Globalisation

• The Gini Coefficient:

  • The statistical measure that is usually used to indicate levels of inequality in income distribution within in a country.
  • Aggregates the inequalities in peoples income into a single measure.
  • Gives a coefficient score between 0 and 1.
  • The higher the score within this range means higher inequality.
• The Lorenz Curve:

  • A graphical representation of the distribution of income or of wealth.
• Globalisation & Wealth Inequality - Incomes become more unequal:

  • The wages for low jobs have dropped as globalisation has led to a ‘race to the bottom’.
  • The poor get poorer.
• Globalisation & Wealth Inequality - The 'Wealth Concentration Effect':

  • High income earners can save and invest more of their income.
• Globalisation & Wealth Inequality - Tax Breaks for Big Companies:

  • Means less money for the government to spend on social programmes - the poor get poorer
  • Bigger profits for the companies - the rich get richer
• Globalisation & Wealth Inequality - Withdrawing State Support:

  • Peasant farmers have to sell their assets and migrate to find work.
  • Groundnut farmers in Senegal no longer helped to buy equipment etc by the Senegalese Government - the poor get poorer.
• Globalisation & Wealth Inequality - Privatisation of Health & Education:

  • Means these consume more of the income of the poor - the poor get poorer