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The North-South DivideThe Realities of a Complex Problem
On Developing Countries
• Common problems of developing countries:
• Lackluster economic growth.
• Pervasive poverty.
• Weak institutions of governance.
• Societal divides.
• The question is, to what extent should the international system be held responsible?
The Burning Questions• Are developing countries disadvantaged by the
structure of the current international system?
• Is the system “biased” in favor of the developing world?
• Are the problems experienced by developing countries of their own doing?
• To what extent should the developed world view this as their problem also?
• Have international institutions made the problem better or worse?
Facts• According to the 1999 UNDP Report (Patterns of
Global Inequality), the fifth of the world’s population living in the highest-income countries have:
• 86 percent of world GDP
• 82 percent of world export markets
• 68 percent of foreign direct investments
• In contrast, the bottom half have just 1 percent of each.
Unequal World
26%
18%27%
29%Low IncomeLower Middle IncomeUpper Middle IncomeHigh Income
Unequal World
26%
18%27%
29%Low IncomeLower Middle IncomeUpper Middle IncomeHigh Income
Addressing the Divide
• Four alternatives to address the North-South Divide:
• Do nothing.
• Change the system.
• Self-help.
• Bi-lateral assistance.
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