188-594: Global North and Global South are terms that denote a method of grouping countries based on their defining characteristics with regard to socioeconomics and politics . According to UN Trade and Development (UNCTAD), the Global South broadly comprises Africa, Latin America and the Caribbean , Asia (excluding Israel , Japan , and South Korea ), and Oceania (excluding Australia and New Zealand ). Most of
376-568: A New International Economic Order (NIEO). The NIEO was opposed to the 1944 Bretton Woods system , which had benefited the leading states which had created it, and remained in force until 1971 after the United States' suspension of convertibility from dollars to gold. The main principles of the NIEO are: The UNCTAD however was not very effective in implementing the NIEO, and social and economic inequalities between industrialized countries and
564-739: A New International Economic Order which was to be negotiated between the North and South was initiated at the Non-Aligned Summit held in Algiers. Also in 1973, the oil embargo initiated by Arab OPEC countries as a result of the Yom Kippur War caused an increase in world oil prices, with prices continuing to rise throughout the decade. This contributed to a worldwide recession which resulted in industrialized nations increasing economically protectionist policies and contributing less aid to
752-469: A "mutually beneficial relationship that spreads knowledge, skills, expertise and resources to address their development challenges such as high population pressure , poverty, hunger, disease, environmental deterioration , conflict and natural disasters ." These countries also work together to deal with "cross border issues such as environmental protection, HIV/AIDS ", and the movement of capital and labor. Social psychiatrist Vincenzo Di Nicola has applied
940-578: A 1952 article by Alfred Sauvy entitled "Trois Mondes, Une Planète". Early definitions of the Third World emphasized its exclusion from the east–west conflict of the Cold War as well as the ex-colonial status and poverty of the peoples it comprised. Efforts to mobilize the Third World as an autonomous political entity were undertaken. The 1955 Bandung Conference was an early meeting of Third World states in which an alternative to alignment with either
1128-649: A Democrat in office from 1913 to 1921, ignored the Philippines, and focused his attention on Mexico and Caribbean nations. By the 1920s, the peaceful efforts by the Filipino leadership to pursue independence proved convincing. When the Democrats returned to power in 1933, they worked with the Filipinos to plan a smooth transition to independence. It was scheduled for 1946 by Tydings–McDuffie Act of 1934. In 1935,
1316-567: A French-protected monarchy. Spain took the step to occupy the Dominican Republic and restore colonial rule . The Union victory in the Civil War in 1865 forced both France and Spain to accede to American demands to evacuate those two countries. America's only African colony, Liberia , was formed privately and achieved independence early; Washington unofficially protected it. By 1900, the U.S. advocated an Open Door Policy and opposed
1504-579: A beacon of hope to pro-independence activists. However, with the anti-colonial wars of the 1900s (decade) barely over, new modernizing forms of Africa nationalism began to gain strength in the early 20th century with the emergence of Pan-Africanism, as advocated by the Jamaican journalist Marcus Garvey (1887–1940) whose widely distributed newspapers demanded swift abolition of European imperialism, as well as republicanism in Egypt. Kwame Nkrumah (1909–1972) who
1692-702: A definition of economics as a study of human behaviour, subject to and constrained by scarcity, which forces people to choose, allocate scarce resources to competing ends, and economise (seeking the greatest welfare while avoiding the wasting of scarce resources). According to Robbins: "Economics is the science which studies human behavior as a relationship between ends and scarce means which have alternative uses". Robbins' definition eventually became widely accepted by mainstream economists, and found its way into current textbooks. Although far from unanimous, most mainstream economists would accept some version of Robbins' definition, even though many have raised serious objections to
1880-451: A distinct field. The book focused on determinants of national income in the short run when prices are relatively inflexible. Keynes attempted to explain in broad theoretical detail why high labour-market unemployment might not be self-correcting due to low " effective demand " and why even price flexibility and monetary policy might be unavailing. The term "revolutionary" has been applied to the book in its impact on economic analysis. During
2068-524: A factor of 30. Globalization has largely displaced the North–South divide as the theoretical underpinning of the development efforts of international institutions such as the IMF , World Bank , WTO , and various United Nations affiliated agencies, though these groups differ in their perceptions of the relationship between globalization and inequality. Yet some remain critical of the accuracy of globalization as
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#17327573502352256-408: A generalized view of developing countries through biased media coverage , mass media outlets tend to focus disproportionately on poverty and other negative imagery. This common coverage has created a dominant stereotype of developing countries as: "the ' South ' is characterized by socioeconomic and political backwardness, measured against Western values and standards." Mass media has also played
2444-512: A global partnership for development. These were replaced in 2015 by 17 Sustainable Development Goals (SDGs). The SDGs, set in 2015 by the United Nations General Assembly and intended to be achieved by 2030, are part of a UN Resolution called " The 2030 Agenda ". The global digital divide is often characterized as corresponding to the north–south divide; however, Internet use, and especially broadband access,
2632-415: A helpful way to visualise global inequalities. Global South "emerged in part to aid countries in the southern hemisphere to work in collaboration on political, economic, social, environmental, cultural, and technical issues." This is called South–South cooperation (SSC), a "political and economical term that refers to the long-term goal of pursuing world economic changes that mutually benefit countries in
2820-407: A key issue. With its development, many scholars preferred using the Global South over its predecessors, such as " developing countries " and " Third World ". Leigh Anne Duck, co-editor of Global South , argued that the term is better suited at resisting "hegemonic forces that threaten the autonomy and development of these countries." The Global South / Global North distinction has been preferred to
3008-563: A left-wing revolution inside Portugal overthrew the existing regime and encouraged pro-Soviet elements to attempt to seize control in the colonies. The result was a very long and extremely difficult multi-party Civil War in Angola , and lesser insurrections in Mozambique. Belgium's empire began with the annexation of the Congo in 1908 in response to international pressure to bring an end to
3196-420: A lower relative cost of production, rather relying only on its own production. It has been termed a "fundamental analytical explanation" for gains from trade . Coming at the end of the classical tradition, John Stuart Mill (1848) parted company with the earlier classical economists on the inevitability of the distribution of income produced by the market system. Mill pointed to a distinct difference between
3384-427: A model of the world economy, emphasizing the enduring centrality of nation-states in world politics and the prominence of regional trade relations. Lately, there have been efforts to integrate the Global South more meaningfully into the world economic order. The divide between the North and South challenges international environmental cooperation. The economic differences between North and South have created dispute over
3572-449: A more comprehensive theory of costs on the supply side. In the 20th century, neoclassical theorists departed from an earlier idea that suggested measuring total utility for a society, opting instead for ordinal utility , which posits behaviour-based relations across individuals. In microeconomics , neoclassical economics represents incentives and costs as playing a pervasive role in shaping decision making . An immediate example of this
3760-467: A more important role in mainstream economic theory. Also, heterogeneity among the economic agents, e.g. differences in income, plays an increasing role in recent economic research. Other schools or trends of thought referring to a particular style of economics practised at and disseminated from well-defined groups of academicians that have become known worldwide, include the Freiburg School ,
3948-758: A nation in the Western Hemisphere became vulnerable to European control. In practice, this meant that the United States was led to act as a collections agent for European creditors by administering customs duties in the Dominican Republic (1905–1941), Haiti (1915–1934), and elsewhere. The intrusiveness and bad relations this engendered were somewhat checked by the Clark Memorandum and renounced by President Franklin D. Roosevelt 's " Good Neighbor Policy ". The Fourteen Points were preconditions addressed by President Woodrow Wilson to
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#17327573502354136-447: A new army, under general Douglas MacArthur , who took leave from his U.S. Army position to take command of the new army reporting to Quezon. The Japanese occupation 1942 to 1945 disrupted but did not delay the transition. It took place on schedule in 1946 as Manuel Roxas took office as president. As a result of its pioneering discoveries , Portugal had a large and particularly long-lasting colonial empire which had begun in 1415 with
4324-597: A proportion of the value their work had created. Marxian economics was further developed by Karl Kautsky (1854–1938)'s The Economic Doctrines of Karl Marx and The Class Struggle (Erfurt Program) , Rudolf Hilferding 's (1877–1941) Finance Capital , Vladimir Lenin (1870–1924)'s The Development of Capitalism in Russia and Imperialism, the Highest Stage of Capitalism , and Rosa Luxemburg (1871–1919)'s The Accumulation of Capital . At its inception as
4512-409: A rapidly growing population against a limited amount of land meant diminishing returns to labour. The result, he claimed, was chronically low wages, which prevented the standard of living for most of the population from rising above the subsistence level. Economist Julian Simon has criticised Malthus's conclusions. While Adam Smith emphasised production and income, David Ricardo (1817) focused on
4700-437: A result of economic shifts toward wage labor and an enlarged bourgeois class ; yet another argument sees decolonization as a diffusion process wherein earlier revolutionary movements inspired later ones. Other explanations emphasize how the lower profitability of colonization and the costs associated with empire prompted decolonization. Some explanations emphasize how colonial powers struggled militarily against insurgents in
4888-587: A result, the UN General Assembly removed Puerto Rico from the U.N. list of non-self-governing territories . Four referendums showed little support for independence, but much interest in statehood such as Hawaii and Alaska received in 1959. The Monroe Doctrine was expanded by the Roosevelt Corollary in 1904, providing that the United States had a right and obligation to intervene "in flagrant cases of such wrongdoing or impotence" that
5076-505: A role in what information the people in developing countries receive. The news often covers developed countries and creates an imbalance of information flow. Socioeconomics Economics ( / ˌ ɛ k ə ˈ n ɒ m ɪ k s , ˌ iː k ə -/ ) is a social science that studies the production , distribution , and consumption of goods and services . Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics analyses what
5264-469: A set of stable preferences, a definite overall guiding objective, and the capability of making a choice. There exists an economic problem, subject to study by economic science, when a decision (choice) is made by one or more players to attain the best possible outcome. Keynesian economics derives from John Maynard Keynes , in particular his book The General Theory of Employment, Interest and Money (1936), which ushered in contemporary macroeconomics as
5452-409: A single tax on income of land owners. In reaction against copious mercantilist trade regulations, the physiocrats advocated a policy of laissez-faire , which called for minimal government intervention in the economy. Adam Smith (1723–1790) was an early economic theorist. Smith was harshly critical of the mercantilists but described the physiocratic system "with all its imperfections" as "perhaps
5640-452: A social science, economics was defined and discussed at length as the study of production, distribution, and consumption of wealth by Jean-Baptiste Say in his Treatise on Political Economy or, The Production, Distribution, and Consumption of Wealth (1803). These three items were considered only in relation to the increase or diminution of wealth, and not in reference to their processes of execution. Say's definition has survived in part up to
5828-435: A sought after end). Some subsequent comments criticised the definition as overly broad in failing to limit its subject matter to analysis of markets. From the 1960s, however, such comments abated as the economic theory of maximizing behaviour and rational-choice modelling expanded the domain of the subject to areas previously treated in other fields. There are other criticisms as well, such as in scarcity not accounting for
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6016-442: A synthesis emerged by the 2000s, often given the name the new neoclassical synthesis . It integrated the rational expectations and optimizing framework of the new classical theory with a new Keynesian role for nominal rigidities and other market imperfections like imperfect information in goods, labour and credit markets. The monetarist importance of monetary policy in stabilizing the economy and in particular controlling inflation
6204-476: A variety of freedom indices . Countries of the Global North tend to be wealthier , and capable of exporting technologically advanced manufactured products, among other characteristics. In contrast, countries of the Global South tend to be poorer, and heavily dependent on their largely agrarian-based economic primary sectors . Some scholars have suggested that the inequality gap between the Global North and
6392-471: Is a measure of progress in a specific economy. It refers to advancements in technology, a transition from an economy based largely on agriculture to one based on industry and an improvement in living standards. Being categorized as part of the "North" implies development as opposed to belonging to the "South", which implies a lack thereof. According to N. Oluwafemi Mimiko, the South lacks the right technology, it
6580-421: Is a term for the "way (nomos) to run a household (oikos)", or in other words the know-how of an οἰκονομικός ( oikonomikos ), or "household or homestead manager". Derived terms such as "economy" can therefore often mean "frugal" or "thrifty". By extension then, "political economy" was the way to manage a polis or state. There are a variety of modern definitions of economics ; some reflect evolving views of
6768-438: Is also applied to such diverse subjects as crime , education , the family , feminism , law , philosophy , politics , religion , social institutions , war , science , and the environment . The earlier term for the discipline was "political economy", but since the late 19th century, it has commonly been called "economics". The term is ultimately derived from Ancient Greek οἰκονομία ( oikonomia ) which
6956-539: Is attributed to the Global South where it refers to a global political community that is formed when the world's "Souths" recognize one another and view their conditions as shared. The geographical boundaries of the Global South remain a source of debate. Some scholars agree that the term is not a "static concept". Others have argued against "grouping together a large variety of countries and regions into one category [because it] tends to obscure specific (historical) relationships between different countries and/or regions", and
7144-461: Is now soaring in Asia compared with other continents. This phenomenon is partially explained by the ability of many countries in Asia to leapfrog older Internet technology and infrastructure, coupled with booming economies which allow vastly more people to get online. Mass media has often compared the Global South to the North, and is thought to be an aid in the divide. Western media tends to present
7332-438: Is often used interchangeably with developed countries , whereas the term Global South with developing countries . Characteristically, most countries in the Global South are commonly identified as lacking in their standard of living , these include having: lower incomes , high levels of poverty , high population growth rates , limited educational opportunities, deficient health care systems , among other issues. Also, cities in
7520-417: Is politically unstable, its economies are divided, and its foreign exchange earnings depend on primary product exports to the North, along with the fluctuation of prices. The low level of control it exercises over imports and exports condemns the South to conform to the 'imperialist' system. The South's lack of development and the high level of development of the North deepen the inequality between them and leave
7708-413: Is promoting it. By preferring the support of domestic to that of foreign industry, he intends only his own security; and by directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention. Nor is it always the worse for the society that it
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7896-598: Is the consumer theory of individual demand, which isolates how prices (as costs) and income affect quantity demanded. In macroeconomics it is reflected in an early and lasting neoclassical synthesis with Keynesian macroeconomics. Neoclassical economics is occasionally referred as orthodox economics whether by its critics or sympathisers. Modern mainstream economics builds on neoclassical economics but with many refinements that either supplement or generalise earlier analysis, such as econometrics , game theory , analysis of market failure and imperfect competition , and
8084-612: Is the Global North, which the UNCTAD describes as broadly comprising Northern America and Europe, Israel, Japan, South Korea, Australia, and New Zealand. As such, the two terms do not refer to the Northern Hemisphere or the Southern Hemisphere , as many of the Global South's countries are geographically located in the former and, similarly, a number of the Global North's countries are geographically located in
8272-458: Is the core requirement for decolonization, and that this right can be exercised with or without political independence. A UN General Assembly Resolution in 1960 characterised colonial foreign rule as a violation of human rights. In states that have won independence, Indigenous people living under settler colonialism continue to make demands for decolonization and self-determination. Although discussions of hegemony and power, central to
8460-607: Is viewed as basic elements within economies , including individual agents and markets , their interactions, and the outcomes of interactions. Individual agents may include, for example, households, firms, buyers, and sellers. Macroeconomics analyses economies as systems where production, distribution, consumption, savings , and investment expenditure interact, and factors affecting it: factors of production , such as labour , capital , land , and enterprise , inflation , economic growth , and public policies that have impact on these elements . It also seeks to analyse and describe
8648-858: The 1965 occupation of the Dominican Republic ), Africa, and the Middle East to oppose Communist movements and insurgencies. Since the dissolution of the Soviet Union, the United States has been far less active in the Americas, but invaded Afghanistan and Iraq following the September 11 attacks in 2001, establishing army and air bases in Central Asia . Before World War I, Japan had gained several substantial colonial possessions in East Asia such as Taiwan (1895) and Korea (1910). Japan joined
8836-854: The Bandung Conference along with Sukarno , the leader of Indonesia, and Zhou Enlai , Premier of the People's Republic of China. In 1960, the UN General Assembly voted on the Declaration on the Granting of Independence to Colonial Countries and Peoples . The next year, the first Non-Aligned Movement conference was held in Belgrade (1961), and was followed in 1964 by the creation of the United Nations Conference on Trade and Development (UNCTAD) which tried to promote
9024-574: The British Raj , culminating in the Government of India Act 1935 . These reforms included creating elected legislative councils in some of the provinces of British India . Mohandas Karamchand Gandhi , India's independence movement leader, led a peaceful resistance to British rule. By becoming a symbol of both peace and opposition to British imperialism, many Indians began to view the British as
9212-636: The Dutch East Indies , corresponding to what is now Indonesia. Its massive oil reserves provided about 14 percent of the Dutch national product and supported a large population of ethnic Dutch government officials and businessmen in Batavia (now Jakarta) and other major cities. The Netherlands was overrun and almost starved to death by the Nazis during the war, and Japan sank the Dutch fleet in seizing
9400-750: The Great Mosque of Paris was constructed as recognition of these efforts, the French state had no intention to allow self-rule , let alone grant independence to the colonized people. Thus, nationalism in the colonies became stronger in between the two wars, leading to Abd el-Krim 's Rif War (1921–1925) in Morocco and to the creation of Messali Hadj 's Star of North Africa in Algeria in 1925. However, these movements would gain full potential only after World War II. After World War I, France administered
9588-724: The Irish Free State , New Zealand, and the Union of South Africa; Ireland had been brought into a union with Great Britain in 1801 creating the United Kingdom of Great Britain and Ireland until the formation of the Irish Free State in 1922. However, some of the Dominions were already independent de facto, and even de jure and recognized as such by the international community. Thus, Canada was a founding member of
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#17327573502359776-688: The Kingdom of Sikkim merged with India by popular vote in 1975. Significant violence was involved in several prominent cases of decolonization of the British Empire; partition was a frequent solution. In 1783, the North American colonies were divided between the independent United States, and British North America , which later became Canada. The Indian Rebellion of 1857 was a major uprising in India against British East India Company . It
9964-701: The Northern Mariana Islands elected to become a commonwealth of the United States. Newly independent states organised themselves in order to oppose continued economic colonialism by former imperial powers. The Non-Aligned Movement constituted itself around the main figures of Jawaharlal Nehru , the first Prime Minister of India, Sukarno , the Indonesian president, Josip Broz Tito the Communist leader of Yugoslavia , and Gamal Abdel Nasser , head of Egypt. In 1955 these leaders gathered at
10152-780: The School of Lausanne , the Stockholm school and the Chicago school of economics . During the 1970s and 1980s mainstream economics was sometimes separated into the Saltwater approach of those universities along the Eastern and Western coasts of the US, and the Freshwater, or Chicago school approach. Within macroeconomics there is, in general order of their historical appearance in
10340-593: The Soviet Union at the end of the Cold War . Early studies of decolonisation appeared in the 1960s and 1970s. An important book from this period was The Wretched of the Earth (1961) by Martiniquan author Frantz Fanon , which established many aspects of decolonisation that would be considered in later works. Subsequent studies of decolonisation addressed economic disparities as a legacy of colonialism as well as
10528-628: The Spanish Empire and Mexico. The Native Americans were sent to reservations , often unwillingly. With support from Britain, its Monroe Doctrine reserved the Americas as its sphere of interest, prohibiting other states (particularly Spain) from recolonizing the newly independent polities of Latin America . However, France, taking advantage of the American government's distraction during the Civil War, intervened militarily in Mexico and set up
10716-779: The Territory of the Philippine Islands was eventually granted independence. In 1917, the U.S. purchased the Danish West Indies (later renamed the US Virgin Islands ) from Denmark and Puerto Ricans became full U.S. citizens that same year. The US government declared Puerto Rico the territory was no longer a colony and stopped transmitting information about it to the United Nations Decolonization Committee. As
10904-518: The UN Partition Plan and the ensuing war . The British eventually pulled out, and the former Mandate territory was divided between Israel , Jordan and Egypt . After World War I, the colonized people were frustrated at France's failure to recognize the effort provided by the French colonies (resources, but more importantly colonial troops – the famous tirailleurs ). Although in Paris
11092-704: The Union of South Africa , and Western Samoa by New Zealand . Egypt became independent in 1922, although the UK retained security prerogatives, control of the Suez Canal , and effective control of the Anglo-Egyptian Sudan . The Balfour Declaration of 1926 declared the British Empire dominions as equals, and the 1931 Statute of Westminster established full legislative independence for them. The equal dominions were six– Canada , Newfoundland , Australia,
11280-439: The conquest of Ceuta and ended only in 1999 with the handover of Portuguese Macau to China. In 1822, Portugal lost control of Brazil , its largest colony. From 1933 to 1974, Portugal was an authoritarian state (ruled by António de Oliveira Salazar ). The regime was fiercely determined to maintain the country's colonial possessions at all costs and to aggressively suppress any insurgencies. In 1961, India annexed Goa and by
11468-433: The macroeconomics of high unemployment. Gary Becker , a contributor to the expansion of economics into new areas, described the approach he favoured as "combin[ing the] assumptions of maximizing behaviour, stable preferences , and market equilibrium , used relentlessly and unflinchingly." One commentary characterises the remark as making economics an approach rather than a subject matter but with great specificity as to
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#173275735023511656-467: The neoclassical model of economic growth for analysing long-run variables affecting national income . Neoclassical economics studies the behaviour of individuals , households , and organisations (called economic actors, players, or agents), when they manage or use scarce resources, which have alternative uses, to achieve desired ends. Agents are assumed to act rationally, have multiple desirable ends in sight, limited resources to obtain these ends,
11844-415: The societal to the microeconomic level: Economics is a study of man in the ordinary business of life. It enquires how he gets his income and how he uses it. Thus, it is on the one side, the study of wealth and on the other and more important side, a part of the study of man. Lionel Robbins (1932) developed implications of what has been termed "[p]erhaps the most commonly accepted current definition of
12032-473: The terrible atrocities that had taken place under King Leopold 's privately run Congo Free State . It added Rwanda and Burundi as League of Nations mandates from the former German Empire in 1919. The colonies remained independent during the war, while Belgium was occupied by the Germans. There was no serious planning for independence, and exceedingly little training or education provided. The Belgian Congo
12220-400: The "choice process and the type of social interaction that [such] analysis involves." The same source reviews a range of definitions included in principles of economics textbooks and concludes that the lack of agreement need not affect the subject-matter that the texts treat. Among economists more generally, it argues that a particular definition presented may reflect the direction toward which
12408-406: The "wider context of globalization or global capitalism." In general, definitions for Global North and Global South, do not refer to the geographical North or the geographical South . The Global North broadly comprises Northern America and Europe , Israel , Japan , South Korea , Australia , and New Zealand , as per the UNCTAD. The Global South broadly comprises Africa , Latin America and
12596-407: The 1954 Geneva Accords ended France's occupation of Indochina, leaving South Vietnam independent and North Vietnam independence recognized. In 1956, Morocco and Tunisia gained their independence from France. In 1960, eight independent countries emerged from French West Africa , and five from French Equatorial Africa . The Algerian War of Independence raged from 1954 to 1962. To this day,
12784-462: The 1960s, due to economic needs for post-war reconstruction and rapid economic growth, French employers actively sought to recruit manpower from the colonies, explaining today's multiethnic population . A union of former colonies itself, the United States approached imperialism differently from the other Powers. Much of its energy and rapidly expanding population was directed westward across the North American continent against English and French claims,
12972-486: The 1970s and 1980s, when several major central banks followed a monetarist-inspired policy, but was later abandoned because the results were unsatisfactory. A more fundamental challenge to the prevailing Keynesian paradigm came in the 1970s from new classical economists like Robert Lucas , Thomas Sargent and Edward Prescott . They introduced the notion of rational expectations in economics, which had profound implications for many economic discussions, among which were
13160-528: The 19th century than they did in the 20th century, where holding on to such colonies was often understood to be a burden. A great deal of scholarship attributes the ideological origins of national independence movements to the Age of Enlightenment . Enlightenment social and political theories such as individualism and liberalism were central to the debates about national constitutions for newly independent countries. Contemporary decolonial scholarship has critiqued
13348-453: The Algerian war – officially called a "public order operation" until the 1990s – remains a trauma for both France and Algeria. Philosopher Paul Ricœur has spoken of the necessity of a "decolonisation of memory", starting with the recognition of the 1961 Paris massacre during the Algerian war, and the decisive role of African and especially North African immigrant manpower in the Trente Glorieuses post–World War II economic growth period. In
13536-461: The British made deals with the local politicians. Across the empire, the general protocol was to convene a constitutional conference in London to discuss the transition to greater self-government and then independence, submit a report of the constitutional conference to parliament, if approved submit a bill to Parliament at Westminster to terminate the responsibility of the United Kingdom (with a copy of
13724-500: The Caribbean , Asia excluding Israel, Japan, and South Korea, and Oceania excluding Australia and New Zealand, also according to the UNCTAD. Some, such as Australian sociologists Fran Collyer and Raewyn Connell , have argued that Australia and New Zealand are marginalized in similar ways to other Global South countries, due to their geographical isolation and location in the Southern Hemisphere. The term Global North
13912-654: The Chinese province of Rehe , and incorporated it into its Manchurian possessions. The Second Sino-Japanese War started in 1937, and Japan occupied much of eastern China, including the Republic's capital at Nanjing . An estimated 20 million Chinese died during the 1931–1945 war with Japan. In December 1941, the empire of Japan joined World War II by invading the European and U.S. colonies in Southeast Asia and
14100-550: The Dutch cause. In the aftermath, the Netherlands prospered greatly in the 1950s and 1960s but nevertheless public opinion was bitterly hostile to the United States for betrayal. The Dutch government eventually gave up on claims to Indonesian sovereignty in 1949, after American pressure. The Netherlands also had one other major colony, Dutch Guiana in South America , which became independent as Suriname in 1975. When
14288-522: The East Indies. In 1945 the Netherlands could not regain these islands on its own; it did so by depending on British military help and American financial grants . By the time Dutch soldiers returned, an independent government under Sukarno was in power, originally set up by the Empire of Japan . The Dutch both abroad and at home generally agreed that Dutch power depended on an expensive war to regain
14476-460: The Eastern or Western Blocs was promoted. Following this, the first Non-Aligned Summit was organized in 1961. Contemporaneously, a mode of economic criticism which separated the world economy into "core" and "periphery" was developed and given expression in a project for political reform which "moved the terms 'North' and 'South' into the international political lexicon." In 1973, the pursuit of
14664-634: The European powers at the Paris Peace Conference following World War I . In allowing allies France and Britain the former colonial possessions of the German and Ottoman Empires, the US demanded of them submission to the League of Nations mandate , in calling for V. A free, open-minded, and absolutely impartial adjustment of all colonial claims, based upon a strict observance of the principle that in determining all such questions of sovereignty
14852-755: The First World/Global North." In other terms, "societies can be fast-tracked to modernization by 'importing' Western technical capital, forms of organization, and science and technology to developing countries." With this ideology, as long as countries follow in Western ways, they can develop quicker. After modernization attempts took place, theorists started to question the effects through post-development perspectives. Postdevelopment theorists try to explain that not all developing countries need to be following Western ways but instead should create their own development plans. This means that "societies at
15040-481: The Global North and Global South divide, contributing to the severity of said actors. Disputes between Northern countries governments and Southern countries governments has led to a breakdown in international discussions with governments from either side disagreeing with each other. Addressing most environmental problems requires international cooperation, and the North and South contribute to the stagnation concerning any form of implementation and enforcement, which remains
15228-424: The Global North before countries in the Global South receive it. Although many of these countries rely on political or economic help, this also opens up opportunity for information to develop Western bias and create an academic dependency. Meneleo Litonjua describes the reasoning behind distinctive problems of dependency theory as "the basic context of poverty and underdevelopment of Third World/Global South countries
15416-605: The Global South and lead to greater solidarity among the disadvantaged in the world system." The hope is that countries within the Global South will "assist each other in social, political, and economical development, radically altering the world system to reflect their interests and not just the interests of the Global North in the process." It is guided by the principles of "respect for national sovereignty , national ownership, independence, equality, non-conditionality, non-interference in domestic affairs , and mutual benefit." Countries using this model of South–South cooperation see it as
15604-529: The Global South are identified for their poor infrastructure . Economies of the Global North are diversified, whereas agriculture sector happens to be the major contributor of economy activity in the Global South. Carl Oglesby used the term "global south" in 1969, writing in Catholic journal Commonweal in a special issue on the Vietnam War . Oglesby argued that centuries of northern "dominance over
15792-538: The Global South as a bridge between the critiques globalization and the gaps and limitations of the Global Mental Health Movement , invoking Boaventura de Sousa Santos ' notion of "epistemologies of the South" to create a new epistemology for social psychiatry . The Dictionary of Human Geography defines development as "processes of social change or [a change] to class and state projects to transform national economies". Economic development
15980-453: The Global South has been narrowing due to the effects of globalization . Other scholars have disputed this position, suggesting that the Global South has instead become poorer vis-à-vis the Global North in this same timeframe. Since World War II , the phenomenon of “ South–South cooperation ” (SSC) to “challenge the political and economic dominance of the North” has become more prominent among
16168-431: The Global South have also been described as being newly industrialized or in the process of industrializing, many of them are current or former subjects of colonialism . The Global North and the Global South are often defined in terms of their differing levels of wealth , economic development, income inequality , and strength of democracy , as well as by their political freedom and economic freedom , as defined by
16356-450: The Global South is not rising economically, and that global inequality between the North and South has risen since globalization. Hickel has suggested that the exchange of resources between the South and the North is substantially unbalanced in favor of the North, with Global North countries extracting a windfall of over 240 trillion dollars from the Global South in 2015. This figure outstrips the amount of financial aid given to Global South by
16544-474: The Global South is regarded as an appropriation of a concept that has deeper roots in Cold War radical political thought. In this political usage, the Global South is employed in a more geographically fluid way, referring to "spaces and peoples negatively impacted by contemporary capitalist globalization." In other words, "there are economic Souths in the geographic North and Norths in the geographic South." Through this geographically fluid definition, another meaning
16732-415: The Global South's countries are commonly identified as lacking in their standard of living , which includes having lower incomes , high levels of poverty , high population growth rates , inadequate housing, limited educational opportunities, and deficient health systems , among other issues. Additionally, these countries' cities are characterized by their poor infrastructure . Opposite to the Global South
16920-473: The Global South's countries. It has become popular in light of the geographical migration of manufacturing and production activity from the Global North to the Global South, and has since influenced the diplomatic policies of the Global South’s more powerful countries, such as China . Thus, these contemporary economic trends have “enhanced the historical potential of economic growth and industrialization in
17108-616: The Global South” amidst renewed targeted efforts by the SSC to “loosen the strictures imposed during the colonial era, and transcend the boundaries of postwar political and economic geography” as an aspect of decolonization . The terms "Global North" and "Global South" are not strictly geographical, and are not "an image of the world divided by the equator, separating richer countries from their poorer counterparts." Rather, geography should be more readily understood as economic and migratory, in
17296-471: The League of Nations in 1919 and served on the council from 1927 to 1930. That country also negotiated on its own and signed bilateral and multilateral treaties and conventions from the early 1900s onward. Newfoundland ceded self-rule back to London in 1934. Iraq , a League of Nations mandate, became independent in 1932. In response to a growing Indian independence movement , the UK made successive reforms to
17484-432: The North–South divide has been challenged on a number of grounds. Firstly, differences in the political, economic and demographic make-up of countries tend to complicate the idea of a monolithic South. Globalization has also challenged the notion of two distinct economic spheres. Following the liberalization of post-Mao China initiated in 1978, growing regional cooperation between the national economies of Asia has led to
17672-429: The North–South divide. In this case more equal trade and flow of capital would allow the possibility for developing countries to further develop economically. As some countries in the South experience rapid development, there is evidence that those states are developing high levels of South–South aid. Brazil, in particular, has been noted for its high levels of aid ($ 1 billion annually—ahead of many traditional donors) and
17860-634: The Ottoman Empire, was culturally divided between the majority Greek element (which demanded " enosis " or union with Greece) and the minority Turks. London for decades assumed it needed the island to defend the Suez Canal; but after the Suez crisis of 1956, that became a minor factor, and Greek violence became a more serious issue. Cyprus became an independent country in 1960, but ethnic violence escalated until 1974 when Turkey invaded and partitioned
18048-560: The Pacific, including French Indochina , Hong Kong , the Philippines, Burma, Malaya , Indonesia , Portuguese Timor , and others. Following its surrender to the Allies in 1945, Japan was deprived of all its colonies with a number of them being returned to the original colonizing Western powers. The Soviet Union declared war on Japan in August 1945 , and shortly after occupied and annexed
18236-471: The Philippines transitioned out of territorial status, controlled by an appointed governor, to the semi-independent status of the Commonwealth of the Philippines . Its constitutional convention wrote a new constitution, which was approved by Washington and went into effect, with an elected governor Manuel L. Quezon and legislature. Foreign Affairs remained under American control. The Philippines built up
18424-483: The Second World War. Critical scholars extend the meaning beyond independence or equal rights for colonized peoples to include broader economic, cultural and psychological aspects of the colonial experience. Extending the meaning of decolonization beyond political independence has been disputed and received criticism. The United Nations (UN) states that the fundamental right to self-determination
18612-584: The South a source of raw material for the developed countries. The North becomes synonymous with economic development and industrialization while the South represents the previously colonized countries which are in need of help in the form of international aid agendas. Furthermore, in Regionalism Across the North-South Divide: State Strategies and Globalization, Jean Grugel stated that the three factors that direct
18800-401: The South, allowing clustering to begin. The term of the Global South has many researched theories associated with it. Since many of the countries that are considered to be a part of the Global South were once colonized by Global North countries, they are at a disadvantage to become as quickly developed. Dependency theorists suggest that information has a top-down approach and first goes to
18988-594: The Third World grew throughout the 1960s until the 21st century. The 1973 oil crisis which followed the Yom Kippur War (October 1973) was triggered by the OPEC which decided an embargo against the US and Western countries, causing a fourfold increase in the price of oil, which lasted five months, starting on 17 October 1973, and ending on 18 March 1974. OPEC nations then agreed, on 7 January 1975, to raise crude oil prices by 10%. At that time, OPEC nations – including many who had recently nationalized their oil industries – joined
19176-466: The UK. In 1947, British India was partitioned into the independent dominions of India and Pakistan . Hundreds of princely states , states ruled by monarchs in a treaty of subsidiary alliance with Britain, were integrated into India and Pakistan. India and Pakistan fought several wars over the former princely state of Jammu and Kashmir . French India was integrated into India between 1950 and 1954, and India annexed Portuguese India in 1961, and
19364-604: The United Nations was formed in 1945, it established trust territories. These territories included the League of Nations mandate territories which had not achieved independence by 1945, along with the former Italian Somaliland . The Trust Territory of the Pacific Islands was transferred from Japanese to US administration. By 1990 all but one of the trust territories had achieved independence, either as independent states or by merger with another independent state;
19552-727: The ability to use its own experiences to provide high levels of expertise and knowledge transfer. This has been described as a "global model in waiting". The United Nations has also established its role in diminishing the divide between North and South through the Millennium Development Goals , all of which were to be achieved by 2015. These goals seek to eradicate extreme poverty and hunger, achieve global universal education and healthcare, promote gender equality and empower women, reduce child mortality, improve maternal health, combat HIV/AIDS , malaria , and other diseases, ensure environmental sustainability , and develop
19740-736: The allies in World War I, and after the war acquired the South Seas Mandate , the former German colony in Micronesia, as a League of Nations Mandate . Pursuing a colonial policy comparable to those of European powers, Japan settled significant populations of ethnic Japanese in its colonies while simultaneously suppressing Indigenous ethnic populations by enforcing the learning and use of the Japanese language in schools. Other methods such as public interaction, and attempts to eradicate
19928-407: The analysis of wealth: how wealth is created (production), distributed, and consumed; and how wealth can grow. But he said that economics can be used to study other things, such as war, that are outside its usual focus. This is because war has as the goal winning it (as a sought after end ), generates both cost and benefits; and, resources (human life and other costs) are used to attain the goal. If
20116-584: The annihilation of people's cultures. Ngũgĩ wa Thiong'o explored the cultural and linguistic legacies of colonialism in the influential book Decolonising the Mind (1986). "Decolonization" has also been used to refer to the intellectual decolonization from the colonizers' ideas that made the colonized feel inferior. Issues of decolonization persist and are raised contemporarily. In the Americas and South Africa , such issues are increasingly discussed under
20304-479: The area of inquiry or object of inquiry rather than the methodology. In the biology department, it is not said that all biology should be studied with DNA analysis. People study living organisms in many different ways, so some people will perform DNA analysis, others might analyse anatomy, and still others might build game theoretic models of animal behaviour. But they are all called biology because they all study living organisms. According to Ha Joon Chang, this view that
20492-443: The author believes economics is evolving, or should evolve. Many economists including nobel prize winners James M. Buchanan and Ronald Coase reject the method-based definition of Robbins and continue to prefer definitions like those of Say, in terms of its subject matter. Ha-Joon Chang has for example argued that the definition of Robbins would make economics very peculiar because all other sciences define themselves in terms of
20680-488: The call for a New International Economic Order to be initiated by coalitions of primary producers. Concluding the First OPEC Summit in Algiers they called for stable and just commodity prices, an international food and agriculture program, technology transfer from North to South, and the democratization of the economic system. But industrialized countries quickly began to look for substitutes to OPEC petroleum, with
20868-494: The cause of India's problems leading to a newfound sense of nationalism among its population. With this new wave of Indian nationalism, Gandhi was eventually able to garner the support needed to push back the British and create an independent India in 1947. Africa was only fully drawn into the colonial system at the end of the 19th century. In the north-east the continued independence of the Ethiopian Empire remained
21056-411: The colonies due to a shift from 19th century conditions of "strong political will, a permissive international environment, access to local collaborators, and flexibility to pick their battles" to 20th century conditions of "apathetic publics, hostile superpowers, vanishing collaborators, and constrained options". In other words, colonial powers had more support from their own region in pursuing colonies in
21244-517: The colonies. Physiocrats , a group of 18th-century French thinkers and writers, developed the idea of the economy as a circular flow of income and output. Physiocrats believed that only agricultural production generated a clear surplus over cost, so that agriculture was the basis of all wealth. Thus, they opposed the mercantilist policy of promoting manufacturing and trade at the expense of agriculture, including import tariffs. Physiocrats advocated replacing administratively costly tax collections with
21432-670: The concept of decolonization, can be found as early as the writings of Thucydides , there have been several particularly active periods of decolonization in modern times. These include the decolonization of Africa , the breakup of the Spanish Empire in the 19th century; of the German , Austro-Hungarian , Ottoman , and Russian Empires following World War I ; of the British , French , Dutch , Portuguese , Belgian , Italian , and Japanese Empires following World War II ; and of
21620-488: The design of modern monetary policy and are now standard workhorses in most central banks. After the 2007–2008 financial crisis , macroeconomic research has put greater emphasis on understanding and integrating the financial system into models of the general economy and shedding light on the ways in which problems in the financial sector can turn into major macroeconomic recessions. In this and other research branches, inspiration from behavioural economics has started playing
21808-619: The direct division of China. After 1898 direct intervention expanded in Latin America. The United States purchased Alaska from the Russian Empire in 1867 and annexed Hawaii in 1898. Following the Spanish–American War in 1898, the US added most of Spain's remaining colonies: Puerto Rico , Philippines , and Guam . Deciding not to annex Cuba outright, the U.S. established it as a client state with obligations including
21996-506: The distribution of income among landowners, workers, and capitalists. Ricardo saw an inherent conflict between landowners on the one hand and labour and capital on the other. He posited that the growth of population and capital, pressing against a fixed supply of land, pushes up rents and holds down wages and profits. Ricardo was also the first to state and prove the principle of comparative advantage , according to which each country should specialise in producing and exporting goods in that it has
22184-482: The economic development of states in the Global south are "élite behaviour within and between nation states, integration and cooperation within 'geographic' areas, and the resulting position of states and regions within the global world market and related political economic hierarchy." The development disparity between the North and the South has sometimes been explained in historical terms. Dependency theory looks back on
22372-469: The economy can and should be studied in only one way (for example by studying only rational choices), and going even one step further and basically redefining economics as a theory of everything, is peculiar. Questions regarding distribution of resources are found throughout the writings of the Boeotian poet Hesiod and several economic historians have described Hesiod as the "first economist". However,
22560-555: The emancipatory potential of Enlightenment thought, highlighting its erasure of Indigenous epistemologies and failure to provide subaltern and Indigenous people with liberty, equality, and dignity. Great Britain's Thirteen North American colonies were the first to declare independence , forming the United States of America in 1776, and defeating Britain in the Revolutionary War . The Haitian Revolution
22748-522: The end of the Cold War and the break-up of the Soviet Union, some Second World countries joined the First World, and others joined the Third World. A new and simpler classification was needed. Use of the terms "North" and "South" became more widespread. The Brandt Line is a visual depiction of the north–south divide, proposed by West German former Chancellor Willy Brandt in the 1980s in the report titled North-South: A Programme for Survival which
22936-627: The first large-scale macroeconometric model , applying the Keynesian thinking systematically to the US economy . Immediately after World War II, Keynesian was the dominant economic view of the United States establishment and its allies, Marxian economics was the dominant economic view of the Soviet Union nomenklatura and its allies. Monetarism appeared in the 1950s and 1960s, its intellectual leader being Milton Friedman . Monetarists contended that monetary policy and other monetary shocks, as represented by
23124-540: The following decades, many economists followed Keynes' ideas and expanded on his works. John Hicks and Alvin Hansen developed the IS–LM model which was a simple formalisation of some of Keynes' insights on the economy's short-run equilibrium. Franco Modigliani and James Tobin developed important theories of private consumption and investment , respectively, two major components of aggregate demand . Lawrence Klein built
23312-472: The former Ottoman territories of Syria and Lebanon , and the former German colonies of Togoland and Cameroon , as League of Nations mandates. Lebanon declared its independence in 1943, and Syria in 1945. In some instances, decolonization efforts ran counter to other concerns, such as the rapid increase of antisemitism in Algeria in the course of the nation's resistance to French rule. Although France
23500-509: The global economy . Other broad distinctions within economics include those between positive economics , describing "what is", and normative economics , advocating "what ought to be"; between economic theory and applied economics ; between rational and behavioural economics ; and between mainstream economics and heterodox economics . Economic analysis can be applied throughout society, including business , finance , cybersecurity , health care , engineering and government . It
23688-474: The global south […] [has] converged […] to produce an intolerable social order." The term gained appeal throughout the second half of the 20th century, which rapidly accelerated in the early 21st century. It appeared in fewer than two dozen publications in 2004, but in hundreds of publications by 2013. The emergence of the new term meant looking at the troubled realities of its predecessors, i.e.: Third World or Developing World. The term "Global South", in contrast,
23876-401: The growing decentralization of the North as the main economic power. The economic status of the South has also been fractured. As of 2015, all but roughly the bottom 60 nations of the Global South were thought to be gaining on the North in terms of income, diversification, and participation in the world market. However, other scholars, notably Jason Hickel and Robert Wade have suggested that
24064-424: The growth in the money stock, was an important cause of economic fluctuations, and consequently that monetary policy was more important than fiscal policy for purposes of stabilisation . Friedman was also skeptical about the ability of central banks to conduct a sensible active monetary policy in practice, advocating instead using simple rules such as a steady rate of money growth. Monetarism rose to prominence in
24252-463: The importance of various market failures for the functioning of the economy, as had Keynes. Not least, they proposed various reasons that potentially explained the empirically observed features of price and wage rigidity , usually made to be endogenous features of the models, rather than simply assumed as in older Keynesian-style ones. After decades of often heated discussions between Keynesians, monetarists, new classical and new Keynesian economists,
24440-494: The inability of a nation's economy to complete the cycle of capital accumulation without reliance on an outside economy. More specifically, peripheral nations were perceived as primary resource exporters reliant on core economies for manufactured goods. This led structuralists to advocate for import-substitution industrialization policies which aimed to replace manufactured imports with domestically made products. New Economic Geography explains development disparities in terms of
24628-696: The independence wars of Latin America began with a revolt in La Paz, Bolivia . In 1807 and 1808, the Viceroyalty of the River Plate was invaded by the British. After their 2nd defeat, a Frenchman called Santiague de Liniers was proclaimed a new Viceroy by the local population and later accepted by Spain. In May 1810 in Buenos Aires , a Junta was created, but in Montevideo it was not recognized by
24816-610: The interests of the populations concerned must have equal weight with the equitable government whose title is to be determined. See also point XII. After World War II , the U.S. poured tens of billions of dollars into the Marshall Plan , and other grants and loans to Europe and Asia to rebuild the world economy. At the same time American military bases were established around the world and direct and indirect interventions continued in Korea , Indochina , Latin America ( inter alia ,
25004-574: The invasion of Spain by Napoleon in 1806, the American colonies declared autonomy and loyalty to King Ferdinand VII. The contract was broken and each of the regions of the Spanish Empire had to decide whether to show allegiance to the Junta of Cadiz (the only territory in Spain free from Napoleon) or have a junta (assembly) of its own. The economic monopoly of the metropolis was the main reason why many countries decided to become independent from Spain. In 1809,
25192-471: The island. Each side rewrote its own history, blaming the other. Palestine became a British mandate from the League of Nations after World War I, initially including Transjordan . During that war, the British gained support from Arabs and Jews by making promises to both (see McMahon–Hussein Correspondence and Balfour Declaration ). Decades of ethno—religious violence reached a climax with
25380-638: The islands. Compromises were negotiated, but were trusted by neither side. When the Indonesian Republic successfully suppressed a large-scale communist revolt, the United States realized that it needed the nationalist government as an ally in the Cold War. Dutch possession was an obstacle to American Cold War goals, so Washington forced the Dutch to grant full independence. A few years later, Sukarno nationalized all Dutch East Indies properties and expelled all ethnic Dutch —over 300,000—as well as several hundred thousand ethnic Indonesians who supported
25568-463: The latter. More specifically, the Global North consists of the world's developed countries , whereas the Global South consists of the world's developing countries and least developed countries . The Global South classification, as used by governmental and developmental organizations, was first introduced as a more open and value-free alternative to “ Third World ”, and likewise potentially “valuing” terms such as developed and developing. Countries of
25756-400: The less developed countries of the South. The slack was taken up by Western banks, which provided substantial loans to Third World countries. However, many of these countries were not able to pay back their debt, which led the IMF to extend further loans to them on the condition that they undertake certain liberalizing reforms. This policy, which came to be known as structural adjustment , and
25944-450: The literature; classical economics , neoclassical economics , Keynesian economics , the neoclassical synthesis , monetarism , new classical economics , New Keynesian economics and the new neoclassical synthesis . Decolonization Decolonization is the undoing of colonialism , the latter being the process whereby imperial nations establish and dominate foreign territories, often overseas. The meanings and applications of
26132-586: The local government who followed the authority of the Junta of Cadiz. The rivalry between the two cities was the main reason for the distrust between them. During the next 15 years, the Spanish and Royalist on one side, and the rebels on the other fought in South America and Mexico. Numerous countries declared their independence. In 1824, the Spanish forces were defeated in the Battle of Ayacucho . The mainland
26320-434: The local level should be allowed to pursue their own development path as they perceive it without the influences of global capital and other modern choices, and thus a rejection of the entire paradigm from Eurocentric model and the advocation of new ways of thinking about the non-Western societies." The goals of postdevelopment was to reject development rather than reform by choosing to embrace non-Western ways. The accuracy of
26508-449: The market's two roles: allocation of resources and distribution of income. The market might be efficient in allocating resources but not in distributing income, he wrote, making it necessary for society to intervene. Value theory was important in classical theory. Smith wrote that the "real price of every thing ... is the toil and trouble of acquiring it". Smith maintained that, with rent and profit, other costs besides wages also enter
26696-437: The most famous passages in all economics," Smith represents every individual as trying to employ any capital they might command for their own advantage, not that of the society, and for the sake of profit, which is necessary at some level for employing capital in domestic industry, and positively related to the value of produce. In this: He generally, indeed, neither intends to promote the public interest, nor knows how much he
26884-456: The new constitution annexed), and finally, if approved, issuance of an Order of Council fixing the exact date of independence. After World War I , several former German and Ottoman territories in the Middle East, Africa, and the Pacific were governed by the UK as League of Nations mandates . Some were administered directly by the UK, and others by British dominions – Nauru and the Territory of New Guinea by Australia , South West Africa by
27072-440: The oil companies investing the majority of their research capital in the US and European countries or others, politically sure countries. The OPEC lost more and more influence on the world prices of oil. The second oil crisis occurred in the wake of the 1979 Iranian Revolution . Then, the 1982 Latin American debt crisis exploded in Mexico first, then Argentina and Brazil, which proved unable to pay back their debts, jeopardizing
27260-549: The older developed / developing dichotomy as it does not imply a hierarchy. Alvaro Mendez, co-founder of the London School of Economics and Political Science 's Global South Unit, have applauded the empowering aspects of the term. In an article, Discussion on Global South, Mendez discusses emerging economies in nations like China, India and Brazil. It is predicted that by 2030, 80% of the world's middle-class population will be living in developing countries. The popularity of
27448-419: The patterns of colonial relations which persisted between the North and South and emphasizes how colonized territories tended to be impoverished by those relations. Theorists of this school maintain that the economies of ex-colonial states remain oriented towards serving external rather than internal demand, and that development regimes undertaken in this context have tended to reproduce in underdeveloped countries
27636-540: The perpetual lease of Guantánamo Bay to the U.S. Navy. The attempt of the first governor to void the island's constitution and remain in power past the end of his term provoked a rebellion that provoked a reoccupation between 1906 and 1909, but this was again followed by devolution. Similarly, the McKinley administration , despite prosecuting the Philippine–American War against a native republic , set out that
27824-503: The pessimistic analysis of Malthus (1798). John Stuart Mill (1844) delimited the subject matter further: The science which traces the laws of such of the phenomena of society as arise from the combined operations of mankind for the production of wealth, in so far as those phenomena are not modified by the pursuit of any other object. Alfred Marshall provided a still widely cited definition in his textbook Principles of Economics (1890) that extended analysis beyond wealth and from
28012-410: The physical organization of industry, arguing that firms tend to cluster in order to benefit from economies of scale and increase productivity which leads ultimately to an increase in wages. The North has more firm clustering than the South, making its industries more competitive. It is argued that only when wages in the North reach a certain height, will it become more profitable for firms to operate in
28200-582: The police assaults on the Salt March of 1930. Large-scale communal violence broke out between Hindus and Muslims and between Muslims and Sikhs after the British left in 1947 in the newly independent dominions of India and Pakistan. Much later, in 1970, further communal violence broke out within Pakistan in the detached eastern part of East Bengal, which became independent as Bangladesh in 1971. Cyprus , which came under full British control in 1914 from
28388-403: The power imbalances within these relationships. This "may obscure wealth differences within countries – and, therefore, similarities between the wealthy in the Global South and Global North, as well as the dire situation the poor may face all around the world." Some economists have argued that international free trade and unhindered capital flows across countries could lead to a contraction in
28576-487: The present, modified by substituting the word "wealth" for "goods and services" meaning that wealth may include non-material objects as well. One hundred and thirty years later, Lionel Robbins noticed that this definition no longer sufficed, because many economists were making theoretical and philosophical inroads in other areas of human activity. In his Essay on the Nature and Significance of Economic Science , he proposed
28764-409: The price of a commodity. Other classical economists presented variations on Smith, termed the ' labour theory of value '. Classical economics focused on the tendency of any market economy to settle in a final stationary state made up of a constant stock of physical wealth (capital) and a constant population size . Marxist (later, Marxian) economics descends from classical economics and it derives from
28952-495: The pronounced class hierarchies found in industrialized countries while maintaining higher levels of poverty. Dependency theory is closely intertwined with Latin American Structuralism, the only school of development economics emerging from the Global South to be affiliated with a national research institute and to receive support from national banks and finance ministries. The Structuralists defined dependency as
29140-429: The purest approximation to the truth that has yet been published" on the subject. The publication of Adam Smith 's The Wealth of Nations in 1776, has been described as "the effective birth of economics as a separate discipline." The book identified land, labour, and capital as the three factors of production and the major contributors to a nation's wealth, as distinct from the physiocratic idea that only agriculture
29328-542: The same year nationalist forces had begun organizing in Portugal. Revolts (preceding the Portuguese Colonial War ) spread to Angola , Guinea Bissau and Mozambique . Lisbon escalated its effort in the war: for instance, it increased the number of natives in the colonial army and built strategic hamlets. Portugal sent another 300,000 European settlers into Angola and Mozambique before 1974. That year,
29516-668: The scientific evidence and data regarding global warming and what needs to be done about it, as the South do not trust Northern data and cannot afford the technology to be able to produce their own. In addition to these disputes, there are serious divisions over responsibility, who pays, and the possibility for the South to catch up. This is becoming an ever-growing issue with the emergence of rising powers, imploding these three divisions just listed and making them progressively blurry. Multiplicity of actors, such as governments, businesses, and NGO's all influence any positive activity that can be taken into preventing further global warming problems with
29704-412: The scope and method of economics, emanating from that definition. A body of theory later termed "neoclassical economics" formed from about 1870 to 1910. The term "economics" was popularised by such neoclassical economists as Alfred Marshall and Mary Paley Marshall as a concise synonym for "economic science" and a substitute for the earlier " political economy ". This corresponded to the influence on
29892-486: The so-called Lucas critique and the presentation of real business cycle models . During the 1980s, a group of researchers appeared being called New Keynesian economists , including among others George Akerlof , Janet Yellen , Gregory Mankiw and Olivier Blanchard . They adopted the principle of rational expectations and other monetarist or new classical ideas such as building upon models employing micro foundations and optimizing behaviour, but simultaneously emphasised
30080-444: The source of the word economy. Joseph Schumpeter described 16th and 17th century scholastic writers, including Tomás de Mercado , Luis de Molina , and Juan de Lugo , as "coming nearer than any other group to being the 'founders' of scientific economics" as to monetary , interest , and value theory within a natural-law perspective. Two groups, who later were called "mercantilists" and "physiocrats", more directly influenced
30268-478: The southern Kuril Islands , which Japan still claims . In the United States, the two major parties were divided on the acquisition of the Philippines, which became a major campaign issue in 1900. The Republicans, who favored permanent acquisition, won the election, but after a decade or so, Republicans turned their attention to the Caribbean, focusing on building the Panama Canal . President Woodrow Wilson ,
30456-406: The state or commonwealth with a revenue for the publick services. Jean-Baptiste Say (1803), distinguishing the subject matter from its public-policy uses, defined it as the science of production, distribution, and consumption of wealth . On the satirical side, Thomas Carlyle (1849) coined " the dismal science " as an epithet for classical economics , in this context, commonly linked to
30644-408: The subject of mathematical methods used in the natural sciences . Neoclassical economics systematically integrated supply and demand as joint determinants of both price and quantity in market equilibrium, influencing the allocation of output and income distribution. It rejected the classical economics' labour theory of value in favour of a marginal utility theory of value on the demand side and
30832-402: The subject or different views among economists. Scottish philosopher Adam Smith (1776) defined what was then called political economy as "an inquiry into the nature and causes of the wealth of nations", in particular as: a branch of the science of a statesman or legislator [with the twofold objectives of providing] a plentiful revenue or subsistence for the people ... [and] to supply
31020-471: The subject": Economics is the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses. Robbins described the definition as not classificatory in "pick[ing] out certain kinds of behaviour" but rather analytical in "focus[ing] attention on a particular aspect of behaviour, the form imposed by the influence of scarcity ." He affirmed that previous economists have usually centred their studies on
31208-826: The subsequent development of the subject. Both groups were associated with the rise of economic nationalism and modern capitalism in Europe. Mercantilism was an economic doctrine that flourished from the 16th to 18th century in a prolific pamphlet literature, whether of merchants or statesmen. It held that a nation's wealth depended on its accumulation of gold and silver. Nations without access to mines could obtain gold and silver from trade only by selling goods abroad and restricting imports other than of gold and silver. The doctrine called for importing inexpensive raw materials to be used in manufacturing goods, which could be exported, and for state regulation to impose protective tariffs on foreign manufactured goods and prohibit manufacturing in
31396-515: The term decoloniality . In the two hundred years following the American Revolutionary War in 1783, 165 colonies have gained independence from Western imperial powers. Several analyses point to different reasons for the spread of anti-colonial political movements. Institutional arguments suggest that increasing levels of education in the colonies led to calls for popular sovereignty; Marxist analyses view decolonization as
31584-550: The term "marks a shift from a central focus on development and cultural difference" and recognizes the importance of geopolitical relations. Critics of this usage often argue that it is a vague blanket term . Others have argued that the term, its usage, and its subsequent consequences mainly benefit those from the upper classes of countries within the Global South; who stand "to profit from the political and economic reality [of] expanding south-south relations." According to scholar Anne Garland Mahler, this nation-based understanding of
31772-553: The term are disputed. Some scholars of decolonization focus especially on independence movements in the colonies and the collapse of global colonial empires . As a movement to establish independence for colonized territories from their respective metropoles , decolonization began in 1775 in North America . Major waves of decolonization occurred in the aftermath of the First World War and most prominently after
31960-586: The use of Korean , Hokkien , and Hakka among the Indigenous peoples, were seen to be used. Japan also set up the Imperial Universities in Korea ( Keijō Imperial University ) and Taiwan ( Taihoku Imperial University ) to compel education. In 1931, Japan seized Manchuria from the Republic of China, setting up a puppet state under Puyi , the last Manchu emperor of China. In 1933 Japan seized
32148-467: The war is not winnable or if the expected costs outweigh the benefits, the deciding actors (assuming they are rational) may never go to war (a decision ) but rather explore other alternatives. Economics cannot be defined as the science that studies wealth, war, crime, education, and any other field economic analysis can be applied to; but, as the science that studies a particular common aspect of each of those subjects (they all use scarce resources to attain
32336-515: The word Oikos , the Greek word from which the word economy derives, was used for issues regarding how to manage a household (which was understood to be the landowner, his family, and his slaves ) rather than to refer to some normative societal system of distribution of resources, which is a more recent phenomenon. Xenophon , the author of the Oeconomicus , is credited by philologues for being
32524-460: The work of Karl Marx . The first volume of Marx's major work, Das Kapital , was published in 1867. Marx focused on the labour theory of value and theory of surplus value . Marx wrote that they were mechanisms used by capital to exploit labour. The labour theory of value held that the value of an exchanged commodity was determined by the labour that went into its production, and the theory of surplus value demonstrated how workers were only paid
32712-719: Was a Constitutionalist Revolution in Portugal, which led to the return of the Portuguese court to Lisbon. This led to distrust between the Portuguese and the Brazilian colonists, and finally, in 1822, to the colony becoming independent as the Empire of Brazil , which later became a republic. The emergence of Indigenous political parties was especially characteristic of the British Empire , which seemed less ruthless than, for example, Belgium, in controlling political dissent. Driven by pragmatic demands of budgets and manpower
32900-540: Was a revolt in 1789 and subsequent slave uprising in 1791 in the French colony of Saint-Domingue , on the Caribbean island of Hispaniola . In 1804, Haiti secured independence from France as the Empire of Haiti , which later became a republic. The chaos of the Napoleonic Wars in Europe cut the direct links between Spain and its American colonies, allowing for the process of decolonization to begin. With
33088-427: Was characterized by massacres of civilians on both sides. It was not a movement for independence, however, and only a small part of India was involved. In the aftermath, the British pulled back from modernizing reforms of Indian society, and the level of organised violence under the British Raj was relatively small. Most of that was initiated by repressive British administrators, as in the Amritsar massacre of 1919 , or
33276-411: Was especially rich, and many Belgian businessmen lobbied hard to maintain control. Local revolts grew in power and finally, the Belgian king suddenly announced in 1959 that independence was on the agenda – and it was hurriedly arranged in 1960, for country bitterly and deeply divided on social and economic grounds. The Netherlands had spent centuries building up its empire. By 1940 it consisted mostly of
33464-410: Was extremely limited. On the night of 29 March 1947, a Madagascar nationalist uprising led the French government headed by Paul Ramadier ( Socialist ) to violent repression: one year of bitter fighting, 11,000–40,000 Malagasy died. In 1946, the states of French Indochina withdrew from the French Union, leading to the Indochina War (1946–54). Cambodia and Laos became independent in 1953, and
33652-416: Was free, and in 1898, Spain lost Cuba and Puerto Rico in the Spanish–American War . Puerto Rico became an unincorporated territory of the US, but Cuba became independent in 1902. The Napoleonic Wars also led to the severing of the direct links between Portugal and its only American colony, Brazil . Days before Napoleon invaded Portugal, in 1807 the Portuguese royal court fled to Brazil . In 1820 there
33840-569: Was inspired by the works of Garvey led Ghana to independence from colonial rule. Independence for the colonies in Africa began with the independence of Sudan in 1956, and Ghana in 1957. All of the British colonies on mainland Africa became independent by 1966, although Rhodesia 's unilateral declaration of independence in 1965 was not recognized by the UK or internationally. Some of the British colonies in Asia were directly administered by British officials, while others were ruled by local monarchs as protectorates or in subsidiary alliance with
34028-451: Was institutionalized by International Financial Institutions (IFIs) and Western governments, represented a break from the Keynesian approach to foreign aid which had been the norm from the end of the Second World War. After 1987, reports on the negative social impacts that structural adjustment policies had had on affected developing nations led IFIs to supplement structural adjustment policies with targeted anti-poverty projects. Following
34216-404: Was intended to be less hierarchical. The idea of categorizing countries by their economic and developmental status began during the Cold War with the classifications of East and West. The Soviet Union and China represented the East, and the United States and their allies represented the West. The term Third World came into parlance in the second half of the twentieth century. It originated in
34404-415: Was later known as the Brandt Report. This line divides the world at a latitude of approximately 30° North , passing between the United States and Mexico, north of Africa and the Middle East , climbing north over China and Mongolia, then dipping south to include Japan, Australia, and New Zealand in the "Rich North". As of 2023 the Brandt line has been criticised for being outdated, yet is still regarded as
34592-421: Was no part of it. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it. The Reverend Thomas Robert Malthus (1798) used the concept of diminishing returns to explain low living standards. Human population , he argued, tended to increase geometrically, outstripping the production of food, which increased arithmetically. The force of
34780-416: Was not their traditionalism, but the dominance-dependence relationship between rich and poor, powerful and weak counties." What brought about much of the dependency, was the push to become modernized. After World War II, the U.S. made effort to assist developing countries financially in attempt to pull them out of poverty. Modernization theory "sought to remake the Global South in the image and likeliness of
34968-892: Was productive. Smith discusses potential benefits of specialisation by division of labour , including increased labour productivity and gains from trade , whether between town and country or across countries. His "theorem" that "the division of labor is limited by the extent of the market" has been described as the "core of a theory of the functions of firm and industry " and a "fundamental principle of economic organization." To Smith has also been ascribed "the most important substantive proposition in all of economics" and foundation of resource-allocation theory—that, under competition , resource owners (of labour, land, and capital) seek their most profitable uses, resulting in an equal rate of return for all uses in equilibrium (adjusted for apparent differences arising from such factors as training and unemployment). In an argument that includes "one of
35156-437: Was recognised as well as the traditional Keynesian insistence that fiscal policy could also play an influential role in affecting aggregate demand . Methodologically, the synthesis led to a new class of applied models, known as dynamic stochastic general equilibrium or DSGE models, descending from real business cycles models, but extended with several new Keynesian and other features. These models proved useful and influential in
35344-411: Was ultimately a victor of World War II, Nazi Germany's occupation of France and its North African colonies during the war had disrupted colonial rule. On 27 October 1946, France adopted a new constitution creating the Fourth Republic , and substituted the French Union for the colonial empire. However power over the colonies remained concentrated in France, and the power of local assemblies outside France
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