A globalization‐oriented perspective on health, inequality and socio‐economic development

Abstract

As correctly predicted by quantitative sociology, but largely overlooked by the medical profession, the development style, implied by a high MNC penetration of their host countries, reflects the oligopolistic power, which transnational corporations wield over local economies. We took up an idea from Austro-American economist Joseph Alois Schumpeter (1883-1950), which states that the long-term effects of oligopolistic power are negative and lead toward economic and social stagnation. Our data show that although MNC penetration indeed led to certain short-term growth effects after 1990, today, social polarization and stagnation increase as a consequence of the development model, based on high MNC penetration. There is a negative trade-off between MNC penetration and health, both in terms of life expectancy and avoiding under-five mortality. But it can be shown for the 115 countries with complete data that Richard G. Wilkinson's hypothesis still plays an important role in explaining deficient health development in the world system, once we control for the effects of MNC penetration-driven globalization.

Effect of Global Fertility and Cultural Transition on Population Health: A Test of Competing Perspectives

“…Empirically and importantly, the results show rather robust effects of both demographic transition and favorable conditions for population health in affecting population health outcomes. In contrast to a latest claim on a globalization-oriented perspective on health, inequality, and MNC penetration (Tausch, 2012), MNC penetration does have some expected effects on global fertility and cultural transition, international nongovernmental organizations, and global cultural transition, but no significant effects on either favorable conditions for or outcomes of population health in terms of income inequality embedded within the world system.…”

“…Although there are multiple determinants of health, for the past decades many studies using income inequality thesis have investigated the relationship between income inequality and population health with rather inconsistent, discrepant, and controversial findings reported (Babones, 2008;Beckfield, 2004;Biggs et al, 2010;Judge, Mulligan, & Benzeval, 1998;Lynch & Smith, 2000;Lynch et al, 2004;Mackenbach, 2002;Mellor & Milyo, 2001;Ram, 2006;Pop, Ingen, & Oorschot, 2012;Tausch, 2012;Wimberley, 1990). Since income inequality represents one of the unfavorable conditions for population health, this study provides an alternative view on how favorable conditions for population health as created by the demographic transition are conducive to the development of population health.…”

“…Specifically, economic development is expected to exert an inverted U-shaped effect on income inequality, while techno-economic heritage is expected to negatively influence income inequality. According to the dependency/world system perspectives, economic dependency tends to positively impact income inequality, which engenders poor health outcomes (Wimberley, 1990;Tausch, 2012). As can be expected, potential and probable problems of model misspecification and spurious explanation seem inevitable to have plagued the prior research efforts.…”

Is globalization really good for public health?

“…A starting point for a future more encompassing necessary debate could be the realization that especially in poorer countries, globalization might indeed lead to increased economic growth, but that this growth is often associated with higher income inequality, leading in turn to detrimental and not only positive health effects (Coburn, ; Tausch, ).…”

“…Some research traditions in economics also focused on the possible connections between globalization, measured by foreign capital penetration, and the general role of oligopolies in contemporary market economies (Steindl, 1952(Steindl, , 1990Kalecki, 1972;Tausch, 2012). If anything, globalization will increase the oligopolistic power of transnational corporations in the "global value chain" (UNCTAD, 2013).…”