Rebecca Nerheim
December 9, 2013
GEOG Research Paper
Why Has Economic Development Been So Hard in the Global South?
As a senior at the University of Arizona with a double major in Economics and Geography, economic development in the global south is something I would like to pursue as a career after graduation. It is therefore necessary to understand the problems associated with it and why different approaches have not been as successful as agencies have hoped. First, I will define economic development and its major players. Although there are many complicated factors that cause economic development issues, I will focus on and explain how ignorance of local circumstances, large debts, problems with trade, and a lack of consideration for certain people have made economic development difficult in the global south.
What is Economic Development?
According to the Cambridge dictionary, economic development is “the process in which an economy grows or changes and becomes more advanced, especially when both economic and social conditions are improved (“English”, n.d.). The International Economic Development Council lists objectives as a way to describe the term, such as wealth and job creation. It also says economic development includes policies and programs to help businesses, provide infrastructure, and to meet economic goals (“IEDC”, n.d.). The phrase seems to encompass all kinds of economic growth in a local, regional, or global setting. There are several key players in economic development in the Global South. The World Trade Organization, founded in 1995, has 144 countries. The goal of the WTO is to allow trade to “flow smoothly, freely, fairly, and predictably” (Peet, 2003). The WTO is directly related to economic development. It says that it takes advantage of the international division of labor to raise income and lower cost of living for all people, supports
We can see that Third World and southern countries like Africa and Indonesia are still facing the problem of poverty. In order to work their way out, the governments should apply some appropriate policies and economic applications to overcome the problem. On the other hand, the richer states or more developed countries should provide the necessary financial aid to those poorer countries. They should work hand-to-hand in order to strengthen the global benefit and interest.
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It is thought-provoking, in the sense that Africa’s need for foreign created a race to the bottom, much like what Pietra Rivoli described in The Travels of a T-Shirt in the Global Economy. Due to some African states’ reliance on foreign aid in order to mine and profit on their resources, they allow business standards to be lowered and for Chinese firms to tip the contracts moresoever in the favor of Chinese firms. This lowers the potential earnings of African states by lowering royalty rates, for example. Additionally, Burgis’ research was thorough and transparent. When he did not receive a response or if his questions were dodged, he made it obvious to the readers. Sure, some could view this book as too anecdotal to be used as a credible source of Africa’s situation. However, this is due to the nature of the system Burgis is writing about; after all, they are shadow states for a reason. Some readers will be saddened by this text, others angry, most curious to learn more, but above all, everyone will be intellectually stimulated and
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