Global Inequality

Where does it come from?

Division of WorldDivision of World

• Producers of manufactured goods

• “Value Added”

• Producers of raw materials

• Prices are “volatile” – fluctuate greatly

• Producers of manufactured goods

• “Value Added”

• Producers of raw materials

• Prices are “volatile” – fluctuate greatly

European WealthEuropean Wealth

• Cheap, or free, resources

• Gold, silver, sugar, cotton

• Cheap, or free, labor

• Native and African-American slaves

• Cheap, or free, resources

• Gold, silver, sugar, cotton

• Cheap, or free, labor

• Native and African-American slaves

Triangle TradeTriangle Trade

• Sugar and minerals to Europe from the Americas

• Guns and manufactured goods to Africa and Asia

• Slaves from Africa to the Americas

• Sugar and minerals to Europe from the Americas

• Guns and manufactured goods to Africa and Asia

• Slaves from Africa to the Americas

To Make a Long Story Short

To Make a Long Story Short

• Poor nations provide• iron ore, aluminum, tin, etc.• agricultural products like timber, coffee,

fruit, or beef cattle.

• Wealthy nations• buy the raw materials cheaply• sell manufactured goods for higher rates of

profit

• Poor nations provide• iron ore, aluminum, tin, etc.• agricultural products like timber, coffee,

fruit, or beef cattle.

• Wealthy nations• buy the raw materials cheaply• sell manufactured goods for higher rates of

profit

RussiaRussia

• In the countries of the former Soviet Union transition brought with it one of the deepest recessions since the Great Depression of the 1930s.

• Russia has fallen 48 places in world life expectancy from 1990 to 2003.

• In the countries of the former Soviet Union transition brought with it one of the deepest recessions since the Great Depression of the 1930s.

• Russia has fallen 48 places in world life expectancy from 1990 to 2003.

Transition in RussiaTransition in Russia

• Gorbachev and the Law on Cooperatives

• Boris Yeltsin overtook Russian government

• Instituted reforms suggested by Western economists

• Gorbachev and the Law on Cooperatives

• Boris Yeltsin overtook Russian government

• Instituted reforms suggested by Western economists

Economic MeasuresEconomic Measures

• “Devalued” currency (money is worth less)

• Price controls removed

• Schools, hospitals and arts were to generate revenue through user fees

• “Devalued” currency (money is worth less)

• Price controls removed

• Schools, hospitals and arts were to generate revenue through user fees

PrivatizationPrivatization

• Workers given vouchers as ownership in company, but sold them out of desperation

• State officials controlled the sales of businesses and profited from them

• Revenue from sales of state property flees country

• Workers given vouchers as ownership in company, but sold them out of desperation

• State officials controlled the sales of businesses and profited from them

• Revenue from sales of state property flees country

Russian Economy NowRussian Economy Now

• Oil, natural gas, metals, and timber account for more than 80% of exports

• Price of oil has driven resurgence

• In Russia poverty levels were halved between 1999 and 2002, with about 30 million people escaping poverty.

• Oil, natural gas, metals, and timber account for more than 80% of exports

• Price of oil has driven resurgence

• In Russia poverty levels were halved between 1999 and 2002, with about 30 million people escaping poverty.

You Are Facing a Changing Economy

You Are Facing a Changing Economy

• Manufacturing jobs are leaving, taking high wage, low skill jobs with them

• These jobs are being replaced with service jobs that do not have the same benefits or wages

• This is not new – industry has moved from the Northeast, to the South, to Mexico, to Indonesia, to China, etc.

• Manufacturing jobs are leaving, taking high wage, low skill jobs with them

• These jobs are being replaced with service jobs that do not have the same benefits or wages

• This is not new – industry has moved from the Northeast, to the South, to Mexico, to Indonesia, to China, etc.

What does this mean for the US?

What does this mean for the US?

• Will we continue to be the leader in manufactured, high cost goods, or will we begin to lose our competitiveness to other nations?

• Will we continue to be the leader in manufactured, high cost goods, or will we begin to lose our competitiveness to other nations?

Zoned for SlaveryZoned for Slavery

Watch for the following things in the film:

How does piecework play a role in exploitation?

The role of gender and sexismwomen are hiredmandatory birth control

The use of dominance and supervision

What are the working conditions?

Watch for the following things in the film:

How does piecework play a role in exploitation?

The role of gender and sexismwomen are hiredmandatory birth control

The use of dominance and supervision

What are the working conditions?