Global Stratification and Classification

  • Describe global stratification
  • Understand how different classification systems have developed
  • Use terminology from Wallerstein’s world systems approach
  • Explain the World Bank’s classification of economies

Just as the United States’ wealth is increasingly concentrated among its richest citizens while the middle class slowly disappears, is concentrating resources in certain nations and is significantly affecting the opportunities of individuals in poorer and less powerful countries. In fact, a recent Oxfam (2014) report that suggested the richest eighty-five people in the world are worth more than the poorest 3.5 billion combined.

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.

Conflict theory focuses on the creation and reproduction of inequality. A conflict theorist would likely address the systematic inequality created when exploit the resources of peripheral nations. For example, how many U.S. companies take advantage of overseas workers who lack 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 meaning and 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 (absolute poverty, defined as being barely able, or unable, to afford basic necessities, such as food).

Global Stratification

While stratification in the United States refers to the unequal distribution of resources among individuals, refers to this unequal distribution among 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 the chart below illustrates, people’s life expectancy depends heavily on where they happen to be born.

Statistics such as infant mortality rates and life expectancy vary greatly by country of origin. (Central Intelligence Agency 2011)
Country Infant Mortality Rate Life Expectancy
Norway 2.48 deaths per 1000 live births 81 years
The United States 6.17 deaths per 1000 live births 79 years
North Korea 24.50 deaths per 1000 live births 70 years
Afghanistan 117.3 deaths per 1000 live births 50 years

Most of us are accustomed to thinking of global stratification as economic inequality. For example, we can compare the United States’ average worker’s wage to America’s average wage. Social inequality, however, is just as harmful as economic discrepancies. Prejudice and discrimination—whether against a certain race, ethnicity, religion, or the like—can create and aggravate conditions of economic equality, both within and between nations. Think about the inequity that existed for decades within the nation of South Africa. Apartheid, one of the most extreme cases of institutionalized and legal racism, created a social inequality that earned it the world’s condemnation.

Gender inequity is another global concern. Consider the controversy surrounding female genital mutilation. Nations that practice this female circumcision procedure defend it as a longstanding cultural tradition in certain tribes and argue that the West shouldn’t interfere. Western nations, however, decry the practice and are working to stop it.

Inequalities based on sexual orientation and gender identity exist around the globe. According to Amnesty International, a number of crimes are committed against individuals who do not conform to traditional gender roles or sexual orientations (however those are culturally defined). From culturally sanctioned rape to state-sanctioned executions, the abuses are serious. These legalized and culturally accepted forms of prejudice and discrimination exist everywhere—from the United States to Somalia to Tibet—restricting the freedom of individuals and often putting their lives at risk (Amnesty International 2012).

Global Classification

A major concern when discussing global inequality is how to avoid an ethnocentric bias implying that less-developed nations want to be like those who’ve attained post-industrial global power. Terms such as developing (nonindustrialized) and developed (industrialized) imply that unindustrialized countries are somehow inferior, and must improve to participate successfully in the global economy, a label indicating that all aspects of the economy cross national borders. We must take care how we delineate different countries. Over time, the terminology has shifted to make way for a more inclusive view of the world.

Cold War Terminology

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 . The poorest, most undeveloped countries were referred to as the and included most of sub-Saharan Africa, Latin America, and Asia. The 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 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 so-termed 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

Immanuel Wallerstein’s (1979) world systems approach uses an economic basis to understand global inequality. Wallerstein conceived of the global economy as a complex system that supports an economic hierarchy that placed some nations in positions of power with numerous resources and other nations in a state of economic subordination. Those that were in a state of subordination faced significant obstacles to mobilization.

Core nations are dominant capitalist countries, highly industrialized, technological, and urbanized. For example, Wallerstein contends that the United States is an economic powerhouse that can support or deny support to important economic legislation with far-reaching implications, thus exerting control over every aspect of the global economy and exploiting both semi-peripheral and peripheral nations. We can look at free trade agreements such as the North American Free Trade Agreement (NAFTA) as an example of how a core nation is able to leverage its power to gain the most advantageous position in the matter of global trade.

have very little industrialization; what they do have often represents the outdated castoffs of core nations or the factories and means of production owned by core nations. They typically have unstable governments, inadequate social programs, and are economically dependent on core nations for jobs and aid. There are abundant examples of countries in this category, such as Vietnam and Cuba. We can be sure the workers in a Cuban cigar factory, for example, which are owned or leased by global core nation companies, are not enjoying the same privileges and rights as U.S. workers.

are in-between nations, not powerful enough to dictate policy but nevertheless acting as a major source for raw material and an expanding middle-class marketplace for core nations, while also exploiting peripheral nations. Mexico is an example, providing abundant cheap agricultural labor to the U.S., and supplying goods to the United States market at a rate dictated by the U.S. without the constitutional protections offered to United States workers.

World Bank Economic Classification by Income

While the World Bank is often criticized, both for its policies and its method of calculating data, it is still a common source for global economic data.

Along with tracking the economy, the World Bank tracks demographics and environmental health to provide a complete picture of whether a nation is high income, middle income, or low income.

This world map shows advanced, transitioning, less, and least developed.
This world map shows advanced, transitioning, less, and least developed countries. (Map courtesy of Sbw01f, data obtained from the CIA World Factbook/Wikimedia Commons)
 

High-Income Nations

The World Bank defines high-income nations as having a gross national income of at least $12,746 per capita. The OECD (Organization for Economic and Cooperative Development) countries make up a group of thirty-four nations whose governments work together to promote economic growth and sustainability. According to the World Bank (2014b), in 2013, the average (GNI) per capita, or the mean income of the people in a nation, found by dividing total GNI by the total population, of a high-income nation belonging to the OECD was $43,903 per capita and the total population was over one billion (1.045 billion); on average, 81 percent of the population in these nations was urban. Some of these countries include the United States, Germany, Canada, and the United Kingdom (World Bank 2014b). High-income countries face two major issues: capital flight and .

A run-down auto parts building is shown here
This dilapidated auto supply store in Detroit is a victim of auto industry outsourcing. (Photo courtesy of Bob Jagendorf/flickr)

Middle-Income Nations

The World Bank defines middle-income economies areas those with a GNI per capita of more than $1,045 but less than $12,746. According to the World Bank (2014), in 2013, the average GNI per capita of an upper middle income nation was $7,594 per capita with a total population of 2.049 billion, of which 62 percent was urban. Thailand, China, and Namibia are examples of middle-income nations (World Bank 2014a). Perhaps the most pressing issue for middle-income nations is the problem of debt accumulation. As the name suggests, is the buildup of external debt, wherein countries borrow money from other nations to fund their expansion or growth goals.

Low-Income Nations

The World Bank defines low-income countries as nations whose per capita GNI was $1,045 per capita or less in 2013.  For example, Myanmar, Ethiopia, and Somalia are considered low-income countries. Low-income economies are primarily found in Asia and Africa (World Bank 2014a), where most of the world’s population lives. There are two major challenges that these countries face: women are disproportionately affected by poverty (in a trend toward a of poverty) and much of the population lives in absolute poverty.

Summary

Stratification refers to the gaps in resources both between nations and within nations. While economic equality is of great concern, so is social equality, like the discrimination stemming from race, ethnicity, gender, religion, and/or sexual orientation. While global inequality is nothing new, several factors make it more relevant than ever, like the global marketplace and the pace of information sharing. Researchers try to understand global inequality by classifying it according to factors such as how industrialized a nation is, whether a country serves as a means of production or as an owner, and what income a nation produces.

Section Quiz

Short Answer

Consider the matter of low prices at Walmart. What would a functionalist think of Walmart’s model of squeezing vendors to get the absolute lowest prices so it can pass them along to core nation consumers?

Why do you think some scholars find Cold War terminology (“first world” and so on) objectionable?

Pretend you are a sociologist studying global inequality by looking at child labor manufacturing Barbie dolls in China. What do you focus on? How will you find this information? What theoretical perspective might you use?

References

Amnesty International. 2012. “Sexual Orientation and Gender Identity.” Retrieved January 3, 2012 (http://www.amnesty.org/en/sexual-orientation-and-gender-identity).

Castells, Manuel. 1998. End of Millennium. Malden, MA: Blackwell.

Central Intelligence Agency. 2012. “The World Factbook.” Retrieved January 5, 2012 (https://www.cia.gov/library/publications/the-world-factbook/wfbExt/region_noa.html).

Central Intelligence Agency. 2014. “Country Comparison: Infant Mortality Rate.” Retrieved November 7, 2014 (https://www.cia.gov/library/publications/the-worldfactbook/rankorder/2091rank.html?countryname=Canada&countrycode=ca&regionCode=noa&rank=182#ca).

Dogruel, Fatma, and A. Suut Dogruel. 2007. “Foreign Debt Dynamics in Middle Income Countries.” Paper presented January 4, 2007 at Middle East Economic Association Meeting, Allied Social Science Associations, Chicago, IL.

Moghadam, Valentine M. 2005. “The Feminization of Poverty and Women’s Human Rights.” Gender Equality and Development Section UNESCO, July. Paris, France.

Myrdal, Gunnar. 1970. The Challenge of World Poverty: A World Anti-Poverty Program in Outline. New York: Pantheon.

Oxfam. 2014. “Working for the Few: Political Capture and Economic Inequality.” Oxfam.org. Retrieved November 7, 2014 (http://www.oxfam.org/sites/www.oxfam.org/files/bp-working-for-few-political-capture-economic-inequality-200114-summ-en.pdf).

United Nations. 2013. “Millennium Development Goals.” Retrieved November 7, 2014 (http://www.un.org/millenniumgoals/bkgd.shtml).

Wallerstein, Immanuel. 1979. The Capitalist World Economy. Cambridge, England: Cambridge World Press.

World Bank. 2014a. “Gender Overview.” Retrieved November 7, 2014 (http://www.worldbank.org/en/topic/gender/overview#1).

World Bank. 2014b. “High Income: OECD: Data.” Retrieved November 7, 2014 (http://data.worldbank.org/income-level/OEC).

World Bank. 2014c. “Low Income: Data.” Retrieved November 7, 2014 (http://data.worldbank.org/income-level/LIC).

World Bank. 2014d. “Upper Middle Income: Data.” Retrieved November 7, 2014 (http://data.worldbank.org/income-level/UMC).

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Rothschild's Introduction to Sociology by Teal Rothschild is licensed under a Creative Commons Attribution 4.0 International License, except where otherwise noted.

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