1. Patterns in Economic Development
Chap. 16
Patterns in Economic Development

2. 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

3. World Economic Disparity

4. World economic disparity over 200 years

5. 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

6. 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%

8. 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?

9. 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

10. 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

11. 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)

12. 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

13. 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

14. Economic hitmen

15. 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?