Understanding Global and European Socioeconomic Inequalities
Understanding Socioeconomic Inequalities
How Are Inequalities Measured?
Wealth: GDP (Gross Domestic Product) is the total production of a country’s economy. GDP per capita is calculated by dividing a country’s GDP by its number of inhabitants. GNI is the Gross National Income.
Welfare:
- The provision of basic and non-basic needs
- Social cohesion or the level of social equality
- Social relations and participation
- Environmental quality
To measure welfare, we use the Human Development Index (HDI) and the Multidimensional Poverty Index (MPI).
UN Welfare Indices:
- 3 indicators: GDP per capita, adult literacy rate, and life expectancy.
- 3 dimensions: living standards, education, and health.
| High Development Countries | Low Development Countries | Emerging Countries | |
|---|---|---|---|
| Economic features | High GDP per inhabitant | Low GDP per inhabitant | Modest GDP per inhabitant |
| Social features | Equality, extensive middle class | Inequality, little middle class | Increasing equality, increasing middle class |
| Rights and freedom | Respected democratic regimes | Not highly respected authoritarian regimes | Moderately respected authoritarian regimes transitioning to democratic systems |
| Pressure on the environment | Major carbon footprint | Minor carbon footprint | Increasing carbon footprint |
Causes of Development Inequalities
Domestic Causes:
- Natural conditions: Underdeveloped countries are mostly located in tropical regions with a higher frequency of natural catastrophes.
- Lack of resources: Limited education and lack of technological development.
- Imbalance between population and resources: High demographic growth is compounded by the lack of available resources, which limits the ability to meet all the population’s basic needs.
- Political instability: Caused by armed conflicts.
International Causes:
- Foreign domination: In the past, colonialism, but today, neo-colonialism.
Issues and Solutions:
Poverty – Wealth — Economic AID Official Development
— Sustainable Development
– Development– Decreasing Poverty
Fairer global trading
Debt Reduction
Political participation—-Increasing citizen participation
Domestic inequalities—- Rich VS Poor
Discrimination against women
Environmental damage—Diminishing carbon footprint
Socioeconomic Inequalities in Europe
The causes behind inequalities:
- Historic causes
- Contemporary causes
Regional Differences:
- The Pentagon is the most prosperous region in Europe.
- Less dynamic regions.
The EU Regional Policy:
- The European Regional Development Fund (ERDF)
- The European Social Fund (ESF)
- The Cohesion Fund (CF)
Social and Regional Inequalities in Spain
Social Regional
- Full equality for women – Economic status
- Unemployment – Demographic status
- Poverty and social exclusion – Social welfare