1. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 17 Some Critical Issues for the Twenty-First Century

2. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 17-2 Global Interdependence and the Growth of Developing World Markets n LDCs have long been dependent on developed countries n Developed countries are increasingly dependent on LDCs for –Natural resources and raw materials –Markets for developed-country products

3. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 17-3 The Global Environment and the Developing World n Pollutants and their consequences for the global environment n MDC and LDC contributions to greenhouse gases n Rain Forest Preservation as a Public Good: Who Should Pay? n Searching for Solutions: The 1992, 1007, and 2002 summits.

4. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 17-4 The Crisis in Sub-Saharan Africa n Economic dimensions of the problem: over the 1980s –Per capita output and consumption fell by more than 40% –Investment and exports fell by about 30% –Per capita food production fell, poverty rates rose –Total external debt more than doubled n Overall economic growth lagged behind that in other regions n The 1990s were not been much better

5. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 17-5 The Economic Crisis in Sub- Saharan Africa n Economic dimensions of the problem n Social dimensions of the problem –Severe cuts in health and educational expenditures –Declines in school enrollments –Increases in malnutrition, maternal and child mortality. –Spread of HIV

6. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 17-6 The Economic Crisis in Sub- Saharan Africa n Causes of the crisis are many and varied, but include: –Drought –Low commodity prices –Foreign capital withdrawal –Reduced foreign aid –Poor government policies (neglect of agriculture, inefficient SOEs, no attention toward export promotion) –Rapid population growth

7. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 17-7 Globalization and International Financial Reform n National economies are increasingly integrated into the global economy n Globalization has three main effects: –A lessening of the power and influence of individual nation-states, esp. in the developing world –An increased risk of financial instability –An increase in illegal immigration from the South to the North

8. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 17-8 Globalization and International Financial Reform, cont’d n Effective Management of new Global Challenges include: –Debt relief for LDCs –The creation of new LDC-funding sources, such as a tax on international currency transactions (Tobin tax); curb hot money flows –Creation of formal national bankruptcy procedure for severely indebted countries. –Reform of the IMF and the World Bank

9. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 17-9 Concepts for Review n Absorptive capacity n Agenda 21 n AIDS n Biodiversity n Earth summit n Global commons n Global factories n Globalization n Global warming n Greenhouse gases n Human immunodeficiency virus (HIV) n Ozone depletion