North South Relations Theory

Edward Chien April 5, 2013 jointure- southeastward Relation Research marvel What is the cause and effect of North- federation divide? And why is the South experiencing such sub dued sparing growths? What argon or so solutions to resolving the North-South relation problem? North South relation theory is defined as a socio- economical and disposalal divide between two hemispheres. The North consists of North American, Western europium, Australia, Japan, and easterly Asian countries whereas the south is made up of Africa, Latin America, and South tocopherol Asia.The North is considered to be often more economically real and modernize comp atomic get along 18d to the South, where on that point is widespread poverty and slow economic growth. In this typography I will examine the causes and cause of North-South divide. There atomic number 18 galore(postnominal) causes to the North-South divide, but I think it is virilely related to colonialism. I am talking about mod ern colonialism, whereby rich nations argon now scrambling to find out the best bargains from the measly countries. Rich countries pose relaxed their immigration policies to attract riches and human big(p) from misfortunateer countries.This is considered as robbing talents and it is a new change of colonialism that attend toms to be legitimate. If we look back in history, colonialism is d unitary through coercion and threats, which is veto in todays human being. During the colonial era, British trading companies run wealth from its colonies in Africa by extraction of natural resources and refused to develop amicable infrastructures. In todays world, we w be a new form of colonialism, which is equally devastating, but is much more subtle and less violent.We hold back a large design of young and trained professionals of underhighly-developed countries wretched to rich countries because they are attracted by new possibilities in more developed countries. People are e ager to migrate to countries in the South in attempts to better their career standards and get their share in the perceived successfulness of the NorthSouth and Central Americans want to live and work in North America. Africans and Southwest Asians want to live and work in Europe. atomic number 34 Asians want to live and work in North America and Europe (Rafael, 2007, 556).Migration of virtuoso(prenominal) workers from the South is a serious concern for undeveloped countries. When adroit workers leave the South, they bring with them knowledge, capital, and economic productivity with them to the North. This facilitates an un til now distribution of technological innovation. For instance, if an structural engineer from the South leaves his acres, the present loses human capital and fundamentally both economic productivity of this individual as well as income tax revenue.Now, when skilled labors are migrating in a large proportion, accordingly it the effects are even more detr imental. Though the proponents of globalization cope that it ushers in an unprecedented flow and circulation of people which has never been witnessed before in history, the critics of globalization name shown us that the scale and complexity of human execution that is currently occurring has solely benefited the rich nations (Timsina, 2011). The loss of skilled labor due to migration is a main cause to why undeveloped countries are not experiencing economic growth.In order to solve the problem of migration and help undeveloped countries grant melloweder economic growth, I would propose that rich countries ad rightful(prenominal) their immigration policies. Policies should not be geared toward excessive importation of highly skilled and production young people because these people are the future of their country and without them, on that point will be flyspeck economic growth. But scarce changing immigration policies of rich countries are not enough I think there should also be strong monetary incentives on part of undeveloped countries to retain their skilled workers.For instance, I think doctors, nurses, engineers, and technicians from poor countries should be given an income equal to income given in rich countries the authorities should be able to subsidize their annual salary if necessary. Another main(prenominal) cause of North-South divide is that there is capital constraints and governmental corruption in less developed countries. When government officials corrupt and steal from tax revenue, capital is directed into individual pockets rather than building customary infrastructures.Corrupted money are normally deposited aboard for example in China, a report unveils that the number of government and Party officials who fled the country since the mid 1990s was between 16,000 and 18,000 and the malversate capital nearly 800 billion Yuan, which is $123 billion dollars (Chen, 2011). The report also says that corrupt officials are mostly public s ecurity officers, high executives of state-owned companies, and member of the tribunal these government officials lack the confident in the current system in China and believed that their assets and future is safer abroad, usually in developed countries.Thus, I would raise countries in the South that are less developed to streng so topographic point rights for its citizens. If government officials do not even trust the country in which they serve, they will not serve their country wholeheartedly. There are legion(predicate) problems when capital flight and government corruption takes place. For example, when money goes into individual pockets, community will be left with little improvement in canonic public and social infrastructures the majority of the people will continue to have low living standards, and the country will not be regenerate as quickly.This is prevalent in African countries where authoritarian regimes dictate politics. Plus, in schooling countries where st ate growth is very high, the amount of capital per mortal available for people declines as population grows. There is no much capital to start with and if net capital accumulation is declining due to corruption, poor countries will unless get poorer in the dogged run. Bribery is one of the main tools of corruption, often used by private parties to buy things that are provided by the government.For instance, private actors can bribe and influence the governments choice of firms to supply goods and services through contracts. If business people and government officials are working together to make money, then there is usually monopoly in the market. The government can create barriers of entry and prevent contender from entering to take market share forth from their business partners or client. This will usually result in high product prices and little foreign direct investment due to unfair practice in the market.These practices by the government put their country in a immoral d evelopmental cycle that entails slow economic growth in the long run. I think foreign hindrance into domestic politics of some other country is a violation of sovereignty rights and so it is very thorny to solve the problem of government corruption from the outside. If a developing country wants to transform itself and become a part of the North, then its government must be willing to resist the temptation of corruption, or at least control their level of corruption sustainably.I think we will have to look at some success stories before we formulate a solution. Government intervention is a very principal(prenominal) part of developing countries historically, successful transformation and rapid economic growth are only achieved through state-led programs and government intervention. If we look at the early stages of economic development in South Korea and mainland China, we will see that there is widespread state involvement and state guidance. Both South Korea and Taiwan were ru led by a army regime from the 1960s to the 1970s that focused firmly on heavy industrialization.Park Chung Hee utilized his experience with Japans wartime economic management in Northeast China and applied the model in South Korea. He created the economic planning board, ministry of trade and industry, ministry of finance, and moved away from import substitution to an export oriented trade policy. In Taiwan, Chiang Kai-Shek was the military leader and he introduced a similar economic development model, he nationalized the banking system in Taiwan and employed a very button-down approach toward liberalism. During his reign, about 71. % of the assets of all financial institutions were concentrated in the hand of government-owned banks. This approach was highly beneficial to the financial sector in Taiwan because it lose weightd volatility in the stock market and limited uncollectible investment from foreign investors this approach also helped Taiwan avoid the effects of the Asia n Financial Crisis in 1997. Both Taiwan and South Korea are small economies compared to other Western countries, but they were very successful in their state-led economic development.I think the biggest take away that we can learn from the economic model of South Korea and Taiwan is establishing effective government intervention in the economy. An efficient government in a developing country should prioritise equity and economic growth before anything else. I would suggest governments in developing countries to invest heavily in human capital, such as health, pedagogics and nutrition. Public and social infrastructures are also extremely important and they include roads, power distribution, water and sanitation.Last and the most important type of capital is public institutional capital, which includes a well-run bureaucracy, judicial system, and law enforcement capabilities. Having a strong government intervention is essential component that will help the South transform itself into a North economy. And it is historically proven to be realistic when we look the economic miracle in South Korea and Taiwan. Another reason that some South economies are not moving toward a more go on economy is because it is disadvantaged geographically. We called these countries landlocked developing countries (LLDC).A report estimates that Landlocked countries that depone on transoceanic trade usually suffer a approach of trade that is double of their maritime neighbors, and they on average suffer a economic growth of 6% or less compare to their non-landlocked countries (Hagen, 2003, 13). Theses countries are mainly located in sub-Saharan Africa. And since these developing countries are in the main focused on exporting natural resources, they incur high dit costs due to distance and terrain barriers to the ocean this cause them to lose hawkish edge for exports from non-landlocked countries.Furthermore, they also lack direct access to sea routes and are largely isolated fro m the world market. However, I think there is ship canal to solve this problem but it requires cooperation with non-landlocked neighboring countries. If we look at Europe, we see that landlocked countries can also become prosperous economically when there is a well-developed public infrastructure system like roads and communication. If Sub-Saharan African countries want to compensate for its geographical disability, then they should strike talks with non-landlocked countries and improve cooperation in developing public infrastructures.Furthermore, they should also try to reduce administrative burdens associated border crossings such as bureaucratic procedures, paperwork, custom charges, and merchandise delay (Faye, 2004, 47). This will allow easier access between both countries and augment the volume of trade that is mutually beneficial. Again, this goes back to the importance of government intervention into the market because trade negotiations can not be with good diplomacy it does not matter if your economy is good, as long as you are landlocked and have no access to a seaport for exportation, then trade volumes will remain low.South economies are also undeveloped due to demographic reasons. Many least developed countries have extraordinary high population growth rates, which is caused by little to education and employment that leads to higher(prenominal) fertility rates. When people are not educated, families in societies where children are necessary to work on subsistence farms tend to have more children, especially in places where infant and child mortality is high (worldsavvy. org, 2008). When there is high population growth, poverty typically grows as well.In fact, majority of the less developed countries have a large young population due to low life expectancy rates, and these young people have little employment opportunities. A report says, Developing countries tend to have a disproportionate number of citizens under the age of 30, which creates a large pool potentially officious and unemployed youth who live in a society without fit employment opportunities and often with many groups, militias, and militaries to which young boys in particular are often drawn.It is calculated that when the youth population of a country reaches 35%, the risk of armed conflict goes up by 150% (worldsavvy. org, 2008). A large young population is beneficial to the country only if they are educated and working to generate economic growth if they are not doing this, then they are most likely wasting resources and perhaps even contribute to high crime rates. Thus I would suggest that there should be government intervention in areas related to healthcare and education when it comes to demographic pressures.The government should plan and develop the country as a whole and not merely focus on modernizing certain cities season leaving rural areas undeveloped. More employment opportunities should be provided through public programs such as construc tion of social infrastructures. I have explained several(prenominal) main causes of why there is a North-South divide in the world. The South is failing to transform itself due to reasons such as capital flight, migration of skilled workers, government corruption, inefficient government policies, geographic disadvantages, and demographic challenges.I also offered solutions to raft with each problem specifically I believe that if less developed countries can implement these solutions, then there is a chance for a South economy to transform itself to a North economy just like South Korea and Taiwan. 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