Stratification is one of the core themes within A level Sociology and Sociology more generally. One of the major sources of stratification is found in differences between wealth and income within the UK. According to various sources of statistics (of course you should always question where these come from!) the UK is one of the most unequal countries in the developed world, and this is something I like to bang on about a lot. Below are a few handy infographics which illustrate the extent of wealth and income inequality in the UK.
This first infographic from the excellent Equality Trust (authors of The Spirit Level) provides a nice general overview. The headline figure is quite easy to remember – the top o.1% earn about 100 times more than the bottom 90%, and the ratio is roughly the same for the earnings of a CEO of a FTSE 100 company compared to the average UK income.
2. This infographic from Income Inequality Briefing reminds us that the wages of the richest have increased, while the relative wages of the poorest have decreased in real terms.
3. This third infographic, again from the Inequality Briefing, looks at things regionally – Basically I think it tells us that the wealthiest region (London) is twice as wealthy in terms of wages as the poorest (up north somewhere or Welsh valleys). It also reminds us that the UK is one of the most unequal countries in Europe. Basically the average income in London is double the average income in the West Midlands.
4. This final infographic from the Office for National Statistics at least reminds us that taxation and benefits do help to reduce income inequality to an extent. Before tax and benefits the richest 20% of households are 14 times richer than the poorest, but after tax and benefits, the ratio reduces 4. NB1 – If you were comparing the richest 10% with the poorest 10% the difference would be larger. NB2 remember that most people who receive benefit are actually in work, and benefits (e.g. housing benefit) tops up their low wages.
Populations across Europe are getting older which can create social problems related to higher levels of poor health among older people and a greater financial and caring ‘burden’ on younger generations.
But careful social planning can help to overcome these challenges.
What are the consequences of an ageing population?
In 1850,half the population in England were dead before they reached 46. Now half the population in England are alive at 85; and 8 million people currently alive in the UK will make it to 100 years or more. And if we extrapolate that to Europe, we can say 127 million Europeans are going to live to 100.
Hans Rosling points out that: We reached the turning point five years ago when the number of children stopped growing in the world. We have 2 billion children. They will not increase. The increase of the world population from now on will be a fill up of adults.
Health Secretary Jeremy Hunt: The two biggest issues that we face as an ageing society are the sustainability of the NHS and the sustainability of the pension system; and within the NHS, I include the social care system as part of that.
The basic problem we have in Northern European countries is the generational tension between individualism and communal responsibility – Across the generations within a typical family we have become more individualistic and less collective/ communal:
People in their 80s (who grew up in the 1960s) are generally very individualistic – they have retired into property wealth and are unwilling to relinquish the independence this gives them. They have also socialised their children into being more independent: most people today in their 50s (the children of those who are in their 80s) have bought into this – The family norm is one of the typical 50 year old living an independent life with family, miles away from their own parents.
Grandparents today of course help out with childcare occasionally and pay regular visits, but they are generally not taking a day to day role in childcare, and finances are kept separate. This arrangement is mutual – People in their 80s don’t want to be burdens on their children, they want them to have the freedom to live their own lives – to be able to work and raise their children without having to care for them in their old age. (So I suppose you might call the 2000s the era of the individualised family).
(This is very different to what it used to be like in the UK, and what it is still like in many other parts of the world where grandparents live close by and are an integral part of family life, taking an active role in raising their grandchildren on a day to day basis. Various interviewees from less developed countries testify to this, and to the advantages of it.)
Within this context of increasing ‘familial-individualism‘ a number of problems of the ageing population are discussed:
Firstly, one of the main problems which this increasing ‘familial-individualism’ creates for people in their 80s is one of increasing isolation and loneliness as their friends and neighbours move away or die.
One proposed solution is for older people to be prepared to move into communal supported housing where there are shared leisure facilities, like many people do in Florida. However, people are quite set in their ways in the UK and so this is unlikely. A second solution, which some immigrants are choosing is to return to thier country of origin where there are more collectivist values, trading in a relatively wealthy life in the UK for less money and more community abroad.
A second problem is that healthy life expectancy is not keeping pace with life-expectancy, and there are increasing numbers of people in their 80s who spend several years with chronic physical conditions such as arthritis, and also dementia – which require intensive social care.
As with the first point above, this is more of a social problem when children do not see it as their duty to care for their elderly parents – It is extremely expensive to provide round the clock care for chronic conditions for several years, and this puts a strain on the NHS. Basically, the welfare state cannot cope with both pensions and chronic care.
On potential solution to the above is mentioned by Sally GREENGROSS: The Germans in some cases now export older people to Eastern European countries because they can’t afford – or they say they can’t – to provide all the services they need in Germany itself. Could this be the future of chronic elderly care in the UK – Exporting dementia patients to poorer countries?
However, the idea of care-homes themselves are not dismissed when it comes to end of life care – the consensus seems to be that the quality of care in UK elderly care homes is generally very good, and better than your typically family could provide (despite all the not so useful scare programmes in the media).
A third problem is for those in their 50s – with their parents still alive and ‘sucking money out of the welfare state’ there is less left for everything else – and this has been passed down to the youngest generation – As a result people in their 50s now face the prospect of their own children living at home for much longer and having to help them with tuition fees and mortgage financing, meaning that their own plans for retirement in their late-50s/ early 60s are looking less likely – In other words, the next two generations are bearing a disproportionate cost of the current ageing population.
Worryingly, there is relatively little being done about this in government circles – Yes, the state pension age has been raised, and measures have been taken to get people to bolster their own private pensions, but this might be too little to late, and it looks like little else is likely to be done – The issue of the ageing population and the cost of welfare for the elderly is not a vote-winner after all.
The programme concludes by pointing out that pensions and care homes are only part of the debate. What will also be needed to tackle the problems of the ageing population is a more age-integrated society, a possible renegotiation at the level of the family so that grandparents are more integrated on a day to day basis in family life (trading of child care for a level of elderly care) and also social level changes – to make work places and public places more accessible for the elderly who might be less physically able than those younger than them.
A related topic in the Global Development module is the question of whether ‘overpopulation’ is a problem – an informed view on this topic is that of Hans Rosling’s who argues that ‘overpopulation’ isn’t really a problem at all because of the rapid global decline in birth rates.
One of the things you need to look at for the AS Education module is the extent to which material deprivation is responsible for educational underachievement. While statistics give you an overview of the extent of poverty, and a little bit of information of the kind of things poor people can’t afford, they don’t give you much a feeling of what it’s like to actually live in poverty.
To get a feeling for day to day challenges of living in poverty you need more qualitative sources, and ‘thankfully’ we are blessed with a number of recent documentaries which look at the experience of living with material deprivation in the UK.
Watch the documentary sources below and then answer the questions/ contribute to the discussions below. The videos have all been selected because they focus on material deprivation and education in some way.
Source One – Poor Kids (BBC – 2011) – Mainly focusing on younger children
Poverty – Britain’s Hungry Children (Channel 4 Report, 2013) – Cites research drawn from 2500 food diaries kept by children in the UK – Some of whom live on less than half of the recommended calories. Also highlights the importance of lunch clubs to feed hungry children.
Finally watch this video – This shows you a case study of one girl from a poor background who actually made it into the best school in the area, against the odds. It’s a bit slow, but later on it gives an insight into the struggle her mum faces to raise enough cash to meet the ‘hidden costs’ of education (she has to resort to a ‘pay day loan’).
Questions/ tasks for discussion:
Q1: Draw an ‘ageline’ (like a timeline, I may have just invented the word) showing how material deprivation affects 3 year olds to 18 year olds in different ways.
Q2: From a broadly Marxist Perspective, the effects of material deprivation on children are structural, or objective if you like. Being brought up in poverty and having a poorer diet, and living in lower quality housing effectively cause poor children to do less well in education. This means that, all other (non material) things being equal (same school, same intelligence, same motivation etc) a poor kid will always do worse than a rich kid. Do you agree? Be prepared to explain your answer.
This post is a brief summary of the Dependency Theory view of Development and Underdevelopment. It is, broadly speaking, a Marxist theory of development.
Andre Gunder Frank (1971) argues that developing nations have failed to develop not because of ‘internal barriers to development’ as modernization theorists argue, but because the developed West has systematically underdeveloped them, keeping them in a state of dependency (hence ‘dependency theory’.)
The World Capitalist System
Frank argued that a world capitalist system emerged in the 16th century which progressively locked Latin America, Asia and Africa into an unequal and exploitative relationship with the more powerful European nations.
This world Capitalist system is organised as an interlocking chain: at one end are the wealthy ‘metropolis’ or ‘core’ nations (European nations), and at the other are the undeveloped ‘satellite’ or ‘periphery’ nations. The core nations are able to exploit the peripheral nations because of their superior economic and military power.
From Frank’s dependency perspective, world history from 1500 to the 1960s is best understood as a process whereby wealthier European nations accumulated enormous wealth through extracting natural resources from the developing world, the profits of which paid for their industrialisation and economic and social development, while the developing countries were made destitute in the process.
Writing in the late 1960s, Frank argued that the developed nations had a vested interest in keeping poor countries in a state of underdevelopment so they could continue to benefit from their economic weakness – desperate countries are prepared to sell raw materials for a cheaper price, and the workers will work for less than people in more economically powerful countries. According to Frank, developed nations actually fear the development of poorer countries because their development threatens the dominance and prosperity of the West.
Colonialism, Slavery and Dependency
Colonialism is a process through which a more powerful nation takes control of another territory, settles it, takes political control of that territory and exploits its resources for its own benefit. Under colonial rule, colonies are effectively seen as part of the mother country and are not viewed as independent entities in their own right. Colonialism is fundamentally tied up with the process of ‘Empire building’ or ‘Imperialism’.
According to Frank the main period of colonial expansion was from 1650 to 1900 when European powers, with Britain to the fore, used their superior naval and military technology to conquer and colonise most of the rest of the world.
During this 250 year period the European ‘metropolis’ powers basically saw the rest of the world as a place from which to extract resources and thus wealth. In some regions extraction took the simple form of mining precious metals or resources – in the early days of colonialism, for example, the Portuguese and Spanish extracted huge volumes of gold and silver from colonies in South America, and later on, as the industrial revolution took off in Europe, Belgium profited hugely from extracting rubber (for car tyres) from its colony in DRC, and the United Kingdom profited from oil reserves in what is now Saudi Arabia.
In other parts of the world (where there were no raw materials to be mined), the European colonial powers established plantations on their colonies, with each colony producing different agricultural products for export back to the ‘mother land’. As colonialism evolved, different colonies came to specialise in the production of different raw materials (dependent on climate) – Bananas and Sugar Cane from the Caribbean, Cocoa (and of course slaves) from West Africa, Coffee from East Africa, Tea from India, and spices such as Nutmeg from Indonesia.
All of this resulted in huge social changes in the colonial regions: in order to set up their plantations and extract resources the colonial powers had to establish local systems of government in order to organise labour and keep social order – sometimes brute force was used to do this, but a more efficient tactic was to employ willing natives to run local government on behalf of the colonial powers, rewarding them with money and status for keeping the peace and the resources flowing out of the colonial territory and back to the mother country.
Dependency Theorists argue that such policies enhanced divisions between ethnic groups and sowed the seeds of ethnic conflict in years to come, following independence from colonial rule. In Rwanda for example, the Belgians made the minority Tutsis into the ruling elite, giving them power over the majority Hutus. Before colonial rule there was very little tension between these two groups, but tensions progressively increased once the Belgians defined the Tutsis as politically superior. Following independence it was this ethnic division which went on to fuel the Rwandan Genocide of the 1990s.
An unequal and dependent relationship
What is often forgotten in world history is the fact that before colonialism started, there were a number of well-functioning political and economic systems around the globe, most of them based on small-scale subsistence farming. 400 years of colonialism brought all that to end.
Colonialism destroyed local economies which were self-sufficient and independent and replaced them with plantation mono-crop economies which were geared up to export one product to the mother country. This meant that whole populations had effectively gone from growing their own food and producing their own goods, to earning wages from growing and harvesting sugar, tea, or coffee for export back to Europe.
As a result of this some colonies actually became dependent on their colonial masters for food imports, which of course resulted in even more profit for the colonial powers as this food had to be purchased with the scant wages earnt by the colonies.
The wealth which flowed from Latin America, Asia and Africa into the European countries provided the funds to kick start the industrial revolution, which enabled European countries to start producing higher value, manufactured goods for export which further accelerated the wealth generating capacity of the colonial powers, and lead to increasing inequality between Europe and the rest of the world.
The products manufactured through industrialisation eventually made their way into the markets of developing countries, which further undermined local economies, as well as the capacity for these countries to develop on their own terms. A good example of this is in India in the 1930s-40s where cheap imports of textiles manufactured in Britain undermined local hand-weaving industries. It was precisely this process that Ghandi resisted as the leading figure of the Indian Independence movement.
By the 1960s most colonies had achieved their independence, but European nations continued to see developing countries as sources of cheap raw materials and labour and, according to Dependency Theory, they had no interest in developing them because they continued to benefit from their poverty.
Exploitation continued via neo-colonialism – which describes a situation where European powers no longer have direct political control over countries in Latin America, Asia and Africa, but they continue to exploit them economically in more subtle ways.
Frank identities three main types of neo-colonialism:
Firstly, the terms of trade continue to benefit Western interests. Following colonialism, many of the ex-colonies were dependent for their export earnings on primary products, mostly agricultural cash crops such as Coffee or Tea which have very little value in themselves – It is the processing of those raw materials which adds value to them, and the processing takes place mainly in the West
Second, Frank highlights the increasing dominance of Transnational Corporations in exploiting labour and resources in poor countries – because these companies are globally mobile, they are able to make poor countries compete in a ‘race to the bottom’ in which they offer lower and lower wages to attract the company, which does not promote development.
Finally, Frank argues that Western aid money is another means whereby rich countries continue to exploit poor countries and keep them dependent on them – aid is, in fact, often in the term of loans, which come with conditions attached, such as requiring that poor countries open up their markets to Western corporations.
Strategies for Development
Breaking away from dependency
Associate or dependent development
Breaking away from dependency
This view argues that dependency is not just a phase, but rather a permanent position. The only way developing countries can escape dependency is to escape from the whole capitalist system. Under this category, there are different paths to development:
Isolation, as in the example of China from about 1960 to 2000, which is now successfully emerging as a global economic superpower having isolated itself from the West for the past 4 decades.
A second solution is to break away at a time when the metropolis country is weak, as India did in Britain in the 1950s, following world war 2. India is now a rising economic power.
Thirdly, there is socialist revolution as in the case of Cuba. This, however, resulted in sanctions being applies by America which limited trade with the country, holding its development back.
Many leaders in African countries adopted dependency theory, arguing that and developing political movements that aimed to liberate Africa from western exploitation, stressing nationalism rather than neo-colonialism.
Associate or dependent development.
Here, one can be part of the system, and adopt national economic policies to being about economic growth such as
Import substitution industrialisation where industrialisation produces consumer goods that would normally be imported from abroad, as successfully adopted by many South American countries. The biggest failure of this, however, was that it did not address inequalities within the countries. ISI was controlled by elites, and these policies lead to economic growth while increasing inequality.
Criticisms of Dependency Theory
1. Some countries appear to have benefited from Colonialism – Goldethorpe (1975) pointed out that those countries that had been colonised at least have the benefits of good transport and communication networks, such as India, whereas many countries that were never colonised, such as Ethiopia, are much less developed.
2. Modernisation theorists would argue against the view that Isolation and communist revolution is an effective path to development, given the well-known failings of communism in Russia and Eastern Europe. They would also point out that many developing countries have benefitted from Aid-for Development programmes run by western governments, and that those countries which have adopted Capitalist models of development since World War Two have developed at a faster rate than those that pursued communism.
3. Neoliberalists would argue that it is mainly internal factors that lead to underdevelopment, not exploitation – They argue that it is corruption within governments (poor governance) that is mainly to blame for the lack of development in many African countries. According to Neoliberals what Africa needs is less isolation and more Capitalism.
4. Later on we will come across Paul Collier’s theory of the bottom billion. He argues that the causes of underdevelopment cannot be reduced to a history of exploitation. He argues that factors such as civil wars, ethnic tensions and being land-locked with poor neighbours are correlated with underdevelopment.
The New Rulers of the World – summary of the documentary by John Pilger, which seems to be a pretty unambiguous dependency theory perspective on the role of the World Bank, the IMF, and Transnational Corporations in globalisation. The video focuses especially on their role in underdevelopment in Indonesia.
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