the new global inequalities david brady duke university
TRANSCRIPT
The New Global Inequalities
David Brady
Duke University
Brand(Levi’s)
Factory in Haiti
Retailer(Wal-Mart)
Factory in Mexico
Factory in DR
DominicanManufacturer
U.S. Manufacturer
Inputs:Cotton (India)
Thread (China)Denim (China)
Inputs:Cotton (Texas)Thread (S. CA)Denim (Mexico)
Taiwanese Manufacturer
Factory in China
Sent over land from Mexico to Wal-Mart DC in Bentonville, Ark.
Shipped by container from Santo Domingo to Miami
Shipped by container fromShenzhen to West Coast
ports
BLUE JEANS SOLD AT WALMART (Jennifer Bair)
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) Diffusion2) Interdependence3) Organization4) 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 Organizations1) Global Actors
International Monetary Fund (IMF)-goal: monetary cooperation & coordination-job: credit-rating agency BUT lends money
with conditionsWorld Bank
-goal: poverty reduction, development and reconstruction
-job: lend to poor countries BUT debt relief and research
2) Global InstitutionsWorld Trade Organization
-goal: promote free trade, fair competition, dispute resolution
-job: forum for negotiations BUT administers agreementsEuropean 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
0.05
0.1
0.15
0.2
0.251
83
0
18
39
18
48
18
57
18
66
18
75
18
84
18
93
19
02
19
11
19
20
19
29
19
38
19
47
19
56
19
65
19
74
19
83
19
92
Trends in Globalization: Trade & FDI 1960-2006 (% World GDP)
0
10
20
30
40
50
60
Trade % of GDP
FDI % of GDP
Figure 1. Trade Plus Investment Openness in 18 Affluent Democracies, 1975-2003
0
20
40
60
80
100
120
140
160
180
% o
f GD
P
W. Europe
Mean
U.S.
Japan
Trade % GDP in Key Regions
0
10
20
30
40
50
60
70
80
90
1970
2006
% Immigrant in Key Regions
0
2
4
6
8
10
12
14
1970
2006
Net Migration (Thousands) in Key Regions
-8000
-6000
-4000
-2000
0
2000
4000
6000
8000
1970
2006
Persistent Global Inequalities (Ravallion & Wade Readings): GDP 2005 Billions US Dollars
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
GDP Per Capita ($) & Population (Billions) 2005
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
World
Low Inco
me
Mid
dle In
com
e
High In
com
e
E. Asi
a
E. Eur
ope
L. Am
eric
a
M. E
ast
S. Asi
a
S.S. A
frica
U.S.
Euro
0
1
2
3
4
5
6
7
GDP Per Capita
Population
Three Ways to Measure Global Income Inequality
30
35
40
45
50
55
60
65
70
Unweighted B/wWeighted B/wWeighted B/w & W/in
Life Expectancy in Years
0
10
20
30
40
50
60
70
80
1970
2007
Under-5 Mortality Rate per 1,000
0
50
100
150
200
250
1970
2007
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
0
10
20
30
40
50
60
70
Exports as apercentage of GDP
% of ManufacturingExports in all
Exports
% of WorldManufacturing
Exports
FDI inflows as apercentage of GDP
%
1985
1995
2003
Figure 1. Trends in Manufacturing Employment in 64 Developing Countries, 1980-2003
05
101520
253035
4045
1980 1985 1990 1995 2000 2003
Years
% o
f all
epm
loym
ent
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)
Urbanization Rate
0
10
20
30
40
50
60
70
80
90
1970
2007
Dharavi in Mumbai, India
Landfill New Delhi India 2007
HIV Prevalence Rate (% 15-49) 2007
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
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
0
50
100
150
200
250
300
350
1820 1840 1860 1880 1900 1920 1940 1960 1980 2000
IGOs
States
Secondary School Enrollment Rate
0
10
20
30
40
50
60
70
80
90
100
1991
2007
Fertility Rate
0
1
2
3
4
5
6
7
1970
2007
Aid as % of GDP in 2007
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
0.5
1.3 10 20 30 36
Predic
ted Pr
obab
ility
Unemployment Rate
Anti-Immigrant Attitude by Unemployment Rate
Low Immigration
Medium Immigration
High Immigration
Figure 2. U.S. Earnings Inequality, 1973-2003: Actual and Simulated 90/10 Ratios
2.5
3
3.5
4
4.5
5
Actual
1 SD Less TradeOpenness
1972 TradeOpenness