The Exploitation of Low-Income Countries by High-Income Countries
The exploitation of low-income countries by high-income countries
INTRODUCTION
Over the years living conditions around the world have improved, even in the poorest of countries. Despite this there is still a clear difference between high-income countries and low-income countries. High-income countries are defined as countries with very productive economic systems where the majority of people have fairly high incomes, while low-income countries are defineed as having low economic systems where most people are poor and many do not meet living standards (Macionis et al., 2005, pg 439). Even though poverty can be found all over the world citizens in low-income countries are living in absolute poverty rather than relative poverty found in high-income countries. People living in absolute poverty lack resources that are essential for life, while people in relative poverty have living resources but fall below the average income threshold for that country.
In order to understand the “unequal distribution of wealth, power and prestige on a global basis” it is important to look at global stratification (Kendal, 2010, pg 254). Global stratification has two theories that explain this inequality: modernization theory, which explains global inequality in terms of technological and cultural differences, and the dependency theory which interprets global differences in terms of exploitation of low-income countries by high-income countries. Even though the modernization theory proposes many appealing arguments this paper will focuses on the dependency theory and its arguments “towards relieving the suffering of hungry people” (Macionis et al., 2005, pg 222). This paper will look at multinational corporations like GAP ® and Disney World ®, which are huge business industries operating in low-income countries. The cause for the underdevelopment of low-income countries is not due to cultural or technological reasons, but rather to the exploitation of low-income nations by
INTRODUCTION
Over the years living conditions around the world have improved, even in the poorest of countries. Despite this there is still a clear difference between high-income countries and low-income countries. High-income countries are defined as countries with very productive economic systems where the majority of people have fairly high incomes, while low-income countries are defineed as having low economic systems where most people are poor and many do not meet living standards (Macionis et al., 2005, pg 439). Even though poverty can be found all over the world citizens in low-income countries are living in absolute poverty rather than relative poverty found in high-income countries. People living in absolute poverty lack resources that are essential for life, while people in relative poverty have living resources but fall below the average income threshold for that country.
In order to understand the “unequal distribution of wealth, power and prestige on a global basis” it is important to look at global stratification (Kendal, 2010, pg 254). Global stratification has two theories that explain this inequality: modernization theory, which explains global inequality in terms of technological and cultural differences, and the dependency theory which interprets global differences in terms of exploitation of low-income countries by high-income countries. Even though the modernization theory proposes many appealing arguments this paper will focuses on the dependency theory and its arguments “towards relieving the suffering of hungry people” (Macionis et al., 2005, pg 222). This paper will look at multinational corporations like GAP ® and Disney World ®, which are huge business industries operating in low-income countries. The cause for the underdevelopment of low-income countries is not due to cultural or technological reasons, but rather to the exploitation of low-income nations by