Chapter 8: Rich Above, Poor Below? Development and Inequality In International Relations

8.4: Poverty and Global Inequality 

Poverty and inequality are more than just economic issues—they are global challenges that shape politics, power dynamics, and human development. Poverty deprives billions of access to basic needs like food, healthcare, and education, while inequality reinforces systems of exclusion and exploitation. These issues are not only morally troubling but also destabilizing, contributing to unrest, migration crises, and environmental degradation. Addressing poverty requires understanding its various dimensions and systemic causes, while inequality demands examining how power and resources are distributed both within and between nations. The film Elysium vividly portrays the devastating effects of unchecked inequality, depicting a future where humanity is divided into two extremes: a wealthy elite living on a technologically advanced space station and the rest of humanity struggling for survival on a ravaged Earth. Through the lens of Elysium and key IR concepts like absolute poverty, relative poverty, the resource curse, the Gini coefficient, the cycle of poverty, and social mobility, we can better understand how poverty and inequality are sustained—and how they might be addressed.

Imagine a world where millions of people wake up each day unable to meet even their most basic needs. This is the grim reality of absolute poverty, which affects over 700 million people worldwide. In Elysium, the people left on Earth endure this condition daily, depicted in scenes of crumbling infrastructure, overcrowded slums, and untreated illnesses. Absolute poverty goes beyond financial hardship—it is a fight for survival, as individuals lack access to necessities like food, clean water, shelter, and healthcare. Real-world examples of absolute poverty can be found in sub-Saharan Africa, where decades of conflict, underdevelopment, and environmental crises have left millions vulnerable to famine and disease. In Yemen, for instance, a prolonged war has created one of the worst humanitarian crises in the world, with millions facing starvation due to blockades, economic collapse, and lack of international aid. The film’s portrayal of Earth as a polluted, overcrowded wasteland where people die from preventable conditions mirrors these global realities. Addressing absolute poverty requires more than short-term humanitarian aid; it demands systemic investment in infrastructure, healthcare, and governance. Yet even in societies where basic needs are met, poverty can persist in less visible but equally harmful ways, as seen in the concept of relative poverty.

Even in societies where people have enough to survive, inequality can still trap individuals in cycles of exclusion and frustration. In Elysium, the stark contrast between Earth’s impoverished masses and the luxury of Elysium’s space station illustrates relative poverty—the sense of deprivation that arises when people compare their circumstances to the wealth and privileges of others. Relative poverty is not about lacking food or shelter but about being excluded from the opportunities and resources necessary to fully participate in society. For example, in the United States, a family might have housing and basic necessities but still struggle to afford higher education, quality healthcare, or opportunities for upward mobility. The frustration of relative poverty is often magnified in societies with growing wealth gaps, as seen in the “Yellow Vests” protests in France, where citizens protested rising inequality and the erosion of middle-class security. Elysium dramatizes these tensions, showing Earth’s residents yearning for access to Elysium’s advanced healthcare and technological abundance but being denied by systemic barriers. Such inequality often stems from how societies manage and distribute their natural resources, leading to phenomena like the resource curse.

Counterintuitively, nations rich in natural resources often face some of the worst developmental outcomes. In Elysium, Earth’s industries and resources are exploited to sustain the wealth of Elysium’s elite, leaving the planet’s population impoverished despite their labor fueling the space station’s economy. This dynamic mirrors the real-world resource curse, where resource-rich countries like Nigeria, Venezuela, or the Democratic Republic of Congo experience slower growth, widespread corruption, and deeper inequality. Rather than fostering prosperity, resource wealth often leads to overreliance on volatile exports like oil or minerals, neglect of other sectors, and concentrated power in the hands of elites. For instance, Nigeria generates billions in oil revenues, yet much of its population lives in poverty due to mismanagement, corruption, and environmental destruction in oil-producing regions like the Niger Delta. Elysium captures this imbalance by showing Earth’s workers toiling in factories that produce goods for Elysium without seeing any benefits. This hoarding of wealth and resources by elites is a hallmark of extreme inequality, which can be measured using tools like the Gini coefficient.

How unequal is a society? The Gini coefficient provides a way to measure this by analyzing how wealth or income is distributed within a country. In Elysium, the gap between the space station’s elite and Earth’s population represents extreme inequality—what would correspond to a Gini coefficient approaching 1. In real-world terms, South Africa has one of the highest Gini coefficients globally, a legacy of apartheid that continues to divide the nation’s wealthy urban centers from its impoverished informal settlements. On the other hand, nations like Denmark and Norway boast some of the lowest Gini coefficients, thanks to robust social safety nets, progressive taxation, and universal public services. High levels of inequality, as depicted in Elysium, are not just morally troubling; they can also undermine social cohesion and stability. When wealth is concentrated in the hands of a few, entire generations can be locked into cycles of deprivation and exclusion, unable to access the opportunities needed to improve their lives. This systemic entrenchment of poverty connects to the concept of the cycle of poverty, which explains how disadvantage persists over time.

For many, escaping poverty is nearly impossible due to systemic barriers that perpetuate deprivation across generations. In Elysium, Earth’s residents are trapped in a cycle of poverty, where lack of access to education, healthcare, and stable employment ensures that they remain poor while the elite on Elysium thrive. This mirrors real-world challenges faced by families in developing regions and low-income communities worldwide. For example, in parts of rural India, children are often forced to leave school to work and support their families, perpetuating a lack of education and limiting their future opportunities. Similarly, in the United States, neighborhoods with underfunded schools and limited access to healthcare create systemic barriers for low-income families, making it difficult for children to break free from the poverty of their parents. In Elysium, this cycle is starkly visualized as Earth’s residents labor in factories producing goods for the elite without any chance of sharing in the benefits. Breaking the cycle of poverty requires systemic interventions, such as improved education access, healthcare, and job creation, which also lay the foundation for social mobility.

In societies with high inequality, moving up the social and economic ladder is often an unattainable dream. In Elysium, Earth’s residents face a total lack of social mobility, trapped in conditions where hard work offers no hope of advancement. This lack of opportunity reflects real-world struggles in countries with entrenched inequality, such as Brazil, where wealth and privilege are often inherited, and millions of people remain locked in favelas with limited access to education or employment. By contrast, nations like Canada and Finland, with strong social welfare systems, create opportunities for mobility through free education, universal healthcare, and affordable childcare. Social mobility is essential for reducing inequality and fostering inclusive development, but in systems like that of Elysium, it is deliberately denied to preserve the status quo. The film’s depiction of a society with no upward mobility serves as a cautionary tale, showing how inequality breeds frustration, unrest, and ultimately rebellion. Addressing poverty and inequality requires not only redistributing wealth but also creating systems that enable people to thrive and move forward.

By examining absolute and relative poverty, the resource curse, the Gini coefficient, the cycle of poverty, and social mobility, we can see that poverty and inequality are deeply interconnected and systemic. Elysium serves as a powerful allegory for these issues, showing the devastating effects of unchecked inequality and systemic exclusion. Tackling these challenges requires systemic reforms that go beyond immediate aid, addressing the structural factors that perpetuate inequality and limit opportunity. As global citizens, understanding these dynamics is the first step toward creating a fairer and more equitable world.