Transcript OBSTACLES TO DEVELOPMENT

OBSTACLES TO
DEVELOPMENT:
$$$ & ACCESS
OBJ: TO DETERMINE THE
CHALLENGES & POSSIBLE
SOLUTIONS FOR BETTER
DEVELOPMENT IN THE WORLD
2 PATHS TO DEVELOPMENT
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SELF SUFFICIENCY = BALANCED GROWTH
BENEFITS: LITTLE FOREIGN INVOLVEMENT
TARIFFS, QUOTAS, LICENSING
OVERALL GROWTH THROUGHOUT
COUNTRY
PROBLEMS: CUMBERSOME, INEFFICIENT
BUSINESS, BUREAUCRATIC, COMPLACENCY
INDIA
INTERNATIONAL TRADE: OPEN MARKETS,
COMPARATIVE ADVANTAGE- ABILITY OF A
COUNTRY TO PRODUCE A GOOD/SERVICE
BETTER THAN ANOTHER (SA & OIL)
PROBLEMS: UNEVEN RESOURCE
DISTRIBUTION, ALL EGGS IN 1 BASKET,
INCREASED DEPENDENCY ON MDC,
MARKET FLUCTUATIONS
4 ASIAN DRAGONS: SINGAPORE, S. KOREA,
TAIWAN, HONG KONG: ELECTRONICS
KUWAIT, SAUDI, BAHRAIN, OMAN: OIL
ITA HAS BEEN PREFERRED
ROSTOW’S MODEL- ADVOCATE OF I.T.A.- A.K.A. MODERNIZATION
THEORY – THINK DEMOGRAPHIC TRANSITION MODEL
ALL COUNTRIES GO
THROUGH 5 STAGES OF
DEVELOPMENT WITHIN
THEIR COUNTRY
CULMINATING IN SELFSUSTAINED ECO
GROWTH & MASS
CONSUMPTION
GOOD FOR DEVELOPED
BUT NOT REALLY FOR
DEVELOPING
DIDN’T TAKE INTO
ACCOUNT THAT
DEVELOPING COUNTRIES
JUST DIFFERENT FROM
MDC – BASED THEORY
ON MDC’S
INTERNATIONAL TRADE WINS OUT- MAP OF COUNTRIES GDP
GROWTH 1980-2010
OBSERVATIONS:
*S. & E. EUROPE
SUCCEEDED SO
WHY NOT OTHERS?
*POST COLONIAL
COUNTRIES
CONTROL NATURAL
RESOURCES/RAW
MATERIALS & SALE
ON OPEN MARKET
GENERATES
INCOME
*FORCED TO STAY
CURRENT IN
INDUSTRY, TECH,
DEVELOPMENTS
ETC DUE TO
COMPETITION