Globalization, Capitalism and Social Inequality

Abstract

In the past years, inequalities in most societies and on a global scale have increased rapidly. This tendency is especially alarming in emerging societies. Large numbers of citizens of these societies have seen their living conditions improve very much and average income has thereby increased even on a global level. However, poverty persists, lower middle classes can often be considered to be working poor and the rich have become excessively wealthy by any standard, especially in emerging societies.

These observations have become common knowledge. Less is known about the causes and dynamics behind increasing inequality. The paper enquires into the link between globalization, capitalism and increasing inequality in emerging societies. It argues that in each society, older local, regional and national social structures persist that shape inequalities. The ranks and classes in these older structures transform into capitalist classes or milieus by changing their daily life and activities while at the same time reproducing their relative social position. The leading milieus partly embrace capitalism and partly try to resist globalization by drawing on older national traditions. This leads to specific configurations of social structures, capitalisms and globalization that differ from one society to the next.