Post on 01-Apr-2015
THE GLOBAL SOUTH
The Global South
Who is the GS?Global Institutions & the GSDevelopment HurdlesGS Economic Development Tactics
5 CATEGORIES OF
GS COUNTRIES
Who is the Global South?
5 Categories of GS Countries
1. Emerging Markets Who are they? Growth Greater % of people
=middle class(>$10/day)
http://www.economist.com/world/international/displaystory.cfm?story_id=15172941
5 Categories of GS Countries
2. Countries in Transition (CITs) Central and Eastern European (East bloc
Soviet satellites) Former Soviet Republics (FSRs) Growth rates differ
5 Categories of GS Countries
3. Quasi-states Not self-sufficient 138 of 194 states= 71% are quasi-states
http://geocurrents.info/economic-geography/a-global-northsouth-division-in-the-demic-framework
5 Categories of GS Countries
4. Least Developed Countries (LLDCs) US (GDP per capita=ranks 10th) at ~$46,500 Average GDP per capita of LLDCs at $750
Burundi , Congo, Somalia at $200 GDP per capital• http://en.wikipedia.org/wiki/List_of_countries_by_GDP_%28nominal%29_per_capita
5. Heavily Indebted Poor Countries (HIPCs) 40 countries, with 29 of those located in sub-Saharan
Africa Debt relief- HIPCs qualify
36 accepted full or partial relief ~$72 B Reliance on single cash crops
Cotton accounts for 46% of Mali’s exports
Global Institutions & the GS
Global Institutions & the GS
MNCsIGOs
IMF WB GATT WTO OECD G8 now G20
NGOs Representation by GS Representation on behalf of GS
Development Hurdles
Development Hurdles
Colonization; Neocolonialism Primary v. manufactured goods Price volatility Lack of national unity
Accrued debts in 1960s and 1970s Lack autonomy over debt management
Year Billion People % Extreme Poverty<$1.25/day
1981 1.94 BP 52%
2008 1.29 BP 22%
2011 1.1 BP 15%http://economy.money.cnn.com/2012/03/01/650-million-escape-extreme-poverty-thanks-china/ ; http://www.un.org/News/Press/docs/2011/gaef3313.doc.htm
Development Hurdles
Promoting sustainable development Sustainable development expectations
Currency instabilityMarket isolation; lack of market integration
Need more trade liberalizationPolitical stabilityInfrastructure & institutionsGender equalityCorruptionEconomic sanctions
Development Hurdles
Reliance on GN Foreign Aid Technology FDI
EmploymentRemittances
• China, India, Mexico, PhilippinesConflicting interests with GN
Self-interested actors
Development Hurdles
Income Inequality Development income equality
More developed greater equality Less developed lesser equality Map on next slide
Stark exception is US Brazil: 10% control 51% of wealth Mexico & Argentina: 10% control 42% of
wealth http://en.mercopress.com/2010/03/27/gap-between-rich-and-poor-in-latinamerica-is-largest-in-the-world-says-un
Income Inequality
http://en.wikipedia.org/wiki/File:Gini_Coefficient_World_CIA_Report_2009.png
Development Hurdles
Income Inequality (cont.)
Lower income inequality = higher growth rates Consequences of income inequality
Fewer people with resource access Economic opportunities tied to political
stability More susceptible to corruption Limited tax base to support government
http://www.worldbank.org/depweb/english/beyond/global/chapter5.html
INTERNAL & EXTERNAL POLICY STRATEGIES
GS Development Tactics
GS Development Tactics
Internal Policy StrategiesImport substitutionNationalization of industriesEstablishing cartelsProtectionism
GS Development Tactics
External Policy StrategiesRegional IGOs (ASEAN, Mercosur, SADC, SAARC, etc)International IGOs (Group of 77 {132}, NAM,
UNCTAD, etc)International pressure
Monetary reforms Trade reforms Development Economic sovereignty Economic aid
Recap
The Global South
Who is the GS?Global Institutions & the GSDevelopment HurdlesGS Economic Development Tactics