequality  Greater inequality “within nations” and “between countries” in term of incomes and wealth  Sociological attention to inequalities : A global life expectancy at birth has increased yet there remain huge differences between countries. the same result for inequalities of health. The General trend of gender inequalities has been declining. Women have slight advantage on longevity but much more disadvantage in political representation (Dorius and Firebaugh, 2010). Inequalities base on race and ethnicity still remain.  Global capitalism as “Cause” or “Key” of global inequality
  • 26. INDONESIA INEQUALITY 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 GINI RATIO 0.364 0.35 0.37 0.38 0.41 0.41 0.413 Relative Poverty (percentage of population) 17.75 16.58 15.42 14.15 13.33 12.36 11.66 11.47 UNEMPLOYME NT 10.28 9.11 8.39 7.87 7.14 6.56 6.14 6.25 LABOR FORCE 66.16 66.99 67.18 67.23 67.72 68.34 67.88 66.90 LIFE EXPECTANCY http://data.worldbank.org/indicator/SP.DYN.LE00.IN/countries/ID-4E-XN?display=graph SCHOOL ENROLLMENT http://data.worldbank.org/indicator/SE.PRM.ENRR/countries/ID-4E-XN?display=graph