Issues Facing 3rd World

• Poverty • Globalization- global

forces…• Weak States (governance)• Ethnicity• Environment-species

destruction, climate change

• Relative Poverty – Access to medical care=Infant mortality,

AIDS– Access to clean water/ Sanitation– Food

Absolute poverty … 

Durable good

% ownership in

bottom quintile

 Durable

good

% ownership in

bottom quintile

 Durable

good

% ownership in

bottom quintile

Central heating

84 Freezer /refrig-freezer

92 Home computer

25

Cars or vans

53 Microwave

77 Washer 91

Color TV

97 Telephone

91 CD player

62

Dishwasher

11 Dryer 46 Video 25

• Redistribution reduces poverty by giving the poor a bigger “slice of the pie” . . .

bottom quintile

7%

2nd quintile12%

3rd quintile20%

4th quintile26%

top quintile35%

bottom quintile10%

2nd quintile15%

3rd quintile20%

4th quintile25%

top quintile30%

. . . and making the slices smaller for those at the top of the income scale

and making the slices smaller for those at the top of the income scale

Bigger “slices” mean higher standards of

living

Economic Growth…

improves the lives of the poor by making the pie bigger

• Environmental Threats– Rapidly growing population 3.5x higher then developed

nations, population doubles in dev. Every 120 yrs, 3rd world it doubles every 35 yrs.

• Strains resources• Trade the future of environment for food today• Human action is threatening the carrying capacity of the

land

                          

• Ethnicity and Conflict– Racial, linguistic, ethnic, and religious

conflict– In the 1950’s it was assumed that mass

media and Western culture would gradually erode crosscutting cleavages. Instead cleavages have magnified (genocide. Religious strife, etc.

• Globalization-role global forces shape what citizen and leader can do– Dependency theory legal

ties of colonialism gave rise to informal mechanism of economic control

– MNC (Muti national corporations

– Import Substitution-replace expensive imported products with local goods

– Structural Adjustment-get with global markets. Find comparative advantage and the economy will grow