Transcript Developing Nations - Schaumburg High School

Developing Nations and
Developed Nations
Developed Nations
have a high level of
industrial and
technical expertise.
Banking systems
Stock Markets
Trade Networks
25 Nations are
Highly Developed
Developing Nations
are nations with
little industry and a
low standard of
living
86% of countries
are developing
Developing Nations
3.8 Billion people live in developing
nations
1/4 of the world’s population
consumes 80% of the g&s
3/4 of the world’s population
consume on 20% of the g&s
Annual income is $500 or less
Problems for Developing Nations
Rapid Population Growth
High Infant Mortality
Shorter Life Expectancy
Low per capita GDP
Low Literacy Rate
Poor Health Care
Lack of balance in the economy
farming or mining
How can a
country have
Negative economic
growth?
Economic
Development
Stages of Development (Text)
1. Hunting and Gathering
• (Primitive)
2. Agriculture
• (Transitions)
3. Manufacturing
• (Takeoff), (Semi developed) (Highly developed)
4. Service
5. Knowledge and Technology
Economic
Assistance
International Financial Agencies
Regional Organizations
Foreign Governments
loans
direct grants
food
technical advice
Foreign Investors
risky: business can be nationalized under political transition
What concerns
might there be
in giving aid to
developing
nations?
What concerns
might
developing
nations have in
accepting aid?
International Monetary
Fund
administers and
coordinates exchange
rate policies. Today the
IMF works with the
developing nations
pushing for trade
liberalization, debt
payments and
privatization
World Bank
A cooperation with 185
governments sharing
ownership.
It coordinates with
several regional banks in
the long-term
development of nations.
Also promotes free
market policies and
restructuring.
Poverty in
Developing Nations
The differences in wealth are based on geography. The
wealthiest countries are located in the north and the poorest are
in the south.
Percent of Population Living Below the
Poverty Line
49% South Asia
47.8% Sub-Saharan Africa
33.1 Middle East and North Africa
22.5% Latin American & Caribbean
11.3% East Asia
7.1 Eastern Europe
10% United States
The Facts via
the United Nations
500 million children do not have access to education
the majority are female
1 billion adults are functionally illiterate
500 million live in hunger
70% of the poor are women
1.3 billion ~ almost 1/4 of the world’s population
live on less than $370 a year or less
90 million people will be born this year
85 million in the developing nations
5 million in the developed nations
Malaysia
vs.
The size of Montana
19 million people
$2790 ave. income
149 TV per 1000
11 phone lines per
100
93% elementary
58 % in high school
United States
U.S.
290 million people
$22,000 ave income
814 TV per 1000
56 phone lines per
person
99% elementary
86% high school
Gap between the
rich and poor
The United States has the widest gap between the
rich and poor
study measuring the top and bottom 10%
The top 10% in the U.S. earn 6x more than the bottom 10%
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United States
Ireland
Italy
Canada
Australia