North/South Divide

Definition of the North/South Divide

• North/South Divide: A socio-economic and political division that separates wealthier, industrialised countries (Global North) from less affluent, developing countries (Global South).
• Global North: Wealthier, industrialised nations.
• Global South: Less affluent, developing nations.

Globalisation

• Globalisation: An interconnectedness of economies and cultures that encourages economic interdependence.
• Involves Technological Advancements and trade liberalisation, leading to both economic growth and challenges. It significantly impacts GDP growth and employment rates, with increased disparities between North and South.

Role of Globalisation

• Integrates global markets and stimulates economic development.
• Enhances trade, investment, and cultural interactions.

Technological Advancements

• Communication Technologies
  • Internet and Telecommunications: Enhance global accessibility and connectivity.
  • Silicon Valley exemplifies technological innovation.
• Transportation Technologies
  • Support global trade and the efficient movement of goods.

Trade Liberalisation

• Historical Context

  • Key agreements such as NAFTA and the EU Single Market.
  • Lower trade barriers, encouraging free trade and cooperation.

• Current Trends

  • The WTO expands global markets through greater accessibility.

Impact on Economic Inequality

• Globalisation has intensified wealth disparities, benefitting the North more than the South.
  • The GDP per capita in the North can reach $59,000 while it averages$1,500 in the South.

• Northern countries gain from high capital, advanced technology, and skilled labour, while Southern countries contend with stagnant incomes and less robust institutions.

Cultural and Environmental Impact

• Cultural Erosion
  • Western norms displace local traditions in Southern countries.

• Example: Western cultural influence in Nigeria.

• Environmental Degradation
  • Increased pollution and resource depletion result from outsourcing and multinational company activities.

South Africa: A Case Study

Economic Impact

• GDP Growth
  • Fuelled by mineral exports such as gold and platinum.
  • Illustrated through trade balances and dependence on partners like China, Germany, and the USA.

Social Impact

• Globalisation encourages the acceptance of diverse cultures.
• Urban consumer behaviours increasingly align with Western styles.

Environmental Impact

• Moves towards sustainability are shaped by global agreements.

Comparisons and Future Outlook

• Relative Advantages

  • Efficient production and resource abundance bolster national exports.

• Comparative Advantages

  • Specialisation enhances efficiency and economic returns.

• Strategic Partnerships

  • BRICS offers a foundation for economic development and advanced integration.

Conclusion

Reflect on the disparities caused by globalisation and consider strategic measures to alleviate them through innovation and collaboration, particularly in South Africa and similar regions. By employing diverse strategies, we can achieve sustainable growth and competitiveness on a global scale.