1. Classifying Countries The North-South Gap
Global Inequalities
Classifying Countries
The North-South Gap

2. Classifying Countries
Countries are classified in terms of social, economic, and political structures
The older system used during the Cold War used the terms:
First World (U.S., Canada, U.K.)
Second World (Communist States such as China, Russia)
Third, Fourth and even Fifth World (Afghanistan, Ethiopia)

3. Human Development Index (HDI)
It is a composite statistic of life expectancy, education, and income  used to rank countries into four tiers of human development
Countries are ranked on placed into one of four groups (each group has 49 countries*):
Very High Human Development
High Human Development
Medium Human Development
Low Human Development
Some countries are not ranked because of a lack of data

4. Human Development Index (HDI)
Starting in 2010, the Human Development Report the HDI now combines three dimensions:
A long and healthy life: Life expectancy at birth
Education index: Mean years of schooling and Expected years of schooling
A decent standard of living: Gross National Income per capita (Purchasing power parity US$)

5. Classifying Countries
The current system uses the following terms:
More Developed Countries (MDCs)
Richest of industrialized nations, high quality of life, good health care, high life expectancy, highly educated population
High gross domestic product (GDP) per capita
Less Developed Countries (LDCs)
A developing country, also called a less-developed country, is a nation with a lower standard of living, underdeveloped industrial base, and low Human Development Index (HDI) relative to other countries
There is a strong association between low income and high population growth
People have lower life expectancy, less education, and less money (income)

6. Classifying Countries
The current system uses the following terms:
Least Developed Countries (LLDCs)
Exhibits the lowest indicators of socioeconomic development, with the lowest Human Development Index ratings of all countries in the world
A country is classified as a Least Developed Country if it meets these criteria:
Extreme Poverty
Extremely poor human resource weaknesses (nutrition, health, education and adult literacy)
Economic vulnerability (based on instability of agricultural production, instability of exports of goods and services, economic importance of non-traditional activities, merchandise export concentration, handicap of economic smallness, and the percentage of population displaced by natural disasters)
Suffer conditions of ongoing and widespread conflict (including civil war or ethnic clashes), extensive political corruption, and lack political and social stability
The form of government in such countries is often authoritarian in nature, and may comprise a dictatorship, warlordism, or a kleptocracy

7. Classifying Countries
We can also classify countries as developed and less developed
Developed Country
Rich
North
Industrial
Good roads, transportation
High Energy Consumption
Oil, coal, nuclear
Good health care
Clean Water
Developing Country
Poor
South
Agricultural
Poor roads, transportation
Little Energy
Wood, wind, animal, human energy
Disease and Famine
Polluted or little water

8. Global Inequities
One result of the Global Village has been the increasing gap between rich and poor
Both on a local and global scale
Wealthy countries are concentrated in one part of the world, while poor countries seem to be concentrated in another – WHY IS THIS SO?
Some of the poorest countries have not been able to take advantage of new communications technologies to be competitive

9. Global Inequities According the UN Human Development Report (1996):
The richest 20% of countries controlled 70% of the global income
By 1993, they controlled 85%
The share of the poorest 20% of the world’s people had deceased from 2.3% to 1.4%
The shift towards a global world economy threatens to widen this gap

10. The North-South Gap
The 20% that owns almost 85% of the worlds wealth live almost entirely in the industrialized nations in the northern hemisphere (in addition to Australia and New Zealand)
The poorest 20% of people in the world are located in the southern hemisphere

11. Northern Hemisphere
You Live Here
Southern Hemisphere

12. North-South Gap
Because of the great discrepancy between the “have” and have-not” nations of the world, this is often referred to as the North-South Gap

13. North-South Gap
The Northern countries have the greatest wealth, highest standard of living, and the greatest industrial development – but the lowest population
The southern countries have the bulk of the world’s population, but less of the wealth, low standard of living, and far less industrial development
See figure 2.14 on page 35

17. Something to think about?
Consider what your life would be like if you were born in another part of the world?
What types of things do we rely and use on a daily basis?
Are these necessities or luxuries?
How would your daily routine compare to someone living in a “have not” country?