The Global North vs The Global South

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Information about The Global North vs The Global South

Published on March 20, 2014

Author: kmrizon



On the great disparity between the Global North and South Today. The causes of disparity i.e., Classical Liberal Economy and Dependency Theory


THE GLOBAL SOUTH: ZONE OF TURMOIL • Many of the people in the global south faces poverty, war and tyranny.

THE GLOBAL SOUTH: ZONE OF TURMOIL • Although democracy has spread to much of the global south since the 1980’s, the commitments of some of these governments to regular elections and human rights are fragile. • Many global south countries lack well-developed domestic market economies based on entrepreneurship and private enterprise.

• Global South countries have been unable to evolve an indigenous technology appropriate to their own resources and have been dependent on powerful Global North multinational corporations (MNCs) to transfer technical know-how. • This means that research and development expenditures are directed toward solutions of the Global North’s problems, with technological advances seldom meeting the needs of the Global South.

• Life is a struggle for those who live in extreme poverty. • Poverty is a force that “robs you of confidence….steals your pride, deadens your ambition, limits your imagination and psychologically cripples,” (Mazumdar, 2009:34)

GLOBAL SOUTH AND NORTH: AN INTERNATIONAL CLASS DIVIDE Characteristic Developing Global South Developed Global North Number of countries 144 66 Population(millions) 5, 629 1, 069 Land Area (thousands of sq. km) 98, 797 35, 299 GNI ($ billions) $ 15, 649 $42, 415 Gross national income for each person $2, 780 $ 42, 415 Imports ($ billions) $ 5, 503 $13, 710 Exports ($ billions) $ 5, 938 $ 13, 710 Women holding seats in parliament (%) 18 % 22% Life expectancy at birth 67 80 Infant mortality rate per 1, 000 births 50 6

GLOBAL SOUTH AND NORTH: AN INTERNATIONAL CLASS DIVIDE Characteristic Developing Global South Developed Global North Access to improved sanitation (% o population) 55% 100% Paved roads (%) 24% 87% Personal computers for each 100 people 5 68 Internet Users for each 100 people 15 69 Population covered by cellular networks (%) 76% 99% Daily newspapers for each 1, 000 people 59 261 Electric power consumption for each person (kwh) 1, 478 9, 753

• According to criteria used by the UN Economic and Social Council, forty-nine countries currently comprise the least developed countries (LDCs) of the Global South. • They have gross incomes (GNI) per capita of under $900 per year, and their overwhelmingly rural populations depend on agriculture for subsistence and frequently rely on barter in their economic exchanges. • These low-income countries are not significant participants in the global market.

• Their meager exports are largely confined to inexpensive primary products, including food stuff (cocoa, coffee, and tea), minerals, hides, and timber. Because they consume most of what they produce, theirs is typically a subsistence economy, and the prospects for change are dim, because most of these countries have been bypassed by direct foreign investment and ignored by foreign aid donors.

• Geographic location also hampers the economic development in Global South countries. • Landlocked developing countries that lack navigable rivers or efficient road and rail networks are highly disadvantaged due to the expenses they face in accessing world markets.

• Some small island developing states are burdened with high transportation costs as well, largely due to the remoteness from major global markets.

INTERNAL FACTORS: CLASSICAL ECONOMIC DEVELOPMENT THEORY’S INTERPRETATION • Liberal economic development theories of modernization emerged in the early post-World War II era. • They argued that the major barriers to development were posed by the Global South countries’ own internal characteristics.

• Productivity remained low due to managerial inefficiency, a lack of modern technology, and inadequate transportation and communication infrastructures. • To overcome these barriers, most classical theorists recommended that the wealthy countries supply various “missing components” of development, such as investment capital through foreign aid or private foreign direct investment.

• Once sufficient capital was accumulated to promote growth, these theorists predicted that its benefits would eventually “trickle down” to broad segments of society. Policy • Walt R. Rostow, an economic historian and US policy maker formalized this theory in his influential book The Stages of Economic Growth (1960). • He predicted that traditional societies beginning the path of development would inevitably pass through various stages by means of the free market and would eventually take off to become similar to the mass consumption societies of the capitalist North.

EXTERNAL FACTORS: DEPENDENCY THEORY’S INTERPRETATION • Emphasized external factors • Development is not a linear process that all societies uniformly follow • Dependency theory- a view of development that the leading capitalist states dominate and exploit the poorer countries on the periphery of the world economy.

• Its central proposition is that the structure of the capitalist world economy is based on a division of labor between a dominant core and a subordinate periphery. • As a result of colonialism, the global South countries that make up the periphery have been forced into an economic role whereby they export raw materials and import finished goods.

• Maintain that global inequalities cannot be reduced so long as developing countries continue to specialize in primary products for which there are often numerous competing suppliers and limited demand. • Argues that countries in the Global South are vulnerable to cultural penetration by outside forces, which saturate them with values from other societies.

• Once cultural penetration occurs, locals who embrace foreign values may gain economically from the ties that they forge with the governments and corporations doing business in their country.

• Dualism refers to the existence of two separate economic and social sectors operating side by side. • Dual societies typically have rural, impoverished, and neglected sector operating alongside an urban, developing or advanced sector—but with little interaction between the two.

• Although dependency theory has great appeal within the Global South, it cannot easily explain the emergence of many people call newly industrialized countries (NICs), members of the Global South that have begun exporting manufactured goods to the Global North.

• Dependent development-describes the industrialization of peripheral areas in a system otherwise dominated by the Global North. • The term suggest the possibility of either growing or declining prosperity, but not outside the confines of a continuing dominance-dependence relationship between North and South.

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