Wednesday 18 May 2011

The North-South Gap

The North-South gap is causing an enormous amount of instability in the world today. The North represents all the northern economically developed countries (EDC's). Most of these EDC's have similar political characteristics. They are democratic and stable, and they have a competent government structure and a good fit between nation and nation-state. The South, which represents the lesser developed countries (LDC's), are quite the opposite. Majority of the LDC's are run by authoritarian rulers. The instability of these countries is very high, they have a poor government structure, and they have the worst fit between nation and nation-states. The North also shares common economic characteristics. These include: diversity of economy, free marker or quasi-free market capitalism, agriculture and manufacturer industry, and per-capita income of $25,000/year. Not surprisingly, the South is the total opposite. However they do have a raw material/agriculture industry, the LDC's have no diversity in economy, a low level of free market, and per-capita income of $1260/year. The most astonishing fact about the North-South gap is that the North accounts for only fifteen percent of the world population and yet seventy-nine percent of the world's wealth, whereas in the South, about 1.1 billion people live on one dollar per day. I guess its true when they say "Life ain't fair."

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