1. THE GLOBAL SOUTH

2. The Global South Who is the GS? Global Institutions & the GS Development Hurdles GS Economic Development Tactics

3. 5 CATEGORIES OF GS COUNTRIES Who is the Global South?

4. 5 Categories of GS Countries 1. Emerging Markets  Who are they? Who are they?  Growth  Greater % of people =middle class (>$10/day) http://www.economist.com/world/international/displaystory.cf m?story_id=15172941

5. 5 Categories of GS Countries 2. Countries in Transition (CITs)Countries in Transition  Central and Eastern European (East bloc Soviet satellites)  Former Soviet Republics (FSRs)  Growth rates differ

6. 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

7. 5 Categories of GS Countries 4. Least Developed Countries (LLDCs)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 AfricaAfrica  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 Cotton

8. Global Institutions & the GS

9. MNCs IGOs  IMF  WB  GATT  WTO  OECD OECD  G8  now G20G20 NGOs  Representation by GS  Representation on behalf of GS

10. Development Hurdles

11. Colonization; Neocolonialism  Primary v. manufactured goods  Price volatility  Lack of national unity Accrued debts in 1960s and 1970s  Lack autonomy over debt management YearBillion People% Extreme Poverty <$1.25/day 19811.94 BP52% 20081.29 BP22% 20111.1 BP15% http://economy.money.cnn.com/2012/03/01/650-million-escape-extreme-poverty-thanks-china/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.htmhttp://www.un.org/News/Press/docs/2011/gaef3313.doc.htm

12. Development Hurdles Promoting sustainable development  Sustainable development expectations Currency instability Market isolation; lack of market integration  Need more trade liberalization Political stability Infrastructure & institutions Gender equality Corruption Economic sanctions

13. Development Hurdles Reliance on GN  Foreign Aid  Technology  FDI  Employment Remittances China, India, Mexico, Philippines Conflicting interests with GN  Self-interested actors

14. 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 http://en.mercopress.com/2010/03/27/gap-between-rich-and-poor-in-latinamerica-is-largest-in-the-world-says-un

15. Income Inequality http://en.wikipedia.org/wiki/File:Gini_Coefficient_World_CIA_Report_2009.png

16. Development Hurdles Income Inequality (cont.)  Lower income inequality = higher growth rates 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

17. INTERNAL & EXTERNAL POLICY STRATEGIES GS Development Tactics

18. Internal Policy Strategies Import substitution Nationalization of industries Establishing cartels Protectionism

19. GS Development Tactics External Policy Strategies Regional 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

20. Recap

21. The Global South Who is the GS? Global Institutions & the GS Development Hurdles GS Economic Development Tactics