1. AP Day 57

2. 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

3. Reading Guide Quiz
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!

4. Wallerstein’s World Systems
Core-Periphery Model

5. 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

6. 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

7. 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

8. 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

10. 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)