1. 1 ECON Designed by Amy McGuire, B-books, Ltd. McEachern 2010-2011 20 CHAPTER Developing and Transitional Economies Macro

2. 2 LO 1 Share of World Population and Output from High-, Middle-, and Low-Income Economies Exhibit 1

3. 3 LO 1 Developing and Industrial Economies  Developing countries –Low and middle income economies Higher illiteracy rate Higher unemployment Faster population growth Exports –Agricultural products –Raw materials  Industrial market countries –High-income economies

4. 4 LO 1 Per Capita Income for Selected Countries in 2007 Exhibit 2

5. 5 LO 1 Health and Nutrition  Developing countries –Poor health Malnutrition –Half the calories Disease –Epidemics –High infant mortality

6. 6 LO 1 High Birth Rates  Developing countries –High fertility rates –Larger families Source of farm labor No social security –High child mortality rates

7. 7 LO 2 Productivity: Key to Development  Low labor productivity –Output per worker –Quality of labor –Amounts of capital, natural resources, other inputs  Increase productivity –Invest in human and physical capital Domestic savings Foreign funds

8. 8 Foreign Aid LO 4  International transfers – concessional terms –Grants and loans –Money, capital goods, technical assistance, food  Bilateral assistance –Country-to-country  Multilateral assistance –World Bank –IMF