GLOBAL DICHOTOMY OF WEALTH

GLOBAL
 DICHOTOMY 
OF WEALTH




There is a global dichotomy in material possessions. The two extremes are opulence and pauperism. And everywhere in the world the two groups are geographically polarised: the streets of the haves and the have-nots. Never mind the middle class who are neither here nor there; they are also hand-to-mouth survivors! Incidentally, there is also a climatic dichotomy in global economic fortunes. Almost all poor and developing countries are situated in the tropical or subtropical zones while the most economically successful are in the temperate zone. This is more than a coincidence.

What might be the cause or causes? That is, how do we explain such affluence in the North and the very opposite of it in the South. The first observation is that the tropical environment is generally harsh, with extremes of heat and humidity which contribute to the degradation of the soil and other natural capital, including rivers and forests, and the poor health status of man and animals mostly pinned to malaria and other decimating parasites that are more abundant in the tropics.

The diminished level of productivity is not arguable, adding the inefficiencies of poorer technology. Another factor is that Western nations had a very slow rise in population growth, during their early and middle years of development, averaging 2% or less, but tropical countries have constantly dragged along with them the liability of excessive population with high fertility rate. The countries with the fastest growing population are all in the tropics: India, Indonesia, Pakistan, Egypt, Nigeria, Brazil, Kenya, Malawi, Philippines, Bangladesh and Guatemala. The implication is atomization of resources per person.

Developing countries have also witnessed a rise in brain drain, the emigration of highly educated and skilled professionals and technicians to the developed world. These are the very people they could least afford to lose. Between 1985 and 1990, Africa lost nearly one-third of its skilled workers, with up to 60,000 middle and high-level managers migrating to Europe and North America. Sudan lost 17% of its doctors and dentists, 20% of its university teachers, 30% of its engineers, and 45% of its surveyors. The Philippines lost 12% of its professional workers to the United States, and 60% of Ghanaian doctors went abroad. So the Northern hemisphere gets the best brains and hands and the South takes the remnant.


With two or three centuries' head start in science and technology, culminating in the Industrial Revolution of the 1800s, and with already stable  democracies, the Western nations achieved and maintained wide gaps in economic and development fortunes. Also, with superior military and political systems, they colonized vast territories of the Third World (Africa, Asia, and Latin America), leaving the latter, even in post-colonial sovereignty, with economies and governance systems dependent on the former. 'Development' to those in the Third World simply means to be like the West. Research and development (R&D) activities backed by scientific and technological knowledge are concentrated in the developed countries and they have the surplus wealth to undertake monumental researches and accumulate knowledge further. So, historically, the rich and poor nations have remained dichotomized and the gaps intractable.

Then international trade! The equation of producing versus consuming countries remains unbalanced. Capital goods, consumer goods, industrial raw materials, and now even raw food all flow from North to South. The raw materials taken from developing countries are turned into manufactured goods and re-exported. Therefore, terms of trade remain in favour of the temperate countries. Only China and a few others in Asia are closing the gap.

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