There are many strategies that need to be embraced in order to end the dependency of the South and achieve development. One radical solution is to abruptly end the relations between North and South, hereby ending the problem of dependency. However, this is very difficult because the South is still very much intertwined with the North and therefore needs to gradually work towards independence. The third world countries need to approach the advanced countries together; if one country acts alone it will not be able to change the status quo. One first step that should therefore be taken is the establishment of links between the less developed countries in the form of political associations and economic organizations. If the third world countries would cooperate they would have the chance to support each other instead of being dependent on the North. They should not view each other in a competitive light but rather stand together to face the North. The third world countries could help each other through simplified trade regulations and strategies. They should promote each other's industries by importing and exporting from each other instead of the North. In addition, they could place high tariffs on imports coming from the North. This would be a form of import- substitution on a larger regional scale. The third world countries all suffer from the same problems and it would therefore be beneficial to support each other's economies. This would substantially strengthen their position in regard to the west and contribute to their development.
When working on their domestic policies the third world countries need to establish policies that integrate the whole society into the system and not just those who have influence. They need to do away with corruption and build a climate that facilitates the process of investment for the locals. This can be achieved by ameliorating the bureaucratic networks which often impede the process of investment. Investment could be further simplified by granting entrepreneurs financial assistance from the banks and most importantly eliminating the role of power structures in the economic processes. Furthermore, they should put stronger regulations on foreign investments; for example through high annual payments. Consequently, not only the MNCs, alone, would benefit from the profits being made, but the LDCs themselves would also gain from the foreign investors. In addition, the task of promoting the social and economic development of their countries should be partly placed on the MNCs. This would not only be in the form of creating employment opportunities for the people, but also "the establishment of intensive training programs through which the employees could also acquire the management and technological know-how that is required to lead the third world countries to development." The foreign investments would therefore not only provide short term objectives but also long term benefits for the South. This would also take some burden off the governments who could direct their attention to the other problems. The third world countries could therefore benefit from the MNCs, instead of being exploited by them. The third world countries need to establish regulations and controls in order to protect their economies and turn the influence of the North into an advantage.
The success of new policies concerning the South can only be achieved if the different countries work in coordination with each other. The third world needs to see that cooperation will promote their situation; not only in an economic sense but their appeal to the rest of the world will be strengthened. This will make it easier to address certain problems and maybe even change current regimes. "The changes in regimes can alter the control of resources and allocation among actors in the International System," claims Krasner in his article "Power vs. Wealth in North- South Economic Relations." This would address the responsibility of the North concerning the underdevelopment of the South. The North has caused many of the South's problems and it is therefore their duty to try and improve the situation. This should be done through resource and technology transfer back to the south, financial aid and giving the less advanced countries advantages in trading ranges. The situation in the third world is a serious one that cannot only be approached from the countries itself but must also be addressed by those countries who can be largely held accountable for their situation.
The situation of the third world might look hopeless; however, there are many policies that could contribute to the improvement of their condition. With new strategies from within the third world and with the support of the North in the form of reparations the development of the South will maybe turn into more than just a dream.
Bibliography
Krasner, Stephen D. "Structural Conflict: The Third World against Global Liberalism." University of California: 1985
Lodge George C. "The Corporate Key: Using Big Business to Fight Global Poverty." Foreign Affairs: July 2002
Staniland, Martin. What is Political Economy? London and New Haven: 1985
Todaro, Michael P. Economic Development. London: Addison Wesley Longman, 2000.
