Chapter 2 Slide 1Copyright © 2003 Pearson Education, Inc.

Chapter 2 Slide 2Copyright © 2003 Pearson Education, Inc.

Diverse Structures and Common Characteristics of Developing Nations

Chapter 2

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Defining the Developing World

The UN’s System World Bank’s System The UNDP’s Human Development

Index The OECD’s system

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Figure 2.1 The

Developed and

Developing World, 2002

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Figure 2.1 The

Developed and

Developing World, 2002 cont’d

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The Structural Diversity of Developing Economies Size and income

level

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The Structural Diversity of Developing Economies Size and income

level Historical

background Physical and human

resources Ethnic and religious

composition

Relative importance of public and private sectors

Industrial structure

Chapter 2 Slide 11Copyright © 2003 Pearson Education, Inc.

Chapter 2 Slide 12Copyright © 2003 Pearson Education, Inc.

The Structural Diversity of Developing Economies Size and income

level Historical

background Physical and human

resources Ethnic and religious

composition

Relative importance of public and private sectors

Industrial structure External

dependence Political structure,

power, and interest groups

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Common Characteristics of Developing Nations Low levels of living

– Per capita national income

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Figure 2.2 Per Capita Gross National Product in Selected Countries, 1997 (in U.S. dollars at official exchange rates)

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Chapter 2 Slide 16Copyright © 2003 Pearson Education, Inc.

Common Characteristics of Developing Nations Low levels of living

– Per capita national income

– Relative growth rates of national and per capita income

Chapter 2 Slide 17Copyright © 2003 Pearson Education, Inc.

Chapter 2 Slide 18Copyright © 2003 Pearson Education, Inc.

Common Characteristics of Developing Nations Low levels of living

– Per capita national income

– Relative growth rates of national and per capita income

– Distribution of national income

Chapter 2 Slide 19Copyright © 2003 Pearson Education, Inc.

Chapter 2 Slide 20Copyright © 2003 Pearson Education, Inc.

Common Characteristics of Developing Nations Low levels of living

– Per capita national income

– Relative growth rates of national and per capita income

– Distribution of national income

– Extent of poverty

Chapter 2 Slide 21Copyright © 2003 Pearson Education, Inc.

Chapter 2 Slide 22Copyright © 2003 Pearson Education, Inc.

Common Characteristics of Developing Nations Low levels of living

– Per capita national income

– Relative growth rates of national and per capita income

– Distribution of national income

– Extent of poverty– health

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Figure 2.3 Infant Mortality Rates in Selected Countries, 1998 (per 1,00 live births)

Chapter 2 Slide 24Copyright © 2003 Pearson Education, Inc.

Chapter 2 Slide 25Copyright © 2003 Pearson Education, Inc.

Common Characteristics of Developing Nations Low levels of living

– Per capita national income

– Relative growth rates of national and per capita income

– Distribution of national income

– Extent of poverty– Health

– Education– The Human

Development Index

Chapter 2 Slide 26Copyright © 2003 Pearson Education, Inc.

Chapter 2 Slide 27Copyright © 2003 Pearson Education, Inc.

Chapter 2 Slide 28Copyright © 2003 Pearson Education, Inc.

Common Characteristics of Developing Nations Low levels of living Low levels of

productivity High rates of

population growth and dependency burdens

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Chapter 2 Slide 30Copyright © 2003 Pearson Education, Inc.

Common Characteristics of Developing Nations Low levels of living Low levels of productivity High rates of population

growth and dependency burdens

Substantial dependence on agricultural production and primary exports

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Figure 2.4 Composition of World Exports (percentages of primary and manufactured products)

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Common Characteristics of Developing Nations

Low levels of living Low levels of

productivity High rates of

population growth and dependency burdens

Substantial dependence on agricultural production and primary-product exports

Prevalence of imperfect markets

Dependence and vulnerability

Chapter 2 Slide 34Copyright © 2003 Pearson Education, Inc.

Concepts for Review

Absolute poverty Brain drain Crude birthrate Death rate Dependency burden Developed world Foreign exchange Gross domestic product

(GDP)

Gross national product (GNP)

Human Development Index (HDI)

Imperfect markets Income gap Income inequality Incomplete information

Chapter 2 Slide 35Copyright © 2003 Pearson Education, Inc.

Concepts for Review, cont’d

Infant mortality rate International poverty

line Labor productivity Least developed

countries (LLDCs) Levels of living Low income

countries (LICs)

Malnutrition Middle-income

countries (MICs) Mixed economic

systems Newly industrialized

countries (NICs) Physical resources

Chapter 2 Slide 36Copyright © 2003 Pearson Education, Inc.

Concepts for Review, cont’d

Primary industrial sector

Production function Purchasing power

equivalent Purchasing power

parity (PPP)

Resource endowment

Secondary industrial sector

Tertiary industrial sector

World Bank