Download Chapter 19 Section 1

Reading Quiz
1.
Why are other countries concerned for developing
countries?
List 3 of the factors that may be obstacles to economic
development:
2. _____________
3. _____________
4. _____________
5. List one of the international agencies that work to help
developing nations with monetary & fiscal
development.
Journal
• Should the United States provide more aid
to developing nations? Why or why not?
• 3 Sentences and date
Chapter 18 Concepts
• Use p. 492 - 494 to
complete the following:
1. Capitalism:
– Define:
– 6 Advantages:
– 3 Disadvantages:
2. Socialism:
– Define:
– 2 Advantages:
– 3 Disadvantages:
3. Communism:
– Define:
– Characteristics:
– 4 Disadvantages:
Chapter 19 Section 1
Economic Development
I. Interest in
A. International community has
Economic
humanitarian, economic & political
Development
concern for developing nations
1.
2.
3.
4.
Starving or disease
Supply raw materials
New markets for goods
Problems can lead to revolutions or even
war
B. Most in Africa & Asia
Many people want less or no aid to go to developing
nations. Is this philosophy valid?
II. Obstacles to
Development
A. Population growth
B. Environmental problems: unproductive
land/harsh climates
C. Lack of education/technology
D. Religion
E. Debt
F. Corruption in leadership
G. War torn
How does population growth affect per capita GNP?
III. International
Agencies
A. International Monetary Fund- helps
all nations on monetary & fiscal
polices that support developing
nations with loans
B. World Bank- international lending
agency that makes loans and provide
financial assistance to developing
nations
Chapter 19
Section 2
Framework for Development
I. Stages of
Economic
Development
A. Primitive- no formal economy
B. Transition- people question old ways and
change to new system (sudden/yrs)
C. Takeoff- after you overcome primitive
views, economy grows more rapidly
D. Semidevelopment- industry grows, per
capita income grows
E. High Development- most peoples needs
are met
What events could cause a country to change from
primitive to transition?
II. Priorities for A. Reducing trade barriers
Industrialized
Nations
B. Reduce deficits, inflation, interest
rates, stabilize currency
C. Increase aid to foreign countries
III. Priorities for A. Invest in people: education, family
Developing
planning, nutrition, health care
Countries
B. Open markets: limit trade
barriers/regulations
1. (Are these views used by developed
nations to take advantage of less
developed nations?)
C. Reduce deficits, inflation, interest
rates, stabilize currency
China & Russia
• Economies during Communism/Socialism
• Problems?
• Development today compared to the rest
of the world
Journal
• Respond to this statement:
If a country cannot compete in the world
market, oh well; we’re not missing
anything.
Journal
• List the 5 stages of development.
• List and date
Chapter 19
Section 3
Financing Economic Development
I. Developing A. To develop these funds a country
with Internal
must produce more than they
Funds
consume
B. These savings produce financial
capital
C. In a command economy the gov’t
can force savings
What incentives can a government use to encourage
savings?
II. Developing A. Can try to attract private investment
with External
Funds
B. Ask for assistance from developed
nations
C. Can barrow from international
agencies
Why is it important for a country to be able to exchange its
currency for other world currencies?
III. Regional
A. Create free trade areas to reduce
Cooperation
restrictions and increase markets
B. EU- no internal barriers to regulate
the flow of workers, financial capital
or goods & services
C. ASEAN- doing the same in Asian
nations
D. OPEC- created a monopoly over the
oil supply