Transcript Global Ineqality

Global Inequality
What is global inequality?
7.2 p174
National
– Measured by Gross National Product
(GNP) – sometimes called Gross
Domestic Product (GDP)
Value of everything a country produces in a
year
Global Inequality
MEDC – more economically developed
country
LEDC – less economically developed
country
GDP per head figures ……..
Richest 225 people in the world have
1,000,000,000,000 $ ($4,444,000,000
each)
This is the same total amount as the
poorest 2.5 billion people ($400 each)
How evenly distributed is the wealth
distributed $$$$
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Human Development Trends
Contents of human development trends
1 introduction
2 world income distribution
3 regional income distribution
4 changing face of poverty
5 regional differences in health and income
6 income and health of countries
7 same income different health
8,9 child mortality by country and wealth
Human
Development
Trends
$$$$
Click on human development trends
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Forward arrow-stop when you get to 3!
Then exit and go to next slide
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2 types of Poverty
Relative Poverty
– Earning less then half the average
earnings in the country
– Not being able to have the NORMS of
the society
Relative Poverty
What are the NORMS in the UK?
In pairs create your own list ………..
– Car
– Flat or house
– TV, cooker,
– New clothes and shoes
– Food at home and being able to eat out
at convenience food restaurants
2 types of Poverty
Absolute Poverty
– Less than 1$ per day
– Not enough money to buy food, shelter
and clothing
– Not enough food to prevent malnutrition
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Measuring Development
Why measure it?
– We can check if it’s happening
– We can compare countries
– We can compare different approaches to
encouraging development
Measuring development
7.3 p.176
Human Development Index
– Measures income and quality of life
GNP per head
Life expectancy
Infant mortality
Adult literacy
health
United Nations – Rights of the
Child
All children under 18 to have a right to
– A name and a nationality
– Health care, housing, nutrition and recreation
– Society should support handicapped children
and those without parents
– Education
– Protection from neglect and cruelty
– Protected from practices that encourage
discrimination
Watch these cartoons!
Write in your books the ‘children's’
right each one refers to …….
– They are more specific than we’ve
discussed so far
Click here
Discrimination,family,identity,educati
on,war,neglect,discrimination,child
labour, environment, self expression
COPY THIS TABLE
FILL THIS COLUMN IN FROM
PAGE 177 OR the indicators
handout
Human rights charter
Human Right
Life
Adequate nutrition
Education
Health
Participate in recreation
Non-discrimination
Access to housing
Select 2 Indicators
One of the problems
Poverty
Low paid unskilled
Jobs or unemployed
Poor diet
THE POVERTY
TRAP
Illness
Limited skills
Little education
activity Page 179
You need
– Your book, a shared copy of
development indicators, some graph
paper
– Follow activities in the book
Causes of global inequality
People compete with each other for
resources
–
–
–
–
Money
Land
Raw materials
Labour
The strong WILL win
Individuals
Countries
So ………………
Causes of Global Inequality
History
– Empires and colonialism
British, Spanish, Portuguese, French, USA,
Soviet Union, China
– All have invaded other countries to gain access to
there wealth and to ‘civilise’ them
– Slavery
Countries can now govern themselves BUT
economically may still depend on previous
rulers
Causes of Global Inequality
Industrial revolution
– Countries that worked out how to use
technology to make manufactured
products got wealthy quickest
Good governance
– Countries that developed effective ways
of governing themselves could control
their economic development better
Think of the effect of civil war on people
– We think people need democracy ……..
Homework
Make a list of 10 articles of clothing
you own
List the countries they were made in
Mark countries on a map
How many are LEDCs?
Causes of Global Inequality
Trade
– I have something you want to buy
– You have something I want
Trade happens when we buy from and sell
to each other
International trade happens between
countries
Imports – a product bought into a country
Exports – a product sold out of a country
Causes of Global Inequality
Is trade fair?
– Why should we expect it to be
People compete with each other
for resources
Money
Land
Raw materials
Labour
The strong WILL win
Causes of Global Inequality
Trade is not fair because of
– Tariffs and quotas
The Bra wars
– EU has set a limit on how many Chinese made clothes
can be imported
– EU clothing makers survive, EU consumers pay higher
prices, Chinese clothing makers lose out
Read examples on p 181,182 and 183
– Why do governments use tariffs?
To protect their own people’s jobs and wealth
because otherwise they’d get voted out!!
Causes of Global Inequality
Trade is not fair because
– Multinational Companies (MNC) (Nestle, Nike,
McDonalds, Microsoft, Nissan, Peugeot)
– are mostly based in MEDCs and operate in
LEDCs
– MNCs get cheap labour and materials and
profits
– MEDC governments get taxes on those profits
– MEDC people get cheap goods (and pensions
paid from the profits and roads and hospitals
from the taxes)
Causes of Global Inequality
LEDCs get from MNCs
– Jobs or exploitation
– Wages to be spent in LEDCs
– Training
– New factories
– Pollution
– Products they couldn’t make themselves
Causes of Global Inequality
Trade is not fair because
– Prices of the products LDCs sell are
dropping
Coffee
Cocoa
Wheat
Rubber
There is only so much coffee (bread,
chocolate) the world CAN consume!
Subsidies, Tariffs and Quotas
SUBSIDY
– Money paid to a producer BY GOVERNMENT to
lower the cost of making something
TARIFF
– Money paid TO a government to get
permission to sell something
QUOTA
– An amount of products that can be imported
Causes of Global Inequality
Money borrowed by LEDCs
– Interest rates went up
Borrow $100 million @ 3% = $3 million interest per
year to pay
Borrow $100 million @ 10% = $10 million interest
per year to pay
– Lenders said
If you want our money you can’t use tariffs to protect
your industries
– Money was stolen by corrupt LEDC leaders
– Money was spent on guns
What’s happening now
DEBT RELIEF PLAN G8 2005
Debts written off for 18 countries - total
$40bn
Debt repayments saved by those countries
each year - $1.5bn
Nine more countries to qualify within 18
months - takes total to $55bn
UK's contribution over next 10 years:
$700-$960m
US contribution: $1.3bn-$1.75bn
Africa's total external debt: still $300bn
What’s happening now?
Less LEDC debt so more money for
– Jobs
– Health care
– schools
What’s happening now?
HDI numbers
What’s happening now? - Aid
Good
– Disaster help –
tsunami
– Building hospitals
– Teaching farming
– Irrigation schemes
– Oxfam etc directly
involved
– MEDC populations
concerned to help
Comic relief etc
Bad
– Countries become
dependent on it
Does not encourage
local economy to
develop
– Aid is controlled by
MEDCs and can be
switched off
– Spent on guns
What’s happening now? - Trade
World Trade Organisation
– 147 member countries
– Pushing for freer trade – NO tariffs
– BUT
Dominated by MEDCs
Has no teeth – remember the League of
Nations!
So why should we care?
Knowing about this will get you
better Humanities GCSE marks
We want to be a caring and tolerant
society
The alternative is terrorism and war
– If you have nothing, what have you got
to lose
What can be done?
Millennium Development Goals by
2015
– Get rid of poverty and hunger
Halve the number of people on <$1/day
– Every child gets primary education
– Gender equality in education
– Reduce child mortality by 2/3
– Halt the increase in HIV
– Ensure environmental sustainability
What can be done?
Cancel more debt
Give more aid to specific projects
Make trade fairer
Globalisation makes us more
dependent on each other – let’s
make it a 2 way street ……..