The New Global Inequalities

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The New Global Inequalities

• David Brady
• Duke University

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BLUE JEANS SOLD AT WALMART (Jennifer Bair)
Retailer (Wal-Mart)
Sent over land from Mexico to Wal-Mart DC in
Bentonville, Ark.
Brand (Levis)
U.S. Manufacturer
Taiwanese Manufacturer
Shipped by container from Shenzhen to West Coast
ports
Inputs Cotton (Texas) Thread (S. CA) Denim
(Mexico)
Dominican Manufacturer
Inputs Cotton (India) Thread (China) Denim
(China)
Factory in Mexico
Factory in China
Factory in Haiti
Factory in DR
Shipped by container from Santo Domingo to Miami
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• OUTLINE
• What is Globalization?
• Trends in Globalization
• Traditional Global Inequalities
• Newly Emerging Global Inequalities
• Possibilities for Global Social Justice?

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What Is Globalization?

• Growth of ties/connections compression of world
  reduction of international barriers
• Growing irrelevance of geographical distance
• Growing Flows across national borders
• people, capital, information, goods services
• including greater share of world and leading to
  increasing integration across spaces
• -Timing
• long history of international economic
  integration that began with the rise of
  capitalism in 1500s
• Early wave peaked in early 20th century before
  WWI
• Recent wave rising since early 1970s

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Globalizations First Wave Steamship Routes, 1900
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Globalizations Second Wave The Internet, 2002
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Dimensions of Globalization

• Diffusion
• Interdependence
• Organization
• Culture
• Concrete Economic Aspects
• -intl exchange and flows of goods, services,
  people, information and capital across
  nation-states
• -Exports Imports
• -Direct Portfolio Investment
• -Migration

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• Concrete Organizations
• 1) Global Actors
• International Monetary Fund (IMF)
• -goal monetary cooperation coordination
• -job credit-rating agency BUT lends money
• with conditions
• World Bank
• -goal poverty reduction, development and
  reconstruction
• -job lend to poor countries BUT debt relief
  and research
• 2) Global Institutions
• World Trade Organization
• -goal promote free trade, fair competition,
  dispute resolution
• -job forum for negotiations BUT administers
  agreements
• European Union
• -goal avoid conflict and enable free movement
• -job manage EU BUT growing judiciary and
• bureaucracy

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Trends in Globalization Trade 1820-1995 ( of
World GDP)
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Trends in Globalization Trade FDI 1960-2006 (
World GDP)
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Trade GDP in Key Regions
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Immigrant in Key Regions
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Net Migration (Thousands) in Key Regions
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Persistent Global Inequalities (Ravallion Wade
Readings) GDP 2005 Billions US Dollars
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GDP Per Capita () Population (Billions) 2005
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Three Ways to Measure Global Income Inequality
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Life Expectancy in Years
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Under-5 Mortality Rate per 1,000
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Newly Emerging Global Inequalities

• From Dependency to New International Division of
  Labor
• Historically, poor countries were source of
  natural resources and agricultural products for
  rich countries
• Natural Resource Trap drive up currency,
  volatile boom-bust cycles, corrupt governments
• In past 30 years, poor countries have
  industrialized because of FDI and exports

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• Triggered Massive Social Changes
• Migration to cities in poor countries
• Migration to rich countries
• Dramatic advances in technology for
  communication, transportation and travel
• Rapid and Uneven Urbanization
• (Goldman Longhofer Reading)

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Urbanization Rate
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Dharavi in Mumbai, India
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Landfill New Delhi India 2007
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HIV Prevalence Rate ( 15-49) 2007
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Possibilities for Global Social Justice?

• Economic Growth?
• World composed of rich billion, middle four
  billion and bottom billion
• Middle four billion grew 2.5 annually in 1970s,
  4 annually in 1980s 1990s, and 4.5 annually
  since 2000
• Bottom billion grew only .5 in 1970s, DECLINED
  .4 in 1980s, and DECLINED .5 in 1990s
• Bottom billion was poorer in 2000 than 1970
• Paul Collier Growth is not a cure-all, but the
  lack of growth is a kill-all.

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The World Polity (Meyer Lerner Readings)

• Canopy of international governmental
  organizations (IGOs) and international
  non-governmental organizations (INGOs)
• United Nations, Amnesty International, etc.
• Global civil society and superstates have
  potential to improve world well-being

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Secondary School Enrollment Rate
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Fertility Rate
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Aid as of GDP in 2007
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