Outline for 12/3: The North-South Gap II Imperialism Decolonization World Systems Theory Dependencia NIEO “bad” institutions

Start where we left off: the North-South Gap over Time

Why a Growing North-South Gap through at least the 1970s? 1. North starts out with a geographic advantage Temperates (N) vs. tropics (S) More compact economic geographies in N

Why a Growing North-South Gap through at least the 1970s? 2. Exploitation of the Global South: imperialism beginning circa 1500 How might being a colony hurt economic development?

British Empire

French Empire

Spanish Empire

Portuguese Empire

Dutch Empire

Belgian Empire

But with rapid decolonization after WWII, shouldn’t the N-S Gap begin to decline in the 1950s? World Systems Theory Core (N) Periphery (S) Policy recommendations from World Systems Theory?

Dependencia International economy is not one of interdependence (per institutionalism and free trade theory) Instead, the capitalist international economy is characterized by 3 rd World dependence. Trade FDI Foreign debt Policy recommendations from Dependency Theory?

New International Economic Order (NIEO) Proposals put forth beginning in 1960s (often in UNGA) Southern countries should be able to: Regulate MNCs and their FDI activities Establish producer cartels Protect their domestic markets Northern countries should provide more foreign aid New trade institution (as alternative to GATT): UNCTAD Successful?

“Bad” institutions Many developing countries have bad political institutions: weak governments who cannot enforce law /order or guarantee property rights strong and corrupt governments who over-tax and over-manage their economies Bad institutions slow economic growth How linked to colonialism/decolonization? Exceptions? Good governments/institutions in the South? Policy recommendations based on this argument?