Why is there a great divide in terms of power and wealth between the north and south

hemisphere?
The North-South Divide is a socio-economic as well as political categorization of
countries. It first started during the 20th century cold war between the American West and their
allies and the Russian East and their allies. Countries in the East like the Soviet Union and China
which became classified as Second World countries. In the west, the United States and its allies
were labelled as First World countries. This division left out many countries which were poorer
than the First World and Second World countries. The poor countries were eventually labelled as
Third World countries. This categorization was later abandoned after the Second World
countries joined the First World countries.
New criteria was established to categorize countries which was named the North-South
Divide where First World countries were known as the North while Third World countries
comprised the South.
The North of the Divide is comprised of countries which have developed economies and
account for over 90% of all manufacturing industries in the world. Although these countries
account for only one-quarter of the total global population, they control 80% of the total income
earned around the world. All the members of the G8 come from the North as well as four
permanent members of the UN Security Council. About 95% of the population in countries in
The North have enough basic needs and have access to functioning education systems. Countries
comprising the North include The United States, Canada, all countries in Western Europe,
Australia, New Zealand as well as the developed countries in Asia such as Japan and South
Korea.
The South is comprised of countries with developing economies which were initially
referred to as Third World countries during the Cold War. An important characteristic of
countries in the South is the relatively low GDP and the high population. Third World accounts
for only a fifth of the globally earned income but accounts for over three-quarters of the global
population. Another common characteristic of the countries in the South is the lack of basic
amenities. As little as 5% of the population is able to access basic needs such as food and shelter.
The economies of most countries in the South rely on imports from the North and have low
technological penetration. The countries making up the South are mainly drawn from Africa,
South America, and Asia with all African and South American countries being from the South.
The only Asian countries not from the South are Japan and South Korea.