1. A struggle between tradition and a modern economy

2.  First global trading networks stretch across Islamic world in 1300 from Mediterranean to Southeast Asia  After Europeans gain access to their own routes to Asia power begins to shift  In the late 1800’s during the age of Imperialism Europe/US gains complete control and create a new trading pattern

3.  Africa, Asia, Latin America encouraged to grow cash crops for sale in world market as well as raw materials  The Europeans/US then sell manufactured goods to these areas

4.  Creates a state of dependency for less developed areas  These nations were still economically dependent after losing colony status post WWII  Cash Crop mentality leads to reliance on single product for economy which puts them at the mercy of the supply/demand curves of the world market.  Local economies based on crafts are crushed as well due to the competition of manufactured goods.

5.  Many developing nations have set up political and economic goals to join the modern world  These goals have proved hard to reach  Often reached with Mixed Success

6.  Political Stability  Difficult because of artificial borders and outside interference  Economic Diversity  These nations want to move away from single cash crop and develop economies with multiple crops and manufactured goods  Tariffs used to end dependence on foreign products  Privatization of industry to produce better products  Education and Services  Improve literacy so workforce can compete in modern world  Work on Services such as medical care, housing and water/sewage systems

7.  In order to develop infrastructure, that is necessary for creating an industrial nation, many countries needed to borrow money from wealthier nations.  Many borrowed in 1970’s when oil was high  Middle East gives money to Western banks->Banks loan to developing nations for profit later-> in 1980’s interest rates rise-> Borrowers can’t pay back loans- >Creates Debt Crisis

8.  Even with deals worked out to ease crisis it is difficult for debtor nations  Can not afford to work on basic services or new industry because most of income is used to repay loans  Any slowdown only makes things worse because their economy is still not modernized  Some debt has been given extensions, but loans are now harder to obtain and may require economic reforms for the nation

9.  Overpopulation- Now over 6 billion with ¾ in developing world with no slow down in sight  Created by old world practices and modern healthcare  Leads to policies such as China’s one child policy  Urbanization- city populations have exploded in the developing world  Puts a strain on nations trying to provide services  Cultural Change- Fewer ties to family and community  Many feel this leads to crime and drug abuse  All of these problems create a wider gap between developing and developed nations