Brandt Line

The North–South divide is broadly considered a socio-economic and political divide. Generally, definitions of the Global North include the United States, Canada, Western Europe, and developed parts of Asia (the Four Asian Tigers, Japan, and Israel), as well as Australia and New Zealand, which are not actually located in the Northern Hemisphere but share similar economic and cultural characteristics as other northern countries. The Global South is made up of Africa, Latin America, and developing Asia including the Middle East. The North is home to all the members of the G8 and to four of the five permanent members of the United Nations Security Council.

The North mostly covers the West and the First World, along with much of the Second World, while the South largely corresponds with the Third World. While the North may be defined as the richer, more developed region and the South as the poorer, less developed region, many more factors differentiate between the two global areas. 95% of the North has enough food and shelter. The Global South "lacks appropriate technology, it has no political stability, the economies are disarticulated, and their foreign exchange earnings depend on primary product exports." Nevertheless, the divide between the North and the South increasingly "corresponds less and less to reality and is increasingly challenged."

In economic terms, the North—with one quarter of the world population—controls four-fifths of the income earned anywhere in the world. 90% of the manufacturing industries are owned by and located in the North. Inversely, the South—with three quarters of the world populations—has access to one-fifth of the world income. As nations become economically developed, they may become part of the "North", regardless of geographical location; similarly, any nations that do not qualify for "developed" status are in effect deemed to be part of the "South".

The idea of categorizing countries by their economic and developmental status began during the Cold War with the classifications of East and West. The Soviet Union and China represented the East, and the United States and their allies represented the West. The term "Third World" was coined by states hoping to navigate between the two poles of the Cold War, and ultimately gave birth to the Non-Aligned Movement. These countries were generally less economically developed than their First- and Second-World counterparts. As some Second World countries joined the First World, and others joined the Third World, a new and simpler classification was needed. The First World became the "North" and the Third World became the "South".

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Wikipedia