Economic Issues

1. Economic Issues Chapter 11 (questions 2, 3, 6, 8, and 11)

2. Pg 184 #2) Imagine that a developed Western nation is facing a period of economic decline. What might this government tend to do if it believes ina) Keynesian economics?b) neo-liberal economics? • Answered on blackboard

3. Pg 184 #3) Using Rostow’s work as an example define what is meant by a “model”. What are the advantages disadvantages of using a model to describe a complex reality? • A simplified version of reality, based on extensive observations, which uses average or typical results. Demographic Transition Model, Atomic Model (Dalton, Bohr, Rutherford), Linnaeus’ 5 kingdoms.

4. Pre-Colonial Africa http://www.africancrisis.co.za/Article.php?ID=24664

5. Pre-Colonial Africa http://www.thehistorysalon.com/ http://voxeu.org/index.php?q=node/5790

6. Africa and Independence http://www.globalissues.org/article/84/conflicts-in-africa-introduction

7. Pg 184 #6) Suggest how colonialism and concession companies aided in the economic takeoff of imperial nations and hindered that of colonies. Colonialism: acquisition and settlement of a territory or a Country by another nation. Takeoff • Agriculture moves from subsistence to commercial. • Growth of cities, growth of paid workers, growth of service sector. • Expansion of public education. Concession company: a company created by an imperialist country to develop trade in its colonies, often behaved as the government by proxy (Hudson Bay Co., East India Co.)

8. Pg 184 #6) Suggest how colonialism and concession companies aided in the economic takeoff of imperial nations and hindered that of colonies. Imperial Nations • concession companies extract resources from the colonies (furs and timber from Canada, cotton from India, ivory from Africa). • resources manufactured in the imperial country and sold on the domestic and international markets. • fuelled the development of industry • provided jobs needed in the growth of cities • assisted in the accumulation of wealth in imperial economies

9. Pg 184 #6) Suggest how colonialism and concession companies aided in the economic takeoff of imperial nations and hindered that of colonies. Colonies • borders imposed with little relation to existing political structures • favouring select groups created ruling classes • introduction of non-native agricultural products for export (reduced local food supply) • local religions and cultures suppressed • introduction of disease

10. Pg 184 #8) …Identify three countries in each category that have:a) limited free marketsb) a balance between free markets and an involved governmentc) a limited role for government • a) USSR , North Korea, China (pre-1990s), Cuba • b) Sweden, Canada, France • c) USA, England, New Zealand

11. HDI* Scores in Former Colonies The Human Development Index (HDI) is defined by Investopedia as “a tool developed by the United Nations to measure and rank countries’ levels of social and economic development based on four criteria: Life expectancy at birth, mean years of schooling, expected years of schooling and gross national income per capita. The HDI makes it possible to track changes in development levels over time and to compare development levels in different countries.” Thank you Anne!!!

12. What pattern do you see? The former colonies with low HDI values are, for the most part, concentrated in Africa. There are also the nations that were part of the British India which also have low values. South American former colonies all range in the mid-upper HDI values with the highest values found in North America and Oceania. What explanation can you offer? There are a range of reasons which can explain the pattern observed; There is a link between the highest HDI values and the early settlement dates of some colonies. Canada, the USA, Australia, and in a number of South American countries. Where settlement was an important part of the colonization process, western forms of government followed as well as investment in the economies of the settlers. The goal was to create economic and political entities which could be self-governing. In Africa , colonization (partition) occurred much later and the ultimate goal was not settlement but instead was access to resources and riches. As a result there was much less focus on investing in these economic, or societal systems. When independence was reached there less social and economic infrastructure in place in order for these nations to succeed. India saw a greater level of investment on the part of the east-India company (a concession company). Independence and partition brought population pressure and conflict with neighbouring nations which prevented development. Finally, in some instances corruption has grown out of the artificial grouping of varying cultural and tribal groups (in Kenya there is an expression “Our turn to eat”).