1. 7.1. The LDC Experience in the World Economy Learning Objectives: –Evaluate the challenges facing LDCs –Familiar with the liberal model of development –Apply the Liberal model of development

2. 7.1. The LDC Experience Colonial past

3. 7.1. The LDC Experience Colonial past Poverty

4. 7.1. The LDC Experience Colonial past Poverty Political instability

5. 7.1. The LDC Experience Colonial past Poverty Political instability Crime and corruption

6. 7.1. The LDC Experience Colonial past Poverty Political instability Crime and corruption Lack of capital

7. 7.1. The LDC Experience Colonial past Poverty Political instability Crime and corruption Lack of capital Reliance on one or two commodities

8. The Liberal Development Strategy The Dominant Paradigm Integration into the global market (trade, investment capital) Domestic reform (market principles, democracy, institutions, civil society, law) Eliminate corruption, authoritarian rule, autarkic policies, reduce military spending

9. Development and the “Asian Miracle” Japan, “Asian Tigers” Export-driven model of development –Export to rich countries –High tariffs on imports –Trade surplus –Undervalued currency

10. Summary At the end of this class, you should be able to describe and evaluate the development challenges facing LDC’s and provide some tangible examples of the range of human, economic, and social conditions facing LDC countries. You should be able to describe the challenges facing one LDC in particular, as an example of how these human, economic, and social conditions can impact on a specific country (and how they might be different for other countries). You should also be familiar with the liberal model of development, and what policy steps this model suggests are best for LDCs. You should be able to take the liberal model of development and apply it to the LDC we examine in class.