Running Head: THE GROWING DIPARITY BETWEEN GLOBAL NORTH AND SOUTH
The Growing Disparity Between Global North and South is a Direct Consequence of Trade Malpractice. Anum Mahmood Lahore University of Management Sciences
The growing disparity
INTRODUCTION: North-South system describes relations among the market economies of the western world (mainly located in the northern hemisphere), and the third world economies of Africa, Asia, and Latin America. As has already been noted, the terms North and South are used to designate the two major economic spheres in the world economy: a wealthy North made up of Economically Developed Countries, (EDCs), and a less wealthy South composed of Less Developed Countries (LDCs). The two geographical designations result from the fact that most EDCs lie to the north i.e. North America and Europe, while most LDCs are further to the south, in Africa, Asia, and central and South America. The North/South divide is not absolute in a geographical sense. The economic factor is the most objective distinction between North and South. Unlike the Western system, which is composed of relatively similar and equal state actors, the North-South sub-system is one of disparity and inequality between the North and South in terms of gross national product per capital (GNP). The countries of the North tend to have more diverse economic bases; they rely for their income on the production of a wide variety of manufactured products and the provision of diverse and sophisticated services. Southern countries, on the other-hand, depend on fewer products mainly agricultural produce and other raw materials for their income. The Global South is sometimes described as ‘the zone of turmoil’ in large measures because, in contrast with peaceful and democratic North, most of the people in the South face chronic diseases, tyranny and anarchy. In most of the countries of the South where conditions of dictatorship and dismal financial prospects exist, the chances The growing disparity 3
of civil wars and conflicts with each other rise. A large scale of misery and marginalization is evident across the Global South, from which only a fraction of its countries have begun to escape. The patterns of global trends show that more than sixty countries today are worse off than they were and are falling further behind the levels achieved by the countries in the Global North. The underdevelopment prevailing in the Global South can be explained by a combination of factors. Few theorists explain this underdevelopment by examining primarily the internal causes such as the political turmoil prevailing in these countries. On the other hand, few theorists have analyzed international causes such as the position of the developing countries in the global economy. (Kegley, 2008) STRUCTURE Empirical structural change analysts emphasize both domestic and international constraints on development. The domestic ones include economic constraints such as a country’s resource endowment and its physical and population size as well as institutional constraints such as government policies and objectives. International constraints include external technology, capital and international trade. However, international constraints play a vital role in explaining the wide gap between the Global North and South. A disturbing feature for the newly awakened world conscience is that the pace of progress of few leading countries is accelerating rapidly, the rich are becoming richer and the poor are becoming poorer relatively. During the years when 1952-6 when India launched its First Five Year Plan its income rose by hardly £1, whereas Britain’s income per head rose by nearly £40. Cumulative growth, even at slow rates over years, can have The growing disparity 4
astonishing results. Development and underdevelopment is often attributed to misdistribution of natural resources or geographical disadvantage of certain...