5.4.4 Globalization and Equality
Completion requirements
5.4.4 Globalization and Equality
Is there a connection between globalization and freedom?
Inequality in Canada: The theory behind globalization is that, with more free trade, everyone will become richer. Is that true, or are some people becoming richer than others are?
John F. Kennedy, former president of the US, once said "A rising tide lifts all boats," or, in other words, when the general wealth of the world increases, everyone becomes richer. In our democratic system, supposedly everyone has an equal chance of getting rich. Through hard work, equality under the law, and equal opportunities, everyone should reap the benefits of globalization. However, inequality still occurs in almost every nation in the world — and it is growing.
During the past 20 years, almost all groups in Canadian society have made more money, but the incomes of the very rich have grown much larger. Basically, the very richer are getting much richer, the people in the middle are staying about the same, and the poor have become a little less poor. Inequality is measured by something called the GINI co-efficient. Perfect equality is 0% and perfect inequality is 100%. Currently, inequality is worst in South Africa (63.0%) and best in the Ukraine (25.5%). Canada's GINI coefficient is 34.0%. (World Bank, 2013-2015)
In 2013, incomes for the lower 90% of Canadians averaged $28 000, the top 10% took home an average of $135 000, and the top 1% earned $381 000.
The issue question for this unit is "To what extent does globalization lead to sustainable prosperity for all people? " The facts show that globalization may be making everyone a little more prosperous, but the very rich are benefiting much more than the average people are.
What of worldwide? Are people all over the world becoming richer as globalization has promised?
Look at the map. Dark green countries are most equal and dark red countries are least equal.
Watch the 2013 documentary film Inequality for All.
Communism and Inequality: One goal of any communist country is to eliminate the classes. There should be no rich and poor or powerful and weak. We know that communism failed in the Soviet Union, which rapidly became one of the world's most unequal countries after it became capitalist. However, some countries remain communist today.
Vietnam has industrialized rapidly. After becoming communist in 1976, by 1986 it began to connect with the rest of the world and has experienced considerable economic growth. Fewer people are desperately poor. In fact, it has had one of the fastest growing economies in the world with many factories and sweatshops owned by transnationals providing jobs for the people. As more Vietnamese move to the cities to work in factories, inequality is increasing.
Cuba was a wealthy country that saw a great deal of foreign ownership of its resources before the communist revolution of 1959. When the country became communist, it expelled the American property owners and it allied with the Soviet Union during the Cold War. The United States placed an embargo on Cuba. Americans could not visit, nor could they send money. No American firm could invest in Cuba or sell products there. Cuba was cut off from globalization, and when the Soviet Union became capitalist, Cuba had very few trading partners. Cubans cannot buy American cars or parts. Anything they buy or sell has to be made in Cuba or imported from South or Central America or Europe.
Today in Cuba, people line up to use the bank or buy bread.
Watch any of the following movies:
What do you think?
Most people are brought up to believe that if you work hard, you will become rich, but is that really true? Are you more likely to become rich in a highly globalized capitalist democracy? Is globalization making everyone a bit richer, or are some becoming richer than others? Or does it matter?
John F. Kennedy, former president of the US, once said "A rising tide lifts all boats," or, in other words, when the general wealth of the world increases, everyone becomes richer. In our democratic system, supposedly everyone has an equal chance of getting rich. Through hard work, equality under the law, and equal opportunities, everyone should reap the benefits of globalization. However, inequality still occurs in almost every nation in the world — and it is growing.
During the past 20 years, almost all groups in Canadian society have made more money, but the incomes of the very rich have grown much larger. Basically, the very richer are getting much richer, the people in the middle are staying about the same, and the poor have become a little less poor. Inequality is measured by something called the GINI co-efficient. Perfect equality is 0% and perfect inequality is 100%. Currently, inequality is worst in South Africa (63.0%) and best in the Ukraine (25.5%). Canada's GINI coefficient is 34.0%. (World Bank, 2013-2015)
In 2013, incomes for the lower 90% of Canadians averaged $28 000, the top 10% took home an average of $135 000, and the top 1% earned $381 000.
The issue question for this unit is "To what extent does globalization lead to sustainable prosperity for all people? " The facts show that globalization may be making everyone a little more prosperous, but the very rich are benefiting much more than the average people are.
What of worldwide? Are people all over the world becoming richer as globalization has promised?
Look at the map. Dark green countries are most equal and dark red countries are least equal.
Watch
Watch the 2013 documentary film Inequality for All.
Communism and Inequality: One goal of any communist country is to eliminate the classes. There should be no rich and poor or powerful and weak. We know that communism failed in the Soviet Union, which rapidly became one of the world's most unequal countries after it became capitalist. However, some countries remain communist today.
Vietnam has industrialized rapidly. After becoming communist in 1976, by 1986 it began to connect with the rest of the world and has experienced considerable economic growth. Fewer people are desperately poor. In fact, it has had one of the fastest growing economies in the world with many factories and sweatshops owned by transnationals providing jobs for the people. As more Vietnamese move to the cities to work in factories, inequality is increasing.
Cuba was a wealthy country that saw a great deal of foreign ownership of its resources before the communist revolution of 1959. When the country became communist, it expelled the American property owners and it allied with the Soviet Union during the Cold War. The United States placed an embargo on Cuba. Americans could not visit, nor could they send money. No American firm could invest in Cuba or sell products there. Cuba was cut off from globalization, and when the Soviet Union became capitalist, Cuba had very few trading partners. Cubans cannot buy American cars or parts. Anything they buy or sell has to be made in Cuba or imported from South or Central America or Europe.
Today in Cuba, people line up to use the bank or buy bread.
Digging Deeper
Watch any of the following movies:
- Suite Habana - a day in the life of the people of Havana, Cuba
- Viva Cuba - a movie about children in Cuba
- Cyclo - a movie about a young cyclo driver's struggle with the violent underworld
- Inequality for All - a 2013 documentary about inequality in the United States
Reflect
What do you think?
Most people are brought up to believe that if you work hard, you will become rich, but is that really true? Are you more likely to become rich in a highly globalized capitalist democracy? Is globalization making everyone a bit richer, or are some becoming richer than others? Or does it matter?