The Developing World - Virginia Commonwealth University
GDP per Capita: Highest 1900
#1 United Kingdom #2 New Zealand #3 Australia #4 United States #5 Belgium #6 Netherlands #7 Switzerland #8 Germany
#9 Denmark #10 Austria #11 France #23 Japan 2005
#1 Luxembourg #2 Norway #3 Iceland #4 Qatar
#5 Switzerland #6 Ireland #7 Denmark #8 United States #9 Sweden #10 Netherlands # 13 UK # 16 Japan # 18 France 2018 1 Qatar
2 Lux. 3 Singapore 4 Brunei 5 Ireland 6 Norway 7 Kuwait 8 UAE 9 Switzerland 10 Hong Kong 12 US 25 UK 26 France
28 Japan Developing World South LDCs Third World Latin America Asia Africa Western Hemisphere Colonized (current borders included)
Colonized Africa Colonized Asia 1910 Middle East Colonized (roughly WWI) http://www.npr.org/news/specials/mideast/the_west/colonies_map.html Independence Latin America (by 1823) Middle East (after WW I) Africa and Asia (post-WW II)
Strategies for Development 1. Modernization: Be like the west 2. Nationalization: Seize assets of wealthy nations in a developing nation (related to Dependency theory) 3. Marxism: Use Soviet Union as a model 4. East Asian Strategy: Accept globalization; integrate with the world economy, but on their own terms, not complete integration 5. State Capitalism: Government ownership and deep intervention in business with goal to build
industries and make money 1. Modernization: The Dilemma: The Flow of Money $$$$$$: cars, computers, manufactured goods EDCs $$: bananas, $$$ LDCs
coffee, timber, minerals Treat as Reading Assignment Developed: Economically Developed Countries (EDCs) Developing: Less Developed Countries (LDCs) North America, Western Europe, Japan
Large middle class High Tech Industrial products High skills High wages Cars, chemicals, aerospace, telecomm, electronics, software Africa, Asia, Middle east, Latin America Primary products
Commodities Elites -- impoverished Low skills Low wages Bananas, coffee, minerals, rubber, timber 2. Nationalization Dilemma Global Wealth ranking by GDP per capita (for nations following Nationalization strategies after WW II) 1900 1950 2005
Argentina Chile 16 Mexico 22 Colombia
Venezuela 12 16 27 25 27 12 53 57 26
4 31 76 84 (data from: Nation Master.Com: http://www.nationmaster.com/index.php) Debt Problem of Modernization and Nationalization
Getting debt relief with conditions (by 2000s): Benin, Bolivia, Burkina Faso, Cameroon, Ethiopia, Ghana, Guyana, Honduras, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nicaragua, Niger, Rwanda, Sao Tome and Principe, Senegal, Sierra Leone, Tanzania, Uganda, and Zambia. Receiving debt relief and deciding on conditions:
Afghanistan, Burundi, Chad, the Democratic Republic of the Congo, the Republic of Congo, the Gambia, Guinea, Guinea-Bissau, and Haiti. Eligible for debt relief: Central African Republic, Comoros, Cte dIvoire, Eritrea, the Kyrgyz Republic, Liberia, Nepal, Somalia, Sudan, and Togo. 3. Marxism the Clockwise from the top: Statue of Kim Il-sung, North Korean leader
from 1948-1994; skulls left by Khmer Rouge, in power in Cambodia from 1975-1978; Fidel Castro, dictator of Cuba, 1959-2016 4. East Asian Strategy (see the other PPT for details; reference only) Liberalism and Nationalism Mixture 1.Japan as the Model 2.Business-Government Partnership
3.Open up the Economy to Foreign Investment 4.Exports! 5.Protect key industries Four Tigers Hong Kong Singapore South Korea Taiwan
Tokyo 1945 Tokyo 50-60 Years later Seoul, ROK Singapore Taipei, Taiwan Hong Kong, China
Integrating into the World Economy Parts Unfinished imports products Components Export Processin g
Zone exports Finished products 5. State Capitalism China 1978 Deng Xiaoping State Owned Enterprises (SOEs) Problems:
Deeply in Debt Corruption Losing Money Developing World Growing, but Who is left out? 1. 2. 3. 4. 5.
Nations in civil war Land locked Low technology (rich or poor nations) Climate problems Health crises Current Trends 1. Massive Economic Growth led by China, India, East Asia, then Africa 2. Globalization = Success of Liberal Order
Free Trade Agreements European Union 1991 NAFTA 1993 ASEAN FTA 1993 Common Market for Eastern and Southern Africa 1994 South Asia Free Trade Agreement 2004 More FTAs, But then again Trans Pacific Partnership (TPP) 2016 Comprehensive and Progressive for
Trans Pacific Partnership (CPTPP) 2018 3. Rising Inequality Wealth upper income middle income poor Time
4. Backlash in Developed World Shift from Industrial era To Digital era Older industrial Economies Reluctance/Inability to Change Decline in
Traditional Industrial Sectors (mining or manufacturing) Established Parties offer nothing new Rejection of Established Policy Consensus
Birth of New Parties or New Movements within Established Parties Backlash in Developed World
US moving toward nationalism Economic Nationalism spreading Xenophobia on right Anti-globalization and socialism on left
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