North-South Divide (Analysis)

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The North-South Divide The Realities of a Complex Problem

Transcript of North-South Divide (Analysis)

Page 1: North-South Divide (Analysis)

The North-South DivideThe Realities of a Complex Problem

Page 2: North-South Divide (Analysis)

On Developing Countries

• Common problems of developing countries:

• Lackluster economic growth.

• Pervasive poverty.

• Weak institutions of governance.

• Societal divides.

• The question is, to what extent should the international system be held responsible?

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The Burning Questions• Are developing countries disadvantaged by the

structure of the current international system?

• Is the system “biased” in favor of the developing world?

• Are the problems experienced by developing countries of their own doing?

• To what extent should the developed world view this as their problem also?

• Have international institutions made the problem better or worse?

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Facts• According to the 1999 UNDP Report (Patterns of

Global Inequality), the fifth of the world’s population living in the highest-income countries have:

• 86 percent of world GDP

• 82 percent of world export markets

• 68 percent of foreign direct investments

• In contrast, the bottom half have just 1 percent of each.

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Unequal World

26%

18%27%

29%Low IncomeLower Middle IncomeUpper Middle IncomeHigh Income

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Unequal World

26%

18%27%

29%Low IncomeLower Middle IncomeUpper Middle IncomeHigh Income

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Addressing the Divide

• Four alternatives to address the North-South Divide:

• Do nothing.

• Change the system.

• Self-help.

• Bi-lateral assistance.

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