DEVELOPING COUNTRIES AND ECONOMIES

ONE: THE CAMPAIGN TO MAKE POVERTY HISTORY

A DEVELOPING COUNTRY Any country that has a “low” average per capita income and less developed infrastructure, education, and health care system

FACT: 1+ Billion per day make less than 1 dollar

What is the best way to help people who are in need? Direct government aid and voluntary civic assistance are two “bandaids ” Ultimately providing the means for a country to develop economic growth and development

POVERTY Look around and it is the source of political instability and social discontent. It must be combatted

THE DOLLAR AND PER CAPITA Economists must have standards to use in order to COMPARE countries DOLLAR: all currency is converted to this standard PER CAPITA: to compensate for population differences( CHINA v. ICELAND

POVERTY NUMBERS ARE IMPROVING

ECONOMIC PROGRESS IS THE ANSWER Many folks from developing countries feel that it is their MORAL OBLIGATION to help others

In addition, Developed countries need sources of raw materials and markets to sustain the status quo.

This also provides for a more stable POLITICAL DEVELOPMENT

STAGES OF ECONOMIC DEVELOPMENT Economists disagree if “stages” adequately describes what happens in all countries, however talking in ”stages” is helpful in gaining an understanding of the process.

STAGE # 1 PRIMITIVE EQUILIBRIUM First stage of economic development during which the economy is STAGNANT or no formal economic system No monetary system and no motivation to develop one. Rules are passed down from generation to generation

STAGE # 2 TRANSITION Breaking from PE