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The Developing World. Ch. 2 Sec. 3 . World Economic Patterns. Interdependence: During Age of Imperialism, Western powers seized control of global market Forced colonies to switch from subsistence agriculture to cash crops Sold manufactured goods to colonies - PowerPoint PPT Presentation
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The Developing World
Ch. 2 Sec. 3
World Economic Patterns• Interdependence:
– During Age of Imperialism, Western powers seized control of global market– Forced colonies to switch from subsistence agriculture to cash crops
• Sold manufactured goods to colonies– Post independence: many former colonies still depend on Western nations
for manufactured goods• Livelihood depended on production of one specific crop
World Economic Patterns• Modernization:
– Political stability • Obstacles: Imperialists created nations regardless of clan, tribe or loyalty
– Economic diversity• Dependence on one good if the value of that good drops, economy plummets• Solutions:
– Tariff: tax on foreign goods encourages people to buy locally– Privatization: selling industries to private investors to encourage diversity + efficiency
– Infrastructure• Improve education, sewage and water systems, hospitals, law enforcement, etc.
The lingo: Previously: 1st, 2nd + 3rd worldNow: underdeveloped, developing, developed
Debt Crisis• Nations that could not afford
to modernize, borrowed – Interests rate rose, unable to
pay debts – Infrastructure suffers when
debts go unpaid
• Similar problems: – Price of oil soaring: developing
(and developed) nations can’t afford new prices
– Value of cash crops dropping on national market
Growing Pains• Population explosion:
– Better health care + sanitation, more food = bigger populations
– Leads to: poverty, unemployment, overcrowding
• Urbanization: – Growth of cities + migration to
cities– In developing nations: crime,
poverty, etc.