Describing Countries in Economic Terms
Overview
- Describe different sociological models for understanding global stratification
- Understand how studies of global stratification identify worldwide inequalities
How can we describe different world economies?
Various models of global stratification all have one thing in common: they rank countries according to their relative economic status, or gross national product (GNP). Traditional models, now considered outdated, used labels to describe the stratification of the different areas of the world. Simply put, they were named “first world, “second world,” and “third world.” First and second world described industrialized nations, while third world referred to “undeveloped” countries (Henslin 2004). When researching using historical sources, you may still encounter these terms, and even today people still refer to some nations as the “third world.”
Another model separates countries into two groups: more developed and less developed. More-developed nations have higher wealth, such as Canada, Japan, and Australia. Less-developed nations have less wealth to distribute among higher populations, including many countries in central Africa, South America, and some island nations.
Yet another system of global classification defines countries based on the per capita gross domestic product (GDP), a country’s average national wealth per person. The GDP is calculated (usually annually) one of two ways: by totaling either the income of all citizens or the value of all goods and services produced in the country during the year. It also includes government spending. Because the GDP indicates a country’s productivity and performance, comparing GDP rates helps establish a country’s economic health in relation to other countries.
These statistics also establish a country’s standard of living. According to this analysis, a GDP standard of a middle-income nation represents a global average. In low-income countries, most people are poor compared to people in other countries. Citizens have little access to infrastructure such as electricity, plumbing, and clean water. People in low-income countries are not guaranteed education, and many are illiterate. The life expectancy of citizens is lower than in high-income countries.
Summary
Global stratification compares the wealth, economic stability, status, and power of countries as a whole. By comparing income and productivity between nations, researchers can better identify global inequalities.
Further Research
Nations Online refers to itself as “among other things, a more or less objective guide to the world, a statement for the peaceful, nonviolent coexistence of nations.” The website provides a variety of cultural, financial, historical, and ethnic information on countries and peoples throughout the world: http://openstaxcollege.org/l/Nations_Online.
References
Millennium Project. 2006. “Expanding the financial envelope to achieve the Goals.” Millennium Project Official Website. Retrieved January 9, 2012 (https://web.archive.org/web/20130202045634/http://www.unmillenniumproject.org/reports/costs_benefits2.htm).
Nationsonline.org. “Countries by Gross National Income (GNI).” Retrieved January 9, 2012 (http://www.nationsonline.org/oneworld/GNI_PPP_of_countries.htm).
PRB.org. “GNI PPP Per Capita (US$).” PRB 2011 World Population Data Sheet. 2011 Population Reference Bureau. Retrieved January 10, 2012 (http://www.prb.org/DataFinder/Topic/Rankings.aspx?ind=61).
Rostow, Walt W. 1960. The Stages of Economic Growth: A Non-Communist Manifesto. Cambridge, MA: Cambridge University Press.
Landler, Mark, and David E. Sanger. 2009. “World Leaders Pledge $1.1 Trillion for Crisis.” New York Times, April 3. Retrieved January 9, 2012 (http://www.nytimes.com/2009/04/03/world/europe/03summit.html).