GLOBAL DIVIDES: THE NORTH AND THE SOUTH

• North and South Divide


  Categorization of states between North and South that can be traced back to the Cold War Era
• First World States


  • Non-communist, high income, and developed countries such as US, Canada, Japan, and South Korea
• Second World States


  • Communist countries
• Third World States


  • Countries that remained non-aligned with the North Atlantic Treaty Organization nor the Communist Block, poor and former colonies of the West
• Global North


  Countries that belong to the First and Second World categories after the Cold War Era
• Global South


  Countries that belong to the Third World category after the Cold War Era, also referred to as Less Developed Countries (LDCs) such as developing, underdeveloped, and undeveloped countries
• Characteristics of Global North States


  • Developed economies, attractive to investors, highly industrialized, low poverty rate, low birth rates, technologically advanced, low infant mortality rate, high level of public education and health services, good infrastructure, stable institutions guaranteeing democracy, rule of law, human rights, respect for and protection of minorities, less corruption
• Characteristics of Global South States


  • Large inequalities in living standards, low Gross Domestic Product (GDP), high population, economies that rely on imports from the Global North States, rural population that depends on agriculture for subsistence, lack of modern technology, inadequate transportation, high infant mortality rate
• Many of Global South States are former colonies of countries which are now part of the Global North
• After gaining independence from their colonizers, Global South States became source of raw materials for their former colonizers
• Dependency Theory


  Theory that suggests industrialized countries exploit underdeveloped/developing countries through economic and political neoliberalism which perpetuate the latter's pre-industrial or semi-industrial status
• Theotonio Dos Santos: 'Dependence is "a situation in which the economy of certain countries is conditioned by the development and expansion of another economy to which the former is subjected"'
• Sukarno: 'Colonialism is not yet dead'
• Modern colonialism can arise in the form of economic control, intellectual control, or actual physical control
• Lenin argued that the strength of capitalism is dependent on the creation of new markets through imperialism, Colonialism and imperialism set stage for the growth of capitalism
• According to Claudio (2014) - The existence of the North and South divide shows the incompleteness of globalization, as there is uneven development in the process of globalization
• Causes of uneven development between Global North and Global South

  • International financial institutions (IFIs) like the World Bank, the International Monetary Fund (IMF), and the World Trade Organization (WTO) saddle developing economies with debt while making them more vulnerable to global economic shocks
  • Forced liberalization and marketization of developing economies through the IFIs
  • Economic norms that the developed world applies to itself are never the same as those it imposed on the developing world such as demanding the developing economies to cut down government spending (austerity measures) and raise interest rates in times of economic crises, which can result in the shrinking of the public sector and reduction in social services like healthcare
  • Governments of the North, though having the ability to regulate polluting companies, do so inadequately in order to protect their country's economic interests, while the effects of global environmental problems are more felt by Global South countries
  • The effect of the introduction of development has to be seen not only in terms of social economic impact, but also, in relation to the cultural meaning and practices they upset or modify
• As a solution to the uneven development, Walden Bello suggests that development in the Global South must begin by drawing most of a country's financial resources for development from within rather than becoming dependent on foreign investments and foreign financial markets
• North and South Divide


  Categorization of states between North and South
• Beginning of the categorization of states between North and South can be traced back to

  Cold War Era
• Cold War


  • Geopolitical, ideological, and economic struggle between two world superpowers: United States (US) and the Union of Soviet Socialist Republic (USSR)
  • Occurred in 1947
• Categorization of states during Cold War

  • Non-communist, high income, and developed countries (US, Canada, Japan, South Korea) - First World States
  • Communist countries - Second World States
  • Countries non-aligned with NATO or Communist Block - Third World States
• Third World States


  Poor countries, former colonies of the West
• After the Cold War Era

  • Most countries in First and Second World categories were classified as part of the Global North
  • Countries in Third World category are now part of the Global South
• Less Developed Countries (LDCs)


  Developing, underdeveloped, and undeveloped countries that are part of the Global South
• LDCs by region


  • Developing countries mostly found in South-East Asia
  • Underdeveloped countries mostly located in South America
  • Undeveloped countries are the poorest in South Africa
• North and South Divide


  Categorization of states between North and South that can be traced back to the Cold War Era
• Cold War


  • Geopolitical, ideological, and economic struggle between two world superpowers (US and USSR) in 1947
  • States categorized based on their alignment between USSR and America
• Categories of states during Cold War

  • First World States (non-communist, high income, developed countries like US, Canada, Japan, South Korea)
  • Second World States (communist countries)
  • Third World States (non-aligned with NATO or Communist Block, poor, former colonies of the West)
• Global North


  Countries that belong to the First and Second World categories after the Cold War Era
• Global South


  Countries that belong to the Third World category after the Cold War Era, also referred to as Less Developed Countries (LDCs), developing, underdeveloped, and undeveloped countries
• Characteristics of Global North States

  • Developed economies
  • Attractive to investors
  • Highly industrialized
  • Low poverty rate
  • Low birth rates
  • Technologically advanced
  • Low infant mortality rate
  • High level of public education and health services
  • Good infrastructure
  • Stable institutions guaranteeing democracy, rule of law, human rights, respect for minorities
  • Less corruption
• Characteristics of Global South States

  • Large inequalities in living standards
  • Low Gross Domestic Product (GDP)
  • High population
  • Economies rely on imports from Global North States
  • Rural population depends on agriculture for subsistence
  • Lack of modern technology
  • Inadequate transportation
  • High infant mortality rate
• Many Global South States are former colonies of countries which are now part of the Global North
• Global South States are poorer due to their long history of economic colonialism
• Dependency Theory


  Theory that suggests industrialized countries exploit underdeveloped/developing countries through economic and political neoliberalism which perpetuate the latter's pre-industrial or semi-industrial status
• Theotonio Dos Santos: 'Dependence is "a situation in which the economy of certain countries is conditioned by the development and expansion of another economy to which the former is subjected"'
• Sukarno: 'Colonialism is not yet dead'
• Modern colonialism can arise in the form of economic control, intellectual control, or actual physical control
• Lenin argued that the strength of capitalism is dependent on the creation of new markets through imperialism, Colonialism and imperialism set stage for the growth of capitalism