2. Unit 20 Why some countries are richer than others?

3. Unit 20 Why some countries are richer than others? Why are there differences in the level of development between the developed and developing countries? Production and income The production of a country is based on how its resources are being effectively used. Its success depends on the supply of capital, the quality of its labour force and its level of technology.

4. Unit 20 Why some countries are richer than others? Why are there differences in the level of development between the developed and developing countries? Production and income Production = Natural resources (local / imported) + Labour + Technology + Capital Living standard / Income level = Total production Total population

5. Unit 20 Why some countries are richer than others? Why are there differences in the level of development between the developed and developing countries? Natural resources Countries like the United States of America with extensive fertile lowland, rich mineral wealth and favourable climatic conditions have an excellent foundation for economic development. There is a large piece of flatland in U.S. The climatic condition of the United States is good for farming.

6. Tropical rain forest in Brazil Unit 20 Why some countries are richer than others? Why are there differences in the level of development between the developed and developing countries? Natural resources may not A country with rich natural resources may not necessarily be rich if these are not well developed. Brazil is a good example.

7. Unit 20 Why some countries are richer than others? Why are there differences in the level of development between the developed and developing countries? Population A developed country has a highly efficient labour force and a low rate of unemployment.

8. Unit 20 Why some countries are richer than others? Why are there differences in the level of development between the developed and developing countries? Population People in developed countries often have a high level of income and form a huge local market for the country’s products. Japan has a big local market

9. Unit 20 Why some countries are richer than others? Why are there differences in the level of development between the developed and developing countries? Population In a developing country overpopulation results in inadequate supply of food, facilities and services.

10. Unit 20 Why some countries are richer than others? Why are there differences in the level of development between the developed and developing countries? Population The unemployment rate is high and the average income level is low. Savings are limited and little capital is formed.

11. Unit 20 Why some countries are richer than others? Why are there differences in the level of development between the developed and developing countries? Population The living standard of an area will be lower if under population or over- population happens. Population Living standard Under populationOverpopulation Relationship between living standard and population size

12. Unit 20 Why some countries are richer than others? Why are there differences in the level of development between the developed and developing countries? Technology Only with high technology can resources be efficiently developed. Advanced technology

13. Unit 20 Why some countries are richer than others? Why are there differences in the level of development between the developed and developing countries? Technology In developing countries the provision of education is far from adequate. There is little money for research and development purposes.

14. Unit 20 Why some countries are richer than others? Why are there differences in the level of development between the developed and developing countries? Technology strengthens our country! The People’s Republic of China has 2.8 million scientists and technicians in 1999 Technology

15. Unit 20 Why some countries are richer than others? Why are there differences in the level of development between the developed and developing countries? Capital formation Capital investment is needed to increase production. However, in developing countries, capital is not readily available.

16. Unit 20 Why some countries are richer than others? Why are there differences in the level of development between the developed and developing countries? Capital formation Many developing countries are troubled by political problems. This discourages foreign investors from investing in such countries. There have been 30 revolutions and civil wars in Sri Lanka within 25 years.

17. Golden Gate Bridge in California Unit 20 Why some countries are richer than others? Why are there differences in the level of development between the developed and developing countries? Capital formation In developed countries, political stability and good infrastructure help attract foreign investment. Brooklyn bridge in New York

18. Wall street in New York Unit 20 Why some countries are richer than others? Why are there differences in the level of development between the developed and developing countries? Capital formation In developed countries, capital can also be raised through a well- developed financial market. The stock exchange in Japan

19. Price fluctuation of coffee US ¢ per pound Unit 20 Why some countries are richer than others? Why are there differences in the level of development between the developed and developing countries? Sources of income Developing countries often rely on the export of only a few primary products.

20. Unit 20 Why some countries are richer than others? Why are there differences in the level of development between the developed and developing countries? The Vicious cycle of developing countries Most of the developing countries are struggling far behind, trapped in a vicious cycle of poverty. The gap between rich countries and poor countries is widening further. Low consumption Increasing population Maldistribution of wealth Foreign exploitation Little savings Low demand Poverty among the bulk of the population Low production Low productivity Poor health Little capital formation Malnutrition

21. Unit 20 Why some countries are richer than others? How do we represent the differences in the level of development? Line graph Time Birth rate Death rate Developing countries Developed countries Stage 1 High Stationary Stage 2 Early Expanding Stage 3 Late Expanding Stage 3 Low Stationary Birth rate and death rate per 1 000 population Nigeria United Kingdom The population transition stages and the birth and death rate of the United Kingdom and Nigeria

22. Unit 20 Why some countries are richer than others? How do we represent the differences in the level of development? Bar graph Life expectancy at birth YearsNumber Female Male NigeriaUnited Kingdom Infant mortality / 1 000 births Infant mortality per 1 000 births The life expectancy at birth and the infant mortality rate of the United Kingdom and Nigeria

23. Unit 20 Why some countries are richer than others? How do we represent the differences in the level of development? U.K. 100% 57% 43% Nigeria Literate Illiterate A higher literacy rate means a better provision of education Pie charts

24. Unit 20 Why some countries are richer than others? How do we represent the differences in the level of development? Pie charts United KingdomNigeria The population pyramids of the United Kingdom and Nigeria Population pyramid

25. Unit 20 Why some countries are richer than others? How do we represent the differences in the level of development? Triangular graph Percentage employed in primary industry Percentage employed in tertiary/quaternary industry Percentage employed in primary industry U.K. Primary industry 2% Secondary industry 42% Tertiary industry 56% Nigeria Primary industry 53% Secondary industry 20% Tertiary industry 27% Nigeria U.K.

26. Unit 20 Why some countries are richer than others? How do we represent the differences in the level of development? Pictograms Doctor/ population Newsprint per person per year in kg 629 persons 29.5 kg 4 692 persons 0.2 kg U.K.Nigeria

27. Terms to learn Unit 20 Why some countries are richer than others? Vicious cycle ( 惡性循環 ) Vicious cycle ( 惡性循環 ) – a situation that has the effect of causing the original problems to become more serious Population transition ( 人口過渡 ) Population transition ( 人口過渡 ) – a supposition that all countries or regions become more and more developed and their birth and death rates change accordingly Population pyramid ( 人口金字塔 ) Population pyramid ( 人口金字塔 ) – a graph designed to show the age and sex structure of the population of a country or region. Each horizontal bar represents the percentage of a certain age and sex group in the total population