Globalisation, poverty and inequalities flashcards

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Modernisation Theory

A theory by W.W. Rostow suggesting all societies follow a linear path to development through five stages, from 'traditional' to 'high mass-consumption', by adopting Western values and capitalist models.

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Dependency Theory

A sociological theory stating that poverty in developing countries (the 'periphery') is a direct result of their exploitation by developed countries (the 'core'), historically through colonialism and currently through neo-colonialism via TNCs and global financial institutions.

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World Bank Poverty Line

An income threshold used to measure absolute poverty globally. As of the early 2020s, the extreme poverty line is set at $2.15 per person per day.

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Gini Coefficient

A statistical measure of income or wealth inequality within a nation or social group. It ranges from 0 (perfect equality) to 1 (maximum inequality).

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Structural Adjustment Programmes (SAPs)

Policies imposed on developing countries by the IMF and World Bank as a condition for obtaining loans. These typically involve neoliberal reforms such as privatisation, deregulation, and cuts to public spending.

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BRICS

An acronym for Brazil, Russia, India, China, and South Africa, representing major emerging economies whose growing influence challenges the traditional dominance of the Global North.

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Absolute Poverty

A condition characterised by severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, and education. It is often measured by an income threshold.

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Neoliberalism

An economic and political ideology advocating for free markets, privatisation of public services, deregulation, and minimal government intervention in the economy. It has been a dominant force in globalisation since the 1980s.

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World Systems Theory

Immanuel Wallerstein's theory of the global capitalist system, which is divided into three tiers: the core (dominant, high-profit states), the periphery (exploited, low-profit states), and the semi-periphery (states that are both exploited and exploiters, acting as a buffer).

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Relative Poverty

Poverty defined in relation to the median income or living standards of a specific society. An individual is considered relatively poor if they cannot afford the goods and services considered normal for that society.

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Human Development Index (HDI)

A composite statistic by the UN to rank countries by level of 'human development'. It combines life expectancy, education (mean and expected years of schooling), and Gross National Income per capita.

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Neo-colonialism

The use of economic, political, or cultural pressures to control or influence other countries, especially former dependencies. Dependency theorists argue it's how the 'core' exploits the 'periphery' today.

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Palma Ratio

A measure of income inequality that compares the income share of the richest 10% of the population to the income share of the poorest 40%. A higher ratio indicates greater inequality.