Global Indicators

There are glaring global inequalities and disparities in income and wealth which explain the poverty in LDCs. Global indicies rank countries according to their degree of globalisation, competitiveness, human development, political and economic freedom and risk, FDI confidence, market potential and growth, corruption and much more. The correlations between the various indicies suggest the rich Western countries are getting richer and the poor poorer as rich countries trade more and poorer countries remain the same, trading less and getting less for it.

Actions and events in one part of the world can adversely affect other parts. Globalisation policies should take poorer countries into account and poorer countries should have more say in decisions that affect their economies. MNEs should have social responsibility codes of practice. Institutions that have signed agreements should be made to keep their side of the bargain. Creativity and innovation should be promoted in closed economies to help businesses grow.

LDCs themselves in the past have called for a new world order. Political idealists call for reforms to ensure peace and security. The perspective of the 'Third World' is that the international institutions are deeply biased. TW countries have the majority of the world's population, produce a large proportion of the world's output and get only a small share of world trade. They want regime change in the form of rules, norms and procedures not just an end to colonialism.

There are rival perspectives and paradigms, changing contexts and continuities. Theories and models are developed as problems arise. Self righteousness leads parties to see themselves as positive and constructive and others as negative. False assumptions can be punished and lead to dramatic events. People get angry at some of the things that happen. Agriculture and population are two reasons often given as causes of underdevelopment in LDCs. The signs should not be confused. The proper interpretation of signs is important.