Chapter 2: Section 3

1
Chapter 2 Section 3

• The Developing World

2
Lesson Questions

• What are the main goals of developing nations?
• What economic problems do developing nations
  face?
• How does underdevelopment contribute to
  widespread poverty?

3
World Economic Patterns

• From the 1300s vast trade networks existed
  between the Islamic world and Southeast Asia.
• During the Age of Imperialism western nations
  took direct control of this global trade. Thus,
  creating a new trading pattern.
• Imperialist nations encouraged people in Africa,
  Asia, and Latin to grow cash crops for the world
  market
• Examples of cash crops are cotton ,rice, coffee,
  sugar

4
World Economic Patterns continued

• Developed nations imported mineral resources such
  as iron, copper, and tin from developing nations.
• In turn, they manufactured the goods and sold the
  finished products back to the developing
  countries.
• This trade system caused interdependence and
  countries solely relied on cash crops or mineral
  resources

5
Goals of Modernization

• Modernization the setting of political and
  economic goals to achieve stability and a wide
  range of goods and services
• Political stability-
• Colonial powers drew artificial borders to create
  new nations
• Diverse cultures were put into a single country
• Lacking a common tradition they competed with
  each other and often military dictatorships took
  control

6
Goals of Modernization cont.

• Economic diversity
• Producing various crops and goods instead of
  single chief export
• Developing countries have also tried high tariffs
  which are taxes on imported goods
• Tariffs encourage people to buy locally
• Many developing countries have resorted to
  state-owned companies which have proved
  inefficient
• Privatization, the sale of state-owned businesses
  to investors, has encouraged better quality and
  efficiency
• Education and Services
• to improve literacy, which is the ability to read
  and write
• setting up schools to train students for modern
  economies
• improvement of medical care, housing, water, and
  sewage systems

7
Goals of Modernization cont.

• Mixed Success
• Some nations like South Korea and Singapore have
  improved. These countries are known as NICs or
  newly industrialized countries. However, most
  developing countries remained dependent.

8
Loans and Debt

• Developed nations give out loans in return for
  high interest rates.
• Also, they usually obtain special trade rights
  and often see economic reforms put into to place
  for their benefit

9
Problems of Development

• Population explosion
• Short life expectancy
• Harsh government regulations i.e. Chinas one
  child law
• Urbanization Population density is too high
  leading to overcrowding
• Not enough services
• Cultural change the loss of traditional values
  and new problems such as drug use
• Undeveloped countries are falling further behind
  without modernization