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The global economy is an uneven playing field. Evaluate this term with reference to the main economic groups that have developed historically and politically.

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Introduction

By: Liz Haigh The global economy is an uneven playing field. Evaluate this term with reference to the main economic groups that have developed historically and politically. The word 'Global Economy' is defined as the 'world-wide exploitation of resources and the world-wide production and marketing of goods and services'. This is broken down into each individual countries economy. A countries economy is 'the amount of money within the country and how it is linked together by such things as business'. However what makes the global economy such an uneven platform is the breakdown of the worlds economies and the types of countries. The Brant report is the basic way of showing how the world in reality is split into two areas the north and south regions. The north is predominantly first world country. A first world country is one, which comprises mainly of more economically developed countries (MEDC's), where capitalism prevails. Examples of first world countries are Western European, North American or Australian. Australia is the exception of the north /south divide because the line drops just east of Indonesia. ...read more.

Middle

Many of the LEDC's are in debt and are unable to pay it back in conjunction to the interest rates. During the world recession LEDC's were able to large sums of money from the World Bank and other financial developments to start building their own economy. When these interest rates rose again in the 1980's they were unable to repay their debts. If as stated in the economic diagram (above) the first world countries and the world bank drop debts towards the LEDC's and LLEDC's then the unstable south would be able to work its way towards improving their economies. This would then in turn make the balance of the worlds economy more even and the north and south regions becoming closer together. This is because as an LEDC's economy improves its stability it will create new markets for the multinational companies to build factories, thus providing jobs and a positive income to countries finances. An increasing loop will appear as the countries start to emerge form debt. Countries, which have already started the long process and are slowly emerging from debt and towards economic stability, are known as RIC's (recently developed countries) ...read more.

Conclusion

In conclusion I can say that yes the global economy is an uneven platform. This is mainly due to the north/south divide as stated in the Brant report. However I believe that it is caused mainly by the history of a countries development over the last few centuries. If for example the country was initially self sufficient, developing their own resources and becoming economically strong they have developed into the strongest and most wealthy countries in the global economy today. Whereas if a country was colonised or taken in as part of a communist regime they have bee held back in development by having a different political power to their own. Then as these have broken down the countries are left with nothing and start to build up debts. Therefore making these countries the poorest in the world, as they effectively have nothing to offer the first world countries anymore. This fact is what makes global economy so uneven because the poorest countries are in a cycle of debt whilst the richest countries are growing larger and richer widening an already large gap between the two. ?? ?? ?? ?? ...read more.

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