TCW-Module-1-12

Global Divides

Introduction

  • Globalization has created inequality characterized by status differences among nations.

  • Prosperity disparity: some countries have thrived while others have faced struggles, leading to significant divides.

  • This lesson explores the concept of global divides and the wealth gap between rich and poor nations.

Objectives/Competencies

  • Understand the concept of global divides.

  • Identify factors that contribute to economic disparities among nations.

  • Formulate explanations for the existence of global divides.

Course Methodology

  • The global economy showcases stark contrasts in wealth.

  • UNDP (2014) findings:

    • Richest 5% earn more than 100x the poorest 5%.

    • Richest 1% earn as much as the poorest 50% worldwide.

    • 25 richest Americans = income of poorest 2 billion globally.

Measuring Development

  • The Human Development Index (HDI) was introduced by UNDP in 1990.

  • HDI ranks countries based on:

    • Gross National Income (GNI) per capita: Adjusted for living costs (Purchasing Power Parity).

    • Health: Measured by life expectancy, undernourishment rates, and child mortality.

    • Education: Literacy rates and years of schooling considered.

Human Development Index (HDI)

  • Aimed to rank countries and assess levels of human development.

  • Emphasizes the role of basic indicators like income, health, and education.

  • Criticisms:

    • Focuses more on national performance than global context.

    • Lacks technological measures and has controversial statistical methodology.

Brandt Report and Global Divides

  • The Brandt Report of the 1980s: outlines global economic disparities.

  • Brandt Line: Visual division between rich (Global North) and poor (Global South) nations based on GDP.

  • Implication: Countries above the line (North) are wealthy; those below (South) are poorer.

Characteristics of Global North vs. Global South

Global North

  • Wealthy, industrialized nations.

  • Stable, democratic, capitalist economies.

  • Contains G8 nations (USA, Japan, Germany, etc.).

  • Technologically advanced and highly industrialized.

Global South

  • Comprises mainly poorer, developing countries.

  • Political instability and economic vulnerability.

  • Major regions include Africa, Latin America, and parts of Asia.

  • Economies depend heavily on primary product exports.

Differences between Global South and Third World

  • Third World: refers to non-aligned countries during Cold War, primarily newly independent countries.

  • Modern terms like Global South reflect broader socio-economic conditions.

  • Shift from Third World to Global South as terminology becomes more relevant in political discourse.

Other Classification Systems

  • World Bank Classification:

    • Low-Income: < $976

    • Middle-Income: $976 - $11,906

    • Upper Middle-Income: > $11,906

  • UN Human Development Index:

    • Top countries (Norway, Switzerland, Ireland) vs. bottom countries (Mozambique, Sierra Leone, Central African Republic).

G7, G8, G20 Overview

  • G7: Original group focused on major Western economies responding to oil embargoes.

  • G8: Expanded to include Russia; highlighted major political and economic powers.

  • G20: Current coalition including emerging economies for broader engagement and policy-making.

Theoretical Understanding of Global Divides

Theories Related to Global North and South

  1. Dependency Theory:

    • Examines colonial relations; poorer nations remain resource exporters to richer nations.

  2. Modernization Theory:

    • Suggests poorer nations should emulate developed nations for advancement.

  3. Realism:

    • Describes a conflictual and power-driven international system.

  4. Liberalism:

    • Emphasizes cooperation for peace and economic ties between nations.

  5. Marxism:

    • Explores economic power structures highlighting exploitation.

Asian Regionalism

Introduction

  • Focuses on alliances formed under the backdrop of globalization and regional cooperation.

  • Addresses economic, social, and environmental challenges.

Evolution of Asian Regionalism

  • ASEAN: Formed in 1968 to combat communism with five original members: Indonesia, Malaysia, Philippines, Singapore, Thailand.

  • APEC (1989): Focused on economic cooperation in the Asia-Pacific region.

  • Development of ASEAN Plus Three and East Asian Summit for greater regional integration.

Characteristics of Global Cities

  • Global cities serve as hubs for global economic and political activities, characterized by significant connectivity and influence.

    1. Providers of global finance.

    2. Political and cultural centers.

    3. Connectivity through transportation and communication.

  • Social issues: The concentration of wealth leads to high inequality and marginalization.

Impacts of COVID-19 on Global Cities

  • Urban areas became hotspots due to high density and global connectivity.

  • Required re-evaluation of urban management and public health strategies.

Global Demography

Understanding Demography

  • Study of human populations, focusing on birth, death rates, and migration.

  • Significant for addressing social and economic policy concerns.

Demographic Transition Model (DTM)

  • Explains population growth through various stages of economic development.

  • High fertility rates transition to low rates as socio-economic conditions improve.

The Role of COVID-19 in Demography

  • Influenced population structures, particularly in urban settings; potential long-term effects on global population dynamics.