Post on 22-Jan-2018
R I C H A N D P O O R
Economic and Social Inequalities (Unit 12)
Rich, developed north Poor, underdeveloped south – “the global south”
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
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
Theories Explaining Inequalities
High demographic growth Decolonization Globalization
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
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
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
Underlying Problems
Unfair distribution of wealth Inability to take part in international economic
decisions (ie IMF!!)
GDP per capita
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?
Causes of Inequality: Internal Factors
Climate Availability of resources Relationship between resources and population
Causes of Inequality: External Factors
Colonization Trade imbalance
Importing cheap raw materials Exporting expensive manufactured goods
Industrial Revolution Decolonization Globalization (1990s)
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
The Center and Periphery
• Regional Powers • Russia • Australia • South Africa
• Peripheral areas • Sub-saharan Africa • Numerous Asian countries • Numerous Latin American countries
Core (Center)/Periphery Map