The Contemporary World

GED0035
 Module 8 Subtopic 1
The North and South Divide
Objectives

1. Differentiate the Global North from the Global

South.
2. Identify the characteristics of Global North and
Global South nations.
3. Analyze what causes countries to become part of
the Global North or the Global South.
The Global North and the Global South
What is the North-South Divide?
• The North-South Divide is a socio-economic
and political division of the world. It divides
the world into the Global North and the
Global South and this division, as a concept,
was created by the Brandt Foundation.
• The foundation wanted to bring attention to
the fact that there are wide disparities
between certain privileged parts of the
world and their less privileged counterparts.
The line that divides the world into the
Global North and the Global South is called
the Brandt Line.
The Global North and the Global South
An important clarification
• What then are the Global North and
the Global South composed of? It
must be clarified that the term Global
North and Global South do not
necessarily refer to geographical
locations. There are countries that are
in the Southern Hemisphere that are
part of the Global North and vice
versa.
• The basis instead is on a country’s
status of development.
The Global North and the Global South
First World, Second World, Third World
• In the subject matter of countries’
development status, the terms “First
World”, “Second World”, and “Third
World” are often used.
• Within the context of the North-South
Divide, saying that Global North
countries are First World and Global
South countries are Second World and
Third World may be correct depending
on the usage of those terms.
The Global North and the Global South
The Three-World Model
• The Three-World Model uses the
terms First World, Second World,
and Third World to identify
allegiances during the Cold War.
o First World – the Western Bloc
(USA, UK, Japan, and their
allies)
o Second World – the Eastern
Block (USSR, China, and their
allies)
o Third World – neutral countries
The Global North and the Global South
The Three Worlds Theory
• The Three Worlds Theory by
Mao Zedong uses the same
three terms but they refer to a
country’s status of
development.
o First World – superpowers
o Second World – developing
powers
o Third World – exploited
nations
The Global North and the Global South
Updated Terminologies
• Between the two ways to use First
World, Second World, and Third
World, the Three Worlds Theory is developed
more applicable to the North-South
Divide.
• However, in today’s standards, it has developing
become more appropriate to use the
terms developed, developing,
and underdeveloped to refer to underdeveloped
First World, Second World, and
Third World respectively.
The Global North and the Global South
Specific Criteria
• The North-South Divide categorizes
countries based on economic development,
often using standards like the World Bank's
income classifications or GDP per capita
thresholds.
• Different scholars propose varying income
thresholds for defining developed countries,
ranging from $12,000 to $25,000 per capita.
• However, developed countries typically share
common characteristics such as a high
quality of life, advanced economies, and
sophisticated technological infrastructure.
General Characteristics
The Global North

• The Global North is:

o Composed of 1/4 of the world’s
population;
o Controls 4/5 of the income
earned anywhere in the world;
o 90% of manufacturing industries
are owned by and located in the
North; and
o 95% of the North has enough
food and shelter.
General Characteristics
The Global North
• The Global South is:
o Composed of 3/4 of the world’s
population;
o Controls 1/5 of the income earned
anywhere in the world;
o Typically lacks appropriate
technologies;
o Sometimes has no political stability;
and
o Foreign exchange earnings depend
heavily on primary product exports.
General Characteristics
A Necessary Comparison
• The Brandt Foundation aimed to
highlight the stark disparity
between the Global North and the
Global South, where a small
percentage of the population holds
majority of the world's wealth.
• This imbalance results in poverty
being a central issue in the Global
South, where limited resources are
spread thinly across a large
population.
General Characteristics
A Necessary Comparison

• While there are various other

issues stemming from the North-
South Divide, poverty remains at
the core, necessitating coordinated
action to address it, especially in
countries with limited means to
combat it.
The Fight Against Poverty
The World Bank’s Efforts
• The fight against poverty:
o Extreme poverty is living below
$1.90 per day (World Bank
definition).
o In 1990, around 1.9 billion people
lived in extreme poverty.
o In 2015, the number has been
reduced down to 734 million
people.
o Significant progress is being made
but more work needs to be done.
Causes of the North-South Divide
Overview
Modernization • A group of theories, known as the theories
of global stratification, attempt to explain
Theory why there is such a huge gap in the level
of development between the Global North
and the Global South.
Dependency • The term global stratification refers to the
Theory hierarchical arrangement of individuals
and groups in societies around the world.
• The most common of these theories are
Modern World the modernization theory, the
dependency theory, and the modern
System Theory world system theory.
Causes of the North-South Divide
Modernization Theory
Modernization • According to this theory:
o All societies progress through
Theory a similar pattern of
development.
Dependency o Underdeveloped countries
simply began their
Theory development process late.
Developed countries started
Modern World their development process
earlier.
System Theory
Causes of the North-South Divide
Dependency Theory
Modernization • According to this theory:
Theory o Some societies are
underdeveloped because of
certain features and/or
Dependency characteristics that prevent
them from developing.
Theory o These underdeveloped
societies depend on other
Modern World societies to achieve
development.
System Theory
Causes of the North-South Divide
Modern World System Theory
Modernization • According to this theory:
Theory o Some societies are disadvantaged
because of the role they play in a
global economic system.
Dependency o These societies only have the capacity
to supply raw materials and cheap
Theory labor which both have lower
economic value compared to the
Modern World finished products that other
countries are capable of producing.
System Theory
Causes of the North-South Divide
The Brain Drain
• Aside from the theories of global
stratification, scholars also point out that
immigration contributes to the widening
gap between the Global North and the
Global South. This is referring to the
phenomenon known as the brain drain.
• The brain drain occurs when individuals
with desirable qualities (educated, skilled,
experienced, etc.) depart from one
country to another in search of better pay
or better living conditions.
Causes of the North-South Divide
Business Clustering
• Another possible cause that scholars take
into consideration is business clustering
otherwise known as agglomeration.
• Business clustering occurs when
interconnected businesses operate close to
each other. Their businesses are typically
complementary to each other.
• Forming a cluster allows the businesses to
strengthen each other and become better
suited to compete internationally especially
against the un-clustered businesses of the
Global South.
Comprehension Check
If you can answer these without coaching, you are ready for the next lesson.
1. What is the basis for classifying a country as part of the Global
North or the Global South?
2. In your own words, briefly describe the common characteristics
of the Global North and the Global South.
3. Differentiate the modernization theory, the dependency theory,
and the modern world system theory.
4. What is the brain drain and how does this contribute to
widening the gap between the Global North and the Global
South?
5. What is business clustering and how does this contribute to
widening the gap between the Global North and the Global
South?
 Module 8 Subtopic 2
Sustainable Development
Objectives

1. Identify the different theories of development used by

countries as a basis for national development.
2. Define sustainable development and analyze how it is
an improved version of earlier theories of development.
3. Understand the history of sustainable development and
where it currently stands in terms of global
implementation.
Theories of Development
What is Development?
• Development is defined as the manifestation
of growth, progress, and positive change.
• In principle, this is the core goal of
governance and it is fair to assume that
countries all over the world want to achieve
this.
• But when can it be said that a country has
achieved development? Throughout history,
various theories of development have been
introduced and they each have their points
of emphasis serving as the basis for what
constitutes development.
Theories of Development
Economics-based Theories of Development

• The earliest theories of development

presented the idea that a country is
considered developed if it performed
well economically.
• Some of the well-known development
theories under this group include the
modernization theory, the
structuralism theory, the dependency
theory, the basic needs model, and
the neoclassical growth theory.
Theories of Development
Economics-based Theories of Development
1. Modernization Theory
o This theory suggests that all
countries go through a similar
process of development, leading
to eventual development for all
nations over time.
o Some countries just started
earlier, others started late.
o It argues that given enough time,
today’s less developed countries
will eventually develop.
Theories of Development
Economics-based Theories of Development
2. Structuralism Theory
o This theory attributes
underdevelopment to systemic
structural characteristics, such as
unequal distribution of wealth and
resources, social stratification, and
economic dependency.
o This existing system/structure favors
some and puts others at a disadvantage.
o For the disadvantaged to achieve
development, this structure/system
must be changed.
Theories of Development
Economics-based Theories of Development
3. Dependency Theory
o This theory posits that underdevelopment
in poorer countries results from their
economic and political dependency on
wealthier nations within the global
capitalist system.
o This relationship perpetuates economic
subordination and exploitation, hindering
the development prospects of poorer
countries.
o For poor countries to develop, they must
break away from their dependency.
Theories of Development
Economics-based Theories of Development
4. Basic Needs Model
o This model of development
emphasizes that a society can be
considered developed if its citizens
have access to essential basic needs
such as food, clean water, shelter,
healthcare, and education.
o Therefore, development efforts
should focus on ensuring universal
access to these necessities,
regardless of economic status or
social standing.
Theories of Development
Economics-based Theories of Development
5. Neoclassical Growth Theory
o This theory is based on
neoclassical economics, which
emphasizes the role of factors
such as labor, capital, and
technology in driving economic
growth.
o Its argument is any country will
inevitably achieve development
as long as it possesses labor,
capital, and technology.
Theories of Development
Human Development Theory
• The human development theory,
pioneered by Mahbub ul Haq and
Amartya Sen, marks a departure from
traditional development approaches
focused solely on economics.
• It argues that a country cannot be
considered developed based solely on
economic indicators like GDP, GDP
per capita, or GNP if its people
experience poverty, lack of education,
unemployment, and other hardships.
Theories of Development
Human Development Theory

• This shift led to the creation of

metrics like the Human
Development Index and the World
Happiness Report, which assess
development by considering both
economic prosperity and human
well-being.
• The Human Development Index
embodies this theory.
Theories of Development
Post-development Theory
• The post-development theory is a
meta-theory because it criticizes
popular standards of development.
• It suggests that popular standards
for development were established
and defined by Western societies
and may be patterned after their
cultures. There is a potential
mismatch when these standards are
applied to culturally different
Eastern societies.
Theories of Development
Sustainable Development

• Sustainable development represents

another shift in how the concept of
national development is interpreted.
• The decades prior focused on
economics first, then gradually
included human development.
• But the effects of human activity on
the environment were becoming
more and more undeniable.
Theories of Development
Sustainable Development
• Sustainable development is development
that meets the needs of the present
without compromising the ability of
future generations to meet their own
needs.
• This emphasizes the importance of
balancing the economy, society, and the
environment. The focus should not be on
one area only. Development in all three
areas must be accomplished: economic
growth, societal development, and
environmental sustainability.
Evolution of the Sustainable Development Concept
Important Events
• Stockholm Conference (1972) –
sustainable development was
recognized by the UN as a very
important goal to pursue.
• Rio Summit (June 1992) – Agenda 21
was established to solidify the UN
recommendation that its members
must pursue sustainable development.
• Commission on Sustainable
Development (December 1992) –
established to monitor progress in
sustainable development.
Evolution of the Sustainable Development Concept
Important Events

• Millennium Development Goals

(2000) – established 8 goals for
UN members to accomplish by
2015.
• Sustainable Development Goals
– replaced the MDGs with 17
more specific goals; UN
members are expected to
accomplish these by 2030.
The 17 Sustainable Development Goals
Comprehension Check
If you can answer these without coaching, you are ready for the next lesson.

1. Name two development theories that focus on economics and

explain each.
2. What differentiated the human development theory from
economics-based theories of development?
3. What three things must be balanced in order to achieve
sustainable development?
This serves as a visual aid. For a more detailed discussion, you can watch the video courseware
prepared by the course designer.