9.3.2 Global Inequalities

Anthropologists, along with other social scientists, recognize that all social systems and structures have developed through a multitude of decisions made by people with social, political, and economic power as well as through the daily interactions and imaginations of individuals. The current world system is the result of an amalgamation of events and historical forces that led humanity, step by step, to the world as it is today. Social systems and social structures are constructed and governed by the people who live within them; they are not ahistorical, and they are not unchanging. Capitalism is an economic system, but it is also the result of the ways in which people and groups interact with each other and with the natural world. Presidents elected by slim margins, compromises that benefited one political party over the other, and responses to natural disasters and other events, some of which may have seemed inconsequential at the time, all played a role in creating the current reality. Structures exist and order the world, but they do not exist outside of it.

When talking about the effect of capitalism, it is important to recognize the ways in which these systems of inequality can intersect to both benefit the powerful and exploit the poor. Wealth inequalities and capital accumulation have deeply impacted and continued to impact cultures around the world, leaving almost none untouched. There are two broad forces that shape this movement of economic capital. One of those forces, which encourages further and further accumulation of wealth within a single family, is intergenerational wealth. Intergenerational wealthis wealth that is passed down through generations, accumulating interest over many years. This money is typically invested to increase its value rather than circulated in the economy, further impacting wealth inequalities. The other force that has affected global wealth inequalities is colonialism. Colonialism is a system through which European (and eventually American) countries exerted power over areas of the world in order to exploit their natural and human resources. Capitalism relies on the extraction of resources, laborers to process those resources, and consumers to purchase the finished products. Colonialism provided all three in the form of a global proletariat (worker) class: a group of people whose labor is the foundational resource for production. Contemporary scholars recognize colonialism as one of the most important forces in the current global system of inequality.

In the middle of the 20th century, many previously colonized countries gained independence. Due to worldwide economic downturns and ongoing colonial relationships with powerful Western countries, most did not have the means to develop their infrastructure, political organization, or economic sectors. These countries were also at a disadvantage as a result of decisions made by European powers at the Berlin Conference, which split Africa according to the wants of Western colonial powers rather than established Indigenous territories and spheres of political influence. Part of the ongoing turmoil within Africa stems from the fact that national boundaries were created with resources in mind, instead of the people who lived there.

What exactly does this have to do with social inequalities, poverty, or wealth? And how do international trade and development policies affect people without power at local levels? In the simplest terms, international structures of power affect every part of daily life for those living in poverty, especially people of color, women, and people living with disabilities. The intersections of political, economic, and social institutions reduce the number of resources available, leading to profound levels of inequity. Recognizing the long-standing effects of colonialism is vital to understanding the continuing inequities and poverty that are characteristic of so many territories that were once colonized.

To understand international structures of poverty and wealth, it is useful to also examine neocolonialism. Neocolonialism refers to the indirect ways in which modern capitalist interests continue to put pressure on poor nations through economic, political, or military means in order to further exploit wealth for multinational corporations and their allies. Rosemary Hollis, professor of Middle Eastern studies, once argued that Britain “went out the door and came back in through the window” (H.C. Foreign Affairs Committee 2013, Ev 20), meaning that it gave up its colonial holdings only to influence these nations through other means.

The main way in which neocolonialism plays out is through economic relief programs. The Global North, a term that represents powerful nations along with corporations and intergovernmental groups run by individuals from these countries, exerts power through targeted economic relief. The best-known agencies for economic relief are the World Bank Group and the International Monetary Fund (IMF). These groups, which have a lot of money, loan that money to Global South nations, which are exploited and “underdeveloped” countries that are experiencing economic or political crises. However, these loans come with many stipulations, most of which are called austerity practices. Austerity practices force governments to reduce public funding for health and education sectors, thus privatizing health care and education. For countries whose citizens are poor, introducing private health and education sectors results in a severe lack of access because many individuals cannot pay for these services.