Developing by dandanhuanghuang


									Developing Countries

      Problems &
         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
 North-South Divide:
  Life Expectancy
Infant Mortality Rates high
   (but are being reduced)
    Income Per Capita
% Population living under $1/day
An uneven playing field in
 international trade rules
Aid donors (top 5, bottom 5)
Actual dollars & as a percent of GNP
   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
        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
• Many argue that individual rights (especially
  property rights) are the key to development
  – If people have something to gain, are willing to work
         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)
• Corruption is a major problem
    – It’s one reason many people favor Sharia
    – Muslims video: “purpose of Islam is to scare you from committing a
• 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 < $350)
    – Companies point to corrupt government officials, but others argue that
      foreign firms promote corruption & benefit from sweet deals
• 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
• Nigeria should be able to succeed, given it’s oil wealth
    – Other countries are struggling even more & lack such resources to deal
      with their debt problems
           Benefits of Debt Relief

•When debt falls
investment in health
and education can

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

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