25.3.1 The North-South Divide and Other Measurements of Inequality

The North-South Divide

Global North-South Divide:

• The North-South divide refers to the socio-economic and political differences between the wealthier, industrialized countries of the "Global North" (e.g., North America, Western Europe, Japan) and the poorer, less developed countries of the "Global South" (e.g., Africa, Latin America, parts of Asia).
• The divide is not just geographical but also reflects disparities in wealth, development, political power, and access to resources.
• The Global North generally enjoys higher levels of income, industrialization, and political influence, whereas the Global South often faces challenges such as poverty, political instability, and limited access to education and healthcare.
• This divide is rooted in historical processes, including colonialism, which established exploitative economic relationships that continue to affect global development patterns.

North-South Divide in the UK:

• Within the UK, the North-South divide describes the economic, social, and cultural disparities between the wealthier South (especially London and the Southeast) and the less affluent North (including regions like the North East, North West, and Yorkshire).
• The South is characterized by higher incomes, better employment opportunities, and greater investment in infrastructure, while the North experiences lower economic growth, higher unemployment, and fewer public services.
• This divide is influenced by the decline of traditional industries (e.g., coal, steel) in the North and the rise of service industries in the South.

World-Systems Theory

Overview:

• World-Systems Theory, developed by sociologist Immanuel Wallerstein, is a macro-sociological perspective that seeks to explain the dynamics of the "capitalist world-economy" as a total social system.
• The theory divides the world into three regions: the core, the semi-periphery, and the periphery.
  • Core: Wealthy, developed countries with strong economies, high levels of industrialization, and political power (e.g., the US, Western Europe).
  • Semi-Periphery: Countries that are in transition, having characteristics of both core and periphery regions. They are often industrializing and play a stabilizing role in the world system by connecting the core and periphery (e.g., Brazil, India).
  • Periphery: Less developed countries that are often exploited for their resources by the core countries. They have weaker economies, lower levels of industrialization, and limited political influence (e.g., Sub-Saharan Africa, parts of Latin America).

Significance:

• World-Systems Theory emphasizes the structural inequalities that exist in the global economy, where wealth and power are concentrated in the core at the expense of the periphery.
• It highlights how economic and political power is maintained by the core through mechanisms like trade, investment, and military dominance, perpetuating global inequality.

Dependency Theory

Overview:

• Dependency Theory emerged in the 1960s and 1970s as a critique of modernization theory, which suggested that all countries follow a linear path of development.
• According to Dependency Theory, underdevelopment in the Global South is not due to internal factors but is the result of external influences, particularly the economic and political dominance of the Global North.
• The theory argues that the resources flow from the periphery (poor and underdeveloped countries) to the core (wealthy countries), enriching the latter while impoverishing the former.
• Key Concepts:
  • Metropole-Satellite Relationships: The core countries (metropoles) extract resources from the periphery (satellites), creating a dependent relationship that hinders development in the periphery.
  • Economic Exploitation: Dependency theorists argue that trade terms, foreign direct investment, and global financial systems are skewed in favor of the core, leading to a cycle of poverty and underdevelopment in the periphery.

Significance:

• Dependency Theory challenges the notion that underdeveloped countries can "catch up" to developed countries through the same processes of industrialization and economic growth, highlighting the need for alternative development strategies that address structural inequalities.

Orthodox vs. Alternative Measurements of Poverty

Orthodox Measurements of Poverty:

• Orthodox (or traditional) measurements of poverty typically focus on income and consumption levels. The most common metric is the World Bank's international poverty line, currently set at $1.90 per day (PPP).
• Other orthodox measures include Gross Domestic Product (GDP) per capita, which reflects the average income of a country's citizens, and the Gini Coefficient, which measures income inequality within a country.
• These measurements are often criticized for being too narrow, as they focus primarily on economic indicators and do not capture the full complexity of poverty.

Criticisms of Orthodox Measurements:

• Orthodox measurements often fail to account for factors like access to healthcare, education, and clean water, which are crucial for understanding poverty.
• These measures can also ignore social and environmental factors that contribute to poverty, such as social exclusion, environmental degradation, and political instability.

Alternative Measurements of Poverty:

• Human Development Index (HDI): The HDI is an alternative measure developed by the United Nations Development Programme (UNDP). It combines indicators of life expectancy, education, and income per capita to provide a more holistic view of development and well-being.
• Multidimensional Poverty Index (MPI): The MPI, also developed by the UNDP, assesses poverty based on multiple deprivations that individuals face, including health, education, and living standards. It provides a more comprehensive understanding of poverty by considering factors beyond income.
• Basic Needs Approach: This approach focuses on whether people have access to basic necessities, such as food, clean water, shelter, education, and healthcare, rather than solely on their income levels.
• Capability Approach: Developed by economist Amartya Sen, the capability approach emphasizes the importance of individuals' abilities to achieve the life they value. It focuses on expanding people's freedoms and opportunities rather than simply increasing their income.

Significance:

• Alternative measurements of poverty provide a more comprehensive understanding of poverty and inequality by incorporating social, economic, and environmental factors.
• These measures challenge the narrow focus of orthodox measurements and highlight the need for policies that address the root causes of poverty and promote sustainable development.

The North-South Divide as an Example of Inequalities

• The North-South divide, both globally and within countries like the UK, is a clear example of structural inequalities that result from historical, economic, and political processes.
• The divide reflects deep-seated disparities in wealth, development, and power that are perpetuated by global economic systems and policies.
• Theories like World-Systems Theory and Dependency Theory help to explain the persistence of these inequalities by highlighting the exploitative relationships between the Global North and South.
• Addressing the North-South divide requires a comprehensive understanding of the various factors contributing to inequality, including economic, social, and political dimensions, and the adoption of alternative development strategies that promote equitable growth and sustainable development.