The Gap Between Advanced Northern Countries And Developing Southern Countries

992 WordsDec 8, 20164 Pages
The developmental gap between advanced northern countries and developing southern countries has endured for centuries. The gaps’ primary cause is a lack of strong stable institutions in developing countries. The institutional failure is due, at least in part, to colonialism, which allowed for uneven northern development predicated upon southern subjugation and abuse. Within enslaved colonies, the colonizers installed poor institutions that would impact the country 's ability to later function as a sovereign nation. Following the end of the colonial era, the developed North would supply policy recommendations or requirements along side aid to help the South develop. These policies lacked provisions to improve institutions within developing countries, proving to be monumental barriers for the South to “catch up” to the North. In addition, modern protectionist flare-ups have stalled global trade reverting back to bilateral or regional trade agreements that are more harmful for developing countries. Bad institutions coupled with a lack of trade and investment pose as a further hindrance to development. The end of the colonial era may have felt like a huge step forward for newly sovereign nations, but in fact for some it would prove to be just as, or more detrimental than colonialism. Author Daron Acemoglu offers an institutional hypothesis that essentially points to good institutions as the catalyst that would eventually lead a country to economic prosperity
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