AP Human Geography

Development: Part 2

There are large disparities between MDC’s and LDC’s.

Economy/ WealthEducationHealth CareEquality between Genders

The Problem

Promote development from within

Reducing poverty more important that a few becoming wealthy.

All residents benefit from development equally

Reduce competition so businesses within LDC’s can thrive.

Govt. supports struggling companies w. subsides.

Barriers keep imports out Tariffs (import taxes) Quotas Legal licenses

Solution 1: Self- Sufficiency

Rostow’s Development Model

Focus on specialized resource/ services that others are willing to buy (takeoff industry)

Use profits to develop country

Other industries then grow

Examples: Four Asian Dragons (Singapore,

Taiwan, Hong Kong, S. Korea) focus on manufacturing (clothing, electronics)

Arabian Peninsula focuses on oil

Solution 2: International

Trade

Self- Sufficiency Model

Protection of bad businesses Low quality goods No price change Lack of technology

International Trade Model

Unequal distribution of wealth Dependence on MDC’s Demand may decline

Problems

IMF

Rebuild reserves Stabilize currency exchange

rates Not used for specific projects

World Bank

Develop governments and legal institutions

Financial institutions Transportation Social projects

Sources of Loans to LDC’s

Not really.MDC’s remain wealthy,

powerful, and in control. LDC’s often default on

loans Forced to create a

structural adjustment program Conditions may worsen under

SAPs. Areas of need may be cut

(health, education, social services)

“The Earth’s poorest people are punished for crimes they didn’t commit.”

Has it Worked?