Global Inequalities

Developed (First World, North)

• Wealthy countries – good standard of living for citizens

• Industrialized• Health Care• Education available to all people• Low child mortality rates (Canada – 4

deaths/1000 births)• High life expectancy (Canada – age 79M,

81F)• Examples: Canada, United States, Britain,

France, Germany, Australia etc…

Developing World (Third World, South)

• Poorest countries – hunger, poverty, disease • Not industrialized• Health care is limited or non-existent• Limited education • High child mortality rates (Mozambique – 199

deaths/1000 births)• Low life expectancy rates (Zambia – age 37)• Examples: Ethiopia, Vietnam, Haiti, Most

African countries etc…

Facts

• Half the world – just over 3 billion people, live on less than $2.00 a day.

• The wealth of the poorest 48 countries in the world is less than the wealth of the world’s three richest people.

• 30 million people die each year from lack of food.

• Every 3.6 seconds someone in the world dies of hunger; 75% are children.

• Worldwide 250 000 000 children are forced to work.

• 40 000 children die a day from malnutrition and disease.

• 125 million children are not in school – most are girls.

• Over 1 million children a year will become part of the “sex trade.”

Causes of Inequalities

1. Colonialism

• A policy of conquering and controlling other countries. • Began in the 1500s when the nations of Europe

established colonies in Africa, Asia and South America.• Colonies provided cheap labour and raw materials

(minerals, diamonds, tea, sugar, rubber, etc…) to be sold around the world for huge profits.

• European countries soon became very rich at the expense of the colonies.

• After 1945, most colonies became independent countries – poor and underdeveloped.

2. Neo-colonialism: The Global Economy

• Independent colonies were quickly “invaded” and controlled by multi-national corporations (MNCs) who set up factories or sweatshops.

• Headquarters for these corporations are located in the developed countries.

• MNCs pay factory workers very low wages for products sold at high prices around the world.

• Corporate taxes and environmental restrictions are avoided

• End result:

1. Billions of $$$ for the MNCs

2. Developing countries remain poor and dependant on foreign corporations

3. Debt

• 1970s - developing countries borrowed money from the richer nations

• Agreed to pay the money back with interest

• Due to poverty and high interest rates - repayment was impossible

• For many countries, all extra money went to pay the debt, not towards improving the country.

4. Corruption

• Corrupt governments also keep developing nations in poverty.

• Corrupt leaders promote their interests over the welfare of the people.

• Example: Zaire, 1960s – President Mobutu had 11 palaces, while his people suffered in poverty.

Country Examples

• Developed US, Canada,

• Developing Rwanda, Most African Countries.