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Consequences of Global Disparities

Economic, Political, Social, Environmental

Author:Author ImageSyed Ali

Edu Level: Unit2

Date: Aug 13 2025 - 7:46 PM

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Consequences of Global Disparities

Economic Impacts

  • Trade Imbalances: More Developed Countries (MDCs) export large quantities of high-value finished goods, while Less Developed Countries (LDCs) mainly export low-value raw materials.
  • Debt Burden: LDCs often borrow from MDCs or international institutions to meet economic and social needs, leading to long-term debt.
  • Conditional Aid: Financial assistance from MDCs often comes with strict conditions that may limit the receiving country’s policy choices.
  • Loan Conditions from IMF/World Bank: Policies tied to international loans may conflict with national priorities and, in some cases, worsen poverty and unemployment.

Political Impacts

  • Military Coups: Dissatisfaction with government leadership can lead to armed uprisings and attempts to overthrow regimes.
  • Civil Wars: Competing groups within a country may fight over control of valuable natural resources.
  • Spread of Democracy: MDCs, most of which are democratic, often promote or pressure for democratic systems worldwide through globalisation.

Social Impacts

  • Migration: People leave their home countries in search of better wages, education, and living standards.
  • Brain Drain: Skilled and educated individuals migrate from LDCs to MDCs, leaving behind a smaller pool of qualified professionals.
  • Urbanisation: Uneven population distribution as rural residents move to urban areas in search of opportunities.
  • Improved Social Services: In some LDCs, living conditions for vulnerable groups, such as women and children, have improved.

Environmental Impacts

  • Resource Depletion: Overuse of natural resources for economic growth can cause shortages and harm long-term sustainability.
  • Environmental Degradation: Activities such as deforestation, wetland reclamation, and habitat destruction threaten biodiversity and contribute to species extinction.
  • Pollution: Industrial growth in LDCs often results in air, water, and land pollution, worsened by weak or absent environmental regulations.
  • Need for Sustainable Development: Use of appropriate technology to balance economic growth with environmental protection. Promotion of renewable energy and sustainable practices such as aquaculture, permaculture, and agroforestry.

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