1. Chapter 21 The Developing World 1945-Present

2. The Challenges of Development After World War II, development became the central goal in Africa, Asia, & Latin America. Development is the process of creating a more advanced economy & higher living standards. Nations that are trying to develop economically are, all together known as the developing world. The developing world is also often called the global South, because most of the developing nations are south of the Tropic of Cancer. Most industrialized nations are north of the Tropic of Cancer, so they are sometimes called the global North.

3. To pay for development many of these nations procured large loans from the global North. Developing nations have tried to improve their agriculture and their industry. They have also built schools to increase literacy. For centuries most of these global South nations have had traditional economies. In Traditional economies, traditions or customs not a central government limited free enterprise and economic choices. Property tends to be owned by the family or the tribe.

4. During the colonial period Europeans had attempted to introduce market economies into these developing regions. Europeans hoped market economies would help the sale of European products. After independence, some political leaders tried to speed development by replacing market and traditional economies with command economies. When these countries had trouble paying their loans, lenders from the global North made them change to market economies. Now many of these countries depend on the global North for investment and exports.

5. The Green Revolution Beginning in the 1950s, better seeds, pesticides, and farm equipment led to a “Green Revolution” in much of the global south. The “Green Revolution” helped feed more people. Many small farmers could not afford the new tools and better seeds. They were forced to sell their land and move to cities.

6. Obstacles to Development Most nations in the global South have found it difficult to escape poverty and the problems associated with it. Some countries have only one export product. If the prices for that product drop, their economies suffer. Population has grown rapidly in the developing world for the past 100 years. Children are often seen as a source of labor and income. Parents also depend on children to support them in their old age. Religious teachings often encourage large families as well.

7. The Cycle of Poverty The increase in food production from the “Green Revolution” is not able to keep up with the increase in population. The U.N. estimates that 35,000 children die each day from starvation and other effects of poverty. People who are malnourished and uneducated can not escape the cycle of poverty. Small farmers forced off the land often moved to cities where many could not find jobs and were forced to live in overcrowded shantytowns.

8. Fundamentalism In recent times, religious revivals have swept many developing regions. Fundamentalists call for a return to what they see as the fundamental, or basic, values of their faiths. Many fundamentalists have sought political power to oppose changes, that they think are undermining their valued religious traditions.

9. Africa After World War II, African nations had little capital to invest. This meant they had to make difficult choices. Many newly independent African nations chose socialism. These nations hoped to end foreign influence in their countries. They also wanted to close the gap between the rich and the poor. Socialist governments often led to large bureaucracies and inefficient government.

10. Other African nations relied on capitalism, or market economies. Market economies were more efficient. However, foreign owners of local businesses often took profits out of these countries. Some governments tried to pay for development by growing crops for export. This left less land for food to be grown on, so food had to be imported. Governments then had to subsidize part of the cost of importing food.

11. More problems for developing Africa Droughts led to famine in parts of Africa, especially in the Sahel (a semi-desert region just south of the Sahara). Overgrazing and farming led to desertification (the change from fertile land to desert). Since the 1980s AIDS has taken a heavy toll on the African people. In the early 2000s, the UN estimated that more than 2 million Africans died from AIDS each year.

12. Urbanization in Africa Africa is the most rural continent, but is experiencing a very high rate of urbanization. This shift has meant hardship for many. In West Africa urbanization has increased the opportunities for women, who have dominated urban markets. Urbanization has also brought people from different ethnic groups together in cities and helped replace ethnic loyalties with a larger national identity. Urbanization also weakened traditional cultures and undermined ethnic and kinship ties.

13. Africa faces Environmental Threats Urbanization, farming, and logging have devoured nearly 70 % of Africa’s animal habitats. Destroyed habitats have caused many African animals to become endangered species. In Kenya Wangari Maathai challenged government policy by starting the Green Belt Movement. Maathai has worked with local women on projects of sustainable development. Sustainable development aims to provide lasting well-being for future generations rather than short term gains.

14. Tanzania Has been very poor since it gained independence in the early 1960s. 50% of the people live below the poverty line. After winning independence the Tanzanian government tried “African Socialism” which was based on the African village traditions of cooperation and shared responsibility. This experiment failed, farmers refused to leave their land. Farm output did not rise. The bureaucracy and oil prices plunged Tanzania into debt. In 1985, new leaders began economic reforms but Tanzania is still poor and relies on foreign aid.

15. China By 1981, the new leader of China, Deng Xiaoping, allowed features of a free-market economy. Deng called his program the “Four Modernizations.” These were attempts to modernize China in agriculture, industry, technology, and defense. Collectively owned farms were dismantled. Peasant families were allotted plots of farmland in what was called the “responsibility system.” Farmers still did not own the land and the government took a share of their crops. Farmers could sell any surplus they produced and keep the profits.

16. Chinese entrepreneurs were allowed to set up businesses. Managers of state-run factories were given more freedom, but were expected to make their factories more efficient. Deng also welcomed foreign investment. China’s economic output is now four times what it was 30 years ago. Chinese enjoyed an improved standard of living. On the other hand, crime and corruption grew, and a growing economic gap developed between poor rural farmers (mainly in China’s interior) and wealthy city dwellers.

17. Communist Crack Down Economic reforms and contact with the West led some Chinese to demand greater political freedom. In the late 1980s Chinese students and workers supported a democracy movement like those in Eastern Europe. Deng and Communist leaders refused to allow democratic reforms. Demonstrators gathered in Tiananmen Square in Beijing in May 1989. They wanted democratic reforms. When demonstrators refused to disperse, the government sent in troops and tanks to force them away. Thousands were killed and wounded. China’s communist leaders were afraid of losing power. To them, order was more important than political freedom.

18. China Faces Continuing Challenges China’s population, now more than 1.3 billion, is the largest in the world. To keep population growth from hurting economic development in the 1980s China’s government instituted the one-child policy, which limited urban families to a single child and rural families to two children. This policy worked better in the cities. In rural areas families were willing to pay a fine so that they could have more than two children to work on the farm. Population growth was slowed overall after 1980.

19. Economic growth brings new problems. Rapid urbanization occurred as millions of rural workers flocked to the cities. Urban newcomers lived in poverty and strained limited resources. Economic growth led to severely polluted air and water, causing illness and death. Growing travel and trade helped to spread AIDS across China.

20. Human Rights Suffer China’s Communist Party continued to jail critics and reject calls for political reform. China lacked freedom of speech and used prison labor to produce cheap export goods. Critics denounced China’s suppression of Tibet’s ancient Buddhist culture. In response to their critics communist party leaders claimed that outsiders had no right to impose “Western-style” ideas of human rights on the non-Western cultures of China & Tibet.

21. India In contrast to China with a population of 1.1 billion, India is the world’s largest democracy. In its efforts to develop and modernize when India first won independence it attempted to use a command economy. Development was uneven. Nehru promoted the Green Revolution in the 1960s. Only wealthy farmers could afford to use the new techniques. Most farmers continued to use traditional methods. They barely produced enough to survive. Beginning in the 1980s, India shifted toward a free- market system. By the l990s, several Indian industries were growing rapidly.

22. Population Growth & Poverty Even though India’s food production has increased it can’t keep up with it population growth. More than one third of Indians live below the poverty line, unable to meet their basic needs for food, clothing and shelter. India’s population boom and the labor-saving methods of the Green Revolution resulted in millions of rural families migrating to cities. Overcrowded cities could not provide jobs and basic services for all the new people.

23. More on Population Growth Mother Teresa, founded the Missionaries of Charity in Calcutta (Kolkata). Even though this group provided food and medical care to thousands, millions more remained in desperate need. The Indian government backed family planning but did not adopt the harsh policies of China. Efforts to slow population growth had limited success. Poorer Indians, in rural areas, still saw children as an economic resource.

24. Reforming Indian Society The spread of education and the growth of a modern economy undermined traditional patterns of life in India. These changes have brought improvements for India’s lowest castes and for women. Yet most Indians still live in villages and followed traditional ways. India’s constitution banned discrimination against dalits and gave women equal rights. Prejudice and discrimination persist. Higher-caste Hindus generally receive better schooling and jobs.

25. Latin America Builds Democracy Latin America has faced the same problems as other developing nations--rapid population growth, poverty, illiteracy, political instability, and authoritarian governments. From the 1950s to the 1980s, economic development failed to change deep-rooted inequalities. Due to inequality and growing populations, most countries saw little improvements in living standards.

26. Promoting Industry and Agriculture Many Latin American countries relied on a single cash crop to earn money for need imports. If the crop failed or demand declined economies were devastated. To reduce their dependence on other countries, many Latin American countries adopted import substitution. This policy was manufacturing their own goods to replace imports. Latin American countries gradually gave up import substitution because of the high cost.

27. In recent decades Latin American countries have tried to generate income by promoting exports. Governments have also backed efforts to open more land to farming through irrigation and the clearing of forests. Much of the best land belongs to agribusinesses, or giant commercial farms owned by multinational corporations.

28. Widening Gap Between the Rich & the Poor Latin America has an uneven distribution of wealth. A tiny elite has controlled the land, businesses, and factories. These powerful few have opposed reforms that might undermine their position. As a result, the gap between the rich and the poor has widened.

29. Poverty in Latin America Latin American countries like most developing countries has experienced a population explosion. Economic growth has not been able to keep pace with population growth. A shortage of land drove millions of peasants to the cities. More than half of Latin Americans live in cities. Most of these peasants can’t find jobs and are driven to shantytowns on the edges of Latin American cities.

30. Liberation Theology The Catholic Church remained a powerful force across Latin America. It was often tied to the ruling class, but some church leaders spoke up for the poor. During the 1960s and 70s in a movement known as Liberation Theology, many priests, nuns, and church workers crusaded for social justice and an end to poverty. This movement urged the Church to become a force for reform. Evangelical protestants also won converts among the poor in Latin America

31. Latin America’s Difficult Road to Democracy Democracy was difficult to achieve in Latin American nations plagued by poverty & inequality. Between the 1950s and 1970s, as social unrest grew, military leaders in Argentina, Brazil, Chile, and other nations seized power. Claiming the need for order they imposed harsh autocratic regimes. These regimes outlawed political parties, closed universities and imprisoned and executed thousands. “Death squads” linked to the government murdered many more.

32. Revolutionaries Oppose Military Regimes Guerrillas and urban terrorists battled repressive governments across Latin America. Some of these groups were Marxist/communist others were nationalists who opposed cultural domination by the U.S. Conservatives saw any call to reform as a communist threat. Conservative groups were often put or kept in power by the U.S.

33. U.S. Influence on Latin America The Organization of American States (OAS), was formed in 1948 to promote democracy, economic cooperation, and human rights in the Americas. The U.S. has dominated the OAS. The U.S. is Latin America’s most important investor and trading partner. The U.S. sees itself as the defender of democracy in the region and the provider of much needed aid. Many Latin Americans resent the influence and domination the U.S. exercises in the region.

34. The U.S. Intervenes Militarily During the Cold War, the U.S. backed anti- communist dictators in Latin America. The U.S. helped overthrow democratically elected governments in Guatemala and Chile. In 1979, Nicaragua’s Sandinistas, a movement of socialist rebels toppled the ruling Somoza family. Claiming that Nicaragua could become “another Cuba” Ronald Reagan backed the Contras, guerrillas who fought the Sandinistas. Fighting raged on until a 1990 compromise brought peace and multi-party elections to Nicaragua.

35. The War on Drugs As illegal drug use grew in the U.S., the U.S. Government declared a “war on drugs” in the 1980s. In 1989 the U.S. invaded Panama and arrested its President Manuel Noriega, for drug trafficking. The U.S. pressed Latin American governments to destroy drug crops and crush the drug cartels (criminal gangs) that smuggled drugs. Many Latin Americans alleged that the problem was not in Latin America. They believed the problem was the demand for drugs in the U.S.

36. Latin America Moves Toward Democracy By the 1990s, pressure from democracy advocates and foreign lenders had led most military rulers to restore democracy. Argentina, Brazil, Chile, and other countries held free elections. The Institutional Revolutionary Party (PRI) had dominated Mexico since the 1920s. Under pressure, the PRI made some reforms in the 1990s. In 2000, an opposition candidate Vicente Fox, was elected president of Mexico. Fox pushed to end corruption, reduce poverty, and spur economic growth.

37. Argentina In the 1930s the Great Depression struck Argentina and 50 years of political upheavals followed. Between 1946 & 1955 president Juan Peron enjoyed great support from the workers. Peron raised wages and backed labor unions but he suppressed opposition. Many educated people fled the country. Peron was ousted in a military coup in 1955. The Military was in and out of power for the next 30 years. Peron was again elected in 1973.

38. When Juan Peron died a year after returning to office, a new wave of political unrest plunged Argentina into political chaos. The Military again seized control in 1976. Opposed by leftist (socialist/Marxist) guerrillas the military waged a “dirty war” of torture and murder against its own citizens. The Mothers of the Plaza de Mayo silently marched in Buenos Aires holding pictures of their missing sons. By 1983, the military was forced to restore civilian rule and allow elections.