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8/12/2019 SOCIOLOGY REPORT CHAPTERS 16, 17 and 18
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Chapter 16
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*Economic development is a progressive process ofimproving human conditions
Economic Factors: capital, technology, & market
Non-Economic Factors: government, geography,religion, education, population, social structure,attitudes, & values.
*Economic growth refers to the goods and servicesproduced by economic development.
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According to British economist, Colin Clark
*Stage 1 - Agriculture is the main source ofemployment and income.
*Stage 2 - Manufacturing industry becomes themajor economic activity as a country develops'
*Stage 3 - service industries grow to be the
dominant feature of the economy as a countryfurther develops.
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According to Rostow, American historian
*Traditional society
*Pre-conditions for take-off
*Take-off
*Drive to maturity
*Age of high mass consumption
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*Highly developed countries (PCI > $20,000)
USA, Japan, France, Russia, etc.
*Intermediate countries
Spain, Singapore, Saudi Arabia, etc.
*Less developed countries (PCI > or < $100)
Kenya, Vietnam, Philippines, etc.
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According to:
*Holy Scriptures and code of laws, justice,mercy and charity: Trade
*Adam Smith (Leader of the classicaleconomists): Industrial production
*Friedrich List (German economic professor):
Development of productive resources
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*Ricardian model - The key factor is land.Agriculture is the first priority in the
attainment of economic growth.*Harrod-Domar model - The key factor isphysicalcapitallike machines, buildings,equipment and so forth.
*Kaldor model - The key factor is technologywhich is embodied in physical capital.
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*Subsistence agricultural economy
*Low per capita income
*High birth rate
*High illiteracy
*Poor health
*Negative attitudes, values and institutions
*Inefficient public administration
*High rate of unemployment
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Unchecked breeding
of men causespopulation to grow bygeometric progressionwhereas food supplycan not grow rapidly
or more than in anarithmetic ratio
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*Planning must be realistic.
*Planning must be based mostly on the felt need
of the masses.*Planning must come from below.
*Planning must be multisectoral.
*Planning must be flexible.
*Planning must have the full support of topgovernment officials.
*Planning must start with simple projects.
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Chapter 17
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*Global economies may be defined as theproper allocation and efficient use of theavailable resources of the world for themaximum satisfaction of all the peoples in
every country
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*The very few rich countries own most of theproductive resources of the world
*The poor countries have remained the traditionalsources of cheap raw materials and labor for the
rich countries.*The same poor countries are the regular customers
of the finished products of the rich countries.
*Rich countries buy cheap raw materials and labor,but they sell finished products at high prices.
*Instead of helping the poor countries in theirmiserable conditions, the rich countries evenimpoverish them.
*Whenever the rich countries extend technical andfinancial assistance to the poor countries, there areconditionalities or strings attached. As a result, therich countries get more economic benefits.
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*The International Economic Order is a politico-economic framework which provides theinternational economic relationships amongsovereign nations.
*The less developed countries organized themselvesto pursue their economic demands on thedeveloped countries. Their organization becameknown as the Group of 77. The United Nations
supported their demands in 1974 by declaring theestablishment of a "New International EconomicOrder.
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*The remaining vestiges of alien and colonized dominationcontinue to be among the greatest obstacles to the fullemancipation and progress of the developing countries
*Present economic conditions require the active, full andequal participation of the developing countries in theformulation and application of all decisions that concernthe international community.
*The political, economic and social well-being of thepresent and future generations depends more than everon cooperation among all members of the internationalcommunity on the basis of sovereign equality and theremoval of the disequilibrium that exists between the lessdeveloped countries and the developed countries
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*The new international economic order should be founded on thefollowing principles:
-Sovereign equality of countries;
-Broadest cooperation of member countries of the international
community;-Full and effective participation of all countries in solving theeconomic problems of the world;
-Every country has the right to adopt its most appropriate
-Economic and social system;
-Colonial territories have the right to achieve their liberation andto regain their natural resources and economic activities;
-Fair prices for the raw materials, primary products andmanufactured goods being exported by the less developedcountries; and
-Access of the less developed countries to the product of scienceand technology, and promoting the transfer of technology
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Afghanistan Bangladesh Benin
Bhutan Botswana Burkina Faso
Burundi Cape Verde Central African Republic,
Chad Comoros Democratic Yemen
Djibouti Ethiopia Equatorial Guinea
Gambia Guinea Guinea-Bissau
Haiti Kiribati Lao People's Democratic
Lesotho Malawi Maldives
Mali Mauritania MyanmarNepal Niger Rwanda
Samoa Sierra Leone Sao Tome and Principe
Somalia Sudan Tanzania
Togo Tuvalu Uganda
Vanuatu Yemen
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*Poor countries have basically an agriculturaleconomy.
*For lack of technology, machine and money, the poorcountries can not transform their natural resourcesinto finished products.
*To accelerate their development of our idle naturalresources, their government has attracted foreign
investments. They have plenty of money, moderntechnology and management expertise. These arethe multinational corporations which supply manyproducts.
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*Rich countries have industrial economies, that is, agreater portion of their national incomes come fromthe industrial sector.
*With modern technology, they are most efficient inmanufacturing products.
*Industrial economy is capable of generating more jobsand incomes for its people than an agricultural
economy*Wealth and income are fairly distributed.
*Their people are the most important resources for thegrowth of their economy and society
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*Some countries can isolate themselves from the rest of theworld. And they can survive because they are rich in naturalresources. However, the pace of modernizing their national
economy and improving further the-standard of living oftheir own peoples would likely be very slow.
*A country which depends only on its domestic market haslimited opportunity for economic growth.
*No country can produce all the goods and services to satisfyits people. The geography of a country determines theproducts it can raise in any single country. For this reason/there is indeed a need for exchange of goods and servicesamong countries
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Chapter 18
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According to:
*H. Bowen - It is the obligations of businessmen to pursue theirpolicies to make those decisions, or to follow those lines of
actions which are desirable In terms of the objectives and valuesof society.
*K. Davis - An individual who thinks of the interests of the wholesystem and contributes his resources to the development andgrowth of such system is performing his social responsibility
*P. Ducker - The first responsibility to society is to operate at aprofit. The business is the wealth-creating and wealth-producingorgan of society.
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*Economic model - Based on the traditional conceptof business.
*Socio-economic model - Businessmen have their
social responsibility to their stockholders,employees, customers, suppliers, and to the generalpublic.
*Classical model - An enterprise is socially
responsible if it emphasizes the efficient use of itsproductive resources in the creation of goods andservices that society needs at a price consumers arewilling to pay.
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*Business can not and should not ignore socialproblems because it is part of society.
*Business has resources, like financial, technicaland managerial, that are required for solvingsocial problems.
*Business can earn more profits in the long runby helping eliminate or reduce social problems.
*Business can expect less governmentintervention if it performs its socialresponsibility.
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*Business managers are primarily responsible tostockholders. Thus, their job is to earn profitfor their investors.
*The resources of the firm time, money andtalent should be used to maximize profit, notto solve the problems of society.
*The effects of social problems on society isvery general. Business should not be expected
to solve such problems.*4. Social problems are the responsibility of
government officials. They were electedbasically to solve social problems.
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*The price of economic growth is the destruction ofthe environment through land, water and airpollution. Such pollution has adversely affected thelives of human beings and animals as well as thoseof the plant kingdom.
*The seas of the world are filled with 20 billion tonsof garbage - including soda cans, radioactive waste,exotic chemicals heavy metals and human waste.The red tides are also linked to water pollution.
*Air pollution is equally very destructive, Thedepletion of the ozone layer is caused by airpollution.
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Reasons for foreign Aid
*National interests - These include political,
economic, military and other benefits for thedonor countries.
*Humanitarian, moral and ethical considerations -These are done in case of sudden calamities like
wars, floods, typhoons or earthquakes.*Maintenance of viable global system - Conditions
have greatly changed all over the world
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*The main competing donors are the United Statesand the Soviet Union. They give aids precisely to
win more allies on their sides as well as foreconomic benefits.
*Not a few foreign aids have gone to welfare andprestige projects instead of developmental andproductive projects.
*nationalist leaders of the poor countries haveaccused the rich countries of using their aidprograms as a cover for their economicexploitations and political and military interests.
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*The less developed countries have very little orno chance at all to win their fight against
absolute poverty, disease and squalor. Theireconomic future does not only depend onthemselves but also on the economic policies ofthe rich countries towards the poor countries.The many years of exploitations by the rich
countries in the form of economic imperialism,loans, wrong technologies and miseducationmade the poor countries even poorer.
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Main sources of wealth of the rich countries:
*Unfair tariffs for the poor countries;
*Exorbitant interest on capital and excessive profiton investment;
*Low prices of raw materials manipulated bycartels, monopolies, and unfair trade practices;
*Virtual monopoly on ocean and air transport;
*Control international monetary system;
*Supply most of the investment capital; and
*Use their political and military powers to maintainthe status quo.
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*What the poor countries prefer are fairinternational trade practices and sufficient foreignloans with reasonable interest rates and without
strings attached. Many of the poor countries havebeen frustrated with the foreign aid programs. Suchprograms lack substance and sincerity according tothem. The donor countries get more benefits thanthe beneficiaries themselves like the promotion ofits own economic, political and military interests.So the U.S. has been challenged to be more sincerein helping the poor countries.
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*The best way to help the poor is to help
themselves. This does not only apply toindividuals but also to countries. Abraham Lincolnsaid: You do not help people if you do the thingswhich they themselves can do.
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