Chapter 9Global Inequality.ppt

Chapter 9Global Inequality “A world where some live in comfort and plenty, while half of the human race lives on less than $2 a day, is neither just, nor stable.” — President Bush Quotes “Almost half the world’s population lives on less than two dollars a day, yet even this statistic fails to capture the humiliation, powerlessness and brutal hardship that is the daily lot of the world’s poor.” Koffi Anan, UN Secretary General “Today, across the world, 1.3 billion people live on less than one dollar a day; 3 billion live on under two dollars a day; 1.3 billion have no access to clean water; 3 billion have no access to sanitation; 2 billion have no access to electricity.” James Wolfenson, The Other Crisis, World Bank, October 1998 Global Inequality: Differences between Countries Global Inequality – The systematic differences in wealth and power that exist between countries Indicators of Economic Development – GDP – A country’s yearly output of goods and services per person Three economic classes as determined by the World Bank -- low, middle, and high. macro national level High Income Countries GDP of $9,266 per person Generally those first to industrialize Account for only 15% of the world’s population Lay claim to 79% of the world’s annual output of wealth Global Inequality: Differences between Countries Middle-Income Countries GDP of $756 - $9,265 per person Most began to industrialize late in the 20th century. Includes 45% of the world’s population Only accounts for 18% of the annual output of wealth Global Inequality: Differences between Countries Low Income Countries GDP under $755 per person Mostly agricultural economies that have only recently began to industrialize Accounts for 37% of the world’s population Produces only 3% of the annual output of wealth Global Inequality: Differences between Countries The Rich get Richer, the Poor get Poorer From 1988 to 1999, average GDP rose 28% in low-income countries and 51% in high-income countries, widening the