The Global

Divides
Global Divides

Developed vs. Developing

First World vs. Third World

Rich vs. Poor

Global Divides
• The most striking attribute of the global
economy is
its utmost contrast.
• According to the United Nations Development
Program (UNDP) (2014), the richest 5% of the
world’s people receive more than 100 times the
income of the poorest 5% and that the richest
1% receives the income of the poorest half of
the entire world’s population.

• Moreover, it is believed that the combined

income of the 25 richest Americans equates the
income of the poorest 2 billion in the entire
world.
How do we determine which countries
are rich and which countries are poor?

• The most widely used measure in the

comparative status of the socio-economic
development is presented by the UNDP known as
the Human Development Index (HDI) which was
initiated in 1990.

• The Human Development Index (HDI) aimed to

rank all countries and determine the lowest
human development and the highest level of
development based on the basic indicators
namely: real income, health and education
(Todaro and Smith, 2012).
 Basic Indicators of Development

Per capita Income Health Education

• This refers to the • Health is • Literacy is the

number of adult
total of all goods measured based males and females
and services on the life reported or estimated
produced and expectancy at to have the basic
provided within a birth, the rate of abilities and capability
country’s undernourishmen to read and write.
borders, divided t, the under-5 • It also includes the
number of years
by its population. mortality rate, attended school
= _GDP and the crude regardless of the
population birth rate. quality of education
received.
Countries’ Income Per capita (IMF, 2020)
 Basic Indicators of Development

Per capita Income Health Education

• This refers to the • Health is • Literacy is the

number of adult
total of all goods measured based males and females
and services on the life reported or estimated
produced and expectancy at to have the basic
provided within a birth, the rate of abilities and capability
country’s undernourishmen to read and write.
borders, divided t, the under-5 • It also includes the
number of years
by its population. mortality rate, attended school
= _GDP and the crude regardless of the
population birth rate. quality of education
received.
PH 2019 HDI Ranking

The Philippines placed 106th out of the 189 countries and

territories in the 2019 Human Development Report, with a human
development index (HDI) value of 0.712. This placed the country
at the tail end of countries with high human development group.
 BRANDT REPORT

• Prior to the HDI there have been moves that created a

literal and visual division among the different countries in
the world. One is the Brandt Report in the 1980’s which
was written by the Independent Commission headed by
Willy Brandt to review international development issues in
the 1980’s. The result formed the so called Brandt Line.
 BRANDT LINE

• The Brandt line is a clear graphic presentation of a North and

South division of their economies of the different countries which
were based on their GDP (Gross Domestic Product) per capita.

• The implication of the Brandt Line is that the countries in the

Northern part of the world are extremely wealthy while those
countries appearing and lying on the southern part of the line are
considered poor. The introduction of the Brandt line initiated the
use of the term “Global North” and “Global South” referring
respectively to rich and poor countries (Royal Geographical
Society, 2020).
BRANDT LINE
Characteristics of Global North and
Global South
Discovering Global South
 Difference between “Global South”
and “Third World”

• The term “Third World” was used during the cold war –era referring to non-
alignment or their rejection of colonialism from both the USSR and USA. The
known “Third World” comprises of the alliance of those countries in Africa
and in Asia that became newly independent after World War 2. Later on
joined by countries from Latin America.

• First world (the capitalist, industrialized and democratic countries in the

West)

• Second World (communist countries). The alliance of the “Third World”

countries was.
 Difference between “Global South”
and “Third World”

• As time passes, after the fall of the Soviet Union and the end of the
Cold War, the term Third World has decreased in use.

• It is being replaced with terms such as developing countries, least

developed countries or the Global South.

• Therefore, it is safe to conclude that “Global South” and “Third World”

are simply the same; just used in different times.
Other Ways of Classifying Nations
1. World Bank Classification System
• The International Bank for Reconstruction and
Development (IBRD) known as the World Bank
(Todaro and Smith, 2012) has a very popular way of
classifying countries known as the World Bank’s
Classification System.

• It includes 210 economies with a population of at least

30,000 which are ranked using their levels of Gross
National Income (GNI) per capita. The countries are
then classified as low income countries (LICs), lower
middle income countries (LMCs), upper middle
income countries (UMC’s), and high income countries.
Other Ways of Classifying Nations
1. World Bank Classification System
Other Ways of Classifying Nations
• High income countries are members of OECD (Organization for
Economic Cooperation and Development).
• It is a unique assembly among governments of 38 member
states with established market economies working with each
other, as well as with more than 70 non-member economies to
promote economic growth, prosperity, and sustainable
development.
• The 38 member nations are composed of Austria, Belgium,
Czech Republic, Denmark, Estonia, Finland, France, Germany,
Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania,
Luxembourg, Netherlands, Norway, Poland, Portugal, Slovak
Republic, Slovenia, Spain, Sweden, Switzerland, and the United
Kingdom. There are five countries from the Americas: Mexico,
Chile, Canada, the United States, Colombia, and Costa Rica.
The four Pacific members are Japan, Australia, New Zealand,
and Korea. While there are two countries from the Middle East,
which are Turkey and Israel.
Other Ways of Classifying Nations

2. United Nation’s Least Developed

Countries
• Another widely used classification of nations is
that of the least developed countries.
• There are currently 46 economies designated by the United
Nations as the least developed countries (LDCs).
• These 46 LDCs are distributed among the following regions:
Other Ways of Classifying Nations

2. United Nation’s Least Developed

Countries
For inclusion, a country has to meet each of three
criteria:

1. Low income. An income criterion, based on a three-

year average estimate of the gross national income
(GNI) per capita. The threshold for inclusion is $1,018
or below; the threshold for graduation is $1,222 or
above.
Other Ways of Classifying Nations

2. Low human assets.

All six indicators are converted into indices using established

methodologies with an equal weight. The thresholds for
inclusion and graduation are 60 or below and 66 or above,
respectively.
Other Ways of Classifying Nations
2. High economic vulnerability.

All eight indicators are converted into indices using established

methodologies with an equal. The thresholds for inclusion: 36 or
above and for graduation: 32 or below.
Least Developed Countries (LDCs)
 Other Ways of Classifying
Nations
3. G7, G8 and G20
• The G8 and G20 are coalitions
of nations that address
significant international issues.
• It started as G7, a group of
seven nations that joined
together in 1975 to resist the
1973 oil embargo by the Arabs
as a protest against the
intervention of the United States
and the United Kingdom during
the Yom Kippur War.
 Other Ways of Classifying
Nations
3. G7, G8 and G20
• The G7 was formally known as
the Group of Seven Industrialized
Nations.
• Its members were Britain, United
States, France, Canada, Japan,
Italy, and Germany.
• The G7 was renamed to the G8 in
1997, when Russia was added to
the original seven-country line-up.
• The G7 and G8 asserted several
political and economic policies that
affected other countries.
 Other Ways of Classifying
Nations
3. G7, G8 and G20
• The latest installment of the G8
is called the G20, a greater
coalition formed in 1999, which
includes the nations of Brazil,
China, Saudi Arabia, Republic of
Korea, France, Australia, China,
Canada, Germany, Indonesia,
Argentina, Turkey, India, Russia,
South Africa, Mexico, Japan,
United Kingdom, United States,
and the European
SALAMAT SA PAKIKIISA
AT PAKIKINIG!☺