1. Chapter 5: The Global South in a World of Powers1

2. Some Definitions Global South: Less-developed countries
Global North: Wealthy industrialized countries
Third World: Cold War term for Global South
First World: Cold War term for Global North democracies
Second World: Cold War term for Soviet Union and other communist countries
Fourth World: Indigenous peoples
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3. Global South 85% of the World’s People 20% of the world’s wealth 3
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4. The Global North, Global South (and Global East)
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5. The Great North–South Divide in Wealth and Population
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6. Imperialism
Late 1400s: Europe used transportation and military technology to conquer colonies
Mercantilism: Trade should increase state wealth; increase exports, decrease imports; used to take advantage of colonies
1880s: Final burst colonizes most of Africa
China divided into spheres of influence
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7. European Control of the Globe
1800 One-third
1915
Four-fifths
1878
Two-thirds
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8. Global Imperialism 1914
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9. Economic Explanations for Imperialism
Marxism–Leninism: Capitalists need overseas outlets for surplus capital
Liberalism: Result of maladjustments within the capitalist system
World-system theory: Capitalist core and dependent periphery
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10. Political Explanations for Imperialism
Hobson: Competition for power and prestige among European states
Realpolitik
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11. Imperialism Declines: 20th Century
Self-determination: Woodrow Wilson, Treaty of Versailles
League of Nations mandates
World War II saps strength of colonial powers, demonstrates that colonial powers can be defeated
Decolonization from 1947–1960s
Neocolonialism: Continued domination of the Global South by the Global North through economic means
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12. Global North Democratic Technologically inventive Wealthy
Aging populations
Low population growth
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13. Global South Most states: 80 percent global population
Not democratic
Low technology use
Poor
Rapid population growth
Overstrained social and ecological systems
80 percent global population
15 percent global wealth
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14. Poverty
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15. How Do We Measure Poverty?
Per capita GDP
Purchasing Power Parity
Basic Human Needs Approach
Human Development Index (HDI)
Inequality
Gini Coefficient
Gender Development Index
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16. Gini Coefficients of Various Countries
Highest (most inequality)
Lowest (least inequality)
Selected Other Countries
Namibia, 70.7
Denmark, 24.7
Mexico, 54.0
Lesotho, 63.2
Japan, 24.9
China, 44.7
Botswana, 63.0
Sweden, 25.0
United States, 40.8
Sierra Leone, 62.9
Belgium, 25.0
United Kingdom, 36.0
Central African Rep., 61.3
Czech Republic, 25.4
Australia, 35.2
Swaziland, 60.9
Norway, 25.8
Canada, 33.1
Guatemala, 59.9
Slovakia, 25.8
India, 32.5
Brazil, 59.3
Bosnia/Herzegovina, 26.2
Russia, 31.0
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17. UN Millennium Development Goals
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18. The Problem of Late Development
First Mover Advantages
Economies of scale
Network effects
Investment funds
Declining Terms of Trade
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19. Strategies for Development Today
Import Substitution
State socialism
Export led growth
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20. The Asian Tigers
Korea, Taiwan, Singapore, and Hong Kong used export led growth to move from the world’s poorest countries to the world’s richest in half a century
“Go where the money is.”
Low cost production based on abundant cheap labor
Use profits and expertise gained to move up the food chain
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21. World Bank and Foreign Aid
1968–1981: Focus on basic human needs approach
1980s and 1990s: Focus on structural adjustment
Recently, focus on good governance
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22. Shortcomings of International Aid
Goes primarily to governments
Multiplier effect of aid
Tied aid
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23. Multilateral Aid and the World Bank
Structure of the World Bank:
In 2004, the U.S. had 16.4 percent of the votes, followed by Japan with 7.9 percent, Germany with 4.5 percent and France and Britain with 4.3 percent each. 163 other members have less than one percent of the vote.
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24. Some Critiques of the World Bank
The voting procedure disenfranchises the poor countries that have the most at stake
Lending may leave the recipient with debts, without much benefit
Conditionality undermines the sovereignty of recipient governments
Conditions often require harsh economic policies
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25. Bilateral Foreign Aid
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26. Modernization Theory
Reasons for underdevelopment are internal deficiencies
Global South must:
Create conditions for efficient production, free enterprise, and free trade
Attract investment capital from the Global North
Pass through stages of development and reach “take off”
Historical conditions that allowed the North to do this in the 19th century do not exist now
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27. Dependency Theory Reasons for underdevelopment are external
Capitalist world economy is based on a division of labor between the industrialized core and underdeveloped periphery
Global North keeps Global South poor through:
Terms of trade and finance
Exploitation by multinational corporations
Dualism—rural impoverished sector and urban modernizing sector
Has trouble explaining the NICs
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28. The Global South’s Search for Power
Nonaligned Movement
Failed states
External military intervention
Arms acquisitions
Preparing for natural disasters
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29. The Global South’s Search for Prosperity (1 of 3)
Import-substitution industrialization
Export-led industrialization
New International Economic Order (1974)
Pushed by Group of 77
Called for changes in the international economic system that would benefit development in the Global South and redistribute some global wealth to it
Most were rejected by the Global North
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30. The Global South’s Search for Prosperity (2 of 3)
Regional trade regimes:
NAFTA: North American Free Trade Agreement
Mercosur: Argentina, Brazil, Paraguay, Uruguay
APEC: Asia-Pacific Economic Cooperation
ASEAN: Association of Southeast Asian Nations
SADC: Southern African Development Community
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31. The Global South’s Search for Prosperity (3 of 3)
Trade, Aid, Investment, Debt Relief
Bilateral aid: official development assistance
Multilateral aid: World Bank
Conditionality
Foreign direct investment (FDI)
Multinational corporations (MNCs)
Heavily indebted poor countries (HIPCs)
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32. The Washington Consensus
Free market approach is optimal
Other approaches:
Developmental state
The Post-Communist Experience
Emerging Consensus:
Embraces both the developmental state and the free market
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33. Two Rankings of Global North Countries’ Aid to the Global South
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34. Trends in Capital Investments in the Global South
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35. Clooney’s Mission: Never Giving Up on Darfur
Click the icon to open the movie
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36. Questions for Discussion
Do you think that the UN should make use of celebrities more often to help it with its mission of overcoming poverty in the Global South?
George Clooney believes that there is hope in some of the countries that he has visited. Do you see a change coming soon? Why or why not?
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37. Questions for Critical Thinking (1 of 2)
What factors explain European imperialism?
What legacies of colonialism remain and how have they shaped the gap between the Global North and the Global South?
What characteristics do newly industrialized economies share with the Global North?
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38. Questions for Critical Thinking (2 of 2)
What are the root causes of underdevelopment?
What changes in the international economic system would benefit the Global South?
What does the future likely hold for the Global South?
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39. Web Links African Studies Asian Studies Latin American Studies
Middle Eastern Studies
United Nations Conference on Trade and Development (UNCTAD)
United Nations Development Program (UNDP)
U.S. Agency for International Development (USAID)
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