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.