Causes of Global Wealth Gap
Examine the historical and contemporary causes of economic inequality between and within nations, including the legacy of colonialism.
About This Topic
The wealth gap refers to the significant inequality in the distribution of assets and income between and within nations. This topic explores the historical and modern causes of this gap, including the legacy of colonialism, unequal trade relationships, and differences in access to education and technology. Students will analyze the concept of the 'Global North' (generally wealthier, industrialized nations) and the 'Global South' (generally developing nations).
The curriculum also addresses the consequences of economic inequality, such as its impact on health, education, and social stability. Students will look at how the wealth gap exists within Canada, particularly between urban and rural areas and between Indigenous and non-Indigenous communities. This topic is best taught through 'wealth distribution' simulations and collaborative investigations into the history of global trade.
Key Questions
- Analyze the historical factors contributing to the uneven distribution of wealth globally.
- Explain how the legacy of colonialism continues to affect economic status in the 'Global South'.
- Differentiate between absolute and relative poverty in a global context.
Learning Objectives
- Analyze the historical factors, such as trade policies and resource extraction, that have contributed to global economic disparities.
- Explain how the historical exploitation of resources and labour during colonialism continues to impact the economic development of nations in the 'Global South'.
- Compare and contrast absolute poverty and relative poverty, providing examples of each within a global context.
- Evaluate the role of international institutions and global trade agreements in shaping wealth distribution between nations.
Before You Start
Why: Understanding internal inequalities within Canada provides a foundation for analyzing global disparities.
Why: Students need a foundational understanding of how goods are exchanged and the importance of natural resources to grasp the dynamics of global trade and its impact on wealth.
Key Vocabulary
| Colonialism | The policy or practice of acquiring full or partial political control over another country, occupying it with settlers, and exploiting it economically. |
| Global North and Global South | Terms used to describe the economic and political division between wealthier, industrialized countries (Global North) and generally less developed countries (Global South). |
| Absolute Poverty | A severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education, and information. |
| Relative Poverty | Poverty defined by the inability to enjoy a standard of living that is considered normal in the society in which one lives. |
| Economic Inequality | The unequal distribution of income and opportunity between different groups in society. |
Watch Out for These Misconceptions
Common MisconceptionPoor countries are poor because they don't work hard.
What to Teach Instead
Economic status is often determined by historical factors and unfair global trade rules. A 'trade simulation' with unequal rules can help students see the structural barriers to wealth.
Common MisconceptionThe wealth gap is only a problem in other countries.
What to Teach Instead
Canada has significant internal inequality, with some of the highest poverty rates found in Indigenous communities. Comparing income data for different Canadian groups can surface this reality.
Active Learning Ideas
See all activitiesSimulation Game: The Global Wealth Game
The class is divided into groups representing different world regions. A 'wealth' (e.g., candy or tokens) is distributed according to real-world percentages, leading to a discussion about fairness and opportunity.
Inquiry Circle: The Legacy of Colonialism
Pairs research how a specific country's history as a colony has affected its current economic status. They create a 'cause and effect' map showing the link between the past and the present.
Think-Pair-Share: Closing the Gap
Students brainstorm three things that could be done to reduce the wealth gap (e.g., fair trade, education, debt relief). They share their ideas and discuss which one would be the most effective.
Real-World Connections
- Students can investigate the impact of historical resource extraction in countries like the Democratic Republic of Congo by former colonial powers, examining how this legacy affects current economic stability and development.
- Researchers at the World Bank analyze global income data to identify patterns of wealth distribution, informing policy recommendations aimed at reducing poverty in regions like Southeast Asia and Sub-Saharan Africa.
- The fair trade movement, which certifies products like coffee and chocolate from countries in Latin America and Africa, aims to address economic inequalities by ensuring producers receive fairer prices.
Assessment Ideas
Pose the question: 'Imagine you are advising a newly independent nation in the 1950s that was formerly colonized. What are the top three economic challenges you would anticipate based on the legacy of colonialism, and why?' Facilitate a class discussion where students share their ideas.
Provide students with two short case studies: one describing a situation of absolute poverty (e.g., lack of access to clean water) and another describing relative poverty (e.g., inability to afford internet access in a connected society). Ask students to label each scenario and write one sentence explaining their choice.
On an index card, ask students to write one historical factor that contributed to global wealth inequality and one way the legacy of colonialism continues to affect a specific region today. Collect these as students leave.
Frequently Asked Questions
What is the 'Global North' and 'Global South'?
How did colonialism contribute to the wealth gap?
What is 'income inequality'?
How can active learning help students understand the wealth gap?
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