Global Economic Disparity

1. Global Economic Disparity Rich and Poor in World Politics

2. Lecture Outline Concepts of Global North and South Explanations behind Global South�s underdevelopment Possible solutions

3. What�s in the name�. Traditional categories: 1st and 3rd Worlds (what is 2nd World?) Developed and Developing? EDCs and LEDs? Currently: Global North and Global South (not to be confused with US North and South) Captures inequalities

4. Global South and Global North

5. Global North democratic technologically inventive wealthy aging populations low population growth All conditions must be satisfied

6. Global South most states: not democratic low technology use poor rapid population growth overstrained social and ecological systems

7. North and South: Worlds Apart The Global South: Zone of Turmoil characterized by poverty, war, and anarchy The Global North: peace, wealth, and democracy prevail

8. Worlds Apart

9. The World of Haves and Have-Nots: UN Human Development Report The richest 20% of the world's people consumes 86% of all goods and services the poorest 20% consumes just 1.3%

10. The World of Haves and Have-Nots: UN Human Development Report the richest 20% consumes 45% of all meat and fish 58% of all energy used and 84% of all paper has 74% of all telephone lines and owns 87% of all vehicles

11. Haves: continued The three richest people in the world have assets that exceed the combined gross domestic product of the 48 least developed countries

12. Haves: continued The world's 225 richest individuals, of whom 60 are Americans with total assets of $311 billion, have a combined wealth of over $1 trillion -- equal to the annual income of the poorest 47 percent of the entire world's population

13. Haves Americans spend $8 billion a year on cosmetics -- $2 billion more than the estimated annual total needed to provide basic education for everyone in the world

14. Have-nots Of @ 4.5 billion people in developing countries: nearly 60% lack access to safe sewers 1/3 have no access to clean water 1/4 do not have adequate housing and 20% have no access to modern health services of any kind

15. Have-nots Americans each consume an average of 260 pounds of meat a year In Bangladesh, the average is six and a half pounds

16. Have nots Europeans spend $11 billion a year on ice cream $2 billion more than the estimated annual total needed to provide clean water and safe sewers for the world's population

17. Learning about Global South Difficulties in comprehending conditions of everyday life

18. Experiences of the Global South Chinua Achebe, A Man of the People T. M. Aluko, Chief the Honourable Minister Cameron Duodu, The Gab Boys Camara Laye, A Dream of Africa Meja Mwangi, Kill Me Quickly Peter Palangyo, Dying in the Sun Wole Soyinka, Madmen and Specialists

19. So what explains these disparities: roots of underdevelopment History Developmental efforts since independence

20. So what explains these disparities: roots of underdevelopment Lack of international assistance

21. History

22. First Wave of European Imperialism Late 1400s Mercantilism: trade should increase state wealth, increase exports, and decrease imports

23. The Second Wave of European Imperialism 1880s

24. Economic Explanation for the New Imperialism Lenin: Liberal economists:

25. Political Explanations for the New Imperialism Hobson:

26. End of Colonialism: Self-Determination Supported by Woodrow Wilson (and by Lenin) Self-determination: people (nation) should be able to determine their government

27. Decolonization

28. Misguided development

29. Cold War and The Global South During the Cold War, some states allied with the United States, others with the Soviet Union Many states adopted foreign policies based on nonalignment Followed outside solutions and strategies

30. Since Independence: Modernization Theory Global South must: create conditions for efficient production, free enterprise, and free trade pass through stages of development and reach �take off� (W.W. Rostow: Stages of Development: Anti-Communist Manifesto)

31. Since Independence: Modernization Theory This theory was rejected by many leaders of the Global South

32. Since Independence: Dependency Theory Global North keeps Global South poor through: Good critique, but no prescription

33. In Search of Prosperity Non-liberal Developmental Options: import-substitution industrialization (ISI)

34. In Search of Prosperity Non-liberal export-led industrialization (ELI)

35. New International Economic Order (1974)

36. NEO: Regional Trade Regimes NAFTA: North American Free Trade Agreement Mercosur: Argentina, Brazil, Paraguay, Uruguay CAFTA: 2005 Central American Free Trade Agreement APEC: Asia-Pacific Economic Cooperation

37. NEO: Regional Trade Regimes ASEAN: Association of Southeast Asian Nations SADC: Southern African Development Community

38. Foreign Aid

39. Foreign Direct Investment

40. Global South Debt

41. Global South Debt

42. The Washington Consensus The view that Global South countries can best achieve sustained economic growth by: democratic governance fiscal discipline free markets a reliance on private enterprise and trade liberalization Sustainable development � will discuss later

43. What have we learned?