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6 - The World of Regions

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THE WORLD OF REGIONS:

THE NORTH AND THE SOUTH


SOCSCI032 – THE CONTEMPORARY WORLD
INTRODUCTION
GLOBALIZATION AND REGIONALIZATION
GLOBALIZATION AND
REGIONALIZATION
The processes of globalization and
regionalization reemerged during
the 1980s and heightened after the
end of the Cold War in the 1990s.
At first, it seems that these two processes
are contradicting – the nature of
globalization is, by definition, global while
regionalization is naturally regional.
HISTORY OF REGIONALIZATION
• It started during the
Cold War, when
Western • FIRST WORLD
policymakers began
talking about the
• SECOND WORLD
world as three • THIRD WORLD
distinct political and
economic blocks.
FIRST WORLD
Refers to the capitalist,
industrialized countries,
within the Western
European and United
States’ sphere of
influence.
SECOND WORLD
Refers to the former
communist-socialist,
industrial states, the
territory and sphere of
influence of the Union of
Soviet Socialist Republic.
THIRD WORLD
Are all the other
countries, today often
used to roughly describe
the developing countries
of Africa, Asia, and Latin
America.
FIRST SECOND THIRD
WORLD WORLD WORLD

When the Cold War


ended, the category
of Second World
Countries become
null and void.
FIRST But somehow, THIRD
WORLD the terms, “First WORLD
World” and
“Third World”
They were stuck around in Came to be
associated more the public associated with
with rich, and
consciousness. impoverished
industrialized
countries. states.
Nowadays, the Social Scientists sort
countries into groups based on their
specific levels of economic productivity.
FIRST THIRD
WORLD WORLD

“GLOBAL “GLOBAL
NORTH” SOUTH”
THE GLOBAL DIVIDES
THE NORTH AND SOUTH
THE BRANDT LINE
In the 1980s, the Brandt Line was developed as a way of showing how the
world was geographically split into relatively richer and poorer nations.

• According to this model:


• Richer countries are almost all located in the Northern Hemisphere, with
the exception of Australia and New Zealand.
• poorer countries are mostly located in tropical regions and in the
Southern Hemisphere.
GLOBAL NORTH

GLOBAL SOUTH
THE NORTH AND THE SOUTH
• As nations become economically developed,
they become part of the “North”, regardless
of geographical locations.
• Similarly, any nations that do not qualify for “developed”
status are in effect deemed to be part of the “South”.
THE NORTH
• The North, with one quarter of the
world population , controls four-
fifths of the income earned
anywhere in the world.
• 90% of the manufacturing industries
are owned by and located in the
North.
THE SOUTH
• The south, with three
quarters of the world
populations, has access
to one-fifth of the world
income.
THE SOUTH
• Refer to what used to be called the
“Third World”. Countries that belong to
developing and less develop countries.
• The term Global South, “emerged in part to aid
countries in the southern hemisphere to work
in collaboration on political, economic, social,
environmental, cultural, and technical issues.”
THE SOUTH
• In general, it refers to these countries’
“interconnected histories of colonialism, neo-
imperialism, and differential economic, and social
change through which large inequalities in living
standards, life expectancy, and access to resources
are maintained.”
IN COMPARISON…
THE NORTH THE SOUTH
• Less population • Large population
• High wealth • Low Wealth
• High standards of living • Low standards of living
• High industrial • Low industrial
development development
• Industrial society • Agricultural Society
IN COMPARISON…
THE NORTH THE SOUTH
• More developed regions • Poverty
• Richer • War
• 95% has enough food, shelter • Tyranny
and functioning education • Lack well-developed domestic
system market economies
• Controls four-fifths of the • Lacks to evolve
income earned anywhere in the
world • Lacks appropriate technology
• No political stability
STAGES OF DEVELOPMENT
CLASSIFICATION OF COUNTRIES
(ACCORDING TO UNITED NATIONS)

NEWLY
INDUSTRIALIZED
COUNTRIES (NICs)

MOST ECONOMICALLY
DEVELOPED COUNTRIES
(MEDCs)

MIDDLE INCOME
COUNTRIES (MICs)

LEAST ECONOMICALLY
DEVELOPED COUNTRIES (LEDCs)
LEAST STAGES
ECONOMICALLY OF DEVELOPMENTDEVELOPED COUNTRIES
(LEDCs)
Many categories and explanation have been provided over the years of how
countries move from one level of development to another.
LEDCs or LDCs are low-income countries confronting severe structural impediments to
sustainable development. They are highly vulnerable to economic and environmental shocks
and have low levels of human assets.

There are currently 47 countries on the list of LDCs which is reviewed every three years by the
Committee for Development.

The LEDCs’ Gross National Income is between $1,230 and $2,460.


LEAST ECONOMICALLY DEVELOPED COUNTRIES
(LEDCs)
MIDDLE INCOME COUNTRIES (MICS)

• These countries are not really poor, but are not rich either. They are
developing quickly, but not as quickly as NICs are.
• Examples of this countries are Albania, Bulgaria, and Poland
MIDDLE INCOME
COUNTRIES (MICS)
NEWLY INDUSTRIALIZED COUNTRIES (NICs)
• NICs are those countries whose national economy has transitioned from being primarily based in
agriculture to being primarily based in goods-producing industries, such as manufacturing,
construction, and mining.
• In most NICs, greater industrialization has led to increase trade, greater economic growth,
participation in regional trading blocs, and attraction of foreign investment, especially from
developed countries.
MOST ECONOMICALLY DEVELOPED COUNTRIES
(MEDCs)

• They are largely located in the Northern Hemisphere. They


have the financial resources to provide a high level of
education, healthcare and housing.
MOST ECONOMICALLY DEVELOPED COUNTRIES
(MEDCs)
FACTORS AFFECTING THE LEVEL OF
DEVELOPMENT
ENVIRONMENTAL ECONOMIC POLITICAL
SOCIAL FACTORS
FACTORS FACTORS FACTORS
• Poor climate • Poor trade links • Spread of • Unstable
• Limited water • Lots of debt illnesses and government
supply • Too many diseases • Corruption
• Few natural primary • Poor education
resources products
NORTH-SOUTH DIVIDE ISSUES
THREE ISSUES…
1. Distribution of Income around the World.

2. Economic Competition World Wide.

3. Standard of Living.
1. Distribution of Income around the World.

• Liberalization of market occurs, most South countries lost


to the competition from the North.
• Encourage migration of people from South to North for
having a more good income.
2. Economic Competition World Wide.

• Factors:
• Appropriate infrastructure
• Stable macroeconomic framework
• Well functioning public and private institutions
3. Standard of Living.

• Factors:
• Lack of trade and aid
• Single crop farming
• Abundance of debt
• Neo- Colonialism
CLOSING THE GAP
• The United Nations has developed a program dedicated
to narrowing the divide through its Millennium
Development Goals. This includes:
• improving education and health care

• promoting gender equality

• ensuring environmental sustainability.


END OF TOPIC

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