Fiveable

๐Ÿดโ€โ˜ ๏ธIntro to International Relations Unit 8 Review

QR code for Intro to International Relations practice questions

8.3 Global Inequality and Its Consequences

๐Ÿดโ€โ˜ ๏ธIntro to International Relations
Unit 8 Review

8.3 Global Inequality and Its Consequences

Written by the Fiveable Content Team โ€ข Last updated September 2025
Written by the Fiveable Content Team โ€ข Last updated September 2025
๐Ÿดโ€โ˜ ๏ธIntro to International Relations
Unit & Topic Study Guides

Global inequality shapes international relations profoundly. Economic disparities, development gaps, and the North-South divide create power imbalances that influence global politics and trade. These inequalities stem from historical factors and current economic structures.

The digital divide and brain drain further widen the gap between nations. Environmental injustice and climate change disproportionately affect developing countries, exacerbating existing inequalities. Addressing these issues is crucial for fostering a more equitable global order.

Economic Inequality

Income and Wealth Disparities

  • Income inequality measures uneven distribution of earnings across populations
  • Wealth disparity refers to differences in accumulated assets and resources between individuals or groups
  • Gini coefficient quantifies income inequality on a scale from 0 (perfect equality) to 1 (perfect inequality)
  • Top 1% of global population owns 45% of world's wealth, highlighting extreme concentration
  • Factors contributing to economic inequality include:
    • Globalization and technological changes favoring skilled workers
    • Decline in labor union membership and collective bargaining power
    • Tax policies benefiting high-income earners and corporations
    • Unequal access to education and job opportunities

Poverty Traps and Development Gaps

  • Poverty trap describes self-reinforcing mechanisms keeping individuals or countries in poverty
  • Includes limited access to:
    • Education
    • Healthcare
    • Financial services
    • Infrastructure
  • Development gap refers to economic disparities between developed and developing nations
  • Measured through indicators such as:
    • Gross Domestic Product (GDP) per capita
    • Human Development Index (HDI)
    • Life expectancy
    • Literacy rates
  • Persistent gaps stem from historical factors (colonialism) and current global economic structures
  • Efforts to address development gaps include:
    • Foreign aid programs
    • Debt relief initiatives
    • Technology transfer
    • Capacity building in developing countries

Global Divisions

North-South Divide and Economic Imbalances

  • Global North generally refers to developed, industrialized nations (United States, Canada, Western Europe, Japan)
  • Global South encompasses developing and emerging economies (most of Africa, Latin America, parts of Asia)
  • North-South divide highlights economic, technological, and political disparities between regions
  • Characterized by differences in:
    • Industrial capacity
    • Technological advancement
    • Political influence in global institutions
  • Historical roots in colonialism and uneven economic development
  • Efforts to bridge the divide include:
    • South-South cooperation
    • Regional economic integration (ASEAN, African Union)
    • Reform of global financial institutions

Digital Divide and Brain Drain

  • Digital divide describes unequal access to information and communication technologies (ICTs) between and within countries
  • Factors contributing to the digital divide:
    • Infrastructure limitations (lack of broadband internet)
    • Economic barriers (cost of devices and internet services)
    • Digital literacy gaps
  • Impacts education, economic opportunities, and political participation
  • Brain drain refers to migration of highly skilled professionals from developing to developed countries
  • Consequences of brain drain:
    • Loss of human capital in source countries
    • Reduced capacity for innovation and development
    • Remittances partially offset economic losses but don't fully compensate for skill exodus
  • Strategies to address brain drain:
    • Improving working conditions and opportunities in source countries
    • Encouraging knowledge transfer and circular migration
    • Developing policies to attract skilled diaspora back home

Systemic Challenges

Structural Adjustment and Global Health Disparities

  • Structural Adjustment Programs (SAPs) implemented by International Monetary Fund (IMF) and World Bank
  • SAPs aimed to promote economic stability and growth in developing countries through:
    • Fiscal austerity measures
    • Privatization of state-owned enterprises
    • Trade liberalization
    • Deregulation of markets
  • Criticized for exacerbating inequality and reducing social spending
  • Global health disparities reflect unequal distribution of health resources and outcomes worldwide
  • Manifested in differences in:
    • Life expectancy
    • Infant mortality rates
    • Access to healthcare services
    • Prevalence of infectious and non-communicable diseases
  • Factors contributing to health disparities:
    • Poverty and lack of access to clean water and sanitation
    • Insufficient healthcare infrastructure in developing countries
    • Unequal distribution of medical professionals globally
    • High costs of pharmaceuticals and medical technologies

Environmental Injustice and Climate Change Impacts

  • Environmental injustice refers to disproportionate exposure of marginalized communities to environmental hazards
  • Often correlates with socioeconomic status and race
  • Examples include:
    • Locating toxic waste facilities in low-income neighborhoods
    • Higher air pollution levels in urban areas with predominantly minority populations
  • Climate change exacerbates global inequalities
  • Developing countries face greater vulnerability to climate impacts due to:
    • Geographic location (coastal areas, drought-prone regions)
    • Limited adaptive capacity and resources
    • Dependence on climate-sensitive sectors (agriculture, fishing)
  • Efforts to address environmental injustice and climate inequality:
    • International climate agreements (Paris Agreement)
    • Green Climate Fund to support adaptation and mitigation in developing countries
    • Environmental justice movements advocating for equitable distribution of environmental burdens and benefits