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The document discusses the concept of global divides, particularly the disparities between developed (Global North) and developing countries (Global South), tracing their origins back to colonialism and the economic impacts of the Industrial Revolution. It outlines the historical context of the Cold War, which led to the categorization of countries into First, Second, and Third World based on political ideologies and economic conditions. The text also highlights the evolution of these terms and their relevance in modern discussions about global inequality and development.

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0% found this document useful (0 votes)
28 views27 pages

Detailed Written Report

The document discusses the concept of global divides, particularly the disparities between developed (Global North) and developing countries (Global South), tracing their origins back to colonialism and the economic impacts of the Industrial Revolution. It outlines the historical context of the Cold War, which led to the categorization of countries into First, Second, and Third World based on political ideologies and economic conditions. The text also highlights the evolution of these terms and their relevance in modern discussions about global inequality and development.

Uploaded by

Omega CJ
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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DETAILED DISCUSSION OF THE TOPIC

(GLOBAL DIVIDES: NORTH AND SOUTH)

Topic 1: Origin of Global Divides

GLOBAL DIVIDE
Global divides refer to the disparities and inequalities that exist between
developed and developing countries, particularly in terms of economic, political, and
social power. This term global divide connotes disparities in income and living
conditions between the advanced and developing states (Asher, 2006)
This means that global divides are the division of countries, not because of its
geographical location but because of their powers and capacity to sustain their
countries development, especially, in their economy. In this term, location doesn’t
matter, but how the country develops through time.

ORIGIN OF GLOBAL DIVIDES


There are developed economically, progressing, emerging, and developing
countries that continues making changes globally. Division or let me say stratification
means categorizing or separation in terms of resources, income, and living condition of
the country can be traced back in many years ago in our history. Even there is no
official what so called “division” but it was experienced and felt by many, just like us,
Filipino.
In our modern days, there is what we called Global North and South, Third
World, Second World, and First World. The question is, how did this start, what were the
reasons why we have this called “GLOBAL DIVIDES.”
The creation of Global Divide has a long history and can be traced back from
15th-20th century where European powers like Britain, France, Spain, Portugal, and
other powerful countries colonized large parts of Africa, Asia, and the Americas. During
this period, wealth was extracted from colonies in the form of resources, labor, and
capital, and funneled back to the colonizing countries. Colonial boarders where often
drawn without regard for ethnic or cultural divisions, leading to long term political
instability in many of these regions (Mark, 2020)
During this time colonialism took part in the history. Colonialism is the practice of
one country taking full or partial political control of another country and occupying it with
settlers to profit from its resources and economy (Longley, 2024). In which colonizers,
specifically, european countries exploited the labor and resources of those colonized
countries. In which people was force to worked for production to the point that they
became slaves of their own country and the rights of the people living in was deprived.
Their resources and lands were owned by european countries and took role on it. They
made their own governments that took control of all the people in colonized countries
such as Philippines and India.
This control can happen in different ways, like by taking over the land, exploiting
resources, or ruling the people without their consent. The country that controls the land
is called the "colonizer," and the land being controlled is the "colony."
One well-known example of colonialism was the British Empire in the 18th and
19th centuries. The British took control of many places around the world, including
India. They used India's resources, like spices, cotton, and tea, to make money for
Britain. In which they produced finished products and sold it around the world as if its
theirs. The British government ruled over India, controlling its economy and making
decisions without consulting the Indian people. This led to a lot of hardship for the
people of India, as they were forced to grow crops such as indigo or opium for export
instead of food for themselves, that resulted to food shortage and they had to British
laws and customs. Colonialism often led to long-lasting effects, such as economic
struggles, social changes, and conflicts that lasted even after the colonies gained
independence.
Afterwards, from 19th -20th century, the Industrial Revolution in Europe and North
America propelled these regions into economic and technological dominance. This
economic leap widened the gap between the industrialized Global North and the
agricultural, resource-based economies of the Global South. Countries in the Global
North established industries, built insfrastructure, and accumalated wealth, while
countries in the Global South, lacked capital, technological innovation and remained
economically dependent.
This means that being categorized as part of the "North" implied development
and stable as opposed to belonging to the 'South', which implied a lack thereof.
According to N. Oluwafemi Mimico, the South lacks the right to technology, it is
politically unstable, its economies are divided, and its foreign exchange earnings
depend on primary product exports to the North, along with the fluctuation of prices. The
low level of control it exercises over imports and exports condemns the South to
conform to the "imperialist system." The South's lack of development and the high level
of development of the North deepen the inequality between them and leave the South a
source of raw material for the developed countries. The north becomes synonymous
with economic development and industrialization while the South represents the
previously colonized countries which are in need of help in the form of international aid
agendas in order. In order to understand how this divide occurs, a definition of
"development" itself is needed. Northern countries are using most of the earth's
resources and most of them are high entropic fossil fuels.
The origin of dividing countries into the North and South arose during theCold
War of the mid-20th century. During this time, countries were primarily categorized
according to their alignment between the Russian East and theAmerican West.
Countries in the East like the Soviet Union and China whichbecame classified as
Second World countries. In the west, the United States andits allies were labelled as
First World countries. This division left out manycountries which were poorer than the
First World and Second World countries.The poor countries were eventually
labeled as Third World countries. This categorization was later abandoned after
the Second World countries joined theFirst World countries. New criteria was
established to categorize countries which was named the North-South Divide where
First World countries wereknown as the North while Third World countries comprised
the South (encyclopedia.pub).
How did the term became as North-South Divide? What did happened during the
cold war?
COLD WAR

This was not actually an actual war but a battle of ideologies, the capitalism
(United States) and communism (Soviet Union). They argued because they had
different ideas how society should work to become a developed one. In which the
United States believed in private ownership and free market while Soviet Union believed
in collective ownership and planned economies. That's why its somehow not a bloody
war but a tug-of-war of which ideologies way better.
Moreover, the idea of categorizing countries by their economic and development
status began during Cold War with the classifications of East and West. The Soviet
Union and China represented the East, and the United States and their allies
represented the West. The term "Third World" came into parlance in the second half of
the twentieth century known as '"Third World Model" coined by Alfred Sauvy. Early
definitions of the Third World emphasized its exclusion from the East-West conflict of
the Cold War as well as the ex-colonial status and poverty of the people it comprised.

THIRD WORLD MODEL


First World, Second World and Third World countries are products of the Three
World model, a concept that grouped all of the world’s countries into the three groups.
This stratification of the countries was initially based on the basis of political ideology
affiliation where First World countries were identified as the countries which were allied
with the United States while Second World countries were supported neither the Soviet
Union nor the United States (Sawe, 2017).
People often use the term “Third World” as shorthand for poor or developing
nations. By contrast, wealthier countries such as the United States and the nations of
Western Europe are described as being part of the “First World.” The “three worlds”
model of geopolitics first arose in the mid-20th century as a way of mapping the various
players in the Cold War.
The origins of the concept are complex, but historians usually credit it to the
French demographer Alfred Sauvy, who coined the term “Third World” in a 1952 article
entitled “Three Worlds, One Planet.” In this original context, the First World included the
United States and its capitalist allies in places such as Western Europe, Japan and
Australia. The Second World consisted of the communist Soviet Union and its Eastern
European satellites. The Third World, meanwhile, encompassed all the other countries
that were not actively aligned with either side in the Cold War. These were often
impoverished former European colonies, and included nearly all the nations of Africa,
the Middle East, Latin America and Asia (Andrews, 2016).
On the other hand, based on Mao Zedong’s Three Worlds Theory, the 1st World
was composed of the “superpowers” - US, Soviet Union, etc. The 2nd World was
composed of lesser powers. And the 3rd World was composed of postcolonial emerging
markets. While Sauvy’s model emphasized ideology (Capitalism vs Communism) and
so-called “blocs” (NATO vs Warsaw Pact), Mao’s model emphasized national power (as
cited in Moran, 2017). Now, let’s broaden the concept of Three World Model by knowing
what countries included in those categorizations. Since, there are lot of countries known
as rich and poor.

THE FIRST WORLD


The First World According to Sawe (2017), the First World concept was first
fronted in the 20th century when the world was immersed in the Cold War and was the
collective term for the countries which were under the capitalistic umbrella. The term
was introduced by the United Nations in the 1940s and was used through the Cold War
period where it was propagated by the then global superpowers; the United States and
the Soviet Union which had divided the world into blocs in their respective quests to
become the most powerful country in the world. During this period, First World countries
were identified as countries which were allies of the United States which were
economically stable and shared common socio-political beliefs with the United States.
First World countries were characterized by relative political and economic stability and
also had a capitalistic economic system. These first world countries were initially
majority of the countries in Western Europe as well as the United States and Canada.
During the peak of the Cold War, relations between First World Countries and Second
World Countries were frosty with the Soviet Union and the United States being the core
of the two factions.
The concept of the First World enjoyed much traction during the Cold War, with
the United States wielding much influence in the international affairs among First World
countries. The United States even took far-reaching measures to ensure that
neighboring countries which were allied to the Second World such as Cuba were
repressed through heavy economic sanctions. However, the Eastern Bloc collapse
witnessed in 1991 signified the end of the Cold War and with it, the traditional definition
of First World countries. The term “First World” is rarely used in recent years as a
dichotomy of countries of the world.
In short and simple term, the first world was composed of industrialized and
democratic countries, which most members were assumed to be allies with the United
States against the Soviet Union.

THE SECOND WORLD


The Second World was a term used to describe several industrial countries
which were affiliated to the Soviet Union and China during the Cold War period.
According to the definition, the majority of these countries either practiced a socialistic
system of government or a communist system of government. These countries
included; all countries under the Soviet Union, China, North Korea, Cuba, Vietnam, and
Laos. Germany was particularly notable as the country that was divided into two with
the East Germany being established as a Second World Country while West Germany
was a First World Country. The division was manifested in the nation’s capital, Berlin
which had a fortified wall built through it to separate the two countries. The Soviet Union
was at the heart of the Second World and influenced the international affairs among the
member countries. The Soviet Union assisted other Second World Countries as seen in
the Molotov Plan in the 1940s when the Soviet Union provided aid to its allied countries
as an alternative to American aid.
However, after the collapse of the Eastern Bloc in the late 20th century, this
definition was deemed to be obsolete as the collapse also signaled the end of the Cold
War. While the Second World Concept is still currently used (albeit rarely), the term is
used to define former communist countries with developing economies and is only used
from an economic perspective and not as a political ideology.
This means, that these countries that aren’t quite in poverty but aren’t prosperous
either. Formerly, the Eastern bloc, the territory and sphere influence of the Union of
Soviet Socialists Republic today, Russia. Why did Russia and China not fitted in the first
world countries during this time, since all know how well-equipped the Russian in terms
of machinery and battle equipment? In terms of economy and power, it resembled the
North, but their political and social distribution can also resembled the South such as
their population (Braff & Nelson n.d.).

THE THIRD WORLD


The Third World was originally the term used to define the countries that were
neither First World countries nor Second World countries which were also members of
the non-aligned movement. The term “Third World” was first penned in 1952 by Alfred
Sauvy, a French economist and historian who defined Third World countries as
countries that were neither Western Countries nor members of the Soviet Federation.
These Third World countries were predominantly found in South America, Africa,
Oceania, and Asia. However, some countries seemed to be classified as both Second
World countries as well as Third World countries, for instance Cuba. Due to the
impoverished economic situation in these countries, the term “Third World” increasingly
became associated with the countries with low GDP and where the majority of citizens
lived in abject poverty. There were European countries which were neither capitalistic-
inclined nor soviet-affiliated such as Sweden, Finland, Ireland, Switzerland, and Austria
had prosperous economies and were all-around developed and were commonly known
as neutral countries.
After the collapse of the Eastern Bloc in the late 20th century which also signaled
the end of the Cold War meant that the definition of Third World countries had to
change as the global political landscape had suddenly changed. During this period, the
countries under the “Third World” umbrella were primarily defined by their economic
status instead of their political ideology affiliations. Due to the original stereotype
associated with Third World countries, these countries were identified as the countries
with poor but developing economies. The majority of Third World countries in Asia,
Oceania, South America and Africa were originally colonies of European colonial
authorities which had gained independence in the 20th century. Due to increased
criticism against the use of the term “Third World countries,” economists instead refer
these countries either as developing countries or least developed countries

MODERN RELATIONS IN FIRST, SECOND AND THIRD WORLD COUNTRIES


The stratification of the world’s countries into the three categories; First World,
Second World, and Third World has received much criticism in the 21st century. The
majority of the countries which were originally First World countries established NATO,
an intergovernmental military alliance. In recent years, globalization and increased
technological advancements have seen the decreased alienation of countries in the
world. Many countries which were initially seen as Third World Countries have also in
recent years experienced increased growth in their respective economies and have
ceased being identified as developing countries. Example the Singapore, it used to be a
Third World country like Philippines but later on it because of the good governance that
resulted for the country’s economic progress. It was achieved under Lee Kuan Yew's
leadership, Singapore jumped from Third World to First World within a generation (per
capita GDP of US $500 in 1965, the same as Mexico and South Africa, to US $13,000
in 1990, surpassing South Korea and Israel) (Phua, 2017).
Today, the powerful economies of the West are still sometimes described as
“First World,” but the term “Second World” has become largely obsolete following the
collapse of the Soviet Union. “Third World” remains the most common of the original
designations, but its meaning has changed from “nonaligned” and become more of a
blanket term for the developing world. Since it’s partially a relic of the Cold War, many
modern academics consider the “Third World” label to be outdated. Terms such as
“developing countries” and “low and lower-middle-income countries” are now often used
in its place (Andrews, 2016). This was the illustration how the division of countries was
categorized mostly based on their economic and political conditions.
Also, in this the policymakers began talking about the world as three distinct
political and economic blocs. Countries were primarily categorized according to their
alignment in the First, Second, and Third World. It undergone a thorough discussion in
the hands of policymakers.
First, the 1995 Bandung Conference was an early meeting of Third World states
in which an alternative to alignment with either the Eastern or Western Blocs was
promoted. Followed this, was the first Non-Aligned Summit that was organized in 1961.
Contemporaneously, a mode of economic criticism which separated the world economy
into "core" and "periphery" was developed and given expression in a project for politic
reform which "moved the terms 'North' and 'South' into the international political lexicon.
In 1973, the pursuit of a New International Economic Order which was to be negotiated
between the North and South was initiated at the Non-Aligned Summit held in Algiers.
Moreover, in 1973, the oil embargo initiated by the Arab OPEC countries as a
resut of the Yam Kippur War caused an increase in world oil prices, with prices
continuing to rise throughout the decade. This contributed to a worldwide recession
which industrialized nations increasing economically protectionist policies and
contributing less aid to the less developed countries in the South. The slacks was taken
up by Western banks, which provided substantial loans to Third World countries.
However, many of these countries were not able to pay back their debt, which led to the
IMF to extended further loans to them on the condition that they undertake certain
liberalizing reforms. This policy, which came to be known as structural adjustment, and
was institutionalized by International Financial Institutions(IFIs) and Western
governments, represented a break from the Keynesian approach to foreign aid which
had been the norm from the end of the Second World War.
In 1987, following the end of the Cold War and the break-up or downfall of the
Soviet Union, some Second World countries joined the First World, other joined the
Third World. A new and simpler classifications was needed. Use of terms North and
'South' became more widespread.

DEVELOPMENT GAP (NORTH-SOUTH DIVIDE)


After the demise of the Second World, leaders came up to what is now called
“NORTH-SOUTH DIVIDE.” In which the North-South Divide is a socioeconomic and
political categorization of countries.The North is comprised of all First World countries
and most Second World countries while the South is comprised of Third World
countries. This categorization ignores the geographic position of countries with some
countries in the southern hemisphere such as Australia and New Zealand being labeled
as part of the North.
This divide has more recently been coined as the “development gap” to
emphasize the evident gap between rich countries (more economically developed
countries) the GLOBAL NORTH and the poor and impoverished (less economically
developed countries) the GLOBAL SOUTH.
The North-South Divide actually is not based on its geographical location.The
real distinction lies in economic development levels, historical colonial patterns, and
political power dynamics, not just latitude on the map.
Since the world is divided into NORTH and SOUTH what are these countries
belongs to it? In which the north is categorized as developed countries while the south
is the developing countries who strive to have stability in terms of politics and economy.
So, let me show and discus the new concepts of categorization.

THE NORTH (First World Countries)

The North of the Divide is comprised of countries which have developed


economies and account for over 90% of all manufacturing industries in the world.
Although these countries account for only one-quarter of the total global population,
they control 80% of the total income earned around the world. All the members of the
G8 come from the North as well as four permanent members of the UN Security
Council. About 95% of the population in countries in The North have enough basic
needs and have access to functioning education systems. Countries comprising the
North include The United States, Canada, all countries in Western Europe, Australia,
New Zealand as well as the developed countries in Asia such as Japan and South
Korea.
Lot of critics may ask, why Australia and New Zealand categorized and belongs
to the North even it is in the same geographic proximity of to the Philippines. It is
because New Zealand and Australia, despite their geographical proximity to the
Philippines, are considered First World countries due to several key reasons.
Historically, both nations were colonized by the British, which facilitated the
establishment of robust institutional frameworks, economic systems, and infrastructural
development. Economically, Australia and New Zealand boast high Gross Domestic
Product (GDP) per capita, diversified economies, and advanced infrastructure,
contributing to their high standard of living. Socially, these countries have high Human
Development Index (HDI) scores, low poverty rates, and a superior quality of life,
characterized by excellent healthcare, education, and social welfare systems. Politically,
they exhibit stable, democratic governance, low corruption levels, and effective
institutions. Their technological advancement and industrialization further solidify their
developed status. Additionally, their active participation in international organizations
and strategic alliances with other developed nations enhance their global influence. In
contrast, the Philippines, despite its progress, faces economic challenges such as lower
GDP per capita, higher poverty rates, and less diversification, coupled with political
instability and varying quality of infrastructure. These factors collectively explain why
New Zealand and Australia are classified as First World countries, setting them apart
from developing nations like the Philippines.

THE SOUTH (Third World Countries)

The South is comprised of countries with developing economies which were


initially referred to as Third World countries during the Cold War. An important
characteristic of countries in the South is the relatively low GDP and the high
population. The Third World accounts for only a fifth of the globally earned income but
accounts for over three-quarters of the global population. Another common
characteristic of the countries in the South is the lack of basic amenities. As little as 5%
of the population is able to access basic needs such as food and shelter. The
economies of most countries in the South rely on imports from the North and have low
technological penetration. The countries making up the South are mainly drawn from
Africa, South America, and Asia with all African and South American countries being
from the South. The only Asian countries not from the South are Japan and South
Korea.
These are the concepts of North and South and this is portray by a clear division
of what so called "BRANDT LINE." Now, how did this line helps explain and understand
the divisions?

BRANDT LINE
The Brandt line is a line drawn in the 1980s and popularized through North-
South: A Program for Survival, a report addressing the problems of international
inequality written by the former West German Chancellor Willy Brandt, which purports to
show the socioeconomic divide between northern countries and southern countries.
Although the line roughly divides the Earth into north and south, it does not follow a
strict latitudinal line. Instead, it shifts south along the U.S.-Mexican border, moves
between the U.S. state of Florida and the rest of the Caribbean, then moves north to
divide Europe from Africa along the Mediterranean Sea. After moving north again to
divide China from Russia, it slips into the southern hemisphere to bracket off Australia
and New Zealand, the only two "northern" countries south of the equator (study.com
2025). The point of the line is to highlight the socioeconomic discrepancies between
countries in the north and countries in the south, especially in terms of economic and
human development. Roughly speaking, countries in the north tend to be both wealthier
and more powerful in a global context than countries in the south.
In short, it divides the world at a latitude of 30 degree North, dividing the world
into rich countries in the Northern Hemisphere and poorer countries in tropical regions
and the Southern Hemisphere except New Zealand and Australia.
Topic 2: The Global North (quality, characteristics, contributions, and threat
posed)

Introduction:

The term Global North does not refer to a specific geographic area but rather to a
group of countries that are economically developed, have high living standards, and
possess stable political systems. This group includes North America, Europe, Australia,
and parts of Asia, such as Japan and South Korea. It also includes some countries in
the Southern Hemisphere, such as Australia and New Zealand.

The Global North is characterized by higher average incomes, well-developed


healthcare systems, extensive educational opportunities, and robust infrastructure.
Their economies are industrialized and stable, with slow population growth. These
nations also play a key role in global trade, innovation, and decision-making.

Countries commonly considered part of the Global North include the United
States, Canada, Germany, the United Kingdom, France, Japan, Sweden, Australia,
Norway, Finland, among others.

Quality

High Incomes

Example Country: Norway


Norway benefits from a strong welfare system and high living standards, which
contribute to the overall wealth distribution among its citizens. The country has one of
the highest GDP per capita rates in the world, estimated at approximately $106,540 in
2025.

Norway's economy is supported by several key factors. The oil and gas sector
plays a significant role, contributing about 36% to the country's GDP and positioning
Norway as a leading oil exporter. Revenues from this sector are strategically invested in
the world's largest sovereign wealth fund, ensuring long-term economic stability (Global
Finance Magazine, 2024). Additionally, Norway's comprehensive welfare system, which
includes universal healthcare and free education, contributes to a high standard of living
and helps reduce income inequality. The average disposable income per capita is
approximately $39,144, surpassing the OECD average (Investopedia, 2024).
Furthermore, Norway boasts one of the highest rates of tertiary education attainment in
the OECD, fostering a well-educated workforce that drives productivity and economic
growth, with average annual earnings around $55,780 (World Economics, 2024).

Low Poverty Rates

Example Country: Sweden

Sweden has a relatively low poverty rate, with around 16% of the population
living below the national poverty line. This is largely due to the country's comprehensive
social welfare system, which includes universal healthcare and free education, playing a
crucial role in maintaining a high standard of living and reducing income inequality
(Wikipedia, 2025). Despite facing some economic challenges, Sweden's economy is
projected to recover in 2025, supported by easing financial conditions and rising real
incomes. This recovery is expected to boost household consumption, which is essential
for reducing poverty levels (Government.se, 2024). Additionally, Sweden places a
strong emphasis on education and workforce training, which has led to a highly skilled
labor force that contributes to higher productivity and economic growth, enabling
individuals to secure better-paying jobs (OECD, 2024). The country has also historically
maintained low unemployment rates, ensuring a larger portion of the population remains
economically active and financially secure (World Bank, 2024).

Advanced Healthcare Systems

Example Country: Canada

Canada has a high life expectancy of approximately 81 years and low infant
mortality rates, both of which reflect the effectiveness of its healthcare delivery systems
(Investopedia, 2024). The country's healthcare system is designed to provide equitable
access to medical services across its provinces and territories, ensuring that individuals
do not face financial barriers when seeking care (PMC, 2018). Canada’s low infant
mortality rates further demonstrate the effectiveness of its maternal and child health
services, with access to prenatal care and pediatric services playing a key role in
improving health outcomes for both mothers and infants (Government of Canada,
2024). This high life expectancy is largely attributed to the accessibility of healthcare
services and preventive care measures available to the population, contributing to better
overall health and longevity.

Extensive Educational Opportunities

Example Country: Finland

Finland is renowned for its well-funded and accessible education system,


characterized by key features that contribute to its success. The country boasts a nearly
100% literacy rate, reflecting the effectiveness of its educational policies focused on
foundational skills and individual support (World Population Review, 2024). The Finnish
education system prioritizes equity, ensuring equal opportunities for all students, with no
standardized tests until upper secondary education (Leverage Edu, 2024). Finnish
teachers, typically holding master’s degrees, have significant autonomy in designing
curricula, fostering a supportive learning environment (Fulbright Finland Foundation,
2024). Additionally, the education system takes a holistic approach, integrating subjects
and promoting collaborative projects, offering a well-rounded education that includes
arts, music, and physical activities despite students spending less time in school (Silk
Road, 2024).

Robust Infrastructure

Example Country: Germany

Germany is renowned for its efficient public transport networks and high-quality
housing, contributing to its high quality of life (Wikipedia, 2025). The country prioritizes
affordable housing through government initiatives to regulate rental prices and ensure
adequate living conditions for all (Gut Leben in Deutschland, 2024). Germany invests
around 1.5% of its GDP in infrastructure, supporting transportation systems and utilities,
which is key to economic growth and improved living standards (Global Infrastructure
Hub, 2024). The country’s infrastructure ensures regional accessibility, with most of the
population able to reach regional centers within 30 minutes (Gut Leben in Deutschland,
2024). The government also supports rural areas by expanding transport services to
reduce regional disparities (Econstor, 2024). Additionally, Germany is advancing its
digital infrastructure, aiming to provide gigabit-capable networks by the end of 2025 to
enhance economic competitiveness (Gut Leben in Deutschland, 2024).

Characteristics

Economic Diversification

Example Country: United States

The U.S. economy is highly diversified, with significant contributions from sectors
such as technology, finance, healthcare, and manufacturing, providing flexibility to adapt
to economic changes. Technology hubs like Silicon Valley drive innovation, while the
service sector plays a major role in GDP and employment, reallocating resources to
higher-value activities. The U.S. also plays a crucial role in global trade, exporting a
wide range of products and accessing diverse markets, which strengthens its economic
framework. Additionally, the economic diversification creates varied job opportunities
across different sectors, reducing dependence on any single industry and enhancing job
security for workers.

Political Stability

Example Country: Switzerland

Switzerland exhibits a stable political system supported by well-established


democratic institutions, including a federal structure and the rule of law. These robust
institutions ensure effective policy implementation and the protection of property rights,
fostering a stable environment for economic activities. A significant factor contributing to
Switzerland's stability is the high level of trust citizens have in public institutions, which
has been reinforced during crises, such as the COVID-19 pandemic, creating a
cooperative political climate. Additionally, Switzerland's long-standing policy of neutrality
has allowed it to avoid conflicts that could destabilize its political environment, making
neutrality a cornerstone of its international relations and internal stability.

Technological Advancement

Example Country: Japan

Japan is recognized for its leadership in technology and research, which plays a
crucial role in its economic success and global influence. The country allocates
substantial resources to research and development (R&D), driving innovation across
various sectors through both public and private sector funding. Renowned companies
like Sony and Toyota exemplify Japan's technological leadership, pioneering
advancements in robotics and artificial intelligence that enhance productivity and
stimulate economic growth. Additionally, Japan has embraced automation and robotics
to address demographic challenges, such as an aging population, which helps mitigate
labor shortages and boosts productivity. The country is also undergoing a digital
transformation, with investments in sectors like HealthTech and smart infrastructure that
are improving quality of life while driving economic progress.
Historical Context

Example Country: United Kingdom

The UK’s history, shaped by colonialism, continues to influence its socio-


economic status today. The legacy of colonialism has contributed to the country's
significant cultural diversity, as historical migration patterns from former colonies have
shaped contemporary Britain’s multicultural society, fostering social dynamics and
cultural exchanges (World Population Review, 2024). This historical context also fuels
ongoing discussions about inequality and reparations, with many scholars arguing that
the socio-economic disparities observed today are rooted in colonial practices and
policies that marginalized certain groups (Al-Khathlan, 2024). Moreover, the wealth
generated from colonial enterprises laid the foundation for Britain’s industrialization and
economic development, but it also created structural inequalities that persist in modern
economic systems (National Geographic Kids, 2025).

Contributions

Global Economic Leadership

Example Country: United States

The United States plays a crucial role in global economic leadership, significantly
influencing international trade and finance. As one of the largest economies, the U.S.
has shown resilience, achieving substantial GDP growth in 2023 while other
industrialized nations faced stagnation (Capitaleconomics.com, 2024). Its global
economic leadership supports around 41 million American jobs, emphasizing the
importance of international trade for the domestic labor market (U.S. Global Leadership
Coalition, 2017). The U.S. leads in technological innovation, particularly in information
technology and artificial intelligence, driving growth and setting global standards
(Capitaleconomics.com, 2024). Additionally, through diplomatic efforts and development
assistance, the U.S. fosters stability in developing countries, creating new markets for
American businesses (U.S. Global Leadership Coalition, 2017). Its post-pandemic
resilience has also contributed to global recovery efforts, stabilizing both domestic and
international economies (U.S. Department of the Treasury, 2023).

Cultural Influence

Example Country: France

France's cultural influence is vast and enduring, shaping global trends in art,
fashion, and cuisine. Paris, a hub of artistic innovation, has inspired legendary figures
like Monet and Hugo, while French fashion, led by icons like Coco Chanel and Christian
Dior, continues to define global style. French culinary techniques and the Michelin
Guide set global standards in fine dining, influencing both high-end restaurants and
everyday cooking worldwide. Through policies promoting cultural preservation, France
navigates globalization while maintaining its distinct identity, ensuring its cultural
resilience and ongoing impact across various fields, including cinema and music.

Research and Development

Example Country: Germany

Germany is a global leader in research and innovation, heavily investing in R&D


across various sectors to drive technological advancements. The government prioritizes
key technologies such as green hydrogen, AI, and quantum technology, positioning the
country to address global challenges. Strong collaboration between industry and
academia enhances the practical application of research, leading to innovative products
and economic growth. Research funding has also created significant job opportunities,
with over 730,000 people employed in R&D roles by 2019. Germany's commitment to
global health research, particularly during the COVID-19 pandemic, further underscores
its role in international initiatives. With a forward-thinking approach, Germany's Future
Research and Innovation Strategy ensures continued leadership in emerging
technologies and sustainable economic growth.

International Aid
Example Country: Norway

Norway is a leader in international aid, consistently allocating over 1% of its


Gross National Income (GNI) to official development assistance (ODA), exceeding the
UN target of 0.7%. A significant portion of this aid focuses on humanitarian assistance,
especially in response to crises like war and natural disasters. During the COVID-19
pandemic, Norway's development aid reached an all-time high, reflecting its
commitment to supporting global development and addressing immediate needs in
times of crisis. This dedication underscores Norway's role as a key contributor to
international humanitarian efforts.

Threats Posed

Despite their overall wealth, countries in the Global North face significant
economic inequality, which can lead to social unrest. Additionally, their heavy
industrialization contributes substantially to climate change, while they also bear the
brunt of its adverse effects. Geopolitical tensions with other global powers further
exacerbate instability, potentially leading to conflict. Furthermore, overreliance on
technology creates vulnerabilities in critical infrastructure and cybersecurity, making
these nations susceptible to disruptions in an increasingly digital world.

Topic 3: Global Divides: Global South (quality, characteristics, & contribution)

The Global South refers to a group of countries primarily located in Africa, Latin
America, Asia, and the Caribbean that face significant socio-economic challenges,
including high poverty rates. As of 2025, approximately 696 million people globally live
in extreme poverty. (World Bank, 2024).
Global south refers to a countries that are geographically in the southern
hemisphere or to countries that are economically developing or economically struggling.

QUALITY
1.LOWER INCOME
Country: India
Factors Contributing to Lower Incomes
Regressive Tax Policies: The tax system favors the wealthy, leading to inadequate
revenue for social programs that could uplift low-income families (Drishti IAS, 2024).
It requires high incomes earners to pay a smaller fraction of their income than those
with a lower income. One of the most common examples of a regressive tax is sales
tax, which is placed on the sale of goods or services. Since the amount of this tax is the
same for all buyers, the fraction of income devoted to paying it decreases as the
taxpayer's income increases. Scenario:
 Jho has an income of 50,000.
 James has an income of 100,000.
 Lester has an income of 200,000.
As soon as they all buy a new car worth 50,000 with a sales tax rate of exactly 10%,
they each have to pay an additional 5,000 in taxes. If we calculate the tax rate in
relation to their incomes:
 Jho must spend 10% of his annual income on this sales tax.
 James must devote 5% of his income.
 Lester only spends 2.5% of his annual income on this exact same tax.
Thus, relatively speaking, under this system, the burden of the tax decreases as our
three taxpayers' incomes grow. Impact on Jho Financial Burden, Paying a significant
portion of his income in taxes strains Jho's finances, This leaves him with less for other
expenses or savings and The high relative cost limits his ability to afford necessities and
luxuries compared to higher-income individuals.
Overall, regressive taxes like sales tax disproportionately affect lower-income
individuals by requiring them to allocate a larger percentage of their income toward
these taxes
Lack of Access to Quality Education : Many individuals from low-income backgrounds
lack access to quality education, limiting their opportunities for better-paying jobs and
reinforcing existing disparities (Oxfam International, 2024).
Low-income schools often have fewer resources (e.g., less funding, fewer qualified
teachers) compared to schools in wealthier areas. Students from poor backgrounds
may face additional challenges like inadequate home resources (e.g., no computer or
internet) and stress from poverty. That’s why It restricts their chances of getting better-
paying jobs, which can help them improve their economic situation.
Unemployment and Underemployment: High unemployment rates, particularly
among youth, combined with underemployment in low-wage jobs, hinder economic
mobility and perpetuate cycles of poverty (World Bank, 2023).
Unemployment refers to individuals who are actively looking for work but cannot find a
job. This can be challenging for young people. This can lead to a lack of income, which
hinders their ability to support themselves or invest in further education.
Underemployment occurs when individuals work in jobs that do not match their skills or
education level, often leading to lower wages than they could earn if fully utilized
Both unemployment and underemployment limit economic mobility by Reducing income
levels, Preventing individuals from using their full potential, Contributing to poverty
cycles because low wages may not cover basic needs.

2. HIGH POVERTY
Country: Nigeria
Inflation Impact: Chronic inflation, which reached 28.9% in December 2023, erodes
purchasing power and pushes millions deeper into poverty, adding an estimated 10
million Nigerians to the poverty ranks in just one year (World Bank, 2024).
When inflation is high, the value of money decreases. This means that even if people
earn more money, they can buy fewer goods and services than before because prices
have risen. Chronic inflation pushes more people into poverty by making basic
necessities unaffordable. In Nigeria, it was estimated that about 10 million additional
people fell into poverty due to rising price. The poor are disproportionately affected
because they spend a larger portion of their income on basic needs like food and
shelter. As these costs rise, their ability to afford other essentials diminishes.
Dependence on Oil: The economy's heavy reliance on oil exports has stunted
diversification, leading to limited job creation and economic opportunities for the majority
of the population (International Monetary Fund, 2024).
Despite being a major contributor to GDP, the oil sector itself does not create many jobs
compared to other industries

Example: Nigeria vs. South Korea


South Korea: Economic Diversification: South Korea diversified its economy by
investing in manufacturing, technology, and other sectors after World War II. This led to
rapid industrialization and created numerous job opportunities across various industries.
Key Factors in Success: Strong government policies supporting export-oriented growth.
Investments in education and research. Development of large private companies like
Samsung, Hyundai, and LG.
Nigeria: Dependence on Oil: Nigeria has primarily focused on extracting and exporting
oil since its discovery in commercial quantities. While this generated significant revenue,
it did not lead to substantial economic diversification or widespread job creation outside
the energy sector. Key Points from Comparison: Diversified Economy vs. Single
Resource Economy: South Korea's diversified economy has achieved sustained growth
through multiple sectors, while Nigeria's reliance on oil limits broader economic
development. Job Creation: Diversified economies tend to create more jobs across
different sectors compared to economies reliant on a single resource
That’s why, Nigeria remains heavily reliant on oil exports with limited economic growth
beyond this sector while the South Korea achieved sustained economic growth through
diversification into multiple industries.
3. INADEQUATE HEALTHCARE SYSTEM
Country: Afghanistan
Afghanistan's healthcare system is severely underfunded and lacks essential
infrastructure, leading to dire health outcomes for its population.
High Mortality Rates: The country faces alarmingly high maternal and infant mortality
rates, with many women unable to access necessary prenatal and postnatal care
(World Health Organization, 2023).
Afghanistan has high maternal and infant mortality rates. Many women cannot access
necessary prenatal and postnatal care due to lack of healthcare services.
Example: Imagine a pregnant woman living in a rural area without access to a nearby
hospital or skilled healthcare provider. She might have to travel long distances, which
can be dangerous during pregnancy, or rely on unskilled birth attendants, increasing the
risk of complications
Studies have shown that interruptions in healthcare funding in Afghanistan could result
in thousands of additional deaths annually.
Limited Access to Services: Approximately 8 million people are projected to lose
access to essential health services due to funding shortfalls, exacerbating health
vulnerabilities (WHO, 2023).
Funding shortfalls mean about 8 million people will lose access to essential health
services.
Example: Consider a family in need of basic medical care like vaccinations or treatment
for common illnesses. Without adequate funding, clinics may close or reduce services,
leaving this family without options for medical help.
Healthcare Worker Shortages: The lack of female healthcare workers, compounded
by restrictions on women's education and employment, further limits access to care for
women and children (Human Rights Watch, 2024).
The shortage of female healthcare workers is exacerbated by restrictions on women's
education and employment.
Example: In many Afghan communities, cultural norms require female patients to be
treated by female doctors. However, with fewer women allowed to pursue medical
education under Taliban restrictions (e.g., bans on girls' education), there are not
enough female healthcare providers available. This limits access to care for women who
prefer or require treatment from another woman
4. LIMITED EDUCATIONAL OPPORTUNITY
Country: Bangladesh
School Dropout Rates: High dropout rates are prevalent, especially in rural regions,
where approximately 80% of children who do not complete primary education reside
(The Daily Star, 2024).
High dropout rates are common, particularly in rural areas where about 80% of children
who do not complete primary education reside.
Example: Imagine a rural village where many children start school but drop out early
due to factors like poverty or lack of access to quality education. For instance, a child
might have to help their family with farming instead of attending school because there
are no other income sources
Lack of Resources: Many rural schools lack qualified teachers and essential learning
materials, hindering students' ability to succeed academically (The Daily Star, 2024)
Many rural schools face shortages of qualified teachers and essential learning
materials.
Example: Consider a small rural school that lacks textbooks and qualified math
teachers. Students there might struggle with basic arithmetic because they don't have
the necessary resources or guidance, leading to poor academic performance and
higher dropout rates.
5. POOR INFRASTRUCTURE
Example Country: Haiti
After the 2010 earthquake, many roads were destroyed, severely limiting access to
essential services and emergency aid.
The lack of infrastructure contributes to public health crises. For instance, inadequate
sanitation systems allow diseases like cholera to spread rapidly.
Example: In areas without reliable sanitation facilities, wastewater can contaminate
water sources used for drinking and cooking. This increases the risk of waterborne
diseases spreading among communities
Without significant investment and reform in Haiti's infrastructure, the country will
continue to face severe public health challenges and hindered economic development.

CHARACTERISTICS
1. Economic Dependency
Country: Mozambique
Agricultural Losses: About 400,000 hectares of crops were destroyed, severely
impacting food security. Key crops like maize and cassava were heavily affected,
worsening the food crisis in a country where agriculture constitutes roughly 24% of
GDP.
Cyclone Idai destroyed about 400,000 hectares of crops, severely impacting food
security. Key crops like maize and cassava were heavily affected.
Example: Imagine a small village where most families rely on farming to feed
themselves and earn income. If their entire crop of maize is destroyed by flooding, they
might not have enough food for the year or money to buy other essentials
Economic Vulnerability: The disaster highlighted Mozambique's economic fragility due
to its agricultural dependence. The loss of crops increased poverty and food insecurity
among rural communities that primarily engage in subsistence farming.
The disaster highlighted Mozambique's economic fragility due to its dependence on
agriculture. The loss of crops increased poverty and food insecurity among rural
communities.
Example: Consider a rural community where agriculture is the main source of livelihood.
When floods destroy their crops, families lose both their food supply and income source.
This can lead to increased reliance on aid or migration to urban areas in search of work,
exacerbating poverty.
2.Cultural Diversity
Country: South Africa
Cultural Expression: Heritage Day allows South Africans to showcase their unique
cultural practices. Events across the country feature traditional music, dance, and food
from various ethnic groups, such as Zulu dances and Xhosa storytelling, promoting
appreciation and understanding among communities.
Heritage Day allows South Africans to showcase their unique cultural practices.
Example: Imagine attending a festival where you see Zulu dancers performing
traditional dances, hear Xhosa storytellers sharing tales of their ancestors, and taste
traditional dishes like bobotie or boerewors. These events bring together people from
different ethnic backgrounds to celebrate their diverse heritage.
National Unity: The day fosters national pride and unity by encouraging citizens to
celebrate their diverse backgrounds. It emphasizes that all South Africans, regardless of
ethnicity, share a common identity, which is essential for building social cohesion in a
historically complex nation.
The day fosters national pride and unity by encouraging citizens to celebrate their
diverse backgrounds.
Example: Consider a community event where people from all ethnic groups come
together to share food, music, and stories. This shared celebration reinforces the idea
that despite differences in culture or language, all South Africans are part of a broader
"rainbow nation," promoting social cohesion and understanding among communities.

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