The Developing World

1
The Developing World

• Ch. 2 Sec. 3

2
World Economic Patterns

• Interdependence
• During Age of Imperialism, Western powers seized
  control of global market
• Forced colonies to switch from subsistence
  agriculture to cash crops
• Sold manufactured goods to colonies
• Post independence many former colonies still
  depend on Western nations for manufactured goods
• Livelihood depended on production of one specific
  crop

3
World Economic Patterns

• Modernization
• Political stability
• Obstacles Imperialists created nations
  regardless of clan, tribe or loyalty
• Economic diversity
• Dependence on one good ?if the value of that good
  drops, economy plummets
• Solutions
• Tariff tax on foreign goods encourages people to
  buy locally
• Privatization selling industries to private
  investors to encourage diversity efficiency
• Infrastructure
• Improve education, sewage and water systems,
  hospitals, law enforcement, etc.

The lingo Previously 1st, 2nd 3rd world Now
underdeveloped, developing, developed
4
Debt Crisis

• Nations that could not afford to modernize,
  borrowed
• Interests rate rose, unable to pay debts
• Infrastructure suffers when debts go unpaid
• Similar problems
• Price of oil soaring developing (and developed)
  nations cant afford new prices
• Value of cash crops dropping on national market

5
Growing Pains

• Population explosion
• Better health care sanitation, more food
  bigger populations
• Leads to poverty, unemployment, overcrowding
• Urbanization
• Growth of cities migration to cities
• In developing nations crime, poverty, etc.