Global South

1.  About the GS

A. Colonization; neocolonialism

B. Accrued debts in 60s and 70s

C. Resource consumption

D. Wider disparities between rich and poor

• Brazil: 10% control 51% of wealth
• Mexico & Argentina: 10% control 42% of wealth

E. Suffer from political instability & corruption

F. Sustainable development

G. Most often subject to economic sanctions

 

 

 

 

 

2. GS is not homogenous

A. Emerging Markets

• Growth

• Greater % of people =middle class (>$10/day)

B. Countries in Transition (CITs)

• Central and Eastern European former East bloc Soviet satellite countries

• Former Soviet republics (FSRs)
   

C. Lesser Developed Countries (LDCs)

• Quasi-states= not self-sufficient

• More than 150= 78% are LDCs
   

D. Least Developed Countries (LLDCs)

• Africa has 9 of the 10 poorest countries in the world:

  • US (GPD per capita=ranks 10th) at ~$46,500

• 1.4 b of 6.5 b live in absolute poverty; # is 50% less than in 1980

E. Heavily Indebted Poor Countries (HIPCs)

• 40 countries, with 29 of those located in sub-Saharan Africa

• Cotton accounts for 46% of Mali’s exports

• Debt relief- HIPCs qualify; 35 accepted full or partial relief ~$71 B
   

 

 

 

2.  GN Dominates

A) Through IGOs

1) IMF

2) WB

3) GATT-->WTO

4) Organization of Economic Cooperation & Development

5) G8, and now the G20

Argentina   Australia   Brazil   Canada   China   France   Germany   India   Indonesia   Italy

Japan   Mexico   Russia   Saudi Arabia   South Africa   South Korea   Turkey   United Kingdom   United States   European Union

B) Through MNCs

C) Trade as a political tool through economic sanctions

3. LDC economic development tactics

• Import substitution

• Nationalization of industries

• Establishing cartels

• Protectionism

• Regional organizations: ASEAN, Mercosur, Group of 77, etc

• International pressure: NAM, UNCTAD-trade & development

  • Monetary reforms

  • Trade reforms

  • Development

  • Economic sovereignty

  • Economic aid