Key Issue 4• Explain your topic thoroughly with bulleted points.• Incorporate a illustration into your bullet points!• You will present these to the class for us to discuss

each topic.

Shifting Cultivation

Farmers

clear land

for planting

by slashing

and burning

the

vegetation

Plant for a few years then leave it fallow for soil to regain nutrients

Typical in tropical regions, labor intensive,

extensive land use

1. Elements of Self-Sufficiency: 3152. Problems with Self-Sufficiency: 3163. International Trade explanation and examples: 316 (don’t

do Rostow!)

4. Rostow’s Development Model: 3165. Problems and recent triumph with International Trade:

3176. World Trade Org and Transnational Corporations: 3187. Financing Development (loans, structural adjustment

programs): 3198. Fair trade: 3219. Wallerstein: world systems analysis, dependency

theory, core-periphery: 322 and Test Prep Book 185 & 285

KEY IS

SUE 4

WH

Y DO

LESS D

EVELOPED

COU

NTR IE

S FACE O

BSTACLES

TO D

EVELOPM

ENT?

SELF-SUFFICIENCY Spread investment equally through all sectors of its

economy to only rely on domestic goods and resources

Income in country keep pace with city

Not impacted by other countries

Restrict importing goods by high taxes, quotas to limit what can come in, makes domestic goods more attractive

Example: India until the 90’s

.

PROBLEMS WITH SELF-SUFFICIENCY Inefficiency: little incentive to stay competitive with new

technology and quality of products

Don’t feel pressure to lower costs, reduce prices, or increase production

Out of date with other countries

Maruti-Udyong Ltd.: car manufacturer in India (poor quality monopoly) eventually bought by Japanese company Suzuki

INTERNATIONAL TRADE APPROACH Specialize in what is unique about your country

Concentrate scarce resources on its distinctive local industries, import anything else that is needed

Rostow’s 5 Stages of Development...

Examples: FOUR ASIAN DRAGONS AND ARABIAN PENINSULA

Four Asian Dragons: South Korea, Singapore, Taiwan, Hong Kong…specialized in producing manufactured goods such as clothing and electronics…low labor costs, sell inexpensively

Oil Rich Arabian Peninsula: transformed overnight in extreme wealth by specializing in petroleum exports

ROSTOW’S DEVELOPMENT MODEL

PROBLEMS WITH INTERNATIONAL TRADE

Uneven resource distribution: Zambia exports mostly copper, price for copper went down (new technology) Zambia makes less money

Market stagnation: selling to MDC does not allow for growth…MDC populations have limited growth…economic profits stay steady but do not increase…must buy competitors in other countries to increase profits

Increased dependence on MDC’s: have to import a lot of food, clothing, and other necessities

WORLD TRADE ORG. & TRANSNATIONAL CORPORATIONS

Uneven

Promotes trade. WTO regulates trade, but is criticized for often favoring MDC’s/transnational corps rather than the poor.

Transnational corporations facilitate the New Int’l Division of Labor.

FINANCING DEVELOPMENT Loans (Microloans, WTO, and the World Bank)

FDI (Foreign Direct Investment) One country gives directly to another country.

Structural adjustment programs: loans for LDC’s BUT… they have to abide by a set of rules. Loans with strings attached.Proponets say it makes LDC’s reform for the better. Critics say it punishes poor people for bad decisions their gov’t has made.

FAIR TRADE Products are made and traded with standards that protect

the WORKER.

Often times a worker in an LDC will get the majority of the profits because there is NO MIDDLEMAN.

Fair trade also teaches leadership and organizational skills to workers.

WALLERSTEIN: WORLD SYSTEMS ANALYSISDEPENDENCY THEORY CORE-PERIPHERY

It is a circular relationship. The core needs the periphery and the periphery needs the core.

ARE MICROLOANS THE KEY?????Watch “Pennies a Day”