Ch.

9 - Global Inequality
Organization for Economic Cooperation and Development (OECD) Organization focusing on global economic development. Zero-Sum Meaning that the rich are winning at the expense of the poor. George Soros Leading financier, philanthropist, and critic of corporate globalization. African Growth and Opportunity Act Trade agreement to strengthen apparel trade between the U.S. and African states. The UN estimated that The Worlds richest 1 percent: receives as much income as the poorest 57 percent. Wealth and Poverty of Nations David S. Landes stresses that Chinas restrictions on women hampered its growth. Free Market and Institutionalized Property Rights Rights to private property protected under the market system. Separation of the Secular from the Religious A final factor undergirding Europes economic success and setting the foundation for global inequality. Global Digital Divide Contrast between those who have and those who dont have access to the Internet and other forms of digital communication. Factors combined to contribute to Inequality: 1) Geography, 2) Colonialism and its legacies, 3) The structure of the global economy, 4) Population Growth, 5) Government Policies, 6) Political Instability, 7) Natural Disasters. Infrastructure Essential systems, such as education, roads, and hospitals, needed by nationstates in order to provide necessary public services. Adam Smith Scottish economist and historic proponent of the capitalist system, he also wrote An Inquiry into the Nature & Causes of the Wealth of Nations . Dependency Theory Concept that poor countries over reliance on exports puts them at an economic disadvantage. Karl Marx German thinker who pioneered the theories of socialism and communism. Gilded Age (Roaring Twenties & Roaring Nineties) Brought unprecedented levels of both prosperity and economic inequality.

New Deal Social welfare system created in the 1930s to help the poor and restore trust in capitalism and government.

Poverty Line - the income level under which people cannot adequately sustain themselves. Defined as an income of $20,050 a year for a family of four in 2009. Center for Budget and Policy Priorities - a non-profit research organization advocating tax spending to benefit the poor, based in Washington D.C. Rural Ghettos - poverty stricken rural areas. Buffalo Commons - proposed refuge for large mammals, hikers, and a reviving Native American population on the Great Plains region. Globalization - the World-wide spread of ideas, values, markets, technology, and other developments between countries. North American Free Trade Agreement (NAFTA) - trade agreement signed by Canada, The United Sates, and Mexico aiming at economic integration under the capitalist system. Apartheid Laws - laws that legally and forcibly separate people of different ethnic and racial backgrounds. South Africa once practiced this system. Black Empowerment initiative - the South African Governments effort to encourage the expansion of black businesses. It has created quick millionaires but widens the gap of poverty between blacks. Caste System - religiously driven ideology and social system that promotes hierarchy and inequality. Practiced in India under Hinduism. Brahmans - priest and scholars at the top of the Caste System. Ksatriyas - second highest group under the Caste System consisting of Military, Law makers, and rulers. Vaisyas - third highest group in the Caste System, consisting of merchants, Land owners, Industrialist, and artisans. Sudras - laborers and farm workers at the bottom of the Caste System. Untouchables outcasts excluded from the caste system Gender Ideology beliefs, values, perceptions, and ideas about the roles of men and women and power relations between them Extreme Poverty the very poorest of the poor, or those living on less than $1 a day Absolute Poverty the absolute number of poor people below the defined poverty line Relative Poverty level of poverty based on the society in question CPI released by the U.S Department of Labor to measure the price of consumer goods and services as well as the rate of inflation

Malnutrition poor nutrition resulting from an insufficient or unbalanced diet World Food Program UN agency that is also the worlds largest food distribution organization Gender Budgeting analysis of national budgets to determine how spending priorities affect women Green Revolution dramatic increase in agricultural production involving hybrids, fast- growing plants, and the use of fertilizer and insecticides Microlending practice of granting small loans to help those who do not have access to conventional financial loan services Muhammad Yunus founder of the Grameen Bank microlending institution

Notes

Free Trade Areas is not a cause of inequality between rich and poor countries Untouchables are not a part of the caste system Poverty is an obvious indicator of inequality Adequate infrastructure is not a dimension of poverty Maintaining current infrastructure is not a way to close the gap of inequality Globalists argue that globalization has increased economic growth while decreasing global inequality Natural resources are not a reason for Europes economic success Adam Smith believes that governments should not interfere with the functioning of the market Reason for the struggle of reducing poverty in the world: ongoing armed conflicts, uncertainty of commitment from the World Bank, weak political support for foreign assistance in most rich countries World Food Program is the UNs agency that is also the worlds largest food distribution organization the global digital divide is the contrast between those with and those without internet access