Developing Countries

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Developing Countries

• Chapter 17

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Developed

• High level of industrial expertise
• Sophisticated economic institutions
• High level of technical expertise
• Populations make up about 14 percent of the world

3
Developing

• Low per capita GNI
• Limited resources
• Rapid population growth rate
• Inefficient use of resources
• Dependent on agriculture
• 2001 per capita GNI was 755 or less

4
Developing

• Population growth rate is 10x higher than
  developed
  
• Most families grow just enough to sustain their
  basic needs
  
• The production of cash crops usually benefits
  wealthy landowners
  
• People are isolated from the outside world
• Cash crops raised solely for export
• Traditions shape lives

5
Developing

• Limited infrastructure hinders education,
  commerce, production and transportation
  
• Political instability disrupt trade
• Social and cultural traditions may cause people
  to resist change
  
• Adversely affected by inefficient use of natural
  and human resources
  
• Scarcity of resources
• Inefficient use of capital and entrepreneurial
  resources

6
Developing

• One crop economies
• Unstable
• Entire economy depends on world price of a single
  commodity

7
Developing

• Low worker productivity
• Inadequate diet
• Substandard education and job training
• Low level of medical care

8
Developing

• Economic goals
• Capital formation

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Developing

• Subsistence farming
• Little left to save
• Meet only basic needs

10
Developing

• Foreign investment
• Reluctant
• Economic, political and social environments
  unstable
  
• Few incentives
• Fear inexperience could result in loss

11
Developing

• Capital goods
• Deteriorate rapidly
• Repairs delayed
• Breakdowns due to unskilled and uneducated
  workers
  
• Spare parts only available from other nations

12
Developing

• Entrepreneurship
• Lack of consistent education
• Limits number with training
• Lack of capital formation
• Governemts do not support

13
Developing

• Obstacles to economic development
• Customs that lead to resist change
• Traditional class structures that may limit
  opportunities for people to improve their
  economic well being
  
• The exposure of people to the prosperity of
  people leads to unrealistic expectations

14
Developing

• Government
• Choose central planning
• Government ability to direct resources
• Production toward specific goals

• Might avoid
• Results in inefficiency
• Too much resistance to change
• Open to corruption

15
Developing

• Government
• Choose capitalist

• Might avoid
• Results in inefficiency
• Too much resistance to change
• Open to corruption

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First through third world

• First World-developed
• Second World-communist since the Cold War
• Third World-developing, just gained independence
• 76 of the World

17
Bolivia Brazil

• Instability in their banking and monetary systems

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3rd World

• Afghanistan
• Albania
• Algeria
• Angola
• Argentina
• Armenia
• Azerbaijan
• Bangladesh
• Belarus
• Belize
• Bhutan
• Bolivia

• Bosnia-Herzegovina
• Botswana
• Brazil
• Bulgaria
• Burkina Faso
• Burundi
• Cambodia
• Cameroon
• Central African Republic
• Chad
• Chile
• Colombia
• Comoros Islands

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3rd World

• Costa Rica
• Croatia
• Cuba
• Czech Rep
• Democratic Republic of Congo
• Djibouti
• Dominica
• Dominican Republic

• Dominica
• Dominican Republic
• Ecuador
• Egypt
• El Salvador
• Equatorial Guinea
• Eritrea
• Estonia
• Ethiopia
• Fiji Islands
• Gabon
• Gambia

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3rd World

• Ghana
• Grenada
• Guatemala
• Guinea-Bissau
• Guyana
• Haiti
• Honduras
• Hungary
• India
• Indonesia
• Iran
• - Iraq

• Ivory Coast
• Jamaica
• Jordan
• Kazakhstan
• Kenya
• Kiribati
• Kyrgyzstan
• Laos
• Latvia
• Lebanon
• Lesotho
• Liberia

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3rd World

• Libya
• Lithuania
• Madagascar
• Malawi
• Malaysia
• Maldives
• Mali
• Mauritania
• Mauritius
• Mexico
• Moldova

• Moldova
• Mongolia
• Morocco
• Mozambique
• Myanmar
• Namibia
• Nepal
• Nicaragua
• Niger
• Nigeria
• North Korea
• Oman

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3rd World

• Pakistan
• Panama
• Papua New Guinea
• Paraguay
• People's Republic of Benin
• People's Republic of China
• People's Republic of Congo
• Peru
• Philippines
• Poland
• Republic of Cape Verde
• Republic of Georgia
• Republic of Macedonia
• Republic of Yemen

• Romania
• Russia
• Rwanda
• Saint Kitts
• Saint Vincent
• Saint Lucia
• Sao Tome Principe
• Saudi Arabia
• Senegal
• Serbia and Montenegro
• Seychelles
• Sierra Leone

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3rd World

• Slovak Rep
• South Africa
• Solomon Islands
• Somalia
• Sri-Lanka
• Sudan
• Surinam
• Swaziland
• Syria
• Tajikistan
• Tanzania
• Thailand
• Togo

• Tonga
• Trinidad Tobago
• Tunisia
• Turkey
• Turkmenistan
• Uganda
• Ukraine
• Uruguay
• Uzbekistan
• Vanuatu
• Venezuela
• Vietnam
• West Samoa
• Zambia
• Zimbabwe