The Dynamics of Global Interdependence and Inequality

Posted on Nov 22, 2025 in Geography

Introduction to Globalization

Globalization is the process of creating an interdependent world across geographical spaces. It involves the interrelation of countries in economic, social, political, environmental, and cultural spheres.

Economic Globalization: Drivers and Mechanisms

Causes of Economic Globalization

  • Progress in telecommunications (allowing information transfer anywhere on the planet).
  • Improved transportation (facilitating better movement of goods and people).
  • Generalization of the capitalist system (characterized predominantly by private property and free competition).
  • Extension of neoliberal ideology (promoting full market freedom and the elimination of trade barriers).
  • Actions by organizations like the G8 (gathering the 7 largest economies plus Russia) and the WTO (World Trade Organization), which set economic directives.

Globalization of Production and Consumption

  • Production: Organized on a global scale thanks to new technologies.
  • Consumption: Tends toward standardization, despite differences in tastes.
  • Exchanges: Acquire a global dimension due to improved transport.

Multinational Corporations (MNCs)

MNCs are key agents of globalization, primarily driven by the goal of maximizing profits.

Other Dimensions of Globalization

Geopolitical Field

A new international order emerges, led by three major economic foci.

Social Field

The global labor market is shaped by worker migration.

Cultural Field

Artistic models are standardized and disseminated rapidly.

Environmental Field

Problems, such as climate change, reach a global dimension.

Consequences of Globalization

Impacts Across Spheres

  • Economic: Promotes specialization, but creates significant imbalances between rich and poor countries.
  • Political: Works to promote democracy, but often limits the autonomy of individual countries.
  • Social: Affects employment (often leading to salary reduction), facilitates population mobility (large migratory movements), and spreads both progress and problems (such as AIDS and organized crime/mafias).
  • Cultural: Diffusion of science and technology is facilitated, but this can lead to the loss of cultural identity.
  • Environmental: Increases awareness and leads to international agreements regarding environmental impact.

The Anti-Globalization Movement

This movement consists of organizations formed in response to the negative consequences of globalization. Critics argue that the current form of globalization exacerbates contrasts between the rich and the poor. Anti-capitalist groups often participate in demonstrations. Groups supporting the World Social Forum argue that globalization is beneficial only if accompanied by democratic control.

Measuring Global Inequality

Inequalities are measured using indicators such as the Human Development Index (HDI), which considers three criteria:

  • Gross Domestic Product (GDP).
  • Life expectancy.
  • Literacy rates.

Other indicators, such as Gross National Product (GNP), measure the total output of the economy.

Global Disparities: Rich vs. Poor Nations

Characteristics of Rich Countries (The North)

  • High economic wealth.
  • Stable population growth.
  • Population concentrated in urban areas.
  • High social welfare.
  • Low internal inequality and stable political systems.

Characteristics of Poor Countries (The South)

  • Economic poverty.
  • High population growth.
  • Population concentrated in rural areas.
  • Low social welfare.
  • Pronounced contrasts and unstable political systems.

Causes of Global Inequality

Domestic Factors

  • Natural conditions.
  • Availability of resources.
  • Relationship between population size and resources.

External Factors

  • Historical differences in development (many underdeveloped countries were former colonies).
  • Establishment of unequal trade relations.

Center-Periphery Relations in the Global Economy

Central Spaces

Key areas worldwide, including the EU, USA, and Japan.

Semi-Peripheral Spaces

Countries that act as key areas within their surrounding regions, such as Russia, China, Australia, and New Zealand.

Peripheral Spaces

Dominated areas worldwide, dependent on the superpowers. These include countries in Africa, parts of Asia, Central America, and the Andean region.