1. Growth & Less Developed Countries The International Economy

2. GDP per capita Value of final goods produced/total population IACs GDP among top 27 in the world Market economy based on technological advancement Well-educated labor LDCs ≈ 150 countries with low GDP Economy based on agriculture Uneducated labor

3. LDCs Poorest regions are S Asia and Sub-Saharan Africa

4. Quality-of-Life Indicators for Selected Countries, 2009 United States 46,443 78 8 % 99% 7,768 8 Japan 39,573 83 4 99 4,129 27 China 3,566 73 22 81 1,433 93 Bangladesh 559 64 61 43 161 108 India 1,033 65 72 61 510 77 Egypt 2,450 71 36 71 843 75 Mozambique 456 42 168 48 420 116 Country GDP per Capita Life Expectancy (years) Infant Mortality Rate (%) Literacy Rate (%) Per Capita Energy Consumption Economic Freedom Rank

5. Economic Growth/Development Abundant natural resources Investment in human resources Accumulation of capital Technological progress Political stability

6. Vicious circle of poverty The trap in which countries are poor because they cannot save and invest, but they cannot save and invest because they are poor

7. LDC Governments Need to Stabilize to Attract Foreign Investment Law & Order: legal system, monetary value, property ownership Infrastructure: transportation, communications, and education system International Trade: market exchange rates

8. AID Agency in charge of U.S. aid to foreign countries 1% of U.S. budget is spent on aid to foreign countries

9. World Bank Lending agency that makes long-term, low-interest loans and provides technical assistance to LDCs

10. IMF The lending agency that makes short-term conditional loans to developing countries