Download The New Global Inequalities

The New Global Inequalities
David Brady
Duke University
BLUE JEANS SOLD AT WALMART (Jennifer Bair)
Sent over land from Mexico to Wal-Mart DC in Bentonville, Ark.
Retailer
(Wal-Mart)
Brand
(Levi’s)
U.S.
Manufacturer
Factory
in Mexico
Inputs:
Cotton (Texas)
Thread (S. CA)
Denim (Mexico)
Shipped by
container from
Shenzhen to
West Coast
ports
Taiwanese
Manufacturer
Dominican
Manufacturer
Factory
in DR
Inputs:
Cotton (India)
Thread (China)
Denim (China)
Factory
in Haiti
Factory
in China
Shipped by container from Santo Domingo to Miami
OUTLINE
1. What is Globalization?
2. Trends in Globalization
3. Traditional Global Inequalities
4. Newly Emerging Global
Inequalities
5. Possibilities for Global Social
Justice?
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
Globalization’s First Wave: Steamship Routes, 1900
Globalization’s Second Wave: The Internet, 2002
Dimensions of Globalization
1)
2)
3)
4)
Diffusion
Interdependence
Organization
Culture
Concrete Economic Aspects
-int’l exchange and flows of
goods, services, people,
information and capital
across nation-states
-Exports & Imports
-Direct & Portfolio Investment
-Migration
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
Trends in Globalization: Trade 1820-1995 (% of World GDP)
0.25
0.2
0.15
0.1
0.05
1992
1983
1974
1965
1956
1947
1938
1929
1920
1911
1902
1893
1884
1875
1866
1857
1848
1839
1830
0
Trends in Globalization: Trade & FDI 1960-2006 (% World GDP)
60
50
40
Trade % of GDP
30
FDI % of GDP
20
10
07
20
05
20
00
20
95
19
90
19
85
19
80
19
75
19
70
19
65
19
19
60
0
Figure 1. Trade Plus Investment Openness in 18 Affluent
Democracies, 1975-2003
180
160
140
W. Europe
100
Mean
80
U.S.
Japan
60
40
20
0
19
75
19
77
19
79
19
81
19
83
19
85
19
87
19
89
19
91
19
93
19
95
19
97
19
99
20
01
20
03
% of GDP
120
Trade % GDP in Key Regions
90
80
70
60
50
40
1970
2006
30
20
10
S.
.
U
.S
ro
Eu
A
fr
ic
a
si
a
A
S.
S.
as
t
.E
M
er
ic
a
e
L.
A
m
ro
p
Eu
E.
E.
A
si
a
0
S.
L.
ro
p
ic
a
si
a
U
.S
.
Eu
ro
A
fr
S.
A
as
t
M
.E
S.
e
si
a
er
ic
a
Eu
A
m
E.
E.
A
% Immigrant in Key Regions
14
12
10
8
6
4
1970
2006
2
0
Net Migration (Thousands) in Key Regions
8000
6000
4000
2000
0
1970
2006
-2000
-4000
-6000
S.
.
U
.S
ro
Eu
A
fr
ic
a
si
a
A
S.
S.
as
t
.E
M
er
ic
a
e
L.
A
m
ro
p
Eu
E.
E.
A
si
a
-8000
Persistent Global Inequalities (Ravallion & Wade
Readings): GDP 2005 Billions US Dollars
35,000
30,000
25,000
20,000
15,000
10,000
5,000
M
Lo
w
.S
.
U
Eu
ro
W
or
ld
In
co
id
m
dl
e
e
In
co
H
m
ig
e
h
In
co
m
e
E.
A
si
E.
a
Eu
ro
L.
pe
A
m
er
ic
a
M
.E
as
t
S.
A
si
S.
a
S.
A
fr
ic
a
0
GDP Per Capita ($) & Population (Billions) 2005
45,000
40,000
7
6
35,000
5
30,000
25,000
4
20,000
3
15,000
2
10,000
5,000
Lo
w
W
or
ld
M
id Inc
om
dl
e
e
I
H nc
ig
om
h
In e
co
m
E. e
E. Asi
Eu a
L. r o
A pe
m
er
ic
M a
.E
as
S. t
S. As
S.
ia
A
fr
ic
a
U
.S
.
Eu
ro
0
1
0
GDP Per Capita
Population
Three Ways to Measure Global Income Inequality
70
65
60
55
Unweighted B/w
Weighted B/w
Weighted B/w & W/in
50
45
40
35
0s
la
te
-9
-9
0s
m
id
-8
0s
m
id
-6
0s
m
id
W
W
II
30
Eu
ro
.
U
.S
si
E.
a
Eu
ro
pe
L.
A
m
er
ic
a
M
.E
as
t
S.
A
si
S.
a
S.
A
fr
ic
a
E.
A
Life Expectancy in Years
80
70
60
50
40
30
1970
2007
20
10
0
Under-5 Mortality Rate per 1,000
250
200
150
1970
2007
100
50
ro
Eu
.
U
.S
E.
A
si
E.
a
Eu
ro
pe
L.
A
m
er
ic
a
M
.E
as
t
S.
A
si
S.
a
S.
A
fr
ic
a
0
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
Exports and FDI in Developing Countries, 1985-2003
70
60
50
1985
%
40
1995
30
2003
20
10
0
Exports as a
% of Manufacturing
percentage of GDP
Exports in all
Exports
% of World
Manufacturing
Exports
FDI inflows as a
percentage of GDP
% of all epmloyment
Figure 1. Trends in Manufacturing Employment in 64
Developing Countries, 1980-2003
45
40
35
30
25
20
15
10
5
0
1980
1985
1990
1995
2000
2003
Years
Mean
5th Percentile
95th Percentile
• 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)
Eu
ro
.
U
.S
si
E.
a
Eu
ro
pe
L.
A
m
er
ic
a
M
.E
as
t
S.
A
si
S.
a
S.
A
fr
ic
a
E.
A
Urbanization Rate
90
80
70
60
50
40
30
1970
2007
20
10
0
Dharavi in Mumbai, India
Landfill New Delhi India 2007
HIV Prevalence Rate (% 15-49) 2007
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
Eu
ro
.
U
.S
ic
a
S.
A
fr
si
a
S.
A
S.
as
t
.E
M
er
ic
a
A
m
L.
Eu
E.
E.
A
ro
p
e
si
a
0
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.
•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
350
300
IGOs
250
200
States
150
100
50
0
1820
1840
1860
1880
1900
1920
1940
1960
1980
2000
Secondary School Enrollment Rate
100
90
80
70
60
50
1991
2007
40
30
20
10
.
U
.S
ic
a
S.
A
fr
si
a
S.
A
S.
as
t
.E
M
er
ic
a
A
m
L.
Eu
E.
E.
A
ro
p
e
si
a
0
Eu
ro
.
U
.S
si
E.
a
Eu
ro
pe
L.
A
m
er
ic
a
M
.E
as
t
S.
A
si
S.
a
S.
A
fr
ic
a
E.
A
Fertility Rate
7
6
5
4
3
2
1970
2007
1
0
A
us
A tral
B us ia
el tr
C giu ia
D an m
en ad
Fi m a a
nl rk
a
G Fra nd
er n
m ce
G an
r
Ireeecy
la e
nd
N
I
et J ta
N he ap ly
ew rl a
a n
Ze nd
N a. s
Poorw..
rt ay
ug
Sw S Sp al
a
itzwed in
er e
la n
U nd
K
UM
SA
Aid as % of GDP in 2007
0.45
0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
Anti-Immigrant Attitude by Unemployment Rate
0.5
0.45
Predicted Probability
0.4
0.35
0.3
0.25
Low Immigration
0.2
Medium Immigration
High Immigration
0.15
0.1
0.05
0
1.3
10
20
Unemployment Rate
30
36
Figure 2. U.S. Earnings Inequality, 1973-2003: Actual and
Simulated 90/10 Ratios
5
4.5
Actual
4
3.5
3
19
73
19
76
19
79
19
82
19
85
19
88
19
91
19
94
19
97
20
00
20
03
2.5
1 SD Less Trade
Openness
1972 Trade
Openness