<< Chapter < Page Chapter >> Page >

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 Traditional models, now considered outdated, used labels to describe the stratification of the different areas of the world.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 existing 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.

The figures 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 relative to people in other countries. Citizens have little access to amenities 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.

The big picture: calculating global stratification

A few organizations take on the job of comparing the wealth of nations. The Population Reference Bureau (PRB) is one of them. Besides a focus on population data, the PRB publishes an annual report that measures the relative economic well-being of all the world’s countries. It’s called the Gross National Income (GNI) and Purchasing Power Parity (PPP).

The GNI measures the current value of goods and services produced by a country. The PPP measures the relative power a country has to purchase those same goods and services. So, GNI refers to productive output and PPP refers to buying power. The total figure is divided by the number of residents living in a country to establish the average income of a resident of that country.

Because costs of goods and services vary from one country to the next, the GNI PPP converts figures into a relative international unit. Calculating GNI PPP figures helps researchers accurately compare countries’ standard of living. They allow the United Nations and Population Reference Bureau to compare and rank the wealth of all countries and consider international stratification issues (nationsonline.org).

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.

Short answer

Why is it important to understand and be aware of global stratification? Make a list of specific issues that are related to global stratification. For inspiration, turn on a news channel or read the newspaper. Next, choose a topic from your list, and look at it more closely. Who is affected by this issue? How is the issue specifically related to global stratification?

Got questions? Get instant answers now!

Compare a family that lives in a grass hut in Ethiopia to an American family living in a trailer home in the Unites States. Assuming both exist at or below the poverty levels established by their country, how are the families’ lifestyles and economic situations similar and how are they different?

Got questions? Get instant answers now!

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: (External Link) .

References

Millennium Project. 2006. “Expanding the financial envelope to achieve the Goals.” Millennium Project Official Website. Retrieved January 9, 2012 ( (External Link) ).

Nationsonline.org. “Countries by Gross National Income (GNI).” Retrieved January 9, 2012 ( (External Link) ).

PRB.org. “GNI PPP Per Capita (US$).” PRB 2011 World Population Data Sheet . 2011 Population Reference Bureau. Retrieved January 10, 2012 ( (External Link) ).

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 ( (External Link) ).

Questions & Answers

what is Nigeria development strategies
Onoyima Reply
good leadership
Ali
what sociology offers you ?
Mohamed Reply
Alote of knowledge
Buhari
sociology enable us to understand the society and the people behaviour
Ameh
a lot of theological ideas
EDOR
having study the method of social control critically discuss how they could be applied in resolving any deviant act of choice
Precious Reply
how does the family ensure social order and continuity in the society
Hazel Reply
I want to join your group
Ishmael
can someone please explain more about sociology theory..
Srijana Reply
Sociological theory according to Robert K. Merton (1967) refers to logically interconnected sets of propositions from which empirical uniformities can be derived
Ameh
discuss Nigeria development strategies
Onoyima
what is culture?
mohammad Reply
way of living
Sultan
culture is the way people live their life's....
Noah
The beliefs, values, behaviour and material objects that constitute a people's way of life.
young
culture is the sum total of knowledge , attitudes and habitual behavioural pattern shares and transmitted by members of the society.
AHUMBE
What is sociological imagination
Abubakarr Reply
what are the agent of socialization?
AHUMBE Reply
why is sociology important as a student of Hospitality and Tourism?
Oluwabukola Reply
hlo
Samir
hi
Muluken
sociology is very important becaus , it set students to career advancement , .it also enrich the development in the society . It also educates students to know what is unknown to them but supposed to be known , like histories,
AHUMBE
★ Define family and marriage and identify their different historical types.
Abir Reply
family is a group of people who share or have common kin connection. Marriage is when two people share kin connection and have a sexual approved union between them.
Stanford
Family group of people that are by all means related by blood from two sources and they also have many things in common life face resemblance and manny more.... Marriage is simply a connection between two people of different genthers with the soul aim of building a family in a life time
Dura
what is sociology
Sonia Reply
sociology is a social science and also a mirror through which human beings look into the societies. In addition it's a study of the society.
Ameh
Sociology is the study of social life, social change, and the social causes and consequences of human behavior.
young
sociology is the systematiç study of human society, social behavior, human interaction, and human group.
AHUMBE
explain the positive deviance promoting growth and development in (a)socialization (b)social group pressure and coercion
Precious Reply
What is condition in india retative to socialize.
Pintu Reply
any benefit reading of sociology
Waseem Reply
yes! there's a lot of benefits
Ameh
because it's the scientific study of society, patterns of social relationships, social interaction, and culture of everyday life. It is a social science that uses various methods of empirical investigation and critical analysis to develop a body of knowledge about social order, acceptance, and chang
Ameh
....e or social evolution
Ameh
hello
Tilahun
what are the specific characteristics contributes to the inequality that is inherent in capitalism as an economic and social action? according to Karl Marx
Mokgohlwe Reply

Get Jobilize Job Search Mobile App in your pocket Now!

Get it on Google Play Download on the App Store Now




Source:  OpenStax, Introduction to sociology 2e. OpenStax CNX. Jan 20, 2016 Download for free at http://legacy.cnx.org/content/col11762/1.6
Google Play and the Google Play logo are trademarks of Google Inc.

Notification Switch

Would you like to follow the 'Introduction to sociology 2e' conversation and receive update notifications?

Ask