The Difference Between the Global North and South in Terms of Economic Prosperity
Why has the global north developed and prospered, but the global south has not?
To address the question of inequality of the Global North vs. South, one must begin at the point of origin; in which the two drastically diverged with respect to the differences in standards of living, thus creating the inequality gap we know today that separates the global north and south. It can be said that standard of living is directly related to the rate of productivity of a country (Clark, 1987). Therefore to address the question as to why the north became rich and the south poor, once must ask the question why the north was able to become so productive and the south not. Throughout history world GDP growth has followed a fairly equal linear trajectory up until the industrial revolution takes hold (Sachs, 2005). From there we see a rampant acceleration of productivity, rapid acceleration of economic growth and by extension, an increase to the standard of living in the north. During this time growth in the south remains stagnant, or occurs at a much slower rate. In this essay I will address the question as to why the industrial revolution happens first in the global north and also why the inequality gap still exists today.
First we have to look at what prompted the Industrial Revolution to take hold. Many theories point to technological innovation, greater options for trade, geographic factors, access to raw materials and inexpensive travel routes. Britain was one of the most significant countries where the industrial revolution first occurred. The land was filled with resources that they could easily access and use in industrialization (Clark, 1987). They were also surrounded by other nations in Europe who were industrializing which offered them excellent access to trade. Finally, the natural canal and river systems offered an inexpensive and easily accessible way to transport goods and raw materials throughout the country, and being an island country offered easy
To address the question of inequality of the Global North vs. South, one must begin at the point of origin; in which the two drastically diverged with respect to the differences in standards of living, thus creating the inequality gap we know today that separates the global north and south. It can be said that standard of living is directly related to the rate of productivity of a country (Clark, 1987). Therefore to address the question as to why the north became rich and the south poor, once must ask the question why the north was able to become so productive and the south not. Throughout history world GDP growth has followed a fairly equal linear trajectory up until the industrial revolution takes hold (Sachs, 2005). From there we see a rampant acceleration of productivity, rapid acceleration of economic growth and by extension, an increase to the standard of living in the north. During this time growth in the south remains stagnant, or occurs at a much slower rate. In this essay I will address the question as to why the industrial revolution happens first in the global north and also why the inequality gap still exists today.
First we have to look at what prompted the Industrial Revolution to take hold. Many theories point to technological innovation, greater options for trade, geographic factors, access to raw materials and inexpensive travel routes. Britain was one of the most significant countries where the industrial revolution first occurred. The land was filled with resources that they could easily access and use in industrialization (Clark, 1987). They were also surrounded by other nations in Europe who were industrializing which offered them excellent access to trade. Finally, the natural canal and river systems offered an inexpensive and easily accessible way to transport goods and raw materials throughout the country, and being an island country offered easy
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