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GLOBAL DIVIDES By: Lenn Marie D.

Balalilje
“DOUBLE DIVIDE”
It is caused by political power, economic dependency, and
importation/exportation of resources.
Poor countries are dependent on more powerful countries
due to debt, foreign aid and domination by the more
powerful governments using economic and cultural
influences.
Gaps within nation are driven by the governmental
corruption, nepotism and bureaucracy.
“DOUBLE DIVIDE”
Modernization theorist contend that low income countries
need modern ideas, technology, and institutions.
Dependency theorist and world system theorist contend
that poor countries face exploitation, domination, and
economic distortions because of their dependence on rich
countries.
Continued wage gaps between nations have led to
outsourcing, labor migration, and immigration. The most
rapid growing income inequalities are now those with
nations between new elites and the excluded and
marginalized classes.
DEPENDENCY THEORY
Is an approach to understanding
economic underdevelopment that
emphasizes the putative constraints
imposed by the global political and
economic order. First proposed in the late
1950s by the Argentine economist and
statesman Raúl Prebisch, dependency
theory gained prominence in the 1960s
and ’70s.
DEPENDENCY THEORY
It is a notion that the resources
flow from a ‘periphery’ of poor
and underdeveloped states to a
‘core’ of wealthy states enriching
the core at the expense of
periphery.
DEPENDENCY THEORY
A. THE NORTH-SOUTH DIVIDE
Richer countries are
almost all located in the
Northern Hemisphere,
with the exception of
Australia and New
Zealand.

Poorer countries are


mostly located in
tropical regions and in
the Southern
Hemisphere.

CLASSIFYING
COUNTRIES
The Brandt Line was developed as a way of showing the how
the world was geographically split into relatively richer and
poorer nations.

The Brandt Line is a visual depiction of the North-South


divide between their economies, based on GDP per capita,
proposed by Willy Brandt in the 1980s.
A. THE NORTH-SOUTH DIVIDE
The gap between the ‘North’ and ‘South’ Despite very
significant development gains globally which have raised
many millions of people out of absolute poverty, there is
substantial evidence that inequality between the world’s
richest and poorest countries is widening.
In 1820 western Europe's per capita income was three times
bigger than Africa’s but by 2000 it was thirteen times as big.
In 2013, Oxfam reported that the richest 85 people in the
world owned the same amount of wealth as the poorest half
of the world’s population.
A. THE NORTH-SOUTH DIVIDE
Today the world is much more complex than the Brandt Line
depicts as many poorer countries have experienced
significant economic and social development.
Is mostly considered as a socioeconomic and political divide
Socioeconomic: Relating to or concerned with the
interaction of social and economic factors
A. THE NORTH-SOUTH DIVIDE

Recently it has been named as the “Development gap”


As it places greater emphasis on closing the evident gap
between rich (more economically developed countries) and
poor (less economically developed countries)
A. THE NORTH-SOUTH DIVIDE
A good measure of on which side of the gap a country is
located is the Human Development Index. It is created by the
UN to measure a country’s level development.
A score of 0.9 out of 1.o is considered high level of
development. It measures country’s economic indicators
development, social indicator development and demographic
indicators of development.
A. THE NORTH-SOUTH DIVIDE

Very Dark Blue: 0.800–1.000 (very high)


Dark Blue: 0.700–0.799 (high)
Blue: 0.555–0.699 (medium)
Light Blue: 0.350–0.554 (low)
Gray: Data unavailable
REGIONALISM
REGIONALISM
Regionalism refers to formal economic cooperation and
economic arrangements of a group of countries aimed at
facilitating or enhancing regional integration.
Regionalism is a trend worldwide that has originated in
the aftermath of the World War II. Since then,
regionalism has gradually evolved through two distinct
periods, the Cold War period and the post-Cold War
period.
REGIONALISM
The Cold War period was marked by bipolar
confrontation and the building of regional blocs.
The post-Cold War period produced an international
system characterized by substantial shifts in global
power distribution and the obviation of the need to
build regional blocs for political purposes.
REGIONALISM
Regionalism is often seen as political and economic
phenomenon.
It can also be related to identities, ethics, religion,
ecological sustainability and health.
Regionalism is also a process, and must be treated as
an “emergent, socially constituted phenomenon”
REGIONALISM
Regions are a group of countries located in the same
geographically specified area.
Regionalization refers to regional concentration of
economic flows.
Regionalism is a political process characterized by
economic policy cooperation and coordination among
countries.
REGIONALISM
Regionalism is understood foremost in terms of economics.
Many regions are officially and formally recognized as
economic alliances with the goal of economic integration, or
creating a cluster of countries whose economies are co-
dependent.
Basically, you create a defined trading bloc that can interact
with the world as a unit.
REGIONALISM
Countries with Regional Integration Agreements that want to
create even stronger economic relationships may consider
creating a Free Trade Area, or a zone with as few trade barriers
as possible.
One of the most notable of these is the North American Free
Trade Zone or NAFTA, which includes the USA, Canada, and
Mexico. According to the agreement, trade between these three
countries is meant to be as open as possible.
This includes eliminating tariffs and other forms of restrictions
between the countries of North America.
World map in free trade zones.
REGIONALISM
Countries can even form an Economic and Monetary
Union, which is one of the highest forms of regionalism in
the world today.
The best example of this is the European Union. Countries in
the EU are so economically integrated that they share customs
borders, a single market, and even recognize a single, shared
currency called the euro.
World map that share custom borders.
REGIONALISM
Also, countries within a region tend to support each other's
social and political agendas, which can come in handy. This is
particularly true of nations with smaller economies.
In the Cold War, African countries organized into the
Organization of African Unity, which was replaced in the
early 2000s with the African Union. More than just an
economic integration, the mission of both bodies was to
ensure the sovereignty and security of all its members in a
world of intense economic (and often colonial) competition.
REGIONALISM
Regionalism is a continuously changing phenomenon,
and its dynamicity is reflected in the way it relates to the
broader process of globalization as well as in the way it
evolves in concert with changing domestic economic and
political conditions.
Unlike old regionalism, which was oriented more toward
interactions between states, new regionalism involved a
variety of state and nonstate actors involved in a process
of transformation of the world order.
THE END Thank You!

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