4.1 Reasons for wealth/poverty

For example, an amount of about $4 billion (about R40 billion) disappeared during the administration of General Sani Abacha of Nigeria. Recently an undertaking to recover part of this money was concluded in the Swiss city of Geneva.

Nigeria simultaneously agreed to stop legal action against the Abacha family and to release more than $100 million (about R1 billion) of what the family will be allowed to keep.

Source: Die Burger , 15 June 2002

Today, the world can be divided into two main groups, based on their material means.

Developed countries: The USA, Canada, Japan, Australia, New Zealand and European countries such as Britain, Germany, France, the Netherlands and Belgium. These countries are situated mainly in the northern hemisphere and they are commonly known as the “rich North”.

Developing countries: Large parts of Asia, Africa and Latin America (American countries where Spanish, Portuguese and French are spoken). These countries are situated mainly in the southern hemisphere and are collectively known as the “poor South”.

In the rich countries the standard of living is high. Most people earn a relatively high income, eat nourishing food and have access to good health services and education. On the contrary, the standard of living in the poor countries is usually very low, and people earn a meagre income. Many of the inhabitants of these countries are undernourished and do not have basic commodities such as health services and proper educational facilities. Approximately 80% of the total world population live in the poor South, while the other 20% enjoy the comfort, wealth and space of the wealthy countries.

Activity 4:

To express an opinion on the prosperity of the average south african

[lo 3.1]

• Group discussion Would you say that South Africa could be described as a prosperous (wealthy) country? Substantiate the opinion of the group as you go along.

Assessment

Memorandum

Activity 1:

Better education – better health – higher life expectancy – higher quality of life – higher production