The Cycle of Underdevelopment in the Global South

The Third World and Underdevelopment

Origins of Underdevelopment

Third World countries are poorer nations in the global South that were formerly colonies of European metropolises. Between 1945 and 1970, these colonies gained independence, often in exchange for their former rulers maintaining economic privileges over them. European countries continued to control and economically exploit these new states, a practice known as neocolonialism. The new states required financial and technical assistance, leading them to receive loans from developed countries. These loans must be returned with interest, creating what is known as foreign debt. As a result, many of these countries remain dependent on developed nations.

Demographic and Social Characteristics

• Population Growth and Infant Mortality: Population growth is high due to high birth rates and a reduction in mortality, often thanks to medical aid from developed countries. This results in a very young population. However, infant mortality remains high due to disease, starvation, and other factors.
• Hunger and Disease: Many countries suffer from widespread hunger and deficient nutrition. Agriculture, the basis of their economy, is often unproductive due to limited resources. A large part of the population suffers from diseases caused by shortages of safe drinking water.
• Health and Education: There is an insufficient number of doctors, hospitals, medicines, and schools. A lack of financial resources prevents investment in health and education, leading to a high illiteracy rate.
• Urban Growth: While the majority of the population is rural, some cities have experienced rapid growth due to population increases.

Economic Characteristics

• Subsistence Economy: The economic base is the primary sector, with a focus on subsistence farming. These countries are generally poor, with little industry or technology.
• Multinational Corporations: Many industries in these countries belong to multinational corporations based in developed nations. They relocate there because of available raw materials, very cheap labor, and permissive labor laws. Poverty forces many children to work to survive and help support their families.
• Unequal Exchange: Many countries base their economy on selling raw materials to developed countries at low prices. In turn, they must buy manufactured goods from those same countries at much higher prices. This unequal exchange worsens their economy.
• Low Per Capita Income: A country is generally considered developed if its per capita income exceeds $4,500. The income in these countries usually does not reach that figure. Some nations might reach this number due to oil reserves but are still considered underdeveloped because of their demographic and health characteristics.