The term "South" is a geopolitical term reflecting the new polarisation of the world into a North-South division. No longer is the world economically and politically divided along East vs. West lines, following recent developments in Eastern Europe and the Soviet Union. In the "North" of the globe a handful of wealthy, developed nations such as the U.S., Britain and the EEC continue their economic plunder of developing nations through their control of the I.M.F. Militarily, they also bully developing countries via their permanent membership of the Security Council. The Gulf War against Iraq was intended to serve as a warning to Third World nations not to step out of line.
Yet it remains a stark fact that 85% of the world's income is in the hands of a mere 23% of the world's population and the gap is widening. The I.M.F. is insisting that countries export more and more of their raw materials to service their debt repayment. You don't need a doctorate in economics to know that when you have got 60 or more countries in the South all trying to export the same thing, prices in turn are going to plummet. We are now witnessing the lowest commodity prices since the 1930s, and as prices fall, so it becomes a vicious spiral. Countries need to export even more to keep their income stable, which in turn leads to an even further decline in the price of their products.
In Australia we too are experiencing a fall in the prices of our wheat,
wool, and mineral exports. The I.M.F. will not allow us to sit on our stockpiles
until world prices improve; we are required to export now, even at ludicrously
low prices, to service our overseas indebtedness
Australia is not only geographically in the South of the globe,... it is now economically part of the South.
Australia's only solution is to develop South-South cooperation and mutual trade with the developing countries, yet the United States has in recent times consciously tried to lock us out of our previously stable markets in the Arab World, Africa and South East Asia. It uses regional conflicts to disrupt such south- south trading links. Politically, Australia must develop closer ties with the non-aligned nations to further economic development in the world. We once admired the democratic aspirations of America...but its ethos of capitalist greed is a disease that we ignore at our own peril.