The issues which are crucial in widening the gap between the developed and under-developed countries or act as catalyst in increasing the international inequities can be analyzed under the following heads.

Further details has been analysed as we move along the write-up in the proverbial North (standing for developed) and South (standing for developing or say undeveloped variously called in innuendos like emerging, etc) divide and how the same has shaped and again reshaped in an ever evolving domain of IR, We also see how the same has affected nations like India that cannot be strictly straitjacketed into either the North or the South.






9) h)

Increasing gap between the Developed                and                                                             the Under‑

developed nations
Increased global interdependence
Neo-Colonial control of Developed Countries over the Devel­oping Countries
Excessive Exploitation of World Income and Resources by the Developed Countries
Role of Multinational Corporations as Instruments of Control of the Developed over the Developing Countries
Control of the Developed Countries over the Policies of the
Developing Countries
The  Failure of the Bretton Woods
The Inadequacy of New GATT and VVTO
Economic Problems Compounded by Developments in Eastem Europe and Republics of the Erstwhile USSR

Processes of Divergehce Leading to Conflict, restructuring world economic Relations
Process of Institutional Changes
Process of Ending the Concept of Protectionism in inter­national Economy and Trade
Conflict Owing to Non-transfer of Capital Resources and Technology menace of multinational Corporations; is trio biggest cause of Divergence
Resentment of commodity producers
Divergence of approach on total revision of the Brette Woods System
Processes of Convergence Prompting Cooperat;on Establishment of a new economic international Order South-South Cooperation
Role of World Trade Organization
ing economic heights in development. Its rivers are capable of generating power and providing enough water for drinking and irrigation. Huge deposits of bauxite, coal, copper, manganese and other minerals are India’s assets. Equally notable is the base of its skilled and educated work force. Despite pro­gress made in the fields of agriculture, literacy, science and technology, there is no denying that India lags far behind in development. The bulk of its growing population finds it difficult to cater to basic necessities like food, shelter and clothing. After independence, it was clear to our leaders that the country needs help from foreign governments in respect of transfer of funds, import of equipment and finished goods, ex­port of Indian commodities and goods, training of technical personnel, etc. In an ideologically polarised world, India needed friendship and goodwill from both the free market economies in the West as well as the Socialist world led by the former Soviet Union. By adopting the policy of non-alignment, India hoped for assistance from both the camps. As a parallel to that external policy, India has adopted a mixed economy approach that combined public sector with heavy state investment in infrastructure areas while a strong private sector flourished in an array of other areas.
The vast portion of India’s trade involving export of raw materials like cotton, tea and import of heavy ma­chinery and technology has been with the United States and West European countries. These countries have come forward with generous grants and loans for various projects, apart from facilitating multilateral funding through the World Bank and the International Monetary Fund. The former Soviet Union too emerged as a key partner in defence and other aspects of foreign trade on favorable terms. Also notably, heavy dependence on oil for industrial and economic needs has brought special focus on relations with oil-rich Arab cq,untries in West Asia, apart from working for stable supplies and prices of oil in global market. At a different level, the economic conditions of the country provide inputs to India’s foreign policy to argue for easing of economic disparities between the developed and the less developed countries and for greater economic relationships among the developing countries themselves


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