Transcript South America Economics

The
Economy
of
South
America
Student Expectation: Describe
the forces that determine the
distribution of goods and
services, classify where South
America falls on the economic
spectrum, and compare how
people of South America meet
their basic needs.
Vocabulary
More developed countries have
advanced economies. Life is pleasant.
Less developed countries have lower
standard of living and less technology.
Life is harder.
Developing/Newly industrialized/
emerging economies are moving from
less developed to more developed.
HDI (Human Development Index)
consists of economic, social, and
demographic factors:
Economic Indicators
GDP– total value of goods and
services produced in a year. (What
a country is worth.)
Standard of Living: Lower Class,
Middle Class, Upper Class?
South American Countries
World Rank
—
7
21
28
33
40
42
62
89
90
102
153
155
Country
2012 GDP
South America
Brazil
Argentina
Colombia
Venezuela
Peru
Chile
Ecuador
Bolivia
Uruguay
Paraguay
Guyana
Suriname
4,975,089
2,392,958
756,226
500,573
396,753
322,355
316,514
134,805
54,325
53,182
35,306
6,379
5,711
Demographic Indicators - related
to medical care and nutrition
Infant mortality – number of
infants that die for every
thousand births.
Life expectancy – how long people
live.
Social Indicators
Literacy Rate – percentage of
people who can read and write
Low Literacy generally means
low standards of living (poor)
High Literacy generally means
high standards of living (not
poor)
Less Developed Nations:
High birthrate
High infant mortality
Growing population size
Low GDP
Low Literacy rate
Examples in Latin America:
Bolivia
Peru
Ecuador
Paraguay
More Developed Nations:
Low birthrate
Low infant mortality
Steady population size
High GDP
High literacy rate
Examples in Latin America
Venezuela
Mexico
Chile
Uruguay
Brazil
Argentina
Compare the population pyramid of Bolivia (S.
America) to the one of Canada (N. America).
Which country is more economically stable and
why?
What can you tell about Brazil when being
compared to the USA?
Quick review:
Traditional Economy– producing only
what is needed to survive
Free Market Economy - manufacturing
with an intent to sell for a profit
Both exist in South America.
THINK!!!!!!!!!!!!!
What type of farming is more
common in MORE developed
countries?
A. Subsistance Farming
B. Commercial Farming
Is that usually a free market or
traditional economy?
So What about farming in the
highlands and Mountain areas
in South America?



In the more rural parts of South America, the
people have to resort to terrace farming to
feed their villages.
Terrace Farming - a slope that has been cut
into a series of successively receding flat
surfaces or platforms, which resemble steps,
for the purposes of farming.
This would most commonly be used in a
traditional economy.
Urbanization: The move
from rural to urban.
It is happening VERY
rapidly in South America.
What are some positive
and negative affects of
urbanization?
PROS
•
Create More hospitals
•
Better health care
•
Create more jobs
•
Better economy
•
A higher standard of living.
• CONS
High population density
Terrible pollution
Poverty
High crime
Rapid Urbanization usually leads to an
imbalance of development. There are
often very rich areas and very poor
areas.
Favelas – shantytown slums built by the
lower class people in Brazil.
Is this a high or low standard of living.
Slums of Brazil
Quick Write
As you can see, there is a large economic gap
between the rich and the poor of South
America. Unlike the USA, there is a small
middle class there.
If you were born into the lower class of
South America, would you rather live in a
rural terrace farming community or an
urban favela? Explain your answer giving
specific examples of your life in both
situations.