1. University of Colorado – Denver
Notes
Windham E. Loopesko
INTB 3000 Fall 2013
University of Colorado – Denver
September 16-19, 2013
Course Introduction
09/16-19/2013

2. Week 5.1 – Global North vs. Global South
A division based only loosely on geography (the line is approximately 30° North latitude) and more on the degree of development – the Global North includes Australia & New Zealand
Some distinguish the “Global East”
These terms increasingly replace First World, Soviet bloc and Third World, which have lost favor since the fall of Communism
Looking back on course years from now, quaint -- typewriters and punch cards
Equally valid viewpoints – best run companies have both, American strength
Course Introduction
09/16-19/2013

3. Week 5.1 – The Global South
Great diversity in size, form of government and level of economic development (e.g., Qatar), but generally former Global North colonies
Typically part of a “zone of turmoil”
While democracy has been spreading, the countries typically have more fragile institutions and greater risks of tyranny and instability
Course Introduction
09/16-19/2013

4. Week 5.1 – A Global North- Global South comparison
The Global North has
20% of population & 30% land mass, 70% of wealth
15 times higher gross national income per capita
13 years higher life expectancy (80 to 67)
8 times less infant mortality (6 vs 50 per 1000)
68 computers per 100 people (5 in Global South)\
Seven times higher electric power consumption
87% paved roads (24% in Global South)
Course Introduction
09/16-19/2013

5. Week 5.1 – Why the discrepancy?
The classical liberal explanation – lack of education, managerial efficiency, technology and infrastructure
World dependency theory – a division of labor between the dominant core and a subordinate periphery, keeping the majority in the periphery in poverty while allowing great wealth to a tiny elite, while imposing foreign cultural values
Course Introduction
09/16-19/2013

6. Week 5.2 – Global South vs. Global North in the 21st century
During the Cold War, Global South countries could obtain resources merely by choosing sides; today the challenge is to retain the interest of Global North countries
Resources are important, but direct aid has decreased, and coming US energy independence will cause a fundamental geopolitical shift
Course Introduction
09/16-19/2013

7. Week 5.2 – The problem of failed states
Lacking the competition of the Cold War, some Global South states no longer have resources to maintain order and provide basic services
Such failed states can serve as a base for terrorism and organized criminal activities
Such states tend to invest heavily in arms – they are also much more susceptible to natural disasters (e.g., cyclones)
Course Introduction
09/16-19/2013

8. Week 5.2 – Challenges and prospects for the Global South
The challenge – economic development and closing the gap with the Global North
Ways to close the gap
Free trade agreements
Assistance from Global North countries (foreign aid)
Remittances from citizens abroad
Direct foreign investment from private companies
Microfinancing; technology
Course Introduction
09/16-19/2013