The essence of the problem and ways of solving the "North - South"

Nowadays, more than ever there was a problem, without which further progressive movement of humanity is impossible.Economy acts only part of human activity, but it is mainly from its development in the 21st century depends on the preservation of peace, nature and the living environment of people, as well as religious, philosophical and moral values.Of particular importance to global problems has increased in the second half of the 20th century, when they started to significantly affect the structure of the world and national economy.

Territorial division

Before going into the core of the problem, "North - South", will talk about the formation of world economic relations.By the early 20th century as a whole the world economy has developed, as most countries of the world were involved in the trade relationship.Territorial division at this time is ended, and formed two poles: the industrialized countries and their colonies - raw materials and agricultural appendages.The latter were involved in the international division of labor long before they appeared in the national markets.That is, participation in world economic relations in these countries was no need for their own development and expansion of the product, developed industrially.Even after gaining the independence of the former colonies the world economy, thus formed, has for many years kept the center-periphery relationship.Hence, even originates the problem of "North - South", gave birth to the current global conflict.

Concepts

So, as you already understood, developed economic cooperation with developing countries was based not on an equal footing.The essence of the global problem of "North - South" is to ensure that the agrarian backwardness of potentially dangerous on the local, regional, inter-regional levels, and in general for the world economic system.Developing countries are the integral part of the world economy, so their political, economic and social problems will inevitably emerge and has already manifested outside.Among the specific evidence that it may be noted, for example, large-scale forced migration in industrialized nations, the spread of infectious diseases in the world, both new and those that are already considered to be defeated.That is why the global problem of "North - South" is now considered one of the most significant.

to bridge the gap in the level of economic and social progress between developed and developing countries, the latter is now require first of all kinds of concessions, including the strengthening of capital inflows and knowledge (often in the form of assistance), access their goods to the markets of industrializedcountries, debt relief and more.

international economic order

on the problem of "North - South" in the world thinking in the second half of the sixties of the 20th century, when there was a big wave of decolonization, developed the concept of a new international economic order and took it towards developing countries for its establishment.Key ideas of the concept were the following:

  • firstly, to create for the backward countries preferential treatment participation in international economic relations;
  • and secondly, to provide assistance to developing countries on a predictable and stable basis and in quantities that correspond to the scale of economic and social problems of these powers, as well as to alleviate their debt burden.

Thus agrarian countries expressed their dissatisfaction with the system of international trade, when revenues from the export of processed goods were higher (due to the presence in these high value-added products) than the profit from the export of raw materials.Developing countries interpreted this situation as a manifestation of unequal exchange.Addressing the North and the South, they have seen to help the developed countries in adequate amounts, and this idea was linked directly to the economic and social consequences of the colonial period and moral responsibility for the consequences of these former colonial powers.

Fate movement

By the mid-eighties of the 20th century the movement for the establishment of a new economic order has made some progress.For example, agricultural state approved over national natural resources and achieved its sovereignty, that it was officially recognized that in certain cases, for example, in a situation with energy, contributed to the growth in the developing countries of export revenues.Regarding the issue of "North - South" in general, we managed to achieve some positive results.Thus, the severity of the debt has been weakened by the difficulties expanded international assistance for the development of the states, was approved by the principle of a differentiated approach to the regulation of external debt at the national level, depending on the per capita GNI.

reasons for the defeat

Despite all the positive things, eventually movement began to lose ground, and by the end of the eighties and completely ceased to exist.The reasons for this can be identified much, but there are two key:

  • first - a significant weakening of the unity of themselves backward states in the pursuit of its claims, which was due to their rapid differentiation and evolution of such subgroups as the oil-exporting countries, the newly industrialized economies.
  • second - the deterioration of the developing countries negotiating positions when the developed countries entered the post-industrial stage, significantly narrowed the ability to be used as an argument in the way of solving the problem of "North - South" commodity factor.

Movement for the establishment of a new economic order as a result of failed, but global contradictions remain.

Solution "North - South»

Currently, there are three ways to overcome the imbalance in the economic relations between developing and developed countries.Let's speak about each of them in detail.

1. The liberal approach

His supporters believe that to overcome the backwardness and take in the international division of labor, agrarian country a worthy place prevents the failure to adopt a modern market mechanism in national economies.According to the Liberals, developing States should adhere to the policy of liberalization of the economy, macroeconomic stability, the privatization of state property.Such an approach to solving the problem of "North - South" in recent decades quite clearly emerges in the multilateral negotiations of foreign economic subjects in the positions of a large number of developed countries.

2. antiglobalization approach

Its members hold the view that the system of international economic relations in the world today is inequitable, and the world economy to a large extent is controlled by international monopolies, which makes it possible to exploit the fact the North South.Antiglobalists, arguing that developed countries deliberately seek to raw material prices have been reduced, although they thus overstate the value of the processed goods, need to radically revise the whole system of world economic relations in the volitional order in favor of developing countries.In other words, under current conditions, they act as an ultra-radical followers of the concept of a new international economic order.

3. structuralist approach

His supporters agree that the system of international economic relations existing at present, developing countries creates serious difficulties.However, unlike the supporters of the anti-globalization approach, they recognize that change the position of these countries in the international division of labor will not work without structural reforms in the agrarian states themselves, increase their competitiveness, ensuring industrial diversification of national economies.According to them, the present system of economic relations should be reformed, but in a way that the modifications made facilitates reforms in developing countries.

The talks proponents of this approach insist that the global problem of "North - South" can be solved, if the developed countries will take into account the objective difficulties and especially economic growth in developing countries and expand trade preferences for them.The modern reality is a balanced approach is increasingly recognized, and with it the prospects for solving the problems associated relations between North and South.