Today’s Warm Up – 4/28/11 Pick up by the turn-in tray. Take out your class notes when you’re done.

Economic Performance: North Korea vs. South Korea

North Korea Command economic system –Gov’t owns productive resources –What, how, and for whom to produce answered by gov’t

North Korea Extremely isolated economy –Little to no trade with other countries

North Korea Desperate Economic Conditions –Refuses outside aide Factories, equipment, etc. are beyond repair –Due to years of underinvestment

North Korea Industrial output and power output have also declined Per capita GDP = $1,900

South Korea Mixed Market Economic System –Individuals own productive resources –Who, what, and for whom to produce is based on individual decisions of consumers and producers with some gov’t involvement

South Korea Transitioned from command to mixed market economic system after the Korean War Has experienced rapid economic growth since the 1960s

South Korea Prior to 1960s, GDP was comparable to poorer countries of Africa and Asia By 2004, equal to the lesser economies in the European Union Per capita GDP = $24,800

Where we’re headed… Why have so many countries transitioned from command to market economic systems? What are the opportunities and consequences involved? Why are some countries successful while others struggle with the transition?

Comparing Constitutions Read parts A and B to answer the questions for discussion in the grid in part C. –For each, answer yes or no and provide evidence from the articles.