1. The Developing World

2. Presentation Outline Characteristics of developing states
Economic comparisons between developing and developed states
Newly industrialized states
Economic Policies of developing states
Democratization in the developing world

3. Most of the world’s states which are part of the developing world (yellow).
Mexico
Iran
Nigeria

4. 1) Characteristics of developing states
Lower economic development and less industrialized
Large income gap between rich and poor
Lower educated population with lower literacy rates
Higher birth rates and high death rates
Traditional societies where women tend to have an inferior status to men
Poor governance and high levels of corruption

5. Many developing states were once part of European empires
Many developing states were once part of European empires. Colonialism is a major legacy in the developing world
Mexico

6. Iran was never colonized
Nigeria

7. Shanty town in South Africa

8. Agricultural workers in Nigeria

9. U.N. Human Development Index (Measures literacy rates, life expectancy, and GDP per capita)
Iran
Mexico
Nigeria

11. Gini Index (Measures income inequality) Much higher income gap in the developing world with the exception of the USA
Russia
China
U.K.
Iran
Mexico
Nigeria

12. Transparency International (Measures Corruption levels)
Iran
Mexico
Nigeria

13. 2) Economic Comparisons
Comparative PPP (purchasing power parity in per capita GDP)
Country
PPP (in USD$)
United Kingdom
$34,800
Russia
$15,900
Mexico
$13,900
Iran
$10, 600
China
$7,600
Nigeria
$2,500
What conclusions can you draw from this table?

14. Comparative Economic Sectors
Country
Primary
(Agriculture)
Secondary
(Industry)
Tertiary
(Services)
Mexico
13.7%
23.4%
62.9%
Iran
25%
31%
45%
Nigeria
70%
10%
20%
China
38%
46.9%
43%
Russia
31.9%
58.1%
United Kingdom
1.4%
18.2%
80.4%
What conclusions can you draw from this table?

15. 3) Newly industrialized states
Political Scientists agree that developing state is too broad and general, since among developing countries there is a wide range of economic development
New industrialized refers to states which are still developing their economies but which are moving towards full industrialization; some may eventually become developed states

16. The Newly Industrialized States
Mexico

17. 4) Economic policies of developing states
Dependency Theory
Westernization Model

18. Dependency Theory
Economic theory which states that the economic problems which developing countries face were caused by colonialism and economic exploitation by more developed states
According to this theory, globalization and trade are not the solution rather the problem because developed states will always take advantage of developing states

19. How does this cartoon illustrate the dependency theory?

20. Import Substitution
Developing states which follow the dependency theory believed that the best way to grow their economies is to protect local industries from international competition
This is done by setting quotas on production, imposing high tariffs (taxes) on imported goods, and providing huge subsidies to local manufacturers- Iran still follows this model; Mexico and Nigeria used to follow this model

21. Drawbacks of import substitution
Policies in Mexico created industries which were not internationally competitive
High employment resulted in high inflation and government debt
Exports to other countries were low
Mexico had to borrow money from the International Monetary Fund (IMF) and the USA

22. Westernization Model
According to this theory, the only way for developing states to grow their economies is to adopt the model Western countries have followed for decades:
create a market-based economy
encourage foreign investment and trade
develop a successful export industry

23. Export- oriented If you can’t beat them, join them!
Newly industrialized states such as South Korea, India, Brazil, Mexico, and Malaysia have liberalized their economies and focused on trade and export
South Korea exports many high tech products
Brazil exports resources such as timber, copper, and other metals
India exports cheap clothing, and outsources services
Mexico exports cheap clothing, and food

24. Drawbacks of Westernization model
States such as Mexico and Nigeria have given up sovereignty in exchange for more economic development
World prices of oil, metals, food etc. are constantly fluctuating (going up and down) and states following the Western model have little influence over these prices and a more vulnerable to economic crashes and global recessions

25. 5) Democratization in the developing world
Nearly all developing states had an authoritarian regime at one point or another
Mexico, Nigeria, and Iran all share this common history
Today, Mexico and Nigeria are considered democracies
Nearly all democracies in the developing world are emerging, struggling, or illiberal democarcies

26. Russia
U.K.
China
Mexico
Nigeria