Less movement toward democratic institutions o less

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Less movement toward democratic institutionsoLess investment in public goodsoLess widespread human capitalThe diversity of colonial experiences helps to explain the wide spectrum of different development outcomes todayoExternal dependence (on foreign nations)LDC’s are much more dependent on foreign nationsA special case is for environmental preservation, upon which hopes for sustainable development practices dependThey are less well organized and less influential in international relationsHas at times lead to adverse consequences for their developmentThey have weaker bargaining positions in international economic relationsThey also voice great concern over various forms of cultural dependenceV. How Low-Income Countries Today Differ from Developed Countries in Their Earlier StagesPhysical and human resource endowmentsoContemporary LDC’sLess well-endowed with natural resourcesDifferences in skilled human capital and labor endowments are even greaterRelative levels of GDP and GDP/capitaoContemporary LDC’sAre economically lessadvanced internationally40% of the population attempt to subsist at bare minimum levels15
oContemporary Developed CountriesAs infants, were economically advanced with respect to the rest of the worldClimatic differencesoContemporary LDC’sAlmost all developing countries are situated in tropical or subtropical climatesThe most successful countries are located in the temperate zoneColonialists set up “extractive” institutions, often through a group of elites, where they found it uncomfortable to settleGeology of heat and humidity’s effectsHigher rates of soil degradation and depreciation of many natural goodsLow productivity of certain cropsWeakened regenerative growth of forestsPoor health of animalsDiscomfort to labor and their weakened health leads to lower productivity and efficiencyPopulation size, distribution, and growthoContemporary Developed CountriesWestern nations experienced a very slow rise in population growthPopulation growth rates in Europe and the North American countries have never exceeded 2% per year, and generally averaged much lessoContemporary LDC’sAnnual rates in excess of 2.5% per yearHave higher person-to-land ratios the European countries didHistorical role of international migrationoContemporary Developed CountriesLimited economic opportunities in urban and manufacturing industry led to a push of unskilled rural workers to the labor-scarce nations of North America and Australia16
oContemporary LDC’sInter- and intra-migration of labor occurs, but relatively more regionallyBrain drain problems exist today due to developed-nation-migrationThe emigration of highly educated and skilled professionals and technicians from developing countries to the developed worldThe growth stimulus of international trade – international trade benefitsoContemporary Developed CountriesInternational free trade has been the “engine of growth” for today’s economically advanced nations

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