Global Inequality Challenge: An Analysis of the Disparities in Wealth and Power.

Abstract:

Global inequality is central to the explanation of the disparity between the global North and global South in terms of level of development. World systems theorists have pointed to colonial exploitation of the South by countries in the North as the cause of the disparities in wealth and power between regions. This paper examines global inequality challenges to identify the disparities in wealth and power between the North and the South. The study relied essentially on qualitative data predicated on secondary data. The paper adopted world systems theory as its framework of analysis. The paper showed that the unequal relationship between the global North and the global South was made possible by the colonial exploitation of the South by the North. By adopting the world system theory, the paper revealed how unequal division of labor, terms of trade imbalance, and Bretton Woods Institutions (IMF and World Bank) reinforced global inequality. The study recommended, amongst other things, that the South address internal conditions impeding their development; IMF and World Bank-assisted projects should not be attached with strict conditions.