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Outline for 11/21: North-South Gap I Classifying Countries GDP per capita as an indicator Poverty Economic Growth Mono-economies North-South Gap: Worse or Better? Classifying Countries in terms of Economic Development North – high income, developed national economies South – lower income, lesser developed national economies Seems to imply a geographic role for economic development Is there any geographic reason why northern countries should be advantaged? 1st World 2nd World 3rd World Where did the 2nd World countries go in terms of the North-South divide? What about the Asian tigers: Taiwan, Singapore, South Korea? Lots of Variation within the Global South GDP per capita as the standard measure of economic development Allen and Sutton, Student Atlas of World Politics, 9th ed. Focus on the Least Developed Countries: Poverty Three degrees of poverty Extreme poverty: $1/person/day Moderate poverty: $1-2/person/day Relative poverty – below some national standard At least 1 billion people live in extreme poverty. Where are they concentrated? Poverty trap Extreme Poverty Worldwide Allen and Sutton, Student Atlas of World Politics, 9th ed. How to reduce poverty and promote economic development: Economic Growth Growth in what? Small differences compound over time Determinants of per capita economic growth? investment share of GDP, secondary school enrollment, population growth Two complications to simply focusing on economic growth 1. Fast growth leads to inflation 2. Internal (or domestic) income inequality Kuznets curve Other complications? Other important economic considerations? Inequality Worldwide Allen and Sutton, Student Atlas of World Politics, 9th ed. Mono-economies Defined as those producing one or two primary products (agriculture or mining) Country/product examples? Why is this a problem? Resource Curse example Ladder of economic development Rung Key factors Hi tech manufacturing, services K, HK Heavy manufacturing More K, some HK, less L Light manufacturing L, some K Agriculture, mining L, R Countries? Economic Development and the Structure of the National Economy Allen and Sutton, Student Atlas of World Politics, 9th ed. Is the North-South Gap Getting Worse? Maybe Yes Is the North-South Gap Getting Worse? Maybe No