AP Day 57

Starter What are the problems with the First-Third World model of the world? Pull out reading guide and a half-sheet of paper to prepare for reading guide quiz 10.3-10.4

Reading Guide Quiz 10.3-10.4 What are two challenges LDCs face regarding rapid development? Adopting policies that successfully promote development, finding funds to pay for development What caused the 4 Asian Dragons’ economic success? Production of manufactured goods (clothing and electronics) What are the 2 ways LDCs obtain money to finance development? Direct investment by transnational corporations, loans from banks and international organizations What is the difference between the stimulus strategy and austerity strategy for fixing economic downturn? Stimulus: Governments spend more than the taxes they collect to start projects for the economy Austerity: Governments reduce taxes so that people can spend their tax savings themselves for the economy What region of the world was hit particularly hard during the 2008 economic downturn? And what is one reason why? Europe. Euro – sharing of currencies between strong and weak economies DONE!

Wallerstein’s World Systems Core-Periphery Model

Wallerstein’s World-Systems Model makes an attempt to explain one large world economy Describes the spatial distribution of world development 3 divisions of countries Core Semi-Periphery Periphery

Ex: US, Canada, Japan, Australia, Most of Western Europe Core Dominant capitalist countries that use peripheral countries for labor and raw material Ex: US, Canada, Japan, Australia, Most of Western Europe

Ex: Most African countries Periphery Lack a strong central government and export materials to the core countries through cheap labor Dependent on the core for money Ex: Most African countries

Semi-Periphery Middle of the spectrum Share features of core and periphery Includes core countries in economic decline or periphery countries improving their economies. Ex: India – dependent on core, but growing technologically

Validity of Model Strengths Weaknesses Shows how dependency is not a one- way process Allows for change Although allows for change in classification, the economy is constantly changing Some countries exhibit too many conflicting qualities (ex: China)