During the Cold War, the terms First World, Second World, and Third World were used to refer to different political alignments rather than economic development; the First World was the Western Bloc, Second World was the Eastern Bloc, and the Third World was neither aligned to the West nor the East. The term "Third World" was first coined by French demographer Alfred Sauvy in 1952, and popularized in English by American sociologists. The term "South" came into use to refer to the less economically developed regions during the Non-Aligned Movement (NAM), which sought to define itself outside of the East–West divide and sought collective bargaining power for low-income countries, many of which were former colonies. The term "North–South divide" was first used in 1980 by the Brandt Commission, which popularized the term. The term gained even more prominence after Willy Brandt used the term in his report.
The terms "Global South" and "Global North" are now used to replace "Third World" and "First World" respectively, as they are seen to be more geographically and economically accurate.
The North–South divide is often presented as a dichotomy, but it is in reality a continuum. There is significant overlap between the northernmost and southernmost countries, and there are also large differences within each region. For example, some countries in the Global South, such as Singapore and Brunei, have much higher standards of living than some countries in the Global North, such as Moldova and Ukraine.
The North–South divide has a number of causes, including:
* Colonialism: The colonial powers of the Global North exploited the resources of the Global South for their own benefit, leading to lasting economic inequality.
* Industrialization: The Industrial Revolution began in the Global North, giving these countries a head start in economic development.
* Trade policies: The Global North often benefits from trade policies that favor their own economies, such as tariffs and subsidies.
* Intellectual property rights: The Global North often has stronger intellectual property rights laws than the Global South, which makes it difficult for the Global South to develop their own industries.
* Debt: The Global South is often burdened by large debts to the Global North, which can limit their economic growth.
* Climate change: Climate change is having a disproportionate impact on the Global South, which is less able to adapt to its effects.
The North–South divide is a major source of global inequality. It is also a source of tension between countries, as the Global South seeks to redress the economic and political imbalances that exist between them and the Global North.