Daily News Analysis

The new discourse of the Global South

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The new discourse of the Global South

 

 

Why in the News?

The BRICS nations have emphasized on the construct of “Global South” as PM Modi emphasized that the former can act as a platform “for discussing and deliberating on issues of concern for the entire Global South”.

General definition:

 

A developed country is the one that has a developed economy with reasonably high GDP, advanced physical, scientific and technological infrastructure, and good quality living standards called HDI.

 

The new discourse of Global South:

Dividing lines between ‘developed’ and ‘developing’ nations are blurring.

  1. The WTO doesn’t have any definitions for “developed” and “developing” countries and members can announce for themselves whether they are ‘developed’ or ‘developing’ countries, which can be challenged by other members.
  2. The United Nations doesn’t any clear definition yet, it has categorised entire Europe, North America, Japan, Australia and New Zealand as the “developed world”, and the remaining 150 plus countries as “developing”.
  3. Bill and Melinda Gates have claimed that the terms ‘developing countries’ and ‘developed countries’ have outlived their usefulness” and there will be almost no poor countries left in the world by 2035.
  4. Developing Countries have attained a better position
    • Many poor countries in Africa have become self-sufficient in several areas over decades.
    • Turkey described as the “sick man of Europe” has impressive HDI performance better than its neighbouring countries.
  5. Some Developed countries are in declining phases
    • Germany’s economy is declining prompting some analysts to call Europe’s best performing nation the new “sick man of Europe”.
    • Germany is currently marked by high inflation rates, growing unemployment and low demand for industrial production exports.
  6. Misnomer classification
    • Latvia with a total GDP of $30 billion is called a “developed” country because its 2 million-strong population makes its per capita GDP to $34,000.
    • India with > 125 times bigger GDP of $3.75 trillion is still considered a “developing” country because its huge population of 1.4 billion bringing down the per capita GDP to just about $2,700.
    • Investment company Morgan Stanley has predicted that Indian economy is set to reach the $8 trillion mark by 2031 and register a GDP per capita of over $5,200.

Cultural issues, more than economic ones, distinguish Global South from Global North.

  • In economic front, many developing nations like that of India and China are outperforming the classified ‘developed countries’ in terms of technology to economy to space.

 

MCQ:

Consider the following statements:

Statement 1: The World Trade Organisation spelts out criteria/definition for classification of developed and developing countries.

Statement 2: If a country is announced as a developed or developing country, other members can challenge the decision.

Which among the following options are correct?

  1. Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
  2. Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
  3. Statement-I is correct but Statement-II is incorrect
  4. Statement-I is incorrect but Statement-II is correct

Ans: d)

Explanation:

The World Trade Organisation doesn’t specify any criteria/definition for classification of developed and developing countries. Therefore, statement 1 is incorrect.

If a country is announced as a developed or developing country, other members can challenge the decision. Hence, statement 2 is correct.

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