Global North and Global South

• The world is divided into the Global North and Global South based on economics and politics.
• This classification reflects disparities in economic development, political stability, and social well-being, not just geography.
• The divide highlights inequalities between wealthy, industrialized nations (often in the Northern Hemisphere) and developing nations (mostly in the South).

Key Concepts

• Global North contains highly developed nations with economic prosperity, stable governance, and high living standards, including the United States, Canada, Western Europe, Japan, Australia, and New Zealand.
• Global South includes countries in Africa, Latin America, and parts of Asia characterized by lower income levels, less industrialization, and economic challenges.
• Development Gap refers to the increasing difference in wealth and resources between developed and developing nations.
• Brandt Line is a visual representation of the economic divide as proposed by Willy Brandt in the 1980s.
• Human Development Index (HDI) is a composite measure assessing development levels based on life expectancy, education, and per capita income.

Historical Roots

• Colonialism is a historical event where many countries in the Global South were colonies of European powers and were exploited for raw materials and labor.
• Cold War refers to the ideological conflict between the US-led capitalist bloc and the USSR-led communist bloc.
• The Cold War further entrenched economic divides, leaving the Third World underdeveloped and politically unstable.

Economic Disparities

• The UN and HDI categorize countries based on economic and social factors.
• Developed countries (Global North) have industrialized, high GDP, diverse economies.
• Developing Countries (Global South) have agriculture-based, lower GDP, emerging economies.
• Developed countries have advanced infrastructure, efficient transportation, and communication systems, against the limited infrastructure struggling with modernization in developing countries.
• Developed countries have high income, better healthcare, education, and employment opportunities, against the lower income, inadequate access to healthcare and education in developing countries.
• Developed countries have democratic governance, rule of law, and stable institutions, against the unstable governments prone to corruption and conflict in developing countries.
• Developed countries have technological innovation with high digital penetration, compared to the limited access to advanced technology in developing countries.

Positive vs. Normative Analysis

• Positive Analysis focuses on objective, fact-based economic studies.
• Positive Analysis avoids value judgments and relies on measurable data.
• Example positive analysis: "The unemployment rate in developing countries is higher than in developed countries."
• Advantage of positive analysis: Provides factual data for effective policymaking.
• Disadvantage of positive analysis: Ignores moral or ethical considerations.
• Normative Analysis considers subjective perspectives of what ought to be.
• Normative Analysis involves value judgments and personal opinions.
• Example normative analysis: "The government should provide universal healthcare to improve living conditions in the Global South."
• Advantage of normative analysis: Helps shape policies by considering ethical and social factors.
• Disadvantage of normative analysis: Lacks concrete data for validation and relies on personal beliefs.

Poverty in the Global South

• Poverty is a defining issue of the economic divide, significantly affecting developing countries.
• Occasionally Poor: People who temporarily fall below the poverty line but can recover.
• Cyclically Poor: Individuals whose poverty status fluctuates with economic cycles, often due to agricultural dependency.
• Usually Poor: Those who generally remain below the poverty line, experiencing occasional economic relief.
• Always Poor: Families consistently below the poverty line with little to no opportunity for improvement.

Causes of Poverty:

• Low per capita incomes below $1,035 GNI limit savings and investment in many developing countries.
• Widespread economic hardship prevents social mobility and economic growth.
• High birth and infant mortality rates contribute to a growing workforce without corresponding job creation.
• Developing nations rely on agriculture and raw material exports rather than advanced industries.
• Many countries struggle with inadequate educational facilities and high illiteracy rates, reducing employment opportunities.
• Weak governance structures and corruption divert resources away from development.
• Developing nations borrow from international financial institutions, leading to long-term economic dependency.
• Developed nations control trade markets, imposing tariffs and trade policies that disadvantage the Global South.

Effects of Poverty:

• Malnutrition and poor health due to limited access to healthcare result in high child mortality rates and widespread diseases.
• Poor living conditions and inadequate medical care lower overall life expectancy.
• High poverty rates correlate with increased crime and political instability.
• Migration from the Global South to developed countries occurs in search of better opportunities, leading to labor exploitation and brain drain.
• Families remain trapped in poverty due to poor education, lack of job opportunities, and limited resources.

Unemployment in the Global South

• Unemployment and underemployment pose significant challenges to developing countries.
• Developing countries struggle to generate sufficient jobs for growing populations.
• Frictional Unemployment occurs temporarily due to job transitions or the search for better opportunities.
• Structural Unemployment is caused by outdated skills or industries, requiring workers to adapt.
• Cyclical Unemployment is linked to economic downturns, where reduced production leads to job losses.
• Seasonal Unemployment includes jobs available only during specific times of the year, such as agricultural or tourism-related work.

Employment Types:

• Regular Employment: Jobs with stable, long-term contracts and job security.
• Probationary Employment: Temporary status before transitioning to a permanent role.
• Project-Based Employment: Jobs for the duration of a specific project.
• Seasonal Employment: Jobs available at specific times of the year.
• Casual Employment: Irregular work schedules without long-term commitment.
• Fixed-Term Employment: Jobs with contracts that expire after a specific period.

Underutilization of Labor

• Many developing countries experience underutilization of labor through unemployment or underemployment.
• This is due to dependence on low-productivity agricultural jobs.
• Outdated technology reduces efficiency and productivity.
• Mismatches occur between available jobs and worker skills.
• Many workers are in unstable, low-paying jobs without benefits or security.

Disadvantage

• Historically, powerful countries have controlled trade and production, keeping developing nations dependent.
• Political instability with governance issues, corruption, and lack of transparency are factors.
• Debt burden: Poor nations rely on loans from international institutions, leading to economic dependency.
• Dependency on agriculture and raw materials limits economic growth.
• Limited access to healthcare, education, and transportation hinders economic development.
• Outdated technology reduces efficiency and productivity.

Future of Global Divides

• Globalization and international policies reshape global dynamics, but economic gaps remain.
• Emerging economies like China, India, and Brazil challenge traditional economic powers.
• The divide is evolving rather than permanent.
• Sustainable economic policies, good governance, and equitable global trade are key to closing the gap.