1. THE GLOBAL SOUTH

2. The Global South Who is the GS? Global Institutions & the GS Development Hurdles GS Economic Development Tactics ¤

3. 5 CATEGORIES OF GS COUNTRIES Who is the Global South?

4. 5 Categories of GS Countries 1. Emerging Markets  Who are they? Who are they?  Growth  Greater % of people =middle class (>$10/day)  Investment ¤ http://qz.com/172953/whose-fault-is-the-emerging-market-sell-off/

5. 5 Categories of GS Countries 2. Countries in Transition (CITs)Countries in Transition  Central and Eastern European (East bloc Soviet satellites)  Former Soviet Republics (FSRs)  Growth rates differ ¤

6. 5 Categories of GS Countries 3. Frontier markets  Investment category  Coined 1992  Below EEs  More risk ¤ http://blogs.reuters.com/globalinvesting/2013/06/03/cheer-up-morocco-frontier-markets-are-hot/

7. 5 Categories of GS Countries 4. Least Developed Countries (LLDCs)Least Developed Countries  US (GDP per capita=ranks 10th) at ~$51,700  Average GDP per capita of LLDCs at $750  Burundi, Congo, Somalia at $200 GDP per capital http://en.wikipedia.org/wiki/List_of_countries_by_GDP_%28nominal%29_per_capita ¤

8. 5 Categories of GS Countries 5. Heavily Indebted Poor Countries (HIPCs)Heavily Indebted Poor Countries  2012 IMF-WB identified HIPCs  39 countries  29 in sub-Saharan Africa  Debt relief- HIPCs qualify  36 accepted full or partial relief ~$72 B  4 in process  Reliance on single cash crops  Cotton accounts for 46% of Mali’s exports ¤

9. Global Institutions & the GS

10. MNCs IGOs  IMF  WB  GATT  WTO  OECD OECD  G7, then G8, now G7 again  now G20G20 NGOs  Representation by GS  Representation on behalf of GS ¤

11. INTERNAL & EXTERNAL POLICY STRATEGIES GS Development Tactics

12. Internal Policy Strategies Import substitution Nationalization of industries Establishing cartels Protectionism ¤

13. GS Development Tactics External Policy Strategies Regional IGOs  ASEAN, Mercosur, SADC, SAARC, etc. International IGOs  Group of 77 (132), NAM, UNCTAD, etc. International pressure  Monetary reforms  Trade reforms  Development  Economic sovereignty  Economic aid ¤

14. Development Hurdles

15. Historical Disadvantages Colonization; Neocolonialism  Primary v. manufactured goods  Cash crops  Natural resources  Price volatility  Lack of national unity Institutions favor GN Accrued debts in 1960s and 1970s  Lack autonomy over debt management ¤

16. Debt Creation Oil-rich countries Western banks Developing countries

17. Development Hurdles Political stability  Institutions  Infrastructure Market isolation Conflicting interests with GN  Self-interested actors Sustainable development expectations Corruption ¤

18. Development Hurdles How does corruption affect China?  Politics  Accusations  Vote-buying  Who controls what  Land, licensing, title-selling  Passing/ enforcing laws  FDI ¤

19. Development Hurdles http://theactivistwriter.com/tag/corruption-statistics/http://theactivistwriter.com/tag/corruption-statistics/ Based on 2011 statistics from Transparency Int’l2011

20. Development Hurdles (cont.) Currency instability  Lack banking / credit access  41% in GS- mostly EEs- have bank accounts Sub-Saharan Africa- 27% men; 22 % women  7 % in GS have credit cards http://www.economist.com/blogs/feastandfamine/2012/04/banking-developing-world Gender equity  ¤

21. Women’s Development http://www.glpinc.org/Web_pages/Illiteracy_Globally.html

22. Development Hurdles (cont.) Income inequality  Development  income equality  More developed  greater equality  Less developed  lesser equality  Map on next slide

23. Income Inequality http://en.wikipedia.org/wiki/File:Gini_Coefficient_World_CIA_Report_2009.png

24. Development Hurdles Income inequality (cont.)  Stark exception is US  1% control 36% of wealth  Top 10% control 75%  China: 5% control 23% of wealth  Bottom 5% control.1%  Brazil: 10% control 51% of wealth  Mexico & Argentina: 10% control 42% of wealth  Data from http://www.nytimes.com/2013/07/20/world/asia/survey-in-china-shows-wide-income-gap.html?_r=0 http://en.mercopress.com/2010/03/27/gap-between-rich-and-poor-in-latinamerica-is-largest-in-the-world-says-un http://money.howstuffworks.com/one-percent-control-third-of-wealth.htm http://www.nytimes.com/2013/07/20/world/asia/survey-in-china-shows-wide-income-gap.html?_r=0 http://en.mercopress.com/2010/03/27/gap-between-rich-and-poor-in-latinamerica-is-largest-in-the-world-says-un http://money.howstuffworks.com/one-percent-control-third-of-wealth.htm ¤

25. Development Hurdles Income inequality (cont.)  Lower income inequality = higher growth rates  http://www.imf.org/external/pubs/ft/sdn/2011/sdn1108.pdf http://www.imf.org/external/pubs/ft/sdn/2011/sdn1108.pdf  Consequences of income inequality  Fewer people with resource access  Economic opportunities tied to political stability  More susceptible to corruption  Limited tax base to support government http://www.worldbank.org/depweb/english/beyond/global/chapter5.html ¤

26. Development Hurdles (cont.) Reliance on GN  Foreign Aid  Technology  FDI  Employment Formal v. informal sector Remittances ¤

27. What are remittances? Who uses them? >½ to Asia Transfers are expensive  40% of money transferred goes to rural areas  Lower fees- potentially better than both aid, FDI  Bank concerns  Rely on informal systems G8 pushed to lower fees  =$30 B for migrants ¤

28. Recap

29. Good News? Fewer people in extreme poverty Healthier people ¤ YearBillion People% Living on <$1.25/ day 19811.94 BP52% 20081.29 BP22% 20111.1 BP15% http://economy.money.cnn.com/2012/03/01/650-million-escape-extreme-poverty-thanks-china/http://economy.money.cnn.com/2012/03/01/650-million-escape-extreme-poverty-thanks-china/ ; http://www.un.org/News/Press/docs/2011/gaef3313.doc.htm ; http://www.worldbank.org/en/topic/poverty/overviewhttp://www.un.org/News/Press/docs/2011/gaef3313.doc.htm http://www.worldbank.org/en/topic/poverty/overview

30. The Global South Who is the GS? Global Institutions & the GS Development Hurdles GS Economic Development Tactics