Global Stratification and Classification Quiz

PDF page 277: While stratification in the United States refers to the unequal distribution of resources among individuals, global stratification refers to this unequal distribution among nations. There are two dimensions to this stratification: gaps between nations and gaps within nations. When it comes to global inequality, both economic inequality and social inequality may concentrate the burden of poverty among certain segments of the earth’s population (Myrdal 1970). As mentioned earlier, one way to evaluate stratification is to consider how many people are living in poverty, and particularly extreme poverty, which is often defined as needing to survive on less than $1.90 per day. Fortunately, until the COVID-19 pandemic impacted economies in 2020, the extreme poverty rate had been on a 20-year decline. In 2015, 10.1 percent of the world's population was living in extreme poverty; in 2017, that

PDF page 277: While stratification in the United States refers to the unequal distribution of resources among individuals, global stratification refers to this unequal distribution among nations. There are two dimensions to this stratification: gaps between nations and gaps within nations. When it comes to global inequality, both economic inequality and social inequality may concentrate the burden of poverty among certain segments of the earth’s population (Myrdal 1970). As mentioned earlier, one way to evaluate stratification is to consider how many people are living in poverty, and particularly extreme poverty, which is often defined as needing to survive on less than $1.90 per day. Fortunately, until the COVID-19 pandemic impacted economies in 2020, the extreme poverty rate had been on a 20-year decline. In 2015, 10.1 percent of the world's population was living in extreme poverty; in 2017, that

PDF page 277: While stratification in the United States refers to the unequal distribution of resources among individuals, global stratification refers to this unequal distribution among nations. There are two dimensions to this stratification: gaps between nations and gaps within nations. When it comes to global inequality, both economic inequality and social inequality may concentrate the burden of poverty among certain segments of the earth’s population (Myrdal 1970). As mentioned earlier, one way to evaluate stratification is to consider how many people are living in poverty, and particularly extreme poverty, which is often defined as needing to survive on less than $1.90 per day. Fortunately, until the COVID-19 pandemic impacted economies in 2020, the extreme poverty rate had been on a 20-year decline. In 2015, 10.1 percent of the world's population was living in extreme poverty; in 2017, that

PDF page 276: The Human Development Index expresses the capabilities of people's potential achievement. The index is calculated using data regarding people's lifespan, education, and income. By using both financial and nonfinancial factors, it paints a deeper picture of the lives and issues in a region. For example, a nation with high income but low education will still have difficulty in overall opportunity. This approach was developed by Pakistani economist Mahbub ul Haq, who produced the first annual Human Development report, which captures and illustrates development issues and changes each year.

PDF page 276: The Human Development Index expresses the capabilities of people's potential achievement. The index is calculated using data regarding people's lifespan, education, and income. By using both financial and nonfinancial factors, it paints a deeper picture of the lives and issues in a region. For example, a nation with high income but low education will still have difficulty in overall opportunity. This approach was developed by Pakistani economist Mahbub ul Haq, who produced the first annual Human Development report, which captures and illustrates development issues and changes each year.

PDF page 277: Another measure of inequality is Gini Coefficient, named after the Italian sociologist and statistician Corrado Gini. (Be sure not to confuse this with GNI, which is the gross national income.) It is is calculated using a number of financial indicators, and is expressed as either a decimal or a percentage. A country in which every resident has the same income would have a Gini coefficient of 0 (or 0 percent). A country in which one resident earned all the income, while everyone else earned nothing, would have an income Gini coefficient of 1 (or 100 percent). Thus, the higher the number (the closer to that one person having all the income or wealth), the more inequality there is. Other gauges are a bit more direct: To indicate the level of poverty within a nation or region, researchers calculate the percentage of the population living beneath various poverty thresholds. A common measure is to consider the percentage of a nation's population living on less than $1.90 per day, which is commonly known as the International Poverty Line. (Note that United States dollars are often used as a global standard in these types of measurement.) The table in the next sub-section uses this method.

PDF page 277: Another measure of inequality is Gini Coefficient, named after the Italian sociologist and statistician Corrado Gini. (Be sure not to confuse this with GNI, which is the gross national income.) It is is calculated using a number of financial indicators, and is expressed as either a decimal or a percentage. A country in which every resident has the same income would have a Gini coefficient of 0 (or 0 percent). A country in which one resident earned all the income, while everyone else earned nothing, would have an income Gini coefficient of 1 (or 100 percent). Thus, the higher the number (the closer to that one person having all the income or wealth), the more inequality there is. Other gauges are a bit more direct: To indicate the level of poverty within a nation or region, researchers calculate the percentage of the population living beneath various poverty thresholds. A common measure is to consider the percentage of a nation's population living on less than $1.90 per day, which is commonly known as the International Poverty Line. (Note that United States dollars are often used as a global standard in these types of measurement.) The table in the next sub-section uses this method.

PDF page 277: Another measure of inequality is Gini Coefficient, named after the Italian sociologist and statistician Corrado Gini. (Be sure not to confuse this with GNI, which is the gross national income.) It is is calculated using a number of financial indicators, and is expressed as either a decimal or a percentage. A country in which every resident has the same income would have a Gini coefficient of 0 (or 0 percent). A country in which one resident earned all the income, while everyone else earned nothing, would have an income Gini coefficient of 1 (or 100 percent). Thus, the higher the number (the closer to that one person having all the income or wealth), the more inequality there is. Other gauges are a bit more direct: To indicate the level of poverty within a nation or region, researchers calculate the percentage of the population living beneath various poverty thresholds. A common measure is to consider the percentage of a nation's population living on less than $1.90 per day, which is commonly known as the International Poverty Line. (Note that United States dollars are often used as a global standard in these types of measurement.) The table in the next sub-section uses this method.

PDF page 277: The functionalist perspective is a macroanalytical view that focuses on the way that all aspects of society are integral to the continued health and viability of the whole. A functionalist might focus on why we have global inequality and what social purposes it serves. This view might assert, for example, that we have global inequality because some nations are better than others at adapting to new technologies and profiting from a globalized economy, and that when core nation companies locate in peripheral nations, they expand the local economy and benefit the workers.

PDF page 277: Conflict theory focuses on the creation and reproduction of inequality. A conflict theorist would likely address the systematic inequality created when core nations exploit the resources of peripheral nations. For example, how many U.S. companies take advantage of overseas workers who lack the constitutional protection and guaranteed minimum wages that exist in the United States? Doing so allows them to maximize profits, but at what cost? The symbolic interaction perspective studies the day-to-day impact of global inequality, the meanings individuals attach to global stratification, and the subjective nature of poverty. Someone applying this view to global inequality would probably focus on understanding the difference between what someone living in a core nation defines as poverty (relative poverty, defined as being unable to live the lifestyle of the average person in your country) and what someone living in a peripheral nation defines as poverty (extreme poverty, defined as being barely able, or unable, to afford basic necessities, such as food).

PDF page 279: Cold War terminology was developed during the Cold War era (1945–1980). Familiar and still used by many, it classifies countries into first world, second world, and third world nations based on their respective economic development and standards of living. When this nomenclature was developed, capitalistic democracies such as the United States and Japan were considered part of the first world. The poorest, most undeveloped countries were referred to as the third world and included most of sub-Saharan Africa, Latin America, and Asia. The second world was the in-between category: nations not as limited in development as the third world, but not as well off as the first world, having moderate economies and standard of living, such as China or Cuba. Later, sociologist Manual Castells (1998) added the term fourth world to refer to stigmatized minority groups that were denied a political voice all over the globe (indigenous minority populations, prisoners, and the homeless, for example). Also during the Cold War, global inequality was described in terms of economic development. Along with developing and developed nations, the terms less-developed nation and underdeveloped nation were used. This was the era when the idea of noblesse oblige (first-world responsibility) took root, suggesting that the sotermed developed nations should provide foreign aid to the less-developed and underdeveloped nations in order to raise their standard of living. Immanuel Wallerstein: World Systems Approach

PDF page 279: Cold War terminology was developed during the Cold War era (1945–1980). Familiar and still used by many, it classifies countries into first world, second world, and third world nations based on their respective economic development and standards of living. When this nomenclature was developed, capitalistic democracies such as the United States and Japan were considered part of the first world. The poorest, most undeveloped countries were referred to as the third world and included most of sub-Saharan Africa, Latin America, and Asia. The second world was the in-between category: nations not as limited in development as the third world, but not as well off as the first world, having moderate economies and standard of living, such as China or Cuba. Later, sociologist Manual Castells (1998) added the term fourth world to refer to stigmatized minority groups that were denied a political voice all over the globe (indigenous minority populations, prisoners, and the homeless, for example). Also during the Cold War, global inequality was described in terms of economic development. Along with developing and developed nations, the terms less-developed nation and underdeveloped nation were used. This was the era when the idea of noblesse oblige (first-world responsibility) took root, suggesting that the sotermed developed nations should provide foreign aid to the less-developed and underdeveloped nations in order to raise their standard of living. Immanuel Wallerstein: World Systems Approach