...Assess the significance of three factors which might limit economic development in the developing countries. Economic development can be defined generally as involving an improvement in economic welfare, measured using a variety of indices, such as the Human Development Index (HDI). A developing country is described as a nation with a lower standard of living, underdeveloped industrial base, and a low HDI relative to other countries. There are several factors which may have the effect of limiting economic development in such countries. Factors such as these include: primary product dependency, the savings gap and political instability. Primary product dependency occurs where production of primary products accounts for a large proportion of a country’s GDP. This can have a particularly limiting effect on economic development when a country’s primary product is what may be classified as a “soft commodity”, that is to say, agricultural goods mainly such as wheat, rice, palm oil etc. For example, Kenya has a high dependency on tea and horticulture. This may limit economic development for several reasons. Both supply and demand for primary products tend to be elastic thus and demand or supply-side shock would cause a relatively large price change, meaning that primary products are likely to experience extreme price fluctuations. These price fluctuations will cause fluctuations in producers’ income as demand is price inelastic. Therefore, a fall in price would cause a fall in total...
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...declining and growing populations, the ages of these populations, and how they are composed demographically. (1b) Outline What is the state of international security at this time? - power lays with developed countries, with maintainable populations - developing countries are drastically growing “where policing, sanitation and healthcare are often scarce” - relationships between the western “superpowers” and the emerging of Islamic youths from the middle east are rocky at best How is the state of international security going to shift? - the demographic weight of the world’s developed countries is going to drop, which will cause the economic power to shift onto developing countries - the world’s population will become urbanized with the largest urban centers in the world’s poorest countries How can we make this a smooth shift? - the world’s youth are concentrated in poorer, developing countries and developed countries should be prepared to educate and employ them - developed countries should be open to international immigration - reconsider the structure of global institutions such as the G-8, G-20 and NATO - developed countries should encourage families to have more children to keep the population more distributed rather than concentrated in developing countries (2) CONNECTIONS - Environment This article does not discuss environment in any significant detail. - Culture (Religion) This article discusses culture in the context of religion (Muslim...
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...Key Term and Interest Developed Country The term developed country is a very interesting. This is interesting for the sheer purpose that I am from a developed country and it is interesting to see why the United States is considered developed and others are not. It can be interesting to see what the differences are between a developed and developing country. I will try and focus on how health issues are different in these countries and some of the economic ramifications. Explanation of Key Term According to Satterlee (2009), a developed nation is a nation that has great wealth and resources, as well as the knowledge to properly manage its resources to take care of the well-being of its people (p. 87). The per capita of a developed country is typically higher than less developed countries. This notion, along with other economic issues, has been used to classify countries as developed by the World Bank, the International Monetary Fund, and the United Nations. These organizations have also classified whether a country is considering developing. There are several key differences between all three that one will need to delve into much more. Major Article Summary The article I chose to focus on the most was about the oral health care systems in both developing and developed countries. Kandelman and others wrote (2012), while it is known that there are marked differences in structure and scope of health systems between countries across the world, the common purpose is improving...
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...1.0 History of international trade International trade has been and is today an economic force that has spurred commerce, promoted technology and growth, spread cultural patterns, stimulate exploration and colonization, and frequent fanned the flames of war. The history of international trade has gone hand in hand with the development of civilizations. From very ancient times, international trade brought about the exchange of products and raw materials between one land or nation and another. Although such trade was often conducted in barter form and was of small volume by today’s standard, this interchange of products was important in economic and historic development. International trade in its early beginnings was necessary, not just because it provided one society with products such as cowries from west Africa to other areas, international trade also formed the as is for cultural interchange, thus trading not only on product, but also on lifestyles, customs and technology. 1.1 International trade – Defined In the simplest form, international trade means exchange of goods and services across international boarders. In other to know what is happening in the course of international trade, governments keep track of the transactions among nations. The records of such transactions are made in the balance of payment accounts. International trade and balance of payment are therefore two important aspects in the relationship between nations. 2.0 Importance...
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...A developing country, also called a less-developed country, is a nation with a low living standard, undeveloped industrial base, and low Human Development Index relative to other countries. Definition Kofi Annan, former Secretary General of the United Nations, defined a developed country as follows. "A developed country is one that allows all its citizens to enjoy a free and healthy life in a safe environment." But according to the United Nations Statistics Division, And it notes that The UN also notes The World Bank classifies countries into four income groups. These are set each year on July 1. Economies were divided according to 2011 GNI per capita using the following ranges of income: Measure and concept of development The development of a country is measured with statistical indexes such as income per capita, life expectancy, the rate of literacy, et cetera. The UN has developed the Human Development Index, a compound indicator of the above statistics, to gauge the level of human development for countries where data is available. Developing countries are, in general, countries that have not achieved a significant degree of industrialization relative to their populations, and have, in most cases, a medium to low standard of living. There is a strong correlation between low income and high population growth. The terms utilized when discussing developing countries refer to the intent and to the constructs of those who utilize these terms. Other terms sometimes...
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...development opportunities of developing countries and assist them in their efforts to integrate into the world economy on an equitable basis." The primary objective of UNCTAD is to formulate policies relating to all aspects of development including trade, aid, transport, finance and technology. The conference ordinarily meets once in four years; the permanent secretariat is in Geneva. One of the principal achievements of UNCTAD has been to conceive and implement the Generalised System of Preferences (GSP). It was argued in UNCTAD that to promote exports of manufactured goods from developing countries, it would be necessary to offer special tariff concessions to such exports. Accepting this argument, the developed countries formulated the GSP scheme under which manufacturers' exports and some agricultural goods from the developing countries enter duty-free or at reduced rates in the developed countries. Since imports of such items from other developed countries are subject to the normal rates of duties, imports of the same items from developing countries would enjoy a competitive advantage. The creation of UNCTAD in 1964 was based on concerns of developing countries over the international market, multi-national corporations, and great disparity between developed nations and developing nations. The United Nations Conference on Trade and Development was established to provide a forum where the developing countries could discuss the problems relating to their economic development. The organization...
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...The Internet has penetrated many aspects of business and culture in developed countries, but there is limited availability in many poor countries. Do you think that this technology is going to widen the economic development gap between rich and poor countries? Is there a way that developing countries can use such technologies as a tool for economic development? Justify and illustrate your arguments by referring to appropriate case study examples. Table of Content 1 Introduction 2 2. Present Uses of the Internet 3 3 The Use of Internet in Developed Countries 4 4 The Use of Internet in Developing Countries 6 5 Internet reduces the Economic gap between Developing and Developed Countries 7 5.1 Case Study Analysis – Case of Nigeria 7 6 Internet as a tool for Economic Development in Developing Countries 8 6.1 Internet and e-commerce produce greater Economic benefits to the firms 9 7 Conclusion 10 8 References 10 1 Introduction Globalisation of business, trade and economy has transformed the world into a single society of similar perceptions, where the information is accessible by any person from any corner of the world. Use of new communication technologies like internet has incremented the pace of globalisation processes in various dimensions (Anakwe, et al., 2007). The internet has rationalized the business processes facilitating the notion of the e-economy. Companies have recognised the requirement...
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... pp. 49-65. The Internet in developing countries: a medium of economic, cultural and political domination Abdulkafi Albirini University of Illinois at Urbana-Champaign, USA ABSTRACT The last decade has witnessed an unprecedented diffusion of network technologies into developing countries. The technological discourse attending this diffusion has presented the new media as a utopian, egalitarian and empowering tool with the potential of ushering in a new era of development, democracy, and positive cultural change. This paper examines the economic, cultural, and political effects of the Internet within the historical context of developing countries. The paper traces the politically-inspired evolution of the Internet, its transfer into developing countries, and the economic, cultural, and political consequences of this transfer. Existing data indicate that the implementation of the Internet in most developing countries has served as a drain to the local resources, thus exacerbating their economic dependency on foreign nations. On a cultural level, the Internet’s predominantly Western design, content, and language have facilitated the proliferation of alien cultural patterns at the expense of the social experiences of the local cultures. Lastly, the Internet’s build-in tracking capabilities and its current manipulation for political purposes on international and national levels serves to empower the existing ruling elites in developing countries and perpetuates the disempowerment...
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...Does it still make sense to use the concept of a developing country? Do you think that in spite of all their diversity less developed countries share enough common characteristics? Explain your arguments. Yes, it makes sense to use the concept of a developing country even though developed and developing countries share common characteristics. Todaro (2003) classifies these common characteristics into six broad categories as follows: 1. Low levels of living 2. Low levels of productivity 3. High rates of population growth and dependency burden 4. High and rising level of unemployment and underemployment 5. Significant dependence on agricultural production and primary products exports 6. Dominance, dependence and vulnerability in international relations Low Levels of Living In developing nations, the majority of the population live in impoverished conditions. Low income induced poverty leads to inadequate housing, ill health, low or limited education, low life expectancy, and high infant mortality rate. One measurement tool used that helps identify developed versus developing nation is the general national product (GNP) which is the” total value of all final goods and services produced within a nation in a particular year, plus income earned by its citizens (including income of those located abroad), minus income of non-residents located in that country. Basically, GNP measures the value of goods and services that the country's citizens produced regardless of their...
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...Discussion Paper No. 2009/01 The Financial Crisis of 2008 and the Developing Countries Wim Naudé* January 2009 Abstract Following the financial crisis that broke in the US and other Western economies in late 2008, there is now serious concern about its impact on the developing countries. The world media almost daily reports scenarios of gloom and doom, with many predicting a deep global recession. This paper critically discusses this and concludes that as far as the developing countries are concerned, a bit more optimism may be warranted. Although without doubt there are particular countries that will be adversely affected, there will also be countries that may be less affected, may avoid recession, and may recover sooner than expected. Six major reasons for this conclusion are discussed. Without this resilience in the developing world, prospects for the world’s richer countries would be much bleaker. Finally, some options available to the developing countries for minimizing the impact of the crisis are discussed. The crisis accentuates the urgent need for accelerating financial development in developing countries, both through domestic financial deepening, domestic resource mobilization, and reform of the international financial system. Keywords: financial crisis, developing countries, development finance, financial development JEL classification: F34, F35, G14, O16 Copyright © UNU-WIDER 2009 * UNU-WIDER, Helsinki, Finland, email: wim@wider.unu.edu This study has been prepared...
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...Why do some countries fail to thrive? Critically evaluate one or two policies aimed at boosting growth & aiding development. Critically evaluate one or two policies aimed at boosting growth & aiding development. In this essay I will address why countries fail to thrive as well as evaluating the policies that boost economic growth and development. Globalization is a process of international economic integration effecting output of goods and services, input of capital and labor and aiding diffusion of knowledge and information. Breaking artificial barriers for goods and services in the last two decades has had a positive affect on development. Many countries have had successful economics growth and better standards of living due to increases in exports measured through increase in GDP. Even with better economic integration in the last two decades some countries still fail to thrive and benefit from globalization. Yet still some economies fail to thrive. There are many issues that can be looked at to understand why some countries have not developed quickly and efficiently as others. According to Jeffrey Sachs 2005 book ‘The end of poverty’; the richest countries in the world are ahead by two decades in relation to growth and economic gains. Poorer economies have suffered greatly due to poverty and geographical barriers such as famine and pandemics. Other issues such as political instability and collapsed governments have been a central focus point of many critics. I will...
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...The emergence of developed countries as major players in global business has made it more difficult for developing countries to succeed Contents The emergence of developed countries as major players in global business has made it more difficult for developing countries to succeed 1 1. Introduction 1 2. Global business of Developed Countries vs. Developing Countries 1 3. Role of International Organizations 2 4. Role of NAFTA 2 5. FDI and Global Business 3 6. Conclusion 4 References 4 1. Introduction Developing economies consist of a very diverse sort of group that includes some of large economies enjoying high economic growth rates like that of China, INDIA AND Brazil and many small economies having low rates of economic growth. The countries having high GDP growth among group of developing nations have remained able to sustain the negative impacts of financial crises very well as these were not that much affected by consequences of financial crises. There are few small or middle income economies that are quite rigid in a way that these nations depend on specific factors for development (Kose, 2013). Keeping in view the GDP growth rates of group of countries in a globe it cannot be said that developing countries do not have room for business growth but that fact is these do not have competitive advantage that can match those of developed nations and that is the reason I agree with the statement that “The emergence of developed countries as major players in global...
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...Economic Disparity Assignment Topic | Australia | Lesotho | Life expectancy at birth (years) | 81.9 | 45.9 | Internet users per 100 people | 70.8 | 3.6 | GDP per capita ($US) | $40,286 | $1,605 | Inequality-adjusted income index | 0.720 | 0.234 | Death of women per 100,000 live births | 4 | 960 | Protected areas (%) | 10.5 | 0.5 | Homicide Rate (per 100,000) | 1.2 | 36.7 | HDI value | 0.937 | 0.427 | By comparing Australia and Lesotho, it is easy to determine which of the two the developed country is and which is the developing. It is very noticeable that there is a significant difference in the two countries. You can see this in the GDP per capita, the life expectancy at birth, and as well the death of women while pregnant and as well the number of internet users per 100 people. Seeing the huge difference in GDP per capita ($US) indicates how rich the country is. Basically everything depends on the GDP per capita. For instance, health, technology and standard of living. Seeing that Australia has a relatively high GDP per capita, being $40,286, it shows that Australia has a high standard of living and can provide all the basic necessities to the population where as in Lesotho; the GDP per capita is $ 1,605. Lesotho has a weak GDP and therefore indicates that there is not enough money to provide the population with the basics to sustain life. The life expectancy at birth is significantly different between Australia and Lesotho. Being measured in years...
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... 2.2 The differentiated responsibilities: 6 2.3 Distinguishing between developed and developing countries: 7 3. Criticism of the CBDR principle today: 9 4. Conclusion: 11 5. Bibliography: 13 Word count (excluding footnotes, headings and bibliography): 3032 words 1. Introduction: Climate change is the most critical international humanitarian crisis today; it is adversely affecting our health, economy, national security and communities in a myriad of ways. Scientists have constantly been warning us that if we do not aggressively restrain climate change and control its effects now, the results will indisputably be devastating. They have also predicted that critical climate change effects such as long-term droughts and significant sea-level rise are inevitable although global efforts to decrease greenhouse gas emissions are being implemented. Hazardous impacts such melting icecaps in the Polar regions, heavy rainfall and disastrous storms, and growing variability of temperature in almost all regions of the world are being felt. In 1992, many countries collectively came up with an international treaty, the United Nations Framework Convention on Climate Change (UNFCCC), to consider what should be done to regulate average global temperature increases and the subsequent climate change process, and to tackle whatever impacts were, by then, unavoidable. By 1995, countries recognised that emission reductions provisions in the Convention were insufficient. Two years...
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...Effects of FDI by MNCs in Developing Countries What are Multinational corporations? What motives do they have for foreign direct investment? This paper explores these questions and seeks to find explanations by exploring key economic theories. The impact of FDI on developing nations is discussed with analysis and evaluation of the positive and negative effects. The findings of this essay are that FDI is neither entirely good nor bad for a country. Instead its effects vary and depend on a number of factors. Whilst firms have different strategies and objectives, the aim is ultimately to gain profits. In some instances this comes at the detriment of the welfare in the host nations, but it can also have benefits for these developing countries. | Introduction Foreign direct investment (FDI) has played an important role in developing countries with these nations receiving an increasing share of world FDI inflows (see Fig.1 below). From 1985 to 1990, the FDI inflow into developing nations was 17.4% of the total global flow. This increased to 31-40% in the four years leading up to the financial crisis (Hill, 2014). FDI acts as a major contributor to capital formation in developing countries and can promote growth and sustainable development. However, there are many challenges that the host country can face when dealing with multinational corporations (MNCs). By looking at key issues and analysing empirical evidence, the positive and negative effects that foreign direct investment...
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