DEVELOPING

NATIONS
CHARACTERISTICS
AND
ECONOMIC DEVELOPMENT

GAff/Developing Nations

DEVELOPED NATIONS
RELATIVELY HIGH
STANDARDS OF
LIVING
ECONOMIES
PRIMARILY
BASED UPON
INDUSTRY
RATHER THAN
ON AGRICULTURE

GAff/Developing Nations

DEVELOPING NATIONS
RELATIVELY LOW
STANDARDS OF
LIVING
LITTLE
INDUSTRIAL
DEVELOPMENT

GAff/Developing Nations

5 CHARACTERISTICS OF
DEVELOPING NATIONS

1. GDP per
capita is low
2. Large role
for agriculture
3. Low literacy
rate or
educational
level

4. Population
rate is high
5. Healthcare
is minimal
GAff/Developing Nations

WHAT IS COMMONLY NOT

PROTECTED IN DEVELOPING
NATIONS, BUT KEY TO THE
MARKET ECONOMIES OF
DEVELOPED NATIONS?

PRIVATE PROPERTY!

GAff/Developing Nations

WHAT ARE THE 3 STAGES OF

DEVELOPMENT THAT ECONOMISTS
SUGGEST NATIONS PASS THROUGH
TO BECOME A DEVELOPED NATION?
Agricultural Industrial Post Industrial

GAff/Developing Nations

WHAT ARE 4 OBSTACLES TO ECONOMIC

GROWTH IN DEVELOPING NATIONS?

1. Attitudes and beliefs about

change
2. Rapid population growth
3. Misuse of resources by leaders
4. Financial capital flight out of
the country

GAff/Developing Nations

3 SOURCES FOR FINANCING

ECONOMIC DEVELOPMENT
FOR A DEVELOPING NATION
1. Domestic savings
2. Foreign investment from corporations
3. Foreign aid from governments

GAff/Developing Nations

3 REASONS FOR A DEVELOPED

NATION TO GIVE AID TO
DEVELOPING NATIONS
1. To build political good will
2. To expand markets for exports and opportunities for
private investments
3. To provide a basis for enhancing national security and
intelligence gathering

GAff/Developing Nations

3 FORMS OF FOREIGN AID

1. Economic Assistance
2. Technical Assistance
3. Military Assistance

GAff/Developing Nations

10

PROBLEMS ASSOCIATED WITH

RAPID INDUSTRIALIZATION
Unwise

investment in using
resources where there is no
comparative advantage
The population is not ready
to adapt to the industrial
patterns of living and
working
GAff/Developing Nations

11

PROBLEMS ASSOCIATED WITH

RAPID INDUSTRIALIZATION
USING TECHNOLOGY OR
PRODUCING PRODUCTS WHICH
THE CONSUMERS ARE NOT
CULTURALLY READY TO USE
RUSHING THROUGH STAGES OF
DEVELOPMENT CREATES
INEQUITIES BETWEEN GROUPS
OF PEOPLE

GAff/Developing Nations

12

MAJOR FACTORS IMPORTANT FOR

ECONOMIC DEVELOPMENT

MANAGEABLE POPULATION GROWTH

ADEQUATE NATURAL RESOURCES IN

PROPORTION TO POPULATION

TRADE WITH THE WORLD

GAff/Developing Nations

13

MAJOR FACTORS IMPORTANT

FOR ECONOMIC DEVELOPMENT

SUPPORTIVE POLITICAL STRUCTURE

(GOVERNMENT SUPPORTS AND
PROTECTS PRIVATE PROPERTY
RIGHTS, NO PRICE CONTROLS)

APPROPRIATE INCENTIVE
STRUCTURE (PROFIT MOTIVE FOR
ENTREPRENEURS, LOW TAXES)

GAff/Developing Nations

14