Developing Countries

1
Developing Countries

• Problems
• Possibilities

2
Intro to the Problems

• Life expectancy
• Income disparity (w/in countries between
  North South)
• International trade disparities
• Crime corruption
• Problems of debt
• Worldwide, 900 Billion is spent on military (US
  spends about ½), but only 50 billion given in
  aid
• US is at the bottom of aid as of GNP

3
North-South DivideLife Expectancyhttp//www.wor
ldbank.org/data/maps/maps.htm
4
Infant Mortality Rates high (but are being
reduced) http//hdr.undp.org/
5
Income Per Capitahttp//www.worldbank.org/data/ma
ps/maps.htm
6
Population living under 1/dayhttp//hdr.undp.o
rg/
7
An uneven playing field in international trade
rules
8
Aid donors (top 5, bottom 5)Actual dollars as
a percent of GNP
9
How to Solve this problem?

• Whose to blame for underdevelopment in Less
  Developed Countries (LDCs)
• Internal factors (Modernization)
• Global factors (Dependency)
• How to fix the problem depends on perception of
  who is causing them

10
Modernization Theory

• Internal factors are the most important in
  explaining internal problems
• LDCs should adopt modern (Western) cultural
  values econ political systems
• Argue that those countries that are most involved
  in international economic system are the most
  successful
• Many argue that individual rights (especially
  property rights) are the key to development
• If people have something to gain, are willing to
  work

11
Dependency Theory

• Blame external economic factors
• Theontonio dos Santos rejected idea that LDCs
  should adopt Western model
• LDCs dependent on West neocolonialism
• Multi-national corporations (MNCs) dominate LDC
  markets transfer profits out of LDCs
• Economies of LDCs have become permanently
  unequal partners in the global system (Magstadt,
  572)
• Debt is crippling LDCs (US pushed easing of Iraqi
  debt, but others are pushing for global debt
  relief)
• Promote a more socialistic independent path to
  development (less tied to global markets)

12
Nigeria

• Corruption is a major problem
• Its one reason many people favor Sharia
• Muslims video purpose of Islam is to scare you
  from committing a crime
• Oil in Nigeria has not created prosperity
• During the oil boom, leadership borrowed
  billions, but either squandered or stole
• Nigerians are poorer today than in 1974 (per
  capita income lt 350)
• Companies point to corrupt government officials,
  but others argue that foreign firms promote
  corruption benefit from sweet deals
• http//news.bbc.co.uk/1/hi/world/africa/3542901.st
  m
• Religious Ethnic tensions have worsened,
  probably b/c of poverty
• Colonialism warped much of African society
• Creation of arbitrary boundaries
• Maria Rojas argues that colonialism entrenched
  sexism in Nigeria
• http//www.postcolonialweb.org/nigeria/colonwom.ht
  ml
• Nigeria should be able to succeed, given its oil
  wealth
• Other countries are struggling even more lack
  such resources to deal with their debt problems

13
Benefits of Debt Relief http//hdr.undp.org/

• When debt falls investment in health and
  education can increase

• US has pushed for debt relief for Iraq
• Others are calling for global debt relief