Global Groupings and the Development Gap

Global Economic Groupings

Traditional systems of dividing up the word in terms of development include the north-south divide and the first, second and third worlds. The changing complexities of the world’s economic development are not reflected within these traditional classification schemes. Even when extending the first, second and third world method to include a forth world for the poorest countries, reasonably developed former communist countries (e.g. former Soviet Union) are not clearly placed into any classification.

More recent categories to divide countries by levels of development include a five-fold division based on wealth of; rich industrialised countries, oil-exporting countries, newly industrialising countries, former centrally planned economies (those previously having a communist political system) and heavily indebted countries.

 

Industrialised Countries

The rich industrialised countries often referred to as MEDCs (more economically developed countries) include USA, UK and Japan. These economies became more developed due to an industrial base of manufacturing goods from raw material. A wide range of industries such as steel making and car manufacturing allowed them to gain immense profit; which was then used to develop these countries further, especially services and service industries. These countries form part of the north divide and the first and second worlds. Within this developed world economic power is concentrated into three economic cores, referred to as a ‘triad’ and around 80% of the worlds wealth in concentrated in this triad. The three economic cores are linked through a complex system of; global finance, stock exchange, international airports, government centres.

 

Less Economically Developed Countries

Less economically developed countries (LEDCs) of the poorer south divide have undergone different rates of development; most were once colonies, governed by other countries e.g. India and Kenya which were colonial countries of the UK. Many of their economies are/were based on the export of raw materials and cash crops, which do not generate great profit and they are forced to import many expensive manufactured goods. Therefore, the less developed countries rarely had enough funds to develop services and service industries e.g. education and health care; keeping them less developed.  Globalisation and its increasing global connections have seen some poor countries develop more rapidly than others, making the classifications of NICs, RICs and heavily indebted countries more useful. The Asian Tigers, such as Singapore and South Korea, classified as a NIC have developed at such a speed that they are almost reaching developed country levels.

 

Very poor countries (LDCs Heavily Indebted)

While some countries have benefited from the increasingly connected world many countries have not benefited and economic growth cannot match population growth. Some countries such as those in the  Sub-Sahara region have become heavily in debt, borrowing money and not meeting the payments. Therefore the countries cannot more the economy forward. Around 26 of the 30 poorest countries in the world are to be found in Sub-Saharan Africa.

 

 

Oil rich countries

Oil-exporting countries have a great spread of wealth. Nevertheless the majority of people remain poor in countries such as the United Arab Emirates (UAE) and Venezuela.

The development continuum

Not all divisions will fit all countries neatly and some methods, like the north-south divide is very outdated and based entirely on economic indicators such as GNP (Gross National Product). In reality, countries are all at different levels of development and move gradually from one category to another in what is now referred to as the development continuum. This refers to a continuum from highly developed to those with very low levels of development and countries change. The development continuum is based on the HDI (Human Development Index which includes both economic and social indicators). For example nations previously considered developing now appear to be crossing the divide (e.g. Asian Tigers).

 

 

Possible teaching activities: -

·         Discussion about places they have visited.

·         Comparing maps of the old North-South (Brandt Line) and the more recent HDI.

·         Comparing indicators of development.

·         Getting pupils to match up pictures of countries with their classifications.

·         Getting pupils to complete tasks on video/media of MEDC or LEDC.

·         Researching countries at different levels of development