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International Relations-PSC 201
VU
LESSON 38
THE GLOBAL DIVIDE
The difference in per capita income between the world's poorest and richest countries has more than
doubled over the last 25 years.
According to UN estimates, merely 3% of the annual increase in the world's wealth is needed to eradicate
poverty. Yet developed countries have been hesitating to meet pledges made two decades ago to devote
0.7% of the value of their annual GDP to aid for poorer nations.
World Social Forum
World Social Forum was formed in 2001 by a coalition of Brazilian trade unions, charities and left-wing
political and environmental groups. Over the past four years, it has expanded into a loose coalition of such
organizations from around the world. Instead of believing that big business can change the world for the
better, the World Social Forum demands that both the corporations and the governments of rich countries
must change the way that they deal with the people and nations of the developing world.
The World Social Form considers economic forces, if left unchecked, often contributes to the
marginalization of the weakest. Often described as a `Carnival of the Oppressed', the World Social Forum
puts forth suggestions to fight poverty, disease and environmental damage and it hopes to replace the
prevailing inequities of globalization by a fairer, healthier, cleaner version of global trade in which poorer
countries have better opportunities to grow.
Can the Global Divide Be Bridged?
Conventional economic wisdom maintains that an average annual growth rate of about 7% is enough to
alleviate poverty in developing countries.
But even if some countries like China or India can actually achieve such growth, it is unlikely that all
developing countries would be able to grow this much without completely depleting the already strained
natural resource reserves of the planet.
Even economically, the gap between worldwide savings and necessary investments is simply too wide to
achieve so much global growth anytime in the near future. Of course, economic growth is important for
reducing poverty, but growth itself does not guarantee equity. To ensure equity it is essential to look at how
the benefits of growth are distributed not just within but also between countries.
Relevant Vocabulary
Equity ­ just or equal outcomes
Inequality ­ lack of equality or divide between the haves and have nots
Conventional ­ traditional
Coalition ­ alliance or union
Suggested Readings
Students are advised to visit the following web-pages for this lecture, which provide useful and interesting
information:
The Digital Divide
www.globalpolicy.org/globaliz/define/davos.htm
Bridging the Global Divide
observer.guardian.co.uk/ global/story/0,10786,591598,00.html