Patterns in Economic Development Chap. 16 Patterns in Economic Development

The gap between the Rich and the Poor widens Gap between developed Countries and Less developed countries Gap between regions in Canada Gap between income levels in Canada (and other countries) – richest 10% and poorest 10% The Gap between the rich and the poor is called “Economic Disparity” and that is the point of this chapter

World Economic Disparity

World economic disparity over 200 years

Economic Development Economy: Sum of all economic activities that take place in a country (both money economy – ex. Companies, government, and crime – and non-money sector – ex. Education, environment, child-rearing) CHART p. 396 Economic Activity: processes that help produce wealth and maintain quality of life

Primary, Secondary and Tertiary Industries Economic Activities divide into Primary, Secondary, and Tertiary Industries Primary Industry: Extract natural resources (ex Lumber, Oil, crops) Secondary Industry: Manufacturing Industry: manufacturing and construction Tertiary Industry: services to businesses and individuals (from McDonalds to hairdresser to banker to Computer programmer) Canada has been increasing in Tertiary and decreasing in Primary industry over the last century 1999: Primary 5.8% Secondary: 19.5% Tertiary: 74.5%

To think about . . . What are the differences between less developed and developed countries? What is in between? How does a country increase its standard of living?

LDC vs. Developed countries Traditional Economy: LDC (Less Developed Countries) LDCs have significantly more primary industry that Developed countries LDCs live off sustenance agriculture( consume what produce), resulting in low productivity (and Low standard of living) Description: Live off the Land, poor formal education (learn traditional skills from parents), technology relies on animals and human labour, many poor people United Nations tried to increase standard of living in LDCs through new technologies/ machines, and cash crops, but these methods have failed

LDC vs. Developed countries Newly Industrialized Countries /Developing Economy: Technological development – animal and human power replaced by machines (industrial revolution) Need infrastructure in communications and transportation to complement industry Description: people demand change and gov. puts in effort for change, public education system (basic educ. Seen as crucial), mechanization and industrialization (secondary overtaking primary industry), innovative people lead change

LDC vs. Developed countries 3. Developed Economy (DC) diverse economy: some primary and secondary, mostly tertiary industries Consumers expect a variety of goods and services and maintain a mass consumption of products and services\ Description: stable democratic government, high and current technology, highly skilled workforce, high standard of living (ex. Canada)

LDC vs. Developed countries How does a country historically increase wealth and encourage development? Natural resources Stable Government Literate/ Educated population Open attitude to change and progress

LDC vs. Developed countries What are characteristics of countries with low economic development today? Was a colony in the 20th century (stifled development) (what does that mean? A colony?) High government debt (HIPC) Ongoing domestic/ international conflict Political and economic corruption

Economic hitmen

Answer in groups and share . . . Explain possible reasons for why some countries are less developed than others. What are obstacles n increasing the standard of living of less developed countries? What would be the Most important factor in increasing the standard of living? Why?