Unequal Flows and Inequality Flashcards
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Gini coefficient
Commonly used measure of income inequality that condenses the entire income distribution for a country into a single number between 0 and 1.
The higher the number, the greater the degree of income inequality.
Lorenz curves
The Gini coefficient can be converted into a graph (the Lorenz Curve).
Perfect equality is a straight line. (Sometimes known as the egalitarian line).
Complete inequality
The group with the highest incomes earn the whole of the share of income earned; one group has all the money.
Complete equality
There is an equal distribution of income for all groups in society.
Regional inequalities in salaries
London Average Salary: £44,184
NW Average Salary: £35,367
Inequalities in salaries between gender
Women consistently earn less than men, on average.
At some points, the average male salary is £10,000 more than females.
Inequalities in salaries between age
People between 30-63 earn significantly more, on average.
Regional differences in disposable income
London Disposable Income: £19,038
NW Disposable Income: £13,386
NE Disposable Income: £12,543
Why is disposable income a good way to determine the difference between areas?
It takes into account the cost of living.
Highest paid profession (UK per week)
Aircraft pilot - £1,700.00
Lowest paid profession (UK per week)
Bar staff – £250.00
Example of unequal power
Russia-Ukraine war
Sanctions against Russia
Russian military intervention in Ukraine, which began in late February 2014, prompted a number of governments to impose sanctions against individuals and businesses. – Mainly from the US, EU and other Western Nations.
Russia retaliated with sanctions, including a ban on food imports from the EU, US, Canada, Australia and Norway.
Give an example of how poor countries feel marginalised by globalisation
e.g. Economic crash 2007/2008 was caused by the financial sector in HICs, but increased poverty for millions of people in LICs, collapsed international trade hurting developing countries. Whilst large HICs recovered quickly, poorer LICs struggled.
e.g. When orders of flowers stopped coming in from HICs, Kenya farmers struggled.
How has globalisation made countries economically interdependent?
Counties rely on each other for economic growth. For example, oil is produced by one group of countries and consumed by another group of counties. Consumers rely on producers to sell them oil, while producers rely on the money the consumers give them when they buy the oil.
