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Global Divides The North and South
Global Divides The North and South
GUZMAN
Assistant Professor III
INTRODUCTION
History:
The origin of dividing countries into the North-South Divide arose during the
Cold war with classification of East and West. (See the Cold War below)
Soviet Union and China represented the East and classified as Second world
countries
United states and their allies represented the West and labelled as First world
countries
This division left out many countries which were poorer than the 1 st and 2nd
world countries. So they were eventually labelled as 3rd world countries.
Categorization was later abandoned when Second world countries joined the
First World after the end of Cold War and break up of Soviet Union.
New criteria were established, thus the name North-South Divide.
Global North
- comprised of all first world countries and most second world countries.
- They control 80% of the total income earned around the world.
- All the members of the G8 come from the North; 4 out of 5 permanent
members of the UN Security Council.
- About 95% of the population in countries in North have enough basic needs
and have access to functioning education systems.
Global South
-comprised of countries with developing economies which were initially
referred to as third world countries during Cold War.
-Countries in Global south have relatively low GDP and have high population
-Account only a fifth of the globally earned income but accounts for over ¾ of
the global population.
-They rely on imports from the North and low technological penetration.
DISTINCTION/ CLASSIFICATION:
“Developed countries” have an HDI score of 0.8 or above. These countries have
stable government, widespread education and healthcare, high life expectancy, and
growing, powerful economies.
Least developed countries have an HDI score of 0.55 below. They have unstable
government, widespread poverty, lack of access to healthcare, poor education, low
income, low life expectancy coupled with high birth rates.
- HDI helps UN to determine which countries needs assistance, specifically the Least
Developed countries.
- HDI was first launched in 1990 and have been released annually ever since.
HDI Computation:
Having first defined the minimum and maximum values, the dimension- specific indices are
then calculated as follows:
¿ actual value−20
Life expectancy Index (LEI) =
85−20
MYS−0
Mean years of schooling index =
15−0
EYS−0
Expected years of schooling index =
18−0
Argentina has an HDI score of 0.808 which is under the very high human development tier.
Thus, it is a developed country.
As for the 2019 HDI Ranking:
According to Guttal (2016), the countries in the North are considered MEDC due to
some factors including stability of their economy, better standard of living and quality
of life.
Aspects which may show this is how long the country’s life expectancy is, education
levels, and how developed their technology is.
Examples: US life expectancy 79 years for women, 77 years for men. However, in Somalia,
life expectancy is 51 for women, 48 for men.
Canada has free universal healthcare and free secondary education, which leads to better
quality of life for Canadians, while in Africa, little education and hardly no healthcare.
Countries in the South are considered LEDC due to some reasons including: unstable
government, poor economy. Moreover, citizens have poor standard of living and
quality of life.
They also have low Gross Domestic Product (GDP) and low HDI.
Why is the South at such a disadvantage?
o Colonization
- Most of the countries under MEDC were at some point in history imperialists.
Basically, most powerful countries have stayed powerful and inferior countries
have stayed inferior. However, there is always an exception like the US, which
is a former British colony, has developed into the most powerful country in the
world (Guttal, 2016).
o Trade
- Countries in the South import goods from the North and their spending are
greater than what they are earning in the global economy.
o Debt
- Their products were losing money in the global economy, so they needed to
increase production. The only way to do this is to borrow funds from the rich
northern countries.
CAPITALISM VS SOCIALISM
Capitalism
- Private
- Economy, property and businesses are owned and controlled by individuals.
The production and prices of goods and services are determined by how in-
demand they are and how difficult they are to produce.
Socialism
- Government
- The primary concern of the socialist model, in contrast, is an equitable
redistribution of wealth and resources from the rich to the poor, out of fairness
and to ensure "an even playing field" in opportunity and outcome. To achieve
this, the state intervenes in the labor market.
Developed Countries
- More industrialized
- Higher per capita income level
(mostly average per capita income is $38, 000)
- Stable population growth rates
- People consume large amount of natural resources
Less- developed Countries
- Less industrialized
- Lower per capita income level
- “developing countries”
Undeveloped Countries
- World’s most impoverished and vulnerable countries
- Low income countries
- “least developed countries”
The economies of advanced industrial nations/ developing nations which had been in
a phase of expansion in the preceding year once again faced the TRIPLE
PROBLEMS of rising inflation, increasing unemployment, and current account
deficit.
Non- oil producing developing countries, too, found it still more difficult to manage
their economies as their terms of trade worsened and their current account deficits
increased.
These difficulties stemmed mainly from the second oil crisis of 1979.
ASIAN TIGERS
Asian Tiger countries are primarily concerned with producing exports, educating their
citizens, and minimizing costs of production through cheap, low-skilled labor.
Background:
In 1945, the Asian Tigers (Singapore, Hong Kong, South Korea, and Taiwan)
had a lack of natural resources and a small amount of farmland. They were
also overpopulated, poor, and could not feed their own populations.
Asian Tiger economy refers to the way in which four Asian countries underwent a
burst of economic growth, rapidly becoming a major exporter of goods shipped
globally.
THE RICH NORTH AND THE POOR SOUTH, BRANDT LINE (1983)
Distinguishes Poor form the Wealthy Countries. The North-South Divide is criticized
for being a way of segregating people along economic lines and is seen as a factor of the
widening gap between developed (Global North) and developing economies as it uses some
simple geographical criteria to describe a complex social situation.
Inequity and Inequality. Gives a deep structural defect that diminishes individual and
collective potential for many, and shapes power relations within and among societies.
Negative Labeling. The Global South rids itself from the negative political and
economic labeling that Third World had before as it is generally seen to be more apolitical.
Globalization. Has also challenged the notion of two distinct economic spheres.
Following the liberalization of post-Mao China Initiated in 1978, growing regional
cooperation between the National Economies of Asia has led to the growing decentralization
of the North as the main economic power.
BRICS is an acronym for the developing nations of Brazil, Russia, India, China and South Africa
The term "BRIC" is believed to be coined in 2001 by then-chairman of Goldman Sachs Asset
Management, Jim O'Neill, in his publication Building Better Global Economic BRICS.
This believed to be the future dominant suppliers of manufactured goods, services, and raw
materials by 2050. China and India will become the world's dominant suppliers of
manufactured goods and services, respectively, while Brazil and Russia will become similarly
dominant as suppliers of raw materials. As of 2010, South Africa joined the group, which is
now referred to as BRICS.
The objective of the association involves myriad of goals ranging from supporting China’s
one belt and road initiative (OBOR) to trade, communication, regional security, human
security, human development, technological development, eradication of terrorism and
alleviation of social and economic evils from the region.
Development
DEVELOPMENTAL INITIATIVES
It is a goal for many developmental initiatives to close the GAP between the divide.
A development program dedicated to narrowing the divide through its Millennium
Development Goals aimed at SUSTAINABLE DEVELOPMENT by the UNITED
NATIONS.
It includes improving the:
1. Education and Healthcare
2. Promoting Gender Equality
3. Ensuring Environmental Sustainability
IMF and WORLDBANK
Providing Loans and grants to Global South countries
REFERENCES
WEBLIOGRAPHY
BBC. (2020). Development. Retrieved from
https://www.bbc.co.uk/bitesize/guides/zvp39j6/revision/3
Conceicao, P. (2019). 2019 Human Development Index Ranking| Human Development
Reports. Retrieved from hdr.undp.org/en/content/2019-human-development-index-
ranking
Cunningham, M., & Shinn, J. (n.d). Economic Inequality: Differences in Developed and
Developing Nations. Retrieved from https://study.com/acaademy/lesson/economic-
inequality-differences-in-developed-and-developing-nations.html
Gaw, K. (2016). The story behind the four Asian tigers. Retrieved from
https://www.idealsvdr.com/blog/the-four-asian-tigers/
Longley, R. (2019). Socialism vs. Capitalism: What is the Difference? Retrieved from
https://www.thoughtco.com/socialism-vs-capitalism-4768969
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https://www.investopedia.com/terms/b/bric.asp
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https://www.investopedia.com/ask/answers/020915/what-are-differences-between-
capitalism-and-socialism.asp
Radcliffe, P., Ph.D. (2017). Asian Tigers: Economics and the Development of the Asian
Nations. Retrieved from https://www.thegreatcoursesdaily.com/asian-tigers-economics-
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Sahi, B.J. (2018). What is the purpose of BRICS countries? Retrieved from
https://www.quora.com/What-is-the-purpose-of-BRICS-countries
Sawe, Benjamin Elisha. (2017, August 1). What is the North-South Divide? Retrieved from
https://www.worldatlas.com/articles/what-is-the-north-south-divide.html
Sparknotes. Retrieved from https://www.sparknotes.com/history/american/coldwar/summary/
Wikipedia. (2019). South–South cooperation. Retrieved from
https://en.wikipedia.org/wiki/South%E2%80%93South_cooperation
Wikipedia. (2020). BRICS. Retrieved from https://en.wikipedia.org/wiki/BRICS
World Population Review. (2020). Human Development Index (HDI) by Country 2020.
Retrieved from https://worldpopulationreview.com/countries/hdi-by-country/
BOOK
Coronacion, D. et. Al. (2018). Covergence A College Textbook in Contemporary World page
75- 85. Mandaluyong City. Books Atbp. Publishing Corp.