OBSTACLES TO DEVELOPMENT: $

$$ & ACCESS

OBJ: TO DETERMINE THE CHALLENGES & POSSIBLE SOLUTIONS FOR BETTER

DEVELOPMENT IN THE WORLD

2 PATHS TO DEVELOPMENT• SELF SUFFICIENCY = BALANCED

GROWTH• BENEFITS: LITTLE FOREIGN

INVOLVEMENT• TARIFFS, QUOTAS, LICENSING• OVERALL GROWTH THROUGHOUT

COUNTRY• PROBLEMS: CUMBERSOME, INEFFICIENT

BUSINESS, BUREAUCRATIC, COMPLACENCY

• INDIA

• INTERNATIONAL TRADE: OPEN MARKETS, COMPARATIVE ADVANTAGE- ABILITY OF A COUNTRY TO PRODUCE A GOOD/SERVICE BETTER THAN ANOTHER (SA & OIL)

• PROBLEMS: UNEVEN RESOURCE DISTRIBUTION, ALL EGGS IN 1 BASKET, INCREASED DEPENDENCY ON MDC, MARKET FLUCTUATIONS

• 4 ASIAN DRAGONS: SINGAPORE, S. KOREA, TAIWAN, HONG KONG: ELECTRONICS

• KUWAIT, SAUDI, BAHRAIN, OMAN: OIL• ITA HAS BEEN PREFERRED

ROSTOW’S MODEL- ADVOCATE OF I.T.A.- A.K.A. MODERNIZATION THEORY – THINK DEMOGRAPHIC TRANSITION MODEL

ALL COUNTRIES GO THROUGH 5 STAGES OF DEVELOPMENT WITHIN THEIR COUNTRY CULMINATING IN SELF-SUSTAINED ECO GROWTH & MASS CONSUMPTION

GOOD FOR DEVELOPED BUT NOT REALLY FOR DEVELOPING

DIDN’T TAKE INTO ACCOUNT THAT DEVELOPING COUNTRIES JUST DIFFERENT FROM MDC – BASED THEORY ON MDC’S

INTERNATIONAL TRADE WINS OUT- MAP OF COUNTRIES GDP GROWTH 1980-2010

OBSERVATIONS:

*S. & E. EUROPE SUCCEEDED SO WHY NOT OTHERS?

*POST COLONIAL COUNTRIES CONTROL NATURAL RESOURCES/RAW MATERIALS & SALE ON OPEN MARKET GENERATES INCOME

*FORCED TO STAY CURRENT IN INDUSTRY, TECH, DEVELOPMENTS ETC DUE TO COMPETITION