Problems of the third world countries
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Transcript of Problems of the third world countries
Problems of the Third World Countries
The “Third World” or the “Least Developed Countries”:
The term “third world” pre-mediated excerpt to the Third Estate of the French Revolution.
The phrase was universally recognized during the “cold war’’ when various nations declined and suffered.
Third World were countries which are under developed and still striving of get rid of poverty issues, low per capita income, unemployment, population growth, water and sanitation problems, crime leading to unrest and less industrialization.
•It occupies 6% of Earth’s surface and 70% population of the human race, and their total productivity income was only 11%.
•Most of the countries who belongs to this category were countries found in Africa, Asia, and Latin America.
Characteristics of Third World Countries
Highly dependent and distorted economies.
High rates of population growth.Wide spread of poverty.Absorption into capitalist economy.Poor infrastructure set up.Unemployment.Over populated.Weak Ruler.Poor Educational system.
Subsistence Agricultural Economy
Easy to be destroyed by calamities.Unfair trade of industrial countries to
agricultural countries.Raw materials and crop products are
very low in exchange of industrial products.
Low Productivity.Cannot adequately supply the food
requirements of the people.Farmers do not have scientific knowledge.Government has insufficient funds and
facilities to help the farmers.Lack of technological utilities/facilities for
greater productivity and development.
Low Per Capita Income
Ordinary citizens cannot afford to build their own business.
Slow development of the economy.Weak military defense for the country.Health facilities and services will
compromise.Vulnerable at CHAOS/ ANARCHY.CIVIL WAR and TERRORISM exist.
High Birth Rate
Few jobs are available. More mouths to be fed by the government.
Crime Increase.Young citizens are not so productive.Poverty increase.Poor health Quality.Increase of Mortality Rate.
High Illiteracy
None productive citizens.Slow growth of economy.Increase in Crime.Low job quality.
Poor Health
Increase in Mortality Rate.Decrease in Per Capita Income.Decrease in Productivity.
Negative attitudes, values and institutions
No Foreign Investors to come.Low job quality.Non-cooperative socialization with each
other.Waste of opportunities.Not too productive citizens.Defective Institutions.Easily controlled by Highly Literate
people.
Inefficient Public Administration
Most government programs are failure.
Government employees gives priority their family and relatives.
Unfair distribution of government services.
High Corruption exist.
High Rate of Unemployment
Low Per Capita IncomeIncrease in CrimeIncrease of Poverty rateAdditional government ProblemSlow DevelopmentUnutilized Labor Force
Problems faced of the developing countries:
Poor infrastructure set up such as roads, schools and hospitals as well as housing.
Corruption is common, that even the little they have they don’t apply it for the developments.
Income inequality; where poor gets poorer and the rich gets richer.
Most developing countries faces war monger were they spend time fighting each other than developing.
Political crisis; it is difficult for investors to invest in a country w/ political crisis.
Lack of employments, after struggling w/ school dues and graduating w/ a degree, still poor employment are visible.
Low Investments
Low Employment
Low Production
Low Income
Low Savings
The Vicious Circle of Poverty
POVERTY
If the investments is low there will be a lack of employment, and if the employment is also low production will decrease and the result is low production. Low production will lead to small incomes and small incomes results to inefficient savings to earn which are used for investments.
Dismal Predictions of Malthus
population
Production
YEAR
Thomas Robert Malthus: English Classical Economist. Essay on the Principles of Population. Unchecked BREEDING of MAN causes POPULATION grow.
CONTRARY: Production of foods has a shortage.
Barriers to development
Improving values and institutions
Redistributing wealth and income
Adopting western technology
Preparing for industrial development
Reducing birth rate
Eliminating economic exploitations.
DEVELOPMENT
The Big PushThe few very rich individuals have to invest their money in productive labor intensive industries. Those who are not extremely poor have to save more.Scarce resources have to be properly used
and equitably allocated.The nature of taxation should encourage employment and production, and reward economic success of the members of society.Foreign investments should be stimulated on a selective basis so as not to compete with domestic efforts. The government has to provide the rules of the game for the foreigners to follow.Foreign loans and aids should be applied to productive social and economic programs.
Implementing the Big Push• The government should variously
initiate, encourage and assist development.
• Human resources development should be given the highest priority.
• Family planning programs should be improved.
• The agricultural sector should be developed first.
• Appropriate technology should be used to fit the local conditions.
History of AgricultureLatin word; Ager, which means Field.Cultura, which means to Cultivate.
Early humans during the stone period, doesn’t know how to produce their goods. Instead they gather what they only need.