6 – 3 (OX) Development Models

1. 6 – 3 (OX) Development Models

2. I. Introduction A) LDC’s HAVE made progress in many areas BUT the gap in wealth between LDC’s and MDC’s is widening NOT narrowing.

3. B) 20% (MDC’s) of the World’s Population consume 80% of the world’s goods.

4. C) LDC’s face 2 main obstacles to development: 1 - Adopting policies that successfully promote development AND 2 – Figuring out how To PAY for it! Money Honey!

5. D) 2 Model’s LDC’s Use to Promote Development: 1) Self-Sufficiency 2) International Trade

6. II. Development through Self-Sufficiency (Balanced Growth) A) Most of 20th Century…* B) Based on belief that…*

7. C) No Import or Export (Protectionism) Use of - Tariffs* - Quotas* - Excessive Paperwork*

8. D) India (Tried Self Sufficiency found 2 main problems):

9. Poor Products and high prices Large bureaucracy

10. III. Development through international trade My name is W. W. Rostow and I’m too sexy for these glasses!

11. III. Development Through International Trade (pg 296) • A) Based on the belief that… • B) Rostow’s Development Model: • TraditionalSociety – Primary/Agriculture • Preconditionsfor Takeoff – Elite group starts it! • The Takeoff– Rapid growth in a few sectors • The Drive to Maturity– goes to many industries • The Age of Mass Consumption– consumer goods LDC’s MDC’s Must Know! Study! Study

12. C) Rostow’s Model is built on 2 premises (assumptions): • 1) That other countries (US, Europe, Japan) have gone through the model so LDC’s can too! • 2) LDC’s have raw materials they can sell to MDC’s to fund development. AND

13. D) Examples (International Approach) • Arabian Peninsula* What region Of the world Is this?

14. 2 – 4 Asian Dragons(tigers)

15. E) Problems with the International Trade Approach • 1) Uneven Resource Distribution 2) Increased Dependence on Other Countries

16. IV. Self-Sufficiency vs. International Trade • A) 1990’s • B) Since then…

17. THE END!

18. C) WTO (World Trade Organization) 1 – Why? To Increase Global Trade 2 – How? Reduce barriers (tariffs,etc.) and enforcing trade agreements.

19. V. 2nd Problem – PAYING for development (2 ways)

20. A) Foreign Direct Investment(FDI) 1) Transnational corporations invest in… 2) MDC to MDC 3) LDCs – China is king! Guess where gets the least FDI????

21. B) Loans 1 - IMF (International Monetary Fund) and the World Bank – both established by UN. 2 - Loan money to LDCs to build new infrastructure to spur development

22. 3 – Problems, problems Projects are poorly designed Corruption Doesn’t attract investment

23. 4 – Biggest Problem:

24. VI.

25. VI. Fair Trade • A) Definition – products are made and traded according to standards that protect workers/small businesses in LDC’s • B) Variation of Int’l Trade Approach

26. C) Producer Standards (companies) • -cooperatives • -small companies • -higher prices in MDC’s (sometimes) • -higher wages in LDC’s

27. D) Worker Standards • -Exploitation of workers • -Fair Trade requires • -fair wages • -right to unionize • -safety standards

28. THE END!