Apparent Similarities Between Developing Countries Low living standards & low productivity Subsistence is the main objective Population explosions & wars make for socioeconomic uncertainty Great income inequality is common Structural unemployment is common (eg. agricultural workers moving to cities) Mostly colonies of the developed world

Differences Between and Within the Regions Financial: levels of FDI, debt, savings, etc vary by region (eg. Chinese are good savers, others are always in debt) Political: may be corrupt or just weak – periods of war, struggles for independence, etc disrupt political stability Social & Ethical: religious views may reduce contribution of women; language may hamper trade; ethnic tension may reduce focus on productive activity

Differences Between and Within the Regions Geographical: natural resources vary widely; coastline is an advantage for trade; fertile land & irrigation possibilities vary Human, Physical, Technological Capital: education & high-tech infrastructure vary Trade & Markets: many sources of int’l trade based on historical relationships; markets may be ‘missing’; property rights may not be clear; WTO membership helps trade

Differences Between and Within the Regions Infrastructure: railways, postal systems, roads, etc. vary & impact growth Presence of Int’l Companies: some (but not all) foreign companies can bring prosperity to local people Size of Public Sector: impacts the level of absolute poverty, unemployment, investment opportunities, etc