Less Developed and Newly Industrializing Countries

What’s In a Name?  “Third World”  Newly Industrializing Countries  Less(er) Developed Countries  More LDC’s than NIC’s

How It All Began – Imperialism & Colonialism  Empires  Imperialism  Colonialism  Modern Imperialism – 1500’s

Timeline – Modern Imperialism Part One  1494: Spain and Portugal partition the Americas  : Aztecs and Incas defeated  : Dutch establish control in Indonesia – English in North America  : Wars for independence in Latin America, Spanish/Portuguese rule ends  : UK expands control into Asia – “the jewel in the crown” and Hong Kong  1884: Berlin Conference or Europe carves up Africa into pieces

Map of Africa – 1562

Political and Social Institutions in Imperialism  State imposed form of political organization  Ethnic and national identities created where none existed before  Gender roles – transferred from imperial power to colony  Religion – tribal beliefs merge with global faiths

Map of Africa

Economic Institutions and Imperialism  Traditional agricultural economies transformed  Extractive economies  Domestic development impeded as a result

Karte von Afrika

Timeline - Modern Imperialism Part Two  : WWII catalyzes decolonialization Asia/Africa  1947: Independence for India  : Independence for most British, French and Belgian colonies in Africa. Nigeria 1960! Woo Hoo!  1975: Independence for most former Portuguese colonies in Africa – Angola  1997: Hong Kong – control reverts back to Chinese – “one country, two systems”

Map of Africa 2003

Challenges to Building State Autonomy and Capacity  Absence of professional bureaucracy  Clientelism  Rent Seeking  Corruption  Sovereignty compromised by external actors

Challenges to Building a Unified Nation-State  Arbitrary boundaries imposed by former colonial powers  Ethnic and religious divisions exacerbated by economic inequalities – Rwanda - ethnonationalism

Paths to Economic Growth  Import substitution  Export-oriented industrialization  Structural adjustment  Neo-colonialism

Corruption – The Biggest Imperial Hangover  Kleptocracy  Prebendalism  Nigeria 1970’s and 1980’s  Nigeria 1990’s  Nigeria’s “pharonic” system – only million stolen, not billions

Corruption Index Map Yellow is less corrupt, red is most corrupt Courtesy of Transparency International (transparency.org)

Is There Any Hope?  Building civil societies  Non-Governmental Organizations  Microcredit and microfinance  Debt relief - $76 billion in 2010  Nigeria Trust Fund U2’s Bono and former U.S. Treasury Secretary Paul O’Neill discuss third world debt relief while in Ghana, 2002.

World Bank and International Monetary Fund  Created at Bretton Woods Conference 1944 to stabilize world economy  185 member states – based in Washington DC  US chooses head of World Bank, IMF chief picked by European Union  IMF strength derived from “quota” or payment from member states – amount paid depends on wealth – determines voting strength  Loans come with “strings attached”  Minimal investment in Africa, less than 2%, half of which goes to Nigeria and Sudan

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