Contemporary World  North had many manufacturing factories that

dealt with textiles, lumber, clothing, machinery,

Part 5
leather and wooden goods.
 The biggest business of the north was in
GLOBAL DIVIDES The North and South railroad construction. Transportation was easier
because of railroads.
Global Divides  Have GDP per capita that is above the world’s
 Socio-economic and political categorization of GDP per capita.
countries, in the late 20 th century and early 21st
centuries. North and South Divide Issue
Distribution of income around the world.
During Cold War Economic competition worldwide
 primary global division was between east and Standard of living
west and predicated upon security and balance.
NORTH
After Cold War  Less population
 primary Global Division as being between North  High wealth
and South, and predicted upon economic  High standard of living
inequality.  High industrial development
 Industry

SOUTH
 Large population
 Low wealth
GLOBAL NORTH  Low standard of living
 US  Low industrial development
 Canada  Agriculture
 Europe
 Japan The “First World” refers to so called developed,
 Singapore capitalist, industrial countries, a bloc of countries
 South Korea aligned with the United States after World War II, with
 Australia more or less common political and economic interests:
 New Zealand  North America, Canada, Western Europe, Japan
GLOBAL SOUTH and Australia.
 Africa “Second World” refers to the former communist-
 Latin America socialist, industrial states: Russia, Eastern Europe, China
 Developing Countries of Asia (Southwest Asia or and some of the Turk States.
Middle East)
“Third World” serves to identify countries that suffer
North South Gap from high infant mortality, low economic development,
 Term used to describe the economic gap high levels of poverty, low utilization of natural
between the rich northern countries of the resources and heavy dependence on industrialized
world and the south poorer countries of the nations: Asia, Africa, South Africa, Oceania and Latin
world. America.
Global South Social scientist sort countries into groups based on their
 Comprised of developing countries with specific levels of economic productivity. Tod o this, they
developing economies. use the gross Domestic Product (GDP), which measures
 Southern economy was weak and vulnerable. the total output of a country, and the Gross National
 Lack of basic amenities. 5% of the population is Income (GNI) which measures GDP per capita (World
able to access basic needs. Bank, n.d.).
 Have GDP per capita that is below the world’s
GDP per capita The difference between Global North and the Global
South are shaped by migration and globalization.
Global North Nevertheless, the economic differences between the
 Comprised of developed countries with wealthy Global North and poor Global South “have
developed economies. always possessed a racial character” (Winant, 2001)
 Economy was based on industries and major
business, commerce and finance.
  Philippines and most countries in Latin America
and other regions formerly colonized by
Western Powers are still relatively poorer than
the countries that colonized them. These
countries are still labeled as Third World
Nations.
 Wealth gaps between the poorest and the
richest are also observable in these regions.

Eduardo Galeano
o He describes Latin America’s “open viens”
William R. Thompson & Rafael Reuveny which the colonizers seemingly bled dry
 They acknowledge that despite the promises of through colonial plunder, replaced only with
a so-called borderless world under neocolonial economic relations after the
globalization, significant gaps between global region’s independence from Western
north and global south are still observable conqueros.
especially on technological diffusion or the
spread of technological innovation through DEPENDENCY THEORY
research and development, and debts. Theotonio Dos Santos
 “the radical technological diffusion is largely
 “Situation in which the economy of certain
restricted to the north.”
countries is conditioned by the development and
expansion of another economy to which the former
Southern state is highly vulnerable to external market
is subjected.”
fluctuations. If states specialize in providing raw
 This term is used of indicate countries that are less
materials for northern consumption and the
economically developed than the United States or
demand/prices for these commodities fluctuate, it
European nations.
stands that Southern economic prospects are held
 The inflow of capital from the developed countries
hostage to variable extents by processes over which
is the prerequisite for establishment of economic
their own economies have a control. When northern
dependence. This inflow takes various forms: loans
economies falter, Southern economies suffer even
granted on onerous terms, investment; almost total
more.
technological subordination of the dependent
country to the developed country.

The vulnerability of third world countries to recurring

crisis which constitute the “cyclical roadblocks” to their
 Samir Amin describes the world as an entity divided
holistic development can be traced to their integration
into developed and underdeveloped countries.
into the global economic system dominated by
 The underdeveloped economy may appear as being
technologically advanced and industrialized first world
made of several atoms of this type.
countries that also control multilateral financial
 Atoms – refer to industries and business which
institutions and big private banks.
prop-up the import-dependent, export-oriented
Third world countries are unable to afford financing, economy of many developing countries design to
and they are also discouraged from adopting policies suit the needs of developed and capital rich
that will lead to industrialization, despite the fact that countries.
most developed countries achieved their current status
Factors That Worsen Developing Countries Dependency
because of industrialization. No multilateral bank will
On the Developing Countries Includes:
ever loan money for Philippines company that intends
to produce Philippine made car from Philippine steel, 1. Urban Development
that something will compete with existing brands from 2. Increase in administrative expenditure
industrialized countries. 3. Changed in the structures of income
distribution
Sarao Motors
4. Inadequate industrial development

Latin America and The Philippines Under Globalization