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