Chapter 2: Section 3

1. Chapter 2: Section 3 The Developing World

2. Lesson Questions • What are the main goals of developing nations? • What economic problems do developing nations face? • How does underdevelopment contribute to widespread poverty?

3. World Economic Patterns • From the 1300s vast trade networks existed between the Islamic world and Southeast Asia. • During the Age of Imperialism western nations took direct control of this global trade. Thus, creating a new trading pattern. • Imperialist nations encouraged people in Africa, Asia, and Latin to grow cash crops for the world market • Examples of cash crops are cotton ,rice, coffee, sugar

4. World Economic Patterns continued • Developed nations imported mineral resources such as iron, copper, and tin from developing nations. • In turn, they manufactured the goods and sold the finished products back to the developing countries. • This trade system caused interdependence and countries solely relied on cash crops or mineral resources

5. Goals of Modernization • Modernization – the setting of political and economic goals to achieve stability and a wide range of goods and services • Political stability- • Colonial powers drew artificial borders to create new nations • Diverse cultures were put into a single country • Lacking a common tradition they competed with each other and often military dictatorships took control

6. Goals of Modernization cont. • Economic diversity • Producing various crops and goods instead of single chief export • Developing countries have also tried high tariffs which are taxes on imported goods • Tariffs encourage people to buy locally • Many developing countries have resorted to state-owned companies which have proved inefficient • Privatization, the sale of state-owned businesses to investors, has encouraged better quality and efficiency • Education and Services • to improve literacy, which is the ability to read and write • setting up schools to train students for modern economies • improvement of medical care, housing, water, and sewage systems

7. Goals of Modernization cont. • Mixed Success • Some nations like South Korea and Singapore have improved. These countries are known as NICs or newly industrialized countries. However, most developing countries remained dependent.

8. Loans and Debt • Developed nations give out loans in return for high interest rates. • Also, they usually obtain special trade rights and often see economic reforms put into to place for their benefit

9. Problems of Development • Population explosion • Short life expectancy • Harsh government regulations i.e. China’s one child law • Urbanization – Population density is too high leading to overcrowding • Not enough services • Cultural change – the loss of traditional values and new problems such as drug use • Undeveloped countries are falling further behind without modernization