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Globalization, Inequality, and Development

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Globalization, Inequality, and Development
Globalization, Inequality, and Development
Chapter Outline
 Globalization
 Global Inequality
 Theories of Development and Underdevelopment
 Neoliberal versus Democratic Globalization
Indicators of Globalization
Triumph and Tragedy of
Globalization
 In 1930 a 3-minute call from New York to London cost
$250 and only a minority of Americans had
telephones.
 Today the same call costs 5¢ and telephones seem to be
everywhere.
 The Internet did not exist in 1982, but by 2009 it
comprised 681 million servers connecting people
around the world.
Foreign Visits to Top Ten Visited
Countries
Imperialism
 The economic domination of one country by another.
Global Commodity Chain
 A worldwide network of labor and production
processes whose end result is a finished commodity.
The Sources of Globalization
 Technology - commercial jets, telephone, fax, and
email
 Politics -countries that are politically isolated have
less integration with the rest of the world.
 Economics- industrial capitalism is always seeking
new markets, higher profits, and lower labor costs.
McDonaldization
 The spread of the principles of fast-food restaurants,
such as efficiency, predictability, and calculability, to
all spheres of life.
 McDonald’s now does most of its business outside the
United States.
 McDonaldization has come to stand for the global
spread of values associated with the United States and
its business culture.
Media Imperialism
 The domination of a mass medium by a single national
culture and the undermining of other national
cultures.
Glocalization
 The simultaneous homogenization of some aspects of
life and the strengthening of some local differences
under the impact of globalization.
Regionalization
 The division of the world into different and often
competing economic, political, and cultural areas.
 World trade is not evenly distributed around the
planet or dominated by just one country.
Regionalization
 Three main trading blocs exist—an Asian bloc
dominated by Japan, a North American bloc
dominated by the United States, and a Western
European bloc dominated by Germany.
 Each bloc competes against the others for a larger
share of world trade.
Regionalization of World Trade
Anti-Globalization
 Some groups (e.g., Islamic fundamentalists) have
become uncomfortable with the effects of
globalization on their society
 Some groups have resisted with violence (e.g., al
Qaeda and the September 11, 2001 attacks)
 Other groups have been non-violent (e.g., WTO street
protests in 2001)
Levels of Global Inequality
 The UN calls the level of inequality worldwide
“grotesque”
 20 richest countries in the world spend more on
cosmetics or alcohol or ice cream or pet food than it
would cost to provide basic education or water and
sanitation for everyone in the world
Global Priorities
Global Inequalities
 Individual income inequality was astoundingly steep
in 1985 and rose even higher over the next 20 years.
 Today, the riches 1% of the world’s population (about
70 million) earn as much as the bottom 66% (about
4.6 billion)
 Of the world’s 7 billion people, more than 1 billion live
on less than $1/day and more than 3 billion live on less
than $2/day
Three Concepts of World Inequality
Theories of Development and
Under Development
 Modernization theory (Functional approach)
 Global inequality results from dysfunctional
characteristics of poor societies.
 Dependency Theory (Conflict approach)
 Economic underdevelopment is the result of exploitative
relations between rich and poor countries.
Modernization and Dependency
Theories
Colonialism
 The political control of developing societies by
more developed, powerful societies.
World Systems Theory
 Immanuel Wallerstein argues that capitalist
development resulted in a world system composed of
three tiers:
 core capitalist countries - major sources of capital and
technology
 peripheral countries - major sources of raw materials
and cheap labor
 semiperipheral countries - former colonies that are
becoming prosperous
Characteristics of Countries That Emerged
From Poverty
Have a colonial past that left them with industrial
infrastructures.
2. Enjoy a favorable geopolitical position.
3. Implement strong, growth-oriented economic
policies and have socially cohesive populations.
4. Socially cohesive populations whereby policy makers
can garner consensus regarding development
policies
1.
Polling Question

The citizens of poorer nations are more likely to be
lazy when compared to the citizens of richer nations.
a.
b.
c.
d.
e.
Strongly agree
Agree somewhat
Unsure
Disagree somewhat
Strongly disagree
Neoliberal Globalization
 A policy that promotes private control of industry,
minimal government interference in the running of
the economy, the removal of taxes, tariffs, and
restrictive regulations that discourage the
international buying and selling of goods and services,
and the encouragement of foreign investment.
Polling Question

Global environment problems can be solved without
any international agreements to handle them.
a.
b.
c.
d.
e.
Strongly agree
Agree somewhat
Unsure
Disagree somewhat
Strongly disagree
Globalization Reform
 Foreign Aid: can be beneficial but strict oversight is
required to ensure it is helpful
 Debt Cancellation: would help poor countries build
infrastructure to compete in global economy
 Tariff Reduction: stimulate economic growth to
developing countries as they could export their
goods
 Democratic Globalization: democratization lowers
inequality and promotes economic growth
1. Which of the following factors do sociologists
consider sources of globalization?
a.
b.
c.
d.
technological progress in such areas as transportation
and communication
political developments such as democratization
economic developments such as the formation of
global commodity chains
all of these choices
Answer: d
 Sociologists consider all of the following to be sources
of globalization:
 technological progress in such areas as transportation
and communication.
 political developments such as democratization
 economic developments such as the formation of global
commodity chains
2. Transnational corporations:
a.
b.
c.
d.
rely on domestic labor and domestic production
sell to domestic markets
are increasingly autonomous from national
governments
all of these choices
Answer: c

Transnational corporations are increasingly
autonomous from national governments.
3. The term “global commodity chain” refers to:
a.
b.
c.
a worldwide network of labor and production
processes whose end result is a finished commodity
rationalization involving efficiency, predictability,
and calculability
division of the world into competing economic,
political, and cultural areas
Answer: a
 The term “global commodity chain” refers to a
worldwide network of labor and production
processes whose end result is a finished
commodity.
4. George Ritzer coined the term "McDonaldization"
to describe:
a.
b.
c.
d.
a worldwide network of labor and production
processes whose end result is a finished
commodity
the economic domination of one country by
another
a form of rationalization involving efficiency,
predictability, and calculability
the homogenization of life worldwide
Answer: c

George Ritzer coined the term "McDonaldization" to
describe a form of rationalization involving
efficiency, predictability, and calculability.
5. Regionalization is:
a.
b.
c.
d.
a worldwide network of labor and production
processes whose end result is a finished
commodity
a form of rationalization involving efficiency,
predictability, and calculability
the division of the world into often competing
economic, political, and cultural areas
the homogenization of many aspects of life
worldwide
Answer: c
 Regionalization is the division of the world into
often competing economic, political, and cultural
areas.
6. According to dependency theorists, rich nations
now rely on which of the following to exercise
domination and control over poor nations:
a.
b.
c.
d.
e.
military occupation
support for authoritarian governments
substantial foreign investment
all of these choices
military occupation and support for authoritarian
governments
Answer: d

According to dependency theorists, rich nations
now rely on military occupation, support for
authoritarian governments and substantial
foreign investment to exercise domination and
control over poor nations.
7. Peripheral countries are:
a.
b.
c.
d.
capitalist countries that are the major sources of
capital and technology in the world
former colonies that are major sources of raw
materials and cheap labor
former colonies that are making considerable
headway in their attempts to industrialize
colonies that have not yet gained independence
and are therefore subject to exploitation
Answer: b

Peripheral countries are former colonies that are
major sources of raw materials and cheap labor.
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