Large Middle Class Research Articles

Global social changes: risks for the welfare state

The relevance of the chosen topic is due to the fact that globalization, being the most important factor in social dynamics, leads to tectonic shifts in absolutely all spheres of social life. These changes are ambiguous and dual in nature. The purpose of this work is to identify the contradictory nature of the influence of global transformation in the context of recent challenges (COVID 19, increased international economic competition, a complex of economic problems, sanctions policy, political instability) on the scale of inequality in the modern world, the functioning of the institution of the social state, consensus on issues of social cohesion, social justice and social solidarity. The theoretical basis of the article was the work of F. Fukuyama, I. Wallerstein, P. Rosanvallon, G. E. Anderson and others. The interdisciplinary nature of the research within the framework of the identified problems requires the use of both the results of sociological research and a significant amount of international economic statistics. The authors have carried out a comprehensive analysis of the factors of global socio-economic changes that most directly affect the functioning of the modern social state. Based on current sociological and statistical data, the authors prove the complex feasibility and partly even change in the basic principles of the “welfare state” associated with social justice, social cohesion and social solidarity in modern Western European countries, which until recently were considered a standard of high quality and living standards of the population, a developed social support system, and a large middle class. It is concluded that the negative trends of global social changes are unlikely to be changed in the foreseeable future, despite the measures taken by national governments and international institutions aimed at stabilizing the socio-economic situation.

From “Unification” To “Independence”: The Change of Taiwan’s Authorities’ Positioning on Cross-Strait Relations under The Rise of Emerging Middle Class

After the Chinese Civil War, Taiwan went through a process of profound structural change in its economy towards industrialization, which was most characterized by the growing power of the middle class under an industrialized society, a power that in turn acted on Taiwanese society and pushed forward the process of democratization in Taiwan. Contrary to the booming economy of Taiwan, the international status of the region has been in tatters. After the Restoration of the lawful rights of the People's Republic of China in the United Nations, the Taiwan authorities have completely lost the international recognition of representing the whole of China, and the legitimacy of the martial law rule based on this has been gradually eroded. With the authoritarian rule in danger, the society of Taiwan is in urgent need of reforms. The emergence of a large and self-centered middle class became an important stimulus for Taiwan's democratic transition, and the 1980s saw the rise of social movements in Taiwan, with the idea of "Taiwan's independence" being raised more and more frequently in the course of exchanges with the Kuomintang (KMT) authorities. This paper will use stimulus-response theory to examine how the stimulus of the rise of the emerging middle class has affected the evolution of the Taiwan authorities' positioning of cross-strait relations from "unification" to "independence", and finally draw the conclusions of this paper.

Liberal Democracy in a Less-than-Liberal Context? The Case of Contemporary Greece

The persistence of democracy in today’s Greece may be surprising for two reasons. First, liberal democracy survived an economic crisis in the 2010s that was more severe than the Great Depression of the 1930s. Second, liberal democracy has remained stable despite the fact that the period since the 1974 transition from the Colonels’ Regime has witnessed the diffusion of illiberal ideas and an emergence of relatively small yet very active antiliberal parties. Liberal democracy has been resilient in the face of nationalism and populism, even though accountable liberal institutions enjoy limited political trust. The resilience of contemporary Greek democracy can be explained through two sets of factors: a political set and a social set. Political factors include a long history of political liberalism and the robustness of contemporary political-party competition. Social factors include Greece’s relatively large middle class and the absence of overlapping social cleavages that could otherwise have led to destructive socio-political polarization and then a slide toward illiberalism. The Greek case shows under what conditions a liberal democracy can flourish in a less-than-liberal context.

Does middle class boost an institutional reform? Evidence from selected Arab Countries

The study seeks to investigate the link between the middle class and institutional consequences in four Arab countries. The study deploys a mixed effect model to measure whether increasing the size of middle class would have a causal effect on institutional outcomes in three important areas: health and education, market-oriented and governance during the period (1990-2015). Finding that larger middle class (proportion of people earning between $4 - $ 13 a day), has negative influence on each of health, tariff, education, and government effectiveness. Also, it has no significant influence on rule of law and corruption.

A Study on Location Strategy and Trade Area Analysis of Top 10 Malls of Western Suburbs of Mumbai

Mumbai is the financial capital of the country and home to important financial institutions and Multinational companies. The City has a rich cosmopolitan culture. it is also the capital of entertainment industry and city of dreams. These are enough reasons for the growth of organized retail and real estate development here. It is the capital of Maharashtra & the commercial capital of India & is one of the most populous cities of the world. It has a per capita income of more than 2 lakh which is over three times the rest of India. It homes a large middle class, upper middle class, and the rich class of the country. Retail sector is one of the booming sectors of the city in last 20 years a lot of Mall have come up and the people of Mumbai are adapting to the mall culture. Mall is usually a large, enclosed area, a mercantile establishment consisting of a carefully landscaped complex of shops representing leading merchandisers; usually includes restaurants and a convenient parking area. The word shopping mall is made up of two words: shopping and mall. Shopping can be defined as the activity that involves the exchange of goods and services for money. According to Kuria (1975). Lousberg (2009) defines shopping malls as “premises selling general merchandise or fashion related goods. They are enclosed inward facing stores, connected by a common walkway. Parking surrounds the outside perimeters.” A shopping mall can therefore be defined as a complex that encompasses several retail stores, restaurants and other businesses with a common interest in soliciting sales. The complex is put up and managed as a single unit. Shopping malls offer private, off-street parking facilities

Investigation the need to teach the characteristics of the development of parliamentarism in Latin America as part of education

The article highlights the history and features of parliamentarism development in the Latin America countries. In addition, the need for training on the subject and the effect of increasing students and educators’ awareness in this field is examined. This process was lengthy, replete with the examples of various social groups, political trends and parties struggle intensity increase. Since the beginning of the 19th century, there have been almost no favorable conditions for the practical implementation of democratic government in the countries of Latin America, and the institutionalization of the party system has not taken place yet. However, there have been exceptions to the general rule in the history of Latin America. Chile and Argentina were such an example. The success of democratic transformations in the countries of the region depended on various reasons: a) whether the country had a democratic experience in its past; b) the conditions for the political and economic development of this country to develop representative institutions in the future; c) the importance of the parties in the political course development and the adoption of state decisions. The results of democracy and parliamentarism development in the states of Latin America are rather complicated by the turn of the 20th and 21st centuries. On the one hand, the last decades of the XX-th century and the beginning of this century was marked by the democratization of political life, reforms, and the replacement of military regimes with civilian governments. Since the beginning of the 60-ies, they started the process of democratization and formation of independent island states in the Caribbean and Central America. Despite the successful development of the economy, culture, education, the presence of a large middle class in Argentina, the military governments overcame civilian ones in the 30-70-ies. Therefore, it is needed to consider this aspect as a part of education system to improve the educators’ level.

Moving Beyond Lewis: Employment and Wage Trends in China\u2019s High- and Low-Skilled Industries and the Emergence of an Era of Polarization

One of the defining features of China’s economy over the two decades between 1995 and 2015 was the persistent rise of wages for workers and professionals in nearly every segment of the economy—with wage rates for labor-intensive jobs in manufacturing, construction, and the informal service sector rising the fastest. Recently, however, the economic environment in China has begun to change, including changes in both employment and wages. We identify recent employment/wage trends throughout China’s economy and postulate the sources of these trends as well as possible future consequences if they continue. We use official, nationally aggregated data to examine employment and wages in multiple sectors and industries. Our findings indicate that China may have entered a new phase of economic development in the mid-2010s. According to the data, in recent years, wage growth has begun to polarize: Rising for professionals employed in formal skill-intensive industries; and falling for workers in the informal labor-intensive service sector. We attribute this increase in skill-intensive wages to an increase in demand for skill-intensive employment, due to the emergence of a large middle class in China, for whom the demand for high technology, finance, banking, health, and higher education industries is increasing while, at least in the recent short term, the supply of experienced, high-skilled professionals has not kept up. The employment/wage trend in the informal (low-wage) service sector, however, is following a different pattern. While there is a rising demand for services in China’s economy, the growth, due to a number of factors (e.g., large shares of GDP targeted by policymakers to investment; high rates of savings by consumers), is relatively slow. In contrast, due to a number of economic forces, including globalization and automation, the supply of labor into the service sector of the informal economy is being fueled by the flow of labor out of manufacturing and construction (two industries that that have experienced employment declines since 2013). These supply and demand trends, in turn, are leading to the fall in the growth rate of wages in the informal service sector. We conclude by discussing the possible longer-term consequences of these emerging polarization trends based on an examination of recent experience with wage polarization occurring in both middle- and high-income countries, as well as its consequences. We also present policy recommendations for greater investment in education and human capital, as well as for the development of a more comprehensive set of social safety nets for different segments of China’s population.

Challenges For Middle-Income Elders In An Aging Society.

The United States is becoming an "aging society," in which the number of people older than age sixty exceeds the number of those younger than age fifteen. This transformation has major implications for many aspects of American life. The fundamental challenge relates to our core societal institutions-education, work and retirement, health care, housing, and the like-which were not designed to support a population with our future age distribution. While the most disadvantaged are at greatest risk of losses in physical and emotional well-being and economic security, it has become apparent that middle-income elders will face formidable economic challenges, and related reductions in access to health care and secure housing, in the next ten years. Innovative private- and public-sector initiatives, including both specific public policies as well as individual programs targeting access to health care, housing, and economic security, are needed to support this very large group. For the past decade the Research Network on an Aging Society, an interdisciplinary group of scholars, has been working to identify the critical elements of successful adaptation and to formulate strategies to develop the policies and programs referred to above and assess their effectiveness. Here I present an overview of such policy development and assessment strategies, with a special focus on the housing and other needs of the large older middle class of the future.

The structure of income inequality with particular emphasis on the economic middle class

This study presents the main facts related to the development of income inequalities in OECD countries in recent years. In particular, the focus was on analysing the economic position of the middle class (middle income class), which is often neglected in analyses, in favour of the two extreme income groups, i.e. the poverty sphere and the group of the richest. It is worth filling this gap because the middle class is the backbone of modern society and decisively determines the possibilities of economic development. The analysis of the coefficients allowing the estimation of the size and affluence of the middle class indicates that this class is highly diversified among OECD countries. In countries such as: Slovakia, Slovenia, Norway, the Czech Republic, the Netherlands, Denmark, Hungary, Finland, Belgium, Sweden and Austria, there is a relatively large and affluent middle class. In contrast, in Anglo-Saxon countries, the middle class is relatively small and moderately affluent. The article empirically confirms the hypothesis that higher income inequalities are accompanied by middle-class erosion. Using the basic income ratio, in the form of the Gini coefficient for disposable income, a very strong negative correlation was identified both between this coefficient and the coefficient determining the size of the middle class (-0.91) and between the Gini coefficient and the coefficient determining the affluence of the middle class (-0, 84). Attention is paid to possible causes of the occurrence of the phenomenon of economic polarization. Proposals for solutions in the field of socio-economic policy aimed at limiting the scale of observed phenomena were also presented.

Contemporary changes and civil society in Portugal and the Russian Federation

ABSTRACTPortugal and the Russian Federation share some aspects of traditional culture and similar experiences in modern history, but they also exhibit significant differences that determine specific modes of civil society’s development.Results of a comparative and diachronic analysis show that the major differences between the two countries reside in civil society’s openness and composition. Organized civil society is not very distinct in relative size when comparing Portugal and the Russian Federation, but it is globally more autonomous, expressive, trusted and institutionalized in Portugal than in the Russian Federation and among the factors that contribute to this condition are an earlier and revolutionary transition to democracy, a larger middle class, a greater prevalence of the value of interdependence, and a regime that endorses bigger public social expenditure in Portugal, all this within the framework of the European Union that has a longer history of social demand and institutional incentives for civil society. Despite those unequal conditions, civil society faces similar current challenges in both countries, mainly with the outsourcing of the public provision of social services.

Социальная стабильность в России: новый взгляд

Modern social policy in Russia is a pivotal factor in social and economic development of the country. The author defines the social stability and social balance. The main social challenges faced by Russia during the crisis and reforms are determined. The creation of the middle class is a social project of Russia. The research notes that the middle class plays an important role of social stabilizer, as it tends to maintain the current state structure. The economic growth in the country will be observed only in the context of creating a large middle class which should become the driving force of the Russian economic development. Having analyzed the equitable social policy in relation to all members of society, the author evaluates its effectiveness. It should be mentioned that social equity resides in decent salary, providing employment for every citizen and social assistance to all social strata, increasing housing affordability.

Adam Smith's Analysis of the Good (Sober People) and the Bad (Projectors, Prodigals and Imprudent Risk Takers): The Proper Role of the Central Bank in Generating the Wealth of Nations Using the Visible Hand to Empower the Sober People by Using Targeted Bank Policy

Adam Smith, building on the work of Plato (Socrates) and Aristotle, who had analyzed the political, economic, and social conflict that engulfed Athens in the Fifth century B. C., identified two competing economic groups. These two were the (Middle Class) Sober people (merchants, small businesses, farmers) and the (Upper Class) Prodigals, Imprudent risk takers, and Projectors (financial speculators and manipulators, rentiers). The overall well being of the state over time required that the Sober people had to be able to maintain political and economic dominance over the Prodigals, Imprudent risk takers, and Projectors. Smith recognized that the Sober people used money mainly as a medium of exchange to engage in transactions that involved the production of consumer and producer goods over time. The purchase of producer goods was aimed at providing future consumer goods. Aristotle discussed this function and use of money as C-M-C’. Smith also recognized that the Prodigals, Imprudent risk takers, and Projectors did not generally use money for the production and consumption of present and future consumer goods. The Prodigals, Imprudent risk takers, and Projectors used money mainly for speculative purposes only. Aristotle had analyzed the misuse of money in terms of his discussions of M-C-M’ and M-M’. Aristotle recognized that society would end up with severe political, economic, and social problems, as occurred in Athens, if the Prodigals, Imprudent risk takers, and Projectors were to be able to dominate. The result would be a large decrease middle class and a large increase in the lower class. Aristotle did not know how to deal with this problem other than to condemn the uses of money that led to M-C-M’ and M-M’ results on ethical grounds that were related to the failure of such individuals to lead a virtuous life. Smith,on the other hand, saw how an independently functioning central bank could engage in banking policies that would strengthen the sober people and retard the influence of the Prodigals, Imprudent risk takers, and Projectors so as to allow the former to maintain dominance over the latter. The result would be economic growth and a growing, wealthy state. Economists who specialize on Smith have generally (Kennedy is an exception) ignored Smith’s 50 plus pages of exposition concerning the inherent dangers that will occur if Prodigals, Imprudent risk takers, and Projectors obtain the majority of bank loans and the Sober people are cut off from such loans, except at very high rates of interest. The result will be stagnant economic growth, increasing inequality, very low increases in the real wage, and a major decline in the middle class. Of course, neither Aristotle nor Smith would be surprised at what has happened economically since the late 1970’s, since they predicted exactly what has happened in the American and world economy 2,400 and 240 years ago, respectively. What is shocking is the nearly complete absence of any general understanding among modern day analysts and economists of the clear cut conclusions arrived at, first by first Aristotle and then by Smith. Keynes can be viewed as attempting to further explain, in a technical sense, what is already contained in the literary analysis in Aristotle and Smith.

Economic Change and Public Support for Democracy in China and Russia

There has been an extensive debate about the relationship between economic development and democratisation. One view is that economic development is a pre-requisite for democracy. Another view is that the emergence of democracy is largely random, and economic prosperity is important only for ensuring democracy’s survival in the event of a crisis. This essay contributes to this debate by using public opinion surveys collected over an extended period to examine patterns of economic change and public support for democracy in China and Russia. The results show that education and, to a lesser extent, social mobility and economic attitudes, play an important role in promoting pro-democracy attitudes in both countries. The results have implications for democratisation, with an increasingly large tertiary-educated middle class acting as a potential driver for democratisation in China, and for the return of a free, fair and competitive democracy in Russia.

The Long-Awaited Rise of the Middle Class in Latin America is Finally Happening

In many developing countries, the supply of skilled workers is likely to continue to be stronger than demand, and this should drive down the skill premium and reduce inequality. Within the limitations of any exercise based on simulations, this paper finds that the recently observed reduction in inequality in Latin America may continue. Building on counterfactual scenarios projecting economic and demographic (including age and education) growth, the paper also highlights that by 2030 the long-awaited rise of the middle class in Latin America will be in full swing, as its share will be 43 percent of the total population, twice the value in 2005. This achievement is not guaranteed, as countries with large initial inequalities will have to achieve very high rates of inclusive growth. At the same time, a larger middle class is likely to exert a stronger influence on international and domestic policy making.

Electoral Uncertainty, Income Inequality and The Middle Class

We investigate how electoral competition affects the income distribution in society. We utilise a standard probabilistic voting setup where parties compete at two stages. Our model delivers that greater electoral competition in a district results in equalisation of incomes therein. We check for these relationships using data from Indian national elections which are combined with consumption expenditure data rounds from the National Sample Survey Organization (1987–8 and 2004–5) to yield a district level panel. Our OLS, 2-SLS and IIV analyses consistently inform that close elections lead to lower inequality and polarisation indicating a larger middle class.

Pharma Emerging Market’s Scaning by Look and Feel of its Opportunities and Challenges

Background: By 2020, the pharmaceutical business is expected to be more than two folds i.e. US$ 1.3 trillion, in the E7 nations - Brazil, India, China, Mexico, Indonesia, Russia and Turkey - book keeping around for one fifth of worldwide pharmaceutical sales. The paradigm is shifting from developed markets such as the United States and Western Europe to evolving markets such as Brazil, India, China, Mexico, Indonesia, Russia and Turkey. The reasons include growth patterns in developed markets that tend to flatten due to patent expiry, stringent expectation of regulatory authority. Also, high gross domestic product growth rate, large population, high per capita income, high median age population, growing health care needs of the large middle class aging population, emerging health care and insurance sector, etc. are fascinating growth aspects of emerging markets. Objective: The present paper explores the opportunities and challenges associated with Pharmerging markets. Conclusion: The emerging markets promises for profitability, a broad range of variability is observed in drug development, regulatory filing, handling deficiency, managing post approval changes, intellectual property right issues, phase lag, rudimentary healthcare system, lack of infrastructure and markets vulnerable to policy change with regard to marketing are observed. So, it’s obvious that, there can be no “one-strategy for all” approach for emerging markets.

The Origins of Turkey’s “Heterodox” Transition to Neoliberalism: The Özal Decade and Beyond

This article examines the origins of Turkey’s neoliberal transformation in world-historical perspective by highlighting interactions between the crisis of U.S. hegemony, social and political movements in Turkey, and Turgut Özal's political career as the architect of the country’s neoliberal reforms. I argue that Turkey’s neoliberal transition during the “Özal Decade (1980-1989/1993)” was not primarily related to resolving the profitability crisis of the existing national bourgeoisie (Istanbul-based industrial bourgeoisie) or reconstituting class power in favor of this segment of capital. The Turkish neoliberal project was more concerned with establishing a stable political-economic environment that would help Turkey's political society reassert its hegemony over civil society and allow for the penetration of the changing interests of the world-hegemonic power in the region. Because of these social and geopolitical concerns, Turkey's neoliberal reforms (1) contributed to the development of an alternative/rival segment of national bourgeoisie which had the potential to co-opt radicalized Islamic movements, (2) aimed at creating a large middle class society (instead of shrinking it), (3) utilized populist attempts at redistribution to lower segments of society to co-opt the grievances and anger of the masses. As a paradoxical consequence of these dynamics, income inequality decreased during Turkey’s transition to neoliberalism. Neoliberal reforms in the post-Özal period – with similar “heterodox” features – resurrected and further deepened during “the Erdoğan decade” (2002-present) although Erdoğan did not share a single aspect of Özal’s professional career as a neoliberal technocrat.

Higher Education in Kazakhstan: New Opportunities and the Problem of Crystallization of Middle Strata Status

In today's society, where the presence of large middle class ensures its stability and is a symbol of resolution of hidden economic problems, education is an integral part of formation and reproduction of the middle class. This article presents part of results of the sociological study conducted under the project “Kazakhstan model of education: international experience and national traditions” supported by the Foundation of the First President of Republic of Kazakhstan - Leader of the Nation to determine the ratio of students to the transformations of the educational system. The authors conclude that the Kazakhstani system of education, passing through the transformation processes, improving the quality of educational programs and trying to correspond to the international standards, not yet in full range, but begins to perform important functions in the formation of the middle class.

Digital marketing strategies for entering the Chinese market

With China’s emergence as an economic powerhouse, many multinational companies have looked to it to grow their profit margins by selling to the increasingly large Chinese middle class. This group, estimated at about 300 million people, is young, educated, mobile-enabled and digitally savvy. Marketers have naturally turned to social media marketing to connect and engage with these consumers. Given the differences between Chinese and Western social media marketing, the influence of the Chinese government and rapidly shifting online behaviours, this market segment has increasingly attracted the attention of academic and industry researchers intrigued by the impact of these changes on social media practitioners, especially Western marketers working to understand the Chinese landscape. This paper describes key features of the Chinese internet and the key platforms and media therein, and presents perspective, insights and implications that practitioners may consider when planning the strategy for and execution of a Chinese social media programme.

Looking inward for transformative growth

Export led growth has been very effective in modernising China's economy and establishing a large high-saving middle class. Notwithstanding political opposition from trading partners, this growth strategy has also offered the rest of the world improved terms of trade in both product and financial markets, in the form of cheaper light manufactures and cheaper credit. Yet slowing demand in export destinations has forced a transition to inward-sourced growth. This paper uses a numerical model of the Chinese economy with oligopoly behaviour to examine the available “inward” sources of transformative growth along with the policies needed to exploit them. The potential for further “transformative” growth is shown to be considerable though it will require accelerated skilled labour supply growth and the politically difficult extension of industry policy reform to heavy manufacturing and services.