Global Divide
The Contemporary World
Global Divide: The North and South
Global Divide
Refers to the disparity in income
and living conditions between the
industrialized Global North and the
developing Global South.
North
comprised of all First World
countries and most Second World
countries.
developed parts of Asia
South
comprised of Third World
countries.
developing parts of Asia
This categorization ignores the geographic position of countries with some
countries in the southern hemisphere such as Australia and New Zealand
being labeled as part of the North even though they are located in the
South.
Contemporary Global Divide
Global Divide has been
closely linked with the
concept of development.
In the past, development
was equated with income
and growth.
For instance, the World Bank ranks countries
by their average income per person known as
gross domestic product (GDP) to compare
their level of development.
> This measure of income is a useful way for
comparing levels of development.
> It provides the widely used measure of
how countries are improving (or
deteriorating) based on this development
aspect.
However, to determine
how many people
benefit from economic
growth, one must look at
the other factors other
than income and growth,
which is income
distribution.
> Is income divided equally
among the population? If
not then there is income
inequality.
Income inequality
a measure of how the wealth
in the economy is distributed
among the population.
Important in part because it
tells about the conditions in
the society: the privileged
wealthy lead luxurious lives
while some live in poverty.
A constraint of development.
CROSSWORD PUZZLE
CROSSWORD PUZZLE
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CROSSWORD PUZZLE
HUMAN DEVELOPMENT INDEX
To broaden the development debate beyond income
poverty, the Human Development Report introduced the
HDI.
This index measures countries achievements in terms of:
a long and healthy life, measured by life expectancy at
birth;
knowledge, measured by adult literacy rate and the
combined primary, secondary, and tertiary gross
enrollment ratio; and
a decent standard of living, measured by GDP per capita in
purchasing power parity (PPP) (in US dollars)
The idea that development is more than economic growth or an
increase in income per person began to gain currency in the 1960s.
Growth has now been seen as an inadequate measure of
development. It is because, even though rising income may improve
the ability of individuals to meet basic physical needs, it does not
contribute to development in its more sophisticated and
multidimensional aspects.
While income is needed for development, there must likewise be
enhancements in living standards, indicated in improvements in
literacy, and mortality rates.
Competing Perspective on Global
Divide
1.
Modernization Theory
2. Dependency Theory
3. Neoliberalism Theory
Modernization Theory
argues that societies
undergo stages of growth
and move from being a
traditional society to a
modern one
holds that poor societies
remain poor because they
cling to traditional
attitudes, technologies,
and institutions
Walt Rostow’s Evolutionary Ladder of
Development
5. The age of high mass
consumption
4. The drive to maturity:
economic and cultural factors lead
to increased prosperity for all
3. Take-off:
high economic growth and
investment in infrastructure begins
2. Pre-conditions for take-off:
The West assists development through aid
and industrial investment
1. Traditional Society:
Poverty, primary production and
traditional values
Dependency Theory
"ENDO" Globalization and the South
“End all forms of contractualization”
criticizes that Western liberal
capitalism leads in
exploitation.
holds that poor societies are
not born but made, as local
economies are distorted in
that they serve mostly the
needs of advanced countries
instead of local populations
“Endo”, or end of contract, exists when
employers hire workers and then
terminate their contracts after five
months to avoid regularizing them.
Endo is a labor flexibilization practice
designed to attract investors through
cheap labor costs.
"Why have poor nations been
unable to resist exploitation?
These nations have been
dominated by rich nations
through neocolonial practices,
which include aid dependency as
well as the influence of
multinational corporations on
economic policies
Another theory that’s related to
dependency theory is World-System
Theory, which
argues that countries are
poor because of their
position in the global
capitalist system
holds that one can’t
understand the fate of a
single country, without
understanding how it fits into
the overall system
World-System Theory
a world economic system in
which some countries
benefit while others are
exploited.
It suggests that wealthy
countries benefit from
other countries and exploit
those citizens.
THREE CATEGORIES
CORE COUNTRIES - dominant
capitalist countries that exploit
peripheral countries for labor and
raw materials
SEMI-PERIPHERAL COUNTRIES share characteristics of both core
and peripheral countries
PERIPHERAL
COUNTRIES
dependent on core countries for
capital and have underdeveloped
industry
World-System Theory
Unless this system
changes, one could
never expect the
problem on global
divide to be addressed
fully
Neoliberal Theory
Just as modernization theory
was losing its prominence in
academic circles, many
countries were rediscovering
the ideals of free trade and
free markets.
The intellectual basis for
neoliberal theory comes from
neoclassical economics, which
combines arguments
supportive of free market.
Neo-liberal scholars suggest little
role for the government in
managing the economy
They advocate reduced government
spending and encourage a free
market to attract foreign
investment and technology.
Neo-liberal policy prescriptions:
(1) privatization
(2) deregulation, and
(3) market liberalization
Imports in Local Stores
Because of market liberalization, it is
common to find imported goods in
Philippine stores. Consumers
primarily benefit from trade because
they get to enjoy a greater variety of
goods at a lower price. But as
imports compete with locally
produced goods, Filipino enterprises
are hard-pressed in face of stiff
competition because of market
openness.
Globalization and the Global South
Scholars point to the impact of globalization on global divide:
– According to Walden Bello, the new globalizing structure
does not erase the disparity between the rich and poor nations
– Income gap continues to grow between and within
countries, even within the rich countries themselves
Composing roughly 85% of world's population, the Global
South contributes only around 25%
Development: former Southern states (e.g. BRICS) are now
important economic actors, Northern states continue to play
dominant roles
Southern states now challenge that economic “hegemony” of
the Global North
– China supports Brazil and India in opposing against proNorth policies like agricultural protectionism and liberalization
in trade and services
Aside from states, the global civil society also challenges
“neo-liberal” globalization
Apart from Southern states, there are also other actors
helping to address the global divide
The global civil society expresses itself through numerous
demands, demonstrations, movements and networks
Thank You.....