Africa Economy

Bellringer - Answer only on page 39 (don’t skip lines) Which economic system do you think consumers like the most? Traditional, Command, or Market Which economic system would be the worst for competition between producers? T, C, or Ma In a market economy, who owns property and resources? Tribes, governments, or individual Which economic system is found in simple agricultural societies? T, C, or Ma What is the most common economic system today? Explain how the US is a mixed economy. (What are the traditional, command, and market elements?)

Review-Types of economies Which economic system do you think consumers like the most? Market Which economic system would be the worst for competition between producers? Command In a market economy, who owns property and resources? Individuals Which economic system is found in simple agricultural societies like countries in Africa? Traditional What is the most common economic system today? Mixed Explain how the US is a mixed economy. Has parts of all 3: traditional-we have farming and hand-made goods, Command-government owns post office, sets minimum wage, gives loans; Market-we have private ownership of business and lots of competition and choice

Georgia Performance Standards SS7E1 The student will analyze different economic systems. a. Compare how traditional, command, and market economies answer the economic questions of (1) what to produce, (2) how to produce, and (3) for whom to produce. b. Explain how most countries have a mixed economy located on a continuum between pure market and pure command. c. Compare and contrast the economic systems in South Africa and Nigeria. Literacy rates

Copy and Fill in this chart on p. 39 South Africa Nigeria Type of economy- now and in the past (2 lines) Goods produced (3 lines) Goods exported (2 lines) GDP per capita (1 line) Labor Force % (2 lines) Unemployment Rate (1 line) Literacy Rate (1 line)

Economic System of South Africa Currently, the strongest economy in sub-Saharan Africa Several decades ago, it was totally a command economy, but government has allowed citizens to take over industries they previously controlled. Government still operates some companies, like the post office and controls some of the healthcare S.A. is still struggling for racial equality after years of apartheid (racial segregation) There is still a big difference in income and education between blacks and whites

Economic System of South Africa South Africa produces minerals like gold, diamonds, and platinum (world's largest producer of platinum, gold, chromium), car assembly, machinery, textiles, iron and steel, fertilizers South Africa exports minerals, as well as machinery and equipment GDP per capita is $11,300 (107th in the world) Labor Force is divided this way: Agriculture: 9%,Industry: 26%,Services: 65% What are some examples of industry and service jobs? What is required for most service jobs? Unemployment Rate is 24% (170th in the world), why do you think it might be so high?

Economic System of Nigeria Nigeria is now one of the poorest nations in the world, why?? 1. In the 1970’s, the government completely controlled the oil industry. It was one of the 50 richest because of oil, but over the years, money was spent carelessly by the government (led by cruel dictators, years of civil wars, lots of corruption). 2. Now, more about 2/3 of the people are farmers. (What problems can happen in a country that relies on farming?) Before the oil boom, Nigeria used to export surplus crops, but now must import much of their food. What does an increase in oil production have to do with less crops?

Economic System of Nigeria Nigeria produces oil and petrochemicals and only subsistence farming now 95% of Nigeria’s main exports are oil and petrochemicals GDP per capita is $2,700-why with all of that oil, can it be so low?? Labor force is divided this way: Agriculture: 70%, industry: 10%, services: 20% Unemployment rate was 4% in 2007, now it is: 24%, why such a jump?

Literacy Rates in Africa Literacy rate in Africa is 50% (Burkina Faso-21%, Zimbabwe is 90%): http://en.wikipedia.org/wiki/List_of_countries_by_literacy_rate A high literacy rate improves GDP and standard of living Nigeria’s literacy rate is 61%. The government does not give a lot of $$ to education, so only people with money get a good education, what other country does that sound like? South Africa, the most developed country in Africa, has a literacy rate of 86%. Government pays more $$ than most African countries for education (most kids go for 13 years)

Review Questions Answer only on pg.39 What is South Africa’s main export? What is Nigeria’s main export? Which country has the higher GDP per capita? Why was Nigeria’s economy considered command in the 1970’s? What is South Africa’s biggest economic concern? What are Nigeria’s biggest economic concerns? Why is the literacy rate higher in South Africa than in Nigeria?

Review Questions Answer only on pg.39 Minerals (gold, diamonds, etc) Oil South Africa Government controlled all of the oil industry Unemployment Rate Unemployment rate, low literacy rate, 95% of exports are oil, environmental issues affecting agriculture South Africa has prioritized education, spending $$ on human capital so more people can go to school

Activity In groups of 3-4, read the 8 success stories. On the paper titled Success Summary, write 1-2 sentences on what you think contributed to each success. Then at the bottom, identify which stories did similar things and how they are similar.

Homework – complete crossword puzzle Word Bank: Indigenous Bankruptcy Debt Descendants Market Trafficking Tourism Mediators Management Interest Domestic Profit Rural GNP Life expectancy United Nations interdependence Labor Union Per capita Literacy rate Embargo