The Development Gap Between North and South Countries | Why are Southern Countries Underdeveloped?

Summary

The video script discusses the North-South development gap, highlighting economic disparities between the hemispheres. It attributes this divide to historical colonialism, unequal resource access, and political instability. The script emphasizes the impact on poverty, education, and healthcare, and explores factors like international trade, climate change, and infrastructure. It underscores the importance of education, innovation, and infrastructure development in reducing the gap, with examples of successful countries like Finland and South Korea, stressing the role of human capital and technology.

Takeaways

• 🌍 The North-South divide highlights the stark differences in wealth and economic development between developed countries in the North and developing countries in the South.
• 🔄 Unequal access to resources and opportunities is a key factor contributing to the development gap, with Northern Hemisphere countries dominating global economic activity.
• 💼 The economic disparity is exemplified by the GDP figures, where OECD countries' combined GDP is significantly higher than that of Sub-Saharan Africa.
• 🏠 The development gap has real-world implications, such as a large portion of the population in African countries living in extreme poverty.
• 🏥 Access to education and healthcare is affected by the development gap, with Southern Hemisphere countries often lacking the resources to provide these services.
• 📚 The divide has historical roots in colonialism and exploitation, which has created a pattern of economic dependence in many Southern Hemisphere countries.
• 💼 Economic factors like access to resources and political stability play a significant role in a country's level of development.
• 🛑 Corruption and political instability in Southern countries can hinder economic growth and development.
• 🔄 International trade contributes to the North-South divide, with Northern countries exporting high-value goods and importing low-value goods from the South.
• 🌡️ Climate change disproportionately affects Southern countries, impacting agriculture, water availability, and public health.
• 🎓 Education and human capital are crucial for reducing the development gap, with investment in education leading to economic and social benefits.
• 🏗️ Infrastructure development is vital for bridging the divide, but many Southern countries lack the resources to fund necessary investments.
• 🤝 Foreign aid has the potential to promote development in the Global South but comes with drawbacks such as dependency, corruption, and conditionalities.
• 🌟 Successful countries like Finland and South Korea demonstrate the importance of education, innovation, and a focus on technology for economic development.

Q & A

What is the development gap between North and South?

The development gap between North and South refers to the significant differences in wealth and economic development between the developed countries of the Northern Hemisphere and the developing countries of the Southern Hemisphere.

What are the key factors contributing to the development gap?

One of the key factors contributing to the development gap is unequal access to resources and opportunities, which often results in the countries of the Southern Hemisphere lacking the resources and infrastructure needed to compete on a level playing field.

What is an example of the economic disparity between OECD countries and Sub-Saharan African countries according to the World Bank data from 2019?

In 2019, the GDP of the 36 member countries of the OECD was $54.2 trillion, while the GDP of all Sub-Saharan African countries combined was just $2.5 trillion.

How does the development gap affect people living in developing countries?

The development gap has real-world consequences for people living in developing countries, such as a significant proportion of the population in many African countries living in extreme poverty, surviving on less than $1.90 per day.

How does the development gap impact access to education and healthcare?

The development gap affects access to education and healthcare, with developed countries often having well-funded public systems, while many developing countries lack the resources to provide these services to their populations.

What is the historical root of the North-South divide?

The North-South divide has its historical roots in centuries of colonialism and exploitation of resources and labor by European powers in the Southern Hemisphere, creating a pattern of economic dependence and underdevelopment.

What are the economic and political factors behind the development gap?

Economic factors include access to resources, while political factors include political stability and corruption levels. These factors can significantly influence a country's ability to attract investment and build stable economies.

How does international trade contribute to the North-South divide?

International trade contributes to the divide as northern countries export high-value goods and import low-value goods from southern countries, leading to southern countries' dependency on exporting low-value goods and inability to compete globally.

What are the effects of climate change on northern and southern countries?

Climate change, such as rising temperatures, can have devastating effects on agriculture, water availability, and public health, with southern countries being particularly vulnerable due to less developed infrastructure and reliance on natural resources.

Why is education and human capital important in reducing the development gap?

Education and human capital are crucial as they refer to the knowledge, skills, and abilities of individuals that can be improved through education and training, leading to increased productivity, higher incomes, improved health outcomes, and reduced poverty.

What role does infrastructure development play in bridging the North-South divide?

Infrastructure development is crucial in bridging the divide as lack of proper infrastructure can hinder economic growth and social development, especially in the global south, where inadequate networks and systems negatively impact development and well-being.

What are the pros and cons of foreign aid in promoting development in the Global South?

Pros include promoting economic growth, providing humanitarian assistance, and improving health outcomes. Cons include creating dependency, leading to corruption, and imposing conditionalities that limit policy decisions of recipient countries.

What lessons can be learned from successful northern and southern countries like Finland and South Korea?

Lessons include the importance of investing in education and human capital, focusing on innovation and research and development, particularly in technology, and having a commitment to a strong welfare state or free-market capitalism.

Outlines

00:00

🌍 Economic Disparity and the North-South Divide

This paragraph discusses the significant economic and developmental differences between the Northern and Southern Hemispheres. It highlights the unequal access to resources and opportunities as a key factor, with the Northern Hemisphere's developed countries dominating global economic activity. The World Bank data from 2019 is cited to show the stark contrast in GDP between OECD member countries and Sub-Saharan African nations. The consequences of this disparity include extreme poverty and inadequate access to education and healthcare in the South. Historical roots are traced back to colonialism and exploitation, which established patterns of economic dependence and underdevelopment in the Southern Hemisphere. The paragraph also touches on economic factors like resource access and political stability, as well as the impact of corruption and international trade policies on the development gap.

05:00

🌱 Addressing the Development Gap through Education and Infrastructure

The second paragraph emphasizes the role of education and human capital in reducing the North-South divide. It explains that investing in education can lead to economic and social benefits, but many Southern countries lag behind in literacy rates and years of schooling. The lack of education is linked to lower productivity and innovation, hindering economic growth. Infrastructure development is also highlighted as crucial for bridging the gap, with the lack of it in Southern countries being a significant barrier to economic and social progress. The paragraph contrasts this with the heavy investment in infrastructure by Northern countries, which has contributed to their economic success. It concludes by discussing the challenges Southern countries face in funding infrastructure investments and the potential benefits of foreign aid, while also acknowledging its potential drawbacks such as dependency, corruption, and conditionalities.

10:01

🚀 Lessons from Successful Countries: Innovation and Education

The final paragraph draws lessons from the success stories of Finland and South Korea, two countries that have managed to achieve high levels of economic development despite different starting conditions. Finland's success is attributed to its commitment to education, innovation, and a strong welfare state, resulting in a highly skilled workforce and successful tech companies. South Korea's transformation from a war-torn nation to a technological powerhouse is credited to its focus on education, innovation, and free-market capitalism, leading to the rise of globally competitive companies. The paragraph underscores the importance of investing in education and human capital, as well as innovation and research and development, particularly in technology, as key drivers of economic advancement.

Keywords

💡Development Gap

The term 'Development Gap' refers to the significant disparities in economic growth and wealth between developed and developing countries. In the context of the video, it highlights the economic divide between the Northern and Southern Hemispheres, with the North being more developed and the South lagging behind. The script uses GDP figures of OECD countries and Sub-Saharan African countries to illustrate this disparity.

💡Unequal Access

Unequal access denotes the unfair distribution of resources and opportunities, which is a key factor contributing to the development gap. The script points out that while Northern Hemisphere countries have the majority of global economic activity, Southern Hemisphere countries often lack the necessary resources and infrastructure, thus unable to compete on an equal footing.

💡Gross Domestic Product (GDP)

GDP is the total value of goods and services produced by a country in a given year. It is a key economic indicator of a country's economic health. The script uses GDP figures to emphasize the stark economic differences between OECD member countries and Sub-Saharan African countries.

💡Extreme Poverty

Extreme poverty is a condition where individuals survive on less than $1.90 per day. The script mentions that a significant proportion of the population in many African countries live in extreme poverty, which is a direct consequence of the development gap.

💡Infrastructure

Infrastructure refers to the basic physical and organizational structures needed for the operation of a society or enterprise, such as transportation, power supply, and water systems. The script highlights the inadequate infrastructure in many Southern Hemisphere countries as a major hindrance to their economic development.

💡Colonialism

Colonialism is the policy or practice of acquiring full or partial control over another country, occupying it with settlers, and exploiting it economically. The script discusses how centuries of colonialism and exploitation by European powers in the Southern Hemisphere have contributed to the current economic divide.

💡Economic Dependence

Economic dependence occurs when a country relies heavily on another for economic support or resources. The script explains that the exploitation of resources and labor by colonial powers created a pattern of economic dependence in Southern Hemisphere countries, which persists today.

💡International Trade

International trade involves the exchange of goods and services across international borders. The script discusses how trade policies and agreements, as well as the nature of goods exchanged, contribute to the North-South divide, with Northern countries exporting high-value goods and importing low-value goods from the South.

💡Climate Change

Climate change refers to long-term shifts in temperatures and weather patterns. The script points out that Southern countries are particularly vulnerable to the effects of climate change, such as rising temperatures, which can negatively impact agriculture, water availability, and public health.

💡Human Capital

Human capital encompasses the skills, knowledge, and health of a population. The script emphasizes the importance of education and training in improving human capital, which in turn can lead to increased productivity and economic growth. It contrasts the lower levels of education and human capital in Southern countries with those in the North.

💡Foreign Aid

Foreign aid is financial or other assistance given by developed countries to support the economic development of developing countries. The script discusses both the benefits and drawbacks of foreign aid, including its potential to promote economic growth and improve health outcomes, as well as the risks of creating dependency and corruption.

Highlights

The development gap between North and South is characterized by significant differences in wealth and economic development.

Unequal access to resources and opportunities is a key factor contributing to the development gap.

Northern Hemisphere countries are responsible for the majority of global economic activity, while Southern Hemisphere countries often lack resources and infrastructure.

In 2019, OECD countries' GDP was $54.2 trillion, compared to Sub-Saharan Africa's combined GDP of $2.5 trillion.

Over 400 million people in sub-Saharan Africa were living in extreme poverty in 2018.

Developed countries have well-funded public education and healthcare systems, unlike many developing countries.

The North-South divide has historical roots in colonialism and exploitation by European powers.

Colonial exploitation created a pattern of economic dependence and underdevelopment in Southern Hemisphere countries.

Economic factors such as access to resources and political stability play a significant role in a country's development.

Countries with abundant natural resources often have higher levels of economic development.

Political instability and corruption hinder economic development in many African countries.

International trade contributes to the North-South divide, with northern countries exporting high-value goods and importing low-value goods from the south.

Trade policies and agreements often benefit northern countries at the expense of southern countries.

Climate change has devastating effects on agriculture, water availability, and public health, particularly in southern countries.

Education and human capital are crucial for reducing the development gap between northern and southern countries.

Investing in education leads to increased productivity, higher incomes, improved health outcomes, and reduced poverty.

Infrastructure development is essential for bridging the North-South divide and supporting economic growth.

Developing countries need to invest heavily in infrastructure to meet the needs of their growing populations and economies.

Foreign aid has the potential to promote development but also has drawbacks such as dependency and corruption.

Lessons from successful countries like Finland and South Korea emphasize the importance of education, innovation, and a strong welfare state.

Transcripts

The development gap between North and South refers to the significant differences in wealth

and economic development between the developed countries of the Northern Hemisphere and the

developing countries of the Southern Hemisphere.

One of the key factors contributing to the development gap is unequal access to resources

and opportunities.

For example, while the countries in the Northern Hemisphere are responsible for the majority

of global economic activity, the countries of the Southern Hemisphere often lack the

resources and infrastructure needed to compete on a level playing field.

To illustrate this point, let's consider some numbers.

According to the World Bank, in 2019, the Gross Domestic Product (GDP) of the 36 member

countries of the Organisation for Economic Co-operation and Development (OECD), which

are primarily located in the Northern Hemisphere, was $54.2 trillion.

By contrast, the GDP of all Sub-Saharan African countries combined was just $2.5 trillion.

This disparity in economic activity has real-world consequences for people living in developing

countries.

For example, in many African countries, a significant proportion of the population lives

in extreme poverty, meaning they survive on less than $1.90 per day.

In 2018, the World Bank estimated that more than 400 million people in sub-Saharan Africa

were living in extreme poverty.

The development gap also affects access to education and healthcare.

While developed countries often have well-funded public education and healthcare systems, many

developing countries lack the resources to provide these services to their populations.

For example, in sub-Saharan Africa, there are on average just 9 doctors per 10,000 people,

compared to an average of 34 doctors per 10,000 people in OECD countries.

The Historical Roots of the North-South Divide

The North-South divide has its historical roots in centuries of colonialism and exploitation

of resources and labor by European powers in the Southern Hemisphere.

This exploitation created a pattern of economic dependence and underdevelopment in many Southern

Hemisphere countries that continues to this day.

To understand the historical roots of the North-South divide, let's consider the example

of the African continent.

In the 19th century, European powers colonized much of Africa, exploiting the continent's

natural resources and forcing Africans to work as laborers in mines, plantations, and

other industries.

This exploitation was a key driver of Europe's industrialization and economic growth, while

Africa was left with few resources and little economic development.

Exploring the Economic and Political Factors behind the Development Gap

The development gap between North and South is a complex issue with economic and political

factors at play.

Understanding these factors can help us to better understand why some countries are more

developed than others.

Economic Factors: One key economic factor is access to resources.

Countries with abundant natural resources like oil, minerals, and agricultural land

often have a higher level of economic development.

For example, countries like Saudi Arabia and Norway have significant oil reserves, which

has contributed to their high levels of economic development.

Political Factors: Political stability is another important factor in economic development.

Countries that experience frequent political unrest, violence, and instability often struggle

to attract investment and build stable economies.

For example, many African countries have experienced periods of political instability since gaining

independence, which has hindered their economic development.

Another important political factor is corruption.

Countries with high levels of corruption often struggle to attract investment and build stable

economies, as investors are wary of the risk of financial impropriety.

The Role of International Trade in the North-South Divide

The North-South divide refers to the disparities in economic development between countries

in the northern hemisphere (usually more developed countries) and those in the southern hemisphere

(usually less developed countries).

International trade is a major factor that contributes to this divide.

One of the main reasons for the disparity is that northern countries are able to export

high-value goods such as machinery, automobiles, and technology while importing low-value goods

such as raw materials and agricultural products from southern countries.

This has led to a situation where southern countries are dependent on exporting these

low-value goods and are unable to compete in the global market.

Furthermore, trade policies and agreements have played a role in exacerbating the divide.

For example, policies such as tariffs, quotas, and subsidies often benefit northern countries

at the expense of southern countries.

Additionally, trade agreements such as the North American Free Trade Agreement (NAFTA)

have been criticized for benefiting northern countries and corporations at the expense

of southern countries.

The Effects of Climate Change on Northern and Southern Countries

One of the most obvious effects of climate change is rising temperatures, which can have

devastating effects on agriculture, water availability, and public health.

Southern countries are particularly vulnerable to these effects, as they often have less

developed infrastructure and are more reliant on natural resources for their economies.

For example, countries in Sub-Saharan Africa and South Asia have seen declines in agricultural

yields due to changes in rainfall patterns and higher temperatures.

In addition to the direct effects on agriculture and infrastructure, climate change also has

indirect economic effects.

Natural disasters such as hurricanes, floods, and droughts can have devastating impacts

on economies, particularly in southern countries where people are often living in poverty and

lack the resources to recover quickly.

Education and Human Capital: A Key Factor in Reducing the Development Gap

Education and human capital are crucial factors in reducing the development gap between northern

and southern countries.

Human capital refers to the knowledge, skills, and abilities of individuals, which can be

improved through education and training.

Investing in education can lead to a range of economic and social benefits, such as increased

productivity, higher incomes, improved health outcomes, and reduced poverty.

However, many southern countries have lower levels of education and human capital than

northern countries.

For example, according to the World Bank, the literacy rate for adults in Sub-Saharan

Africa is only 65%, compared to 99% in Europe and Central Asia.

Similarly, the number of years of schooling for adults in South Asia is only 6.5 years,

compared to 10.4 years in Latin America and the Caribbean.

The lack of education and human capital in southern countries can have a range of negative

economic and social effects.

For example, lower levels of education can lead to lower productivity and lower levels

of innovation, which can in turn lead to lower economic growth and development.

The Importance of Infrastructure Development in Bridging the North-South Divide

Infrastructure development plays a crucial role in bridging the development gap between

northern and southern countries.

Lack of proper infrastructure can hinder economic growth and social development, especially

in the global south.

One of the main reasons for the development gap between the north and south is the lack

of proper infrastructure in many southern countries.

For example, inadequate transportation networks, unreliable power supply, and poor water and

sanitation systems can have a negative impact on economic development and human well-being.

In contrast, northern countries have invested heavily in infrastructure, including transportation

networks, energy systems, and communication technologies, which have contributed to their

economic success.

According to the World Bank, developing countries need to invest around $1.7 trillion annually

in infrastructure to meet the needs of their growing populations and economies.

However, many southern countries lack the resources to fund such investments, resulting

in inadequate infrastructure and slower economic growth.

The Pros and Cons of Foreign Aid in Promoting Development in the Global South

Foreign aid is a major tool used by developed countries to promote development in the Global

South.

While foreign aid has the potential to make a significant impact on development, it also

has its drawbacks.

Pros of Foreign Aid:

Promoting Economic Growth: Foreign aid can help promote economic growth by providing

resources to develop critical infrastructure and invest in industries.

Humanitarian Assistance: Foreign aid can provide much-needed assistance to countries that are

experiencing natural disasters, war, or other humanitarian crises.

Improved Health Outcomes: Foreign aid can help improve health outcomes in countries

by supporting the development of healthcare infrastructure, training healthcare workers,

and providing access to essential medicines and vaccines.

Cons of Foreign Aid:

Dependency: One of the major drawbacks of foreign aid is that it can create a dependency

on aid, which can hinder the development of local industries and markets.

Corruption: Another issue with foreign aid is that it can lead to corruption.

Aid can be misused or mismanaged by local officials, leading to a lack of accountability

and transparency.

Conditionality: Many donors attach conditions to their aid, which can limit the ability

of recipient countries to make their own policy decisions.

Overcoming the Development Gap: Lessons from Successful Northern and Southern Countries.

One example of a successful northern country is Finland.

Despite being a small country with harsh climate conditions, Finland has managed to achieve

high levels of economic development and social welfare.

The key to their success lies in their commitment to education, innovation, and a strong welfare

state.

Finland has one of the best education systems in the world, with free education for all

and a focus on practical skills and problem-solving.

This has led to a highly skilled workforce that is able to compete on the global stage.

Finland also invests heavily in research and development, particularly in the field of

technology, which has led to the growth of successful companies such as Nokia and Rovio

(the creators of Angry Birds).

On the other hand, there are also successful southern countries that have managed to bridge

the development gap.

One such country is South Korea.

Once a war-torn nation with few natural resources, South Korea has managed to become one of the

world's most technologically advanced and prosperous countries.

This success can be attributed to their strong focus on education and innovation, as well

as their commitment to free-market capitalism.

South Korea has a highly educated population and invests heavily in research and development,

particularly in the fields of electronics and information technology.

This has led to the growth of successful companies such as Samsung and LG.

There are several lessons that can be learned from the successes of Finland and South Korea.

One key lesson is the importance of investing in education and human capital.

Both countries have strong education systems that produce skilled workers who are able

to compete in the global market.

Another lesson is the importance of innovation and research and development, particularly

in the fields of technology.