Economic Crises in the Global South: Structural Challenges and Global Political Economy Perspectives

Abstract

The persistence of economic crises in the Global South has remained one of the defining challenges of international political economy. Despite decades of globalization, structural inequalities between the Global North and South continue to shape patterns of dependency, vulnerability, and underdevelopment. This chapter critically examines the recurring economic crises in the Global South, highlighting their historical roots, contemporary manifestations, and broader implications for global governance. Drawing on dependency and world-systems theory, the chapter argues that the economic fragility of many developing countries is not merely a domestic problem but is embedded in asymmetrical global structures of finance, trade, and production. Issues such as external debt, balance-of-payments deficits, reliance on commodity exports, and exposure to global financial shocks make these economies particularly susceptible to crises. Recent global events — including the COVID-19 pandemic, the Ukraine–Russia war, and global inflationary pressures — have further exposed the vulnerability of the Global South within the global economic order. The chapter also investigates how global institutions such as the IMF, World Bank, and WTO have responded to these crises, questioning whether their interventions alleviate or reinforce structural dependency. Particular attention is paid to the African experience, with Nigeria serving as a case study of how oil dependence, debt accumulation, and governance challenges intersect with global economic dynamics. By situating the economic crises of the Global South within the wider framework of international political economy, the chapter contends that meaningful reform of global governance mechanisms is essential to prevent perpetual cycles of instability. Ultimately, the analysis underscores the need for a more equitable international economic order that acknowledges the systemic disadvantages faced by the Global South and promotes sustainable development pathways.