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The Global Configurations of Inequality: Stratification, Glocal Inequalities, and the Global Social Structure

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Book cover Understanding the Dynamics of Global Inequality

Abstract

The chapter is an introduction to the subject of global inequality. Simultaneously it is a reflection of different classical sociological approaches on social differentiation and of the current discourses on global social differentiation. Consequently, the sociological concepts of social differentiation are presented as three different lines of thought. Thereafter, the main theories of globalization are discussed in an effort to highlight the global forms of stratification. Although inequality plays a prominent role in nearly every book published on globalization, we argue that a comprehensive theory of globalization must account for the structural effects and large-scale changes of inequality on the micro and macro level. Building up on the famous distinction of Ronald Robertson (1992) we treat inequality as a culturally glocalized phenomenon, i.e. integrating both the global and the local effects of inequality to the analysis of global inequality. In a nutshell, we argue that globalization has two structural effects on social stratification. On the one hand, it creates glocal inequalities on a local level. On the other hand, it shapes the social structure on the global level. Consequently, the empirical dimensions of global inequality are displayed and contextualized in a final step. The chapter concludes by summarizing the consequences from the empirical analysis of global inequality for prospective globalization theory.

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Notes

  1. 1.

    Please note that the “Fahrstuhl-Effekt” is no “trickle-down effect”. While Becks “Fahrstuhl-Effekt” describes the improvement of living conditions under constant equality relations, i.e. a collective growing affluence (all classes simply getting the same additional amount of more economic resources), the “trickle-down effect” describes the comparatively small improvement of the economic situation from the poor classes as a result of the improvement of the upper classes.

  2. 2.

    The issue of actorhood within the world polity approach must be excluded from the discussion: “The stateless character of world society has blinded many scholars to the enormous accumulation in recent decades of world social organization and cultural material. The culture involved clearly champions the principle that nation-states, organizations, and individuals are responsible, authorized actors” (Meyer et al. 1997: 162).

  3. 3.

    Milanovic (2007: 1) distinguishes between inequality among countries’ mean incomes (inter-country inequality), inequality among countries’ mean incomes weighted by the countries’ population (improved concept of inter-country inequality), and inequality between the world’s individuals (global inequality). Milanovic famous approach deals with the study of global income inequality. “The way to estimate global inequality is to calculate Concept 2 inequality [i.e. the improved concept of inter-country inequality; Editors] using nation accounts data, and to combine it with the empirical observation that within-country income distributions tend to follow a log-normal pattern. Then, the only additional piece of information needed is a Gini coefficient, or some other summary inequality statistic describing national income distributions” (Milanovic 2007: 3). Thus, Milanovic global inequality is concerned with relative income inequality, not absolute inequality.

  4. 4.

    The Gini index measures the extent to which the distribution of income or consumption expenditure among individuals or households within an economy deviates from a perfectly equal distribution. A Lorenz curve plots the cumulative percentages of total income received against the cumulative number of recipients, starting with the poorest individual or household. The Gini index measures the area between the Lorenz curve and a hypothetical line of absolute equality, expressed as a percentage of the maximum area under the line. Thus a Gini index of 0 represents perfect equality, while an index of 100 implies perfect inequality (World Bank 2014).

  5. 5.

    Data provided by the world commission show that trade liberalization that has allowed the import of subsidized agricultural products and consumer goods had a negative effect on the lifelihoods of women producers. A similar effect results from increased entry of foreign firms. The negative impact is increased because at the same time women producers face more entry barriers into new economic activities: “The extent of the handicaps faced by women producers is seen in the fact that women own less than 2 per cent of land worldwide and receive less than 10 per cent of credit” (World Commission 2004: 48).

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Lenger, A., Schumacher, F. (2015). The Global Configurations of Inequality: Stratification, Glocal Inequalities, and the Global Social Structure. In: Lenger, A., Schumacher, F. (eds) Understanding the Dynamics of Global Inequality. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-44766-6_1

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