3. How does economic change influence patterns of social inequality in places?

Question 1

What is social inequality?

Answer 1

Uneven distribution of resources between groups of people based on factors such as age, ethnicity, gender, religion, education and wealth

Question 2

How can social inequality be measured?

Answer 2

housing, healthcare, education, employment and access to services

Question 3

Define quality of life

Answer 3

The extent to which people’s needs and desires (social psychological or physical) are met
This can be seen in treatment of people - everyone treated with equal dignity, people have equal rights, there is reasonable access to services (eg. healthcare, education and leisure)

Question 4

Define standard of living

Answer 4

Ability to access services and goods - includes things such as food, water, clothing, housing and personal mobility

Question 5

What is spatial inequality?

Answer 5

The unequal distribution of income and resources across geographical regions

Question 6

What factors can interact to lead to spatial patterns of inequality?

Answer 6

Wealth
Housing
Health
Education
Access to services

Question 7

How can wealth contribute to spatial patterns of inequality?

Answer 7

• Ability to purchase goods and services is fundamental to social well-being
• Low incomes linked to factors such as ill-health, lower educational attainment and poor access to services
• Low levels of disposable income = worse quality of life

Question 8

How can housing contribute to spatial patterns of inequality?

Answer 8

• The smaller the income of a household, the less choice of housing they have
• Poor quality housing and overcrowded conditions often create ill-health
• Rapid urbanisation has led to excess of slums due to overwhelming demand for housing
• Affordability of housing contributes, when the cost of housing inflates at a faster rate than wages and other prices, those with low or irregular incomes can find themselves excluded from the housing market
• Rise in second-home ownership and migration of wealthy people into villages and small towns of the countryside have raised property prices beyond the reach of many young families

Question 9

How can health contribute to spatial patterns of inequality

Answer 9

• Clear link between ill-health and deprivation
• Substandard housing, poor diet, unhealthy lifestyles and stress of living in poverty negatively impacts human health
• Access to medical services also plays a part, distribution of health care services are uneven, in rural areas where health facilities are widely dispersed, accessing medical care can be an issue for households without access to a car or public transport

Question 10

How can education contribute to spatial patterns of inequality?

Answer 10

• Differing access to educational opportunities is recognised as a significant element in creating and maintaining inequalities
• Achieving universal primary education was one of the Millenium Development Goals and most governments invest in education to raise standards of living and quality of life
• Illiteracy excludes people from accessing education and skills training, therefore reducing employment opportunities

Question 11

How can access to services contribute to spacial patterns of inequality?

Answer 11

• one measure of access to medical services is the number of doctors per thousand people. In Norway (AC) there are just over four, in Brazil (EDC) there are just under two while in Kenya (LIDC) the figure is well below one
• people living in core city areas (eg. capitals) where wealth and investment are high tend to have good access to services whereas those who live in rural areas suffer from limited access
• digital divide can vary between urban-rural areas as well as between ACs, EDCs and LIDCs

Question 12

How can globalisation help to drive structural economic change?

Answer 12

Globalisation and interconnectivity between countries has led to an increase in TNCs and therefore given rise to global shift

Question 13

What is global shift?

Answer 13

Relocation of manufacturing production on a global scale
Industrialisation processes moving typically from ACs to EDCs or LIDCs

Question 14

History of global shift

Answer 14

From the 1980s the New International Division of Labour (NIDL) gathered pace. European, North American and Japanese TNCs created labour-intensive factories
in what were called Newly Industrialising Countries (NICs), mainly in East Asia and Latin America
Containerisation and bulk handling brought down relative costs dramatically and so contributed to the locational changes

Question 15

Negatives of global shift / economic restructuring

Answer 15

loss of employment in the primary and secondary sectors as the comparative advantages of ACs in primary and secondary activities declined
ACs transformed into post-industrial societies in which most people worked in the tertiary and quaternary sectors.

Question 16

How does structural economic change impact patterns of social opportunities in ACs?

Answer 16

• Cheaper imports of all relatively labour-intensive products can keep cost of living down and lead to a buoyant retailing sector
• Greater efficiency apparent in surviving outlets, which can release labour for higher productivity sectors (assumes low unemployment)
• Growth in LIDCs may lead to a demand for exports from ACs
• Promotion of labour market flexibility and efficiency, greater worker mobility to area with relative scarcities of labour should be good for the country
• Greater industrial efficiency should lead to development of new technologies, promotion of entrepreneurship and should attract foreign investment
• Loss of mining and manufacturing industries can lead to improved environmental quality

Question 17

How does structural economic change impact patterns of social inequality in ACs?

Answer 17

Rising job exports leads to inevitable job losses, competition-driven changes in technology add to this
- Job losses are often of unskilled workers
- Big gaps develop between skilled and unskilled workers who may experience extreme redeployment differences
- Employment gains from new efficiencies will only occur if industrialised countries can keep their wage demands down.
- Job losses are invariably concentrated in certain areas and certain industries. This can lead to deindustrialisation and structural unemployment in certain regions.
- Branch plants are particularly vulnerable as in times of economic recession they are the first to close, often with large numbers of job losses.

Question 18

How does structural economic change impact patterns of social opportunity in EDCs and LIDCs?

Answer 18

• Higher export-generated income promotes export-led growth, thus promotes investment in productive capacity, potentially lead to a multiplier effect on national economy
• Can trickle down to local areas with many new highly paid jobs
• Can reduce negative trade balances
• Can lead to exposure to new technology, improvement of skills and labour productivity
• Employment growth in relatively labour-intensive manufacturing spreads wealth, and does redress global injustice (development gap)

Question 19

How does structural economic change impact patterns of social inequality in EDCs and LIDCs?

Answer 19

• Unlikely to decrease inequality as jobs tend to be concentrated in core region of urban areas, may promote in-migration
• Disruptive social impacts, e.g. role of TNCs potentially exploitative and may lead to sweatshops. Also branch plants may move on in LIDCs too, leading to instability (e.g. in Philippines)
• Can lead to overdependence on a narrow economic base
• Can destabilise food supplies, as people give up agriculture
• Environmental issue associated with over-rapid industrialisation
• Health and safety issues because of tax legislation

Question 20

What is an economic boom?

Answer 20

period of rapid economic expansion resulting in higher GDP, lower unemployment, a higher inflation rate and rising asset prices

Question 21

What is a recession?

Answer 21

a significant, widespread, and prolonged downturn in economic activity - common rule of thumb is that two consecutive quarters of negative gross domestic product (GDP) is considered a recession

Question 22

Social effects of economic booms

Answer 22

Increased disposable income, more access to leisure and recreational activity
More financial stability, reduced stress

Question 23

Social effects of economic recessions

Answer 23

Households tend to cut back on spending on non-essentials (eg. leisure and entertainment), can lead to fewer jobs in service activities like bars and restaurants

Question 24

Ways that governments can reduce social inequality

Answer 24

• Increased taxation on wealthy and better off income earners can be implemented and then used to invest in public services like schools, hospitals and infrastructure
• Laws can be updated or new ones implemented, such as increasing minimum wage
• Housing upgrades in poorer areas, older areas, or those that have suffered from decline in the past

Question 25

Ways that governments can reinforce / create social inequality

Answer 25

• Cuts in funding for schools and hospitals due to lack of government funds and reduced taxation based on government pledges to voters
• Spending on infrastructure may be reduced in some areas due to budget restrictions, such as not repairing and upgrading roads and public transport
• Pay to public sector workers may be limited due to government austerity and spending cuts aimed at reducing national debt