Global InequalitiesGlobal InequalitiesClassifying CountriesThe North-South Gap

Classifying CountriesClassifying Countries

Countries are classified in terms of social, economic, and political structures

The older system used during the Cold War used the terms:

First WorldFirst World (U.S., Canada, U.K.) Second WorldSecond World (Communist States such as China,

Russia) Third, Fourth and even Fifth World (Afghanistan,

Ethiopia)

Human Development Index (HDI)

It is a composite statistic of life expectancy, education, and income  used to rank countries into four tiers of human development

Countries are ranked on placed into one of four groups (each group has 49 countries*):

1. Very High Human Development

2. High Human Development

3. Medium Human Development

4. Low Human Development

Some countries are not ranked because of a lack of data

Human Development Index (HDI)

Starting in 2010, the Human Development Report the HDI now combines three dimensions:

1) A long and healthy life: Life expectancy at birth

2) Education index: Mean years of schooling and Expected years of schooling

3) A decent standard of living: Gross National Income per capita (Purchasing power parity US$)

Classifying CountriesClassifying Countries

The current system uses the following terms:The current system uses the following terms:

1.1. More Developed Countries More Developed Countries (MDCs)(MDCs) Richest of industrialized nations, high quality of life, good health

care, high life expectancy, highly educated population High gross domestic product (GDP) per capita

2.2. Less Developed Countries Less Developed Countries (LDCs)(LDCs) A developing country, also called a less-developed country, is a nation

with a lower standard of living, underdeveloped industrial base, and low Human Development Index (HDI) relative to other countries

There is a strong association between low income and high population growth

People have lower life expectancy, less education, and less money (income)

Classifying CountriesClassifying Countries

The current system uses the following terms:The current system uses the following terms:

3.3. Least Developed Countries Least Developed Countries (LLDCs)(LLDCs) Exhibits the lowest indicators of socioeconomic development, with the

lowest Human Development Index ratings of all countries in the world A country is classified as a Least Developed Country if it meets these criteria:

1. Extreme Poverty

2. Extremely poor human resource weaknesses (nutrition, health, education and adult literacy)

3. Economic vulnerability (based on instability of agricultural production, instability of exports of goods and services, economic importance of non-traditional activities, merchandise export concentration, handicap of economic smallness, and the percentage of population displaced by natural disasters)

4. Suffer conditions of ongoing and widespread conflict (including civil war or ethnic clashes), extensive political corruption, and lack political and social stability

5. The form of government in such countries is often authoritarian in nature, and may comprise a dictatorship, warlordism, or a kleptocracy

Classifying Countries Classifying Countries

We can also classify countries as developed and less developed

Developed Country•Rich

•North

•Industrial

•Good roads, transportation

•High Energy Consumption

•Oil, coal, nuclear

•Good health care

•Clean Water

Developing Country•Poor

•South

•Agricultural

•Poor roads, transportation

•Little Energy

•Wood, wind, animal, human energy

•Disease and Famine

•Polluted or little water

Global InequitiesGlobal Inequities

One result of the Global Village has been the increasing gap between rich and poor

Both on a local and global scale

Wealthy countries are concentrated in one part of the world, while poor countries seem to be concentrated in another – WHY IS THIS SO?

Some of the poorest countries have not been able to take advantage of new communications technologies to be competitive

According the UN Human Development Report (1996):

The richest 20% of countries controlled 70% of the global income

By 1993, they controlled 85%

The share of the poorest 20% of the world’s people had deceased from 2.3% to 1.4%

The shift towards a global world economy threatens to widen this gap

Global InequitiesGlobal Inequities

The North-South GapThe North-South Gap

The 20% that owns almost 85% of the worlds wealth live almost entirely in the industrialized nations in the northern hemisphere (in addition to Australia and New Zealand)

The poorest 20% of people in the world are located in the southern hemisphere

Northern Hemisphere

Southern Hemisphere

You Live Here

North-South GapNorth-South Gap

Because of the great discrepancy between the “have” and have-

not” nations of the world, this is often referred to as the North-South Gap

North-South GapNorth-South Gap

The Northern countries have the greatest wealth, highest standard of living, and the greatest industrial development – but the lowest population

The southern countries have the bulk of the world’s population, but less of the wealth, low standard of living, and far less industrial development

See figure 2.14 on page 35

Something to think about?Something to think about?

Consider what your life would be like if you were born in another part of the world?

What types of things do we rely and use on a daily basis?

Are these necessities or luxuries? How would your daily routine compare to

someone living in a “have not” country?