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Chapter 6 - The Global Divide E-Module
Chapter 6 - The Global Divide E-Module
“Where globalization means, as it so often does, that the rich and powerful now have new
means to further enrich and empower themselves at the cost of the poorer and weaker, we
have a responsibility to protest in the name of universal freedom.” –Nelson Mandela
LEARNING OBJECTIVES
ACTIVITY
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The Contemporary World 3
INTRODUCTION
ABSTRACTION
The concept of ‘global divide’ has been closely linked with the concept of
development.
Whether a state belongs to the North or South largely depends on its
level of development. Oftentimes, development is equated with growth
of the economy over a certain period (Quiñanola, & Fernandez, n.d.).
Economic growth is defined as an increase in the nation's capacity to
produce goods and services. One can get the economic growth of a
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country by comparing its GDP at present with the GDP last year
(Fernandez et al., 2018).
Increase in GDP is caused by increase in national productivity. It was
generally assumed that the growth of national wealth would trickle down
to the poorest segments of society. In other words, development,
viewed using the GDP per capita approach, was about following the
path of the rich industrialized states (Quiñanola, & Fernandez, n.d.).
However, to determine how many people benefit from economic growth, one
must look at the distribution of income. Income inequality is a measure of how
the wealth in the economy is distributed among the population (Quiñanola, &
Fernandez, n.d.).
Income inequality is important in part because it tells about the
conditions in the society – the privileged wealthy lead luxurious lives
while some people live in poverty (Quiñanola, & Fernandez, n.d.).
Income inequality is also a constraint on development. It means that
growth often comes from and benefits mostly the richer segment of the
economy and is less likely to translate into poverty reduction by trickling
down to the poor. Poverty is always eliminated more quickly when GDP
growth is combined with improvements (or greater equality) in the
distribution of income (Quiñanola, & Fernandez, n.d.).
The measures range from 0 to 1. An HDI between 0.8 and 1 is high and between 0.6 and 0.4 is low (“Development”, n.d).
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Some of the characteristics of the Global North include: it is much richer, has
surplus food and shelter, and a robust educational system. It has been
estimated that a majority of the manufacturing industries are located in the
North (“Maps of World”, n.d.). The “Global North" is constituted of countries like,
USA, Canada, Western Europe, developed parts of Asia, Australia, and New
Zealand which are wealthy, industrialized, and democratic capitalist
(Fernandez et al., 2018).
Meanwhile, some of the features of the South are political instability, lack of
advanced technology, food and shelter issues, and foreign exchange earnings
depending on primary product exports, to name a few (“Maps of World”, n.d.).
The Global South is constituted by regions in Asia, Africa, Middle East and
South, and Latin America which are all developing nations (Fernandez et al.,
2018).
Source: https://www.mapsofworld.com/answers/regions/division-global-north-global-south/#
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C. CONTRASTS IN DEVELOPMENT
Source: https://www.bbc.co.uk/bitesize/guides/zvp39j6/revision/1
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(“Development”, n.d.).
Until recently, China was quiet in its international dealings. In the Doha Round
negotiations, China sided with countries such as Brazil and India to oppose an
agreement that excessively favored Northern countries on issues such as
agricultural protectionism and liberalization in trade and services (Quiñanola, &
Fernandez, n.d.).
Furthermore, China and the other BRICS countries (Brazil, Russia, India,
China, and South Africa) want to renegotiate (not destroy) international
economic integration and trade. They want to reform agencies and processes
such as the World Trade Organization (WTO) so that Southern interests are
integrated into the mainstream. The opening of these still underdeveloped
economies needs to be done gradually. Their efforts are part of Southern
initiatives to make the global economic system sensitive and more responsive
to the needs of the Global South (Quiñanola, & Fernandez, n.d.).
The countries of the Global South are dubbed as less developing and struggling
economies. They can be described as products of the western colonization
and an offshoot of the western industrialization. It is believed that such
countries are the results of the opposing ideologies of the highly
developed (capitalism) and developed economies (communism) of the
world (Fernandez et al., 2018).
The history of the North-South divide dates back to the Cold War era. China
and the Soviet Union formed the East (communism) while the United States
and its allies were the West (capitalism) (“Maps of World”, n.d.). The highly
developed economies (capitalist) have the access of the productive factors
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of the Global South (less developing nations). On the one hand, the developed
economies (communist) have the upper hand of the most of the raw materials
for manufacturing. Both are highly advanced in the development of industrial
resources, financial resources, the military, and foreign political powers
(Fernandez et al., 2018).
Highly Developed
Developed Economies
Economies
Communist
Capitalist
Communist Faction
Allied Faction
Second World
First World
Less developing
economies
Third World
After the fall of the Soviet Union in 1991, the term “Third World” lost its true
meaning as originally intended. When we refer to a country as part of the Third
World now, it automatically means that it faces some form of challenges which
place it in the tier of developing countries which may face a plethora of
problems hindering their development and placement into the higher tiers of
development. (Usman, 2017).
Over time, some Second World Countries became a part of the First World and
some became a part of the Third World. Thus, as per the new classification,
the First World was classified as North while the Third World as South (“Maps
of World”, n.d.).
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The term Global South is a dynamic term that does not consider geographic
locations, meaning that, members of this grouping who reach a certain
development threshold may cross over to the Global North. Even in the Global
North, some regions within the developed countries live in conditions that
resemble the conditions of the Global South (Otieno, 2019).
Majority of actors in international relations favor the use of the term "Global
South" as compared to other terms like "Least Developed" or "Developing
Countries." This school of thought aims at correcting the negative impact of
contemporary global capitalism as well as colonial and neo-imperial histories
that, as most believe, led to some level of poverty and inequality in the Global
South (Otieno, 2019).
The Global South countries became the haven for criminality, prostitution,
environmental degradations, graft and corruption, illegal drugs, and terrorism
cells. This phenomenon of economic stagnation creates influx of migration,
dependence to foreign aids, and ballooning foreign debts to those rich
countries that can offer them their remedy for economic development.
Likewise, the ownership and little access to capital makes the Global South
countries to cling to their former colonizers whom offers trades and
development at a lesser advantage (Fernandez et al., 2018).
Global capitalism may have succeeded in bringing about growth and prosperity
in many countries, but this is not true to all (Quiñanola, & Fernandez, n.d.). This
economic situation forces every Global South economy to do whatever it takes
to survive. The economic conditions led them to find means by migrating to
other rich countries even with low wage rates and a prevalence of human rights
abuses. These countries somehow, do resolve to make alliances, establish
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military treaties, and even resort to borrowings at the expense of their raw
materials. Their economic conditions, political, social, and cultural being was
threatened by such conditionality (Fernandez et al., 2018).
The following are the major assumptions on the effects of Global South’s
economic dependence to the Global North (Fernandez et al., 2018):
The following are suggested solutions for the Global South’s economic growth
mechanisms (Fernandez et al., 2018):
The following are theories that explain the economic disparity between and
within states as discussed by Quiñanola and Fernandez (n.d.):
Modernization Dependency
Theory Theory
Competing Perspectives on
Global Divide
1. Modernization Theory
Proponents of this theory argue that societies undergo stages
of growth and move from being a traditional society to a modern
one. Poverty is the primordial condition of humanity. All societies
were once poor. But to overcome it, societies must advance
from traditionalism to modernization.
Poor societies remain poor because they cling to traditional
attitudes, technologies, and institutions. In contrast, in modern
societies, the rise of industrial capitalism brings about modern
attitudes (such as the drive to experiment and achieve),
technologies (machinery and electronics), and institutions
(markets and governments) to manage all this.
Given enough time, such modernization will occur everywhere.
Poor countries must follow the path of advanced countries to
development. Modernization scholar Rostow (1999) argues that
poor countries slowly proceed to build the basis for modern
economies. Once the key foundations of modernity are in place,
these countries "take off" toward prosperity and a modern, high
consumption consumer economy. Although this process will
take time to work in most traditional societies, according to him,
eventually global capitalism and its modern corporations will
carry these modern ideas, technological innovations, and
efficient institutions everywhere.
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Source: https://developmenthinking.wordpress.com/2013/08/16/critisms-of-rostows-five-stages-of-growth/
Source: https://www.cleanpng.com/png-rostows-stages-of-growth-development-theory-econom-6251421
2. Dependency Theory
It argues that the root cause of poverty and underdevelopment
is imperialism as well as the dependency of poor nations on the
rich countries. It believed that poor societies are not born but
made. They are not "undeveloped" but "underdeveloped"
because of capitalist penetration.
It is a counterargument to the modernization theory, which
prescribes that developing countries must follow the path of the
developed nations. According to dependency scholars,
industrial capitalism brings exploitation. They argue that there is
an unequal exchange in capitalism. The local economies are
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It can be implied that the two aforementioned theories differ in their prescriptions:
3. Neo-liberal Theory
The intellectual basis for neo-liberal theory comes from neo-
classical economics, which combines arguments supportive of
free-market with a scientifically inclined school of economics.
Arguments are premised on the assumptions that markets are
perfectly competitive and that they move towards equilibrium.
Neo-liberalism suggests a little role for the state in managing the
economy.
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• It is a wealthy, industrialized nation that controls and benefits from the global
economy. Core nations have complex infrastructures, strong governments,
cosmopolitan cities, and diverse economies.
• They control the global market and use it to their advantage by exploiting
Core Nation periphery nations for their cheap labor and natural resources. They also have
strong militaries and international partnerships.
• Core countries include the United States, Canada, the United Kingdom, much
of Western and Northern Europe, Australia, and Japan.
• It exhibits characteristics of both core and periphery nations. These nations are
generally industrializing and could be elevated to core nation status with
Semi- development.
periphery • Semi-periphery nations include China, India, Mexico, Brazil, South Africa, and
Nation Israel.
Source: https://www.coursehero.com/sg/introduction-to-sociology/world-systems-theory/
Source: https://www.coursehero.com/sg/introduction-to-sociology/world-systems-theory/
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The two aforementioned theories disagree on the effects of the key actors (e.g.
multinational corporations, international financial institutions, global media, and
technology and trade) in the modern world (Quiñanola and Fernandez, n.d.).
In the neo-liberal view, the success of East In the world system view, the core nations
Asian tigers suggests that export economies allowed these countries into the semi-
and free trade bring growth and prosperity. periphery to facilitate capitalist expansion
into a new peripheral market. Many view the
structural adjustment programs by the IMF
as examples of how aid is being used for
promoting the neo-liberal policies.
ASSESSMENT
1. Discuss the concept of Global Divide and differentiate the Global North and the
Global South.
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2. Which among the competing theories of Global Divide merit your favor? Justify
your stance.
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REFERENCES