Introduction to the “Third World”
First World Second World Third World
What is the “third world?” “Third World” outdated Cold War nomenclature. New labels are needed:
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LDCs NICs Developing Underdeveloped Less Developed The South
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Human Development Index
Categorizing states based solely on GNP doesn’t take into account the non-economic quality of life issues • • • •
Literacy Rate Life Expectancy School Enrollment PPP (Purchasing Power Parity) in US dollars
HDI Activity
Poverty & Debt
Poverty & the Debt Crisis •
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“Debt is tearing down schools, clinics and hospitals and the effects are no less devastating than war” – Dr. Adabayo Adedenji Africa spends four times as much on debt repayment as she does on healthcare (25 of the 32 poorest countries are in sub-Saharan Africa) Between $7.5 and $15 billion is needed to fight HIV/ AIDS in Africa each year. Yet, Africa pays out $13.5 billion in debt service every year By the end of the 90s, the south owed northern banks, governments, and international financial institutions more than $2.8 trillion (more than $400 per person)
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Issue #2 – Globalisation Then: Colonial Imperialism Now: MNCs •
Upscale clothier?
Dependency & Banana Republics
“It may be something of an exaggeration to say that decisions made in Washington, D.C. are more important to Tanzanians than those made in Dar es-Salaam, their capital city. If so, this is not much of an overstatement.” –Hauss
Or a generally unstable or "backward" dictatorial regime, especially one where elections are often fraudulent and corruption is rife. The foreign influence may be political or economic, but the point is that a banana republic is controlled or heavily influenced by foreign corporations, either directly or through their government. United Fruit in Honduras is a classic example.
Issue #2 - Globalisation Foreign Aid by Industrialized Nations Foreign Aid by World Bank & IMF From Import Substitution to Structural Adjustment
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Conditionality
The IMF would like you to move from Point A to Point B Importing steel sends $ outside your country. Substitute imported steel for domestically produced steel. Government very involved in economy.
Structural Adjustment
Import Substitution
Integrate into the global economy and find your niche. Adopt free market policies: privatize, deregulate, lower trade barriers.
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Issue #3 – Weak States Weak states – government cannot maintain law & order or provide basic services Patron-Client Networks Corruption - Kleptocrats Transition from one-party state (PRI) in Mexico Significance of military to LDCs
Issue #4 - Ethnicity
Ethnicity •
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Ethnic conflict large result of arbitrary borders Fragmentation results from strong primary loyalty to cultural, ethnic, religious, or linguistic groups.
Issue #5 - Environment
Population •
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World’s Largest Nations (today & in 2050) Births & deaths per second (4.17 & 1.8) Rule of 72
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