Lecture Notes: Wealth
Lecture #1
Introduction: read workbook page 139
Video Clip: 1st world problems
http://waterislife.1mobb.com/
1. Creation and distribution of wealth
1.1. Creation of wealth
a. Indicate some wealth creation factors ( wkbk pg 159, 160)

exploitation of natural resources

business productivity

Public investments

labour force skills
b. Indicate means used by states to promote wealth creation ( wkbk pg 175, 4.21)

investment in education

establishment of research and development programs

participation in economic groups
c. Indicate measures implemented by states to regulate the exploitation of natural resources ( textbk pg 160, wkbk
pg 160)

adoption of resource-use

preservation and restoration policies

imposition of sanctions
d. Indicate factors that limit wealth creation (wkbk pg 165, 3.3.3)

scarcity of natural, human and financial resources

weak transportation and communication infrastructure

inadequate labour force training

limited access to energy sources
To do: Workbook page 141 #1 a.
Lecture #2
1. Creation and distribution of wealth
1.2. Disparity in the distribution of wealth
a. Locate, on a world map, countries that are rich in natural resources

e.g. Brazil and the United States [drinking water] wkbk pg 14

Saudi Arabia and Venezuela [oil]

Chile and Democratic Republic of the Congo [minerals]

Canada and Russia [forests] text pg 160
b. Give indicators used to measure disparity

Gini coefficient [the wealth gap within a country] txt 156, wkbk 157

GDP [total value of goods and services produced in one year]) txt 144-145, wkbk 151
c. Locate, on a world map, countries with a high GDP per capita and countries with a low GDP per capita

e.g. in 2012, Australia and Japan [high GDP]; Bangladesh and Honduras [low GDP])
Map of countries by GDP
d. Indicate means used by states to reduce the disparity in the distribution of wealth

adoption of fiscal policies

regulation of working conditions
e. Indicate the components of the Human Development Index (HDI) wkbk 152, txt 146-147

standard of living

education

health
f. Locate, on a world map, countries ranked high on the HDI and countries ranked low on the HDI wkbk 153, txt 153

e.g. in 2012, Germany and Canada [high HDI]; Haiti and Madagascar [low HDI])
To do: Workbook page 141 #1 b, page 141 #3 all, Page 155 #4 all, Page 158 #1a.
Video Clip: Power of one, episode 1
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ex=1
Lecture #3
2. International organizations
a. Indicate objectives of various economic groups Txt 150 ( globalization of trade)

the European Union’s objective is to strengthen economic cooperation among the member states;

ASEAN’s objectives are to accelerate economic growth and to improve the living conditions in the member
states.
b. Indicate objectives of various international organizations wkbk 168-170

the G8 seeks to promote joint action on economic questions;

the World Trade Organization facilitates trade;

the International Monetary Fund helps stabilize the monetary system;

the World Bank grants loans to the less-developed countries;

the Food and Agriculture Organization of the United Nations seeks to ensure that people have access to
healthy food in adequate quantities.
c. Indicate objectives of various international non-governmental organizations wkbk 180-181

the Mouvement international Quart monde aims to eradicate poverty;

Oxfam International combats social injustice and poverty;

the World Social Forum seeks to coordinate the action of altermondialist organizations;

Doctors Without Borders provides medical assistance in conflicts and humanitarian crises.
3. Colonization, decolonization and neocolonization
a. Indicate objectives of the colonizing states wkbk 148, 164, 161

to obtain natural resources

to acquire new markets
b. Indicate causes of the independence of the African and Asian colonies

assertion of identity

emergence of an educated elite

desire to control resources
c. Indicate consequences of decolonization for the new countries

ethnic conflicts

wars

challenging of some borders
d. Define the term neocolonization: wkbk 169 (3.5.3)

economic domination by a state of its former colonies
To do: Workbook page 149 #2 all, #3 all, page 171 # 1d.
Video Clip:
Power of One, Episode 2 and 3
https://www.youtube.com/watch?v=coxgFQvgmZQ&list=PLvzOwE5lWqhS4jY8K27Xjp9r5p1DuMFY5
https://www.youtube.com/watch?v=mynnhDFRFYY&list=PLvzOwE5lWqhS4jY8K27Xjp9r5p1DuMFY5
Lecture #4
4. North-South relations
( comparison on text pgs 158-159)
a. Give characteristics of the developed countries, such as Germany, Australia and Norway wkbk 151-152

goods and services readily accessible

high standard of living for the majority of the population

concentration of capital

high-tech industries
b. Give characteristics of the economies of southern countries wkbk 150

extraction of natural resources

export crops

resource exploitation by foreign interests

limited on-site processing of raw materials
c. Give characteristics of the less-developed countries, such as Colombia, Egypt and Indonesia wkbk 150, txt 152,
wkbk 160 ( 3.1.2)

limited access to basic goods and services for the majority of the population

low GDP per capita

large proportion of the labour force in the agricultural sector
d. Give characteristics of the emerging economies, such as Brazil, China and India wkbk 150, txt 153,
wkbk 160 ( 3.1.2)

very rapid economic

growth based on industrialization

major social inequalities

uneven development of the territory

heavy reliance on exports
e. Indicate some objectives of fair trade wkbk 164

to establish commercial partnership between distributors in developed countries and producers in lessdeveloped countries

to respect the social and economic rights of workers

to pay a fair price for products

to contribute to sustainable development
To do: Workbook page 167 # 4 all.
Video Clip, Power of One, episode 4 and 5
https://www.youtube.com/watch?v=bk9GL1AnMLM&list=PLvzOwE5lWqhS4jY8K27Xjp9r5p1DuMFY5
https://www.youtube.com/watch?v=5LCFoY0J5DY&list=PLvzOwE5lWqhS4jY8K27Xjp9r5p1DuMFY5
Lecture #5
5. Globalization of the economy
5.1. Influence of globalization Txt 162-163
a. Give characteristics of the globalization of the economy

liberalization of trade

greater fluidity of financial flows
b. Indicate advantages of globalization for firms

growth of markets

fall of production costs

Increased profits
c. Indicate effects of globalization on the economy of the developed countries

development of new markets

job losses in the manufacturing sector
d. Indicate effects of globalization on the economy of the less-developed countries

development of emerging economies

migration of workers
5.2. Power of multinational firms txt 163
a. Indicate what leads states to welcome multinational firms

job creation

source of income
b. Indicate measures implemented by states to attract multinational firms

fiscal advantages

research and development grants

preferential tariffs

infrastructure development
c. Indicate factors that lead firms to relocate their activities

reduction of production costs

access to new markets
To do: workbook page 166 # 3.
Video Clip, Power of One, episode 6
https://www.youtube.com/watch?v=Nw-Dmmk9lyg&list=PLvzOwE5lWqhS4jY8K27Xjp9r5p1DuMFY5
Lecture #6
6. Indebtedness of states
a. Locate, on a world map, countries with high debt levels and countries with low debt levels txt 155

in 2012, Brazil and United States [high debt];

China and Turkey [low debt])
b. Name the creditors of states: wkbk 169

Citizens

financial institutions

International Monetary Fund

World Bank

Other states
c. Indicate factors that explain the indebtedness of states

infrastructure construction

public services

support for business development

military expenses
d. Indicate possible effects of state indebtedness on the economy and society txt 154 (insolvency)

reconsideration of social programs

privatization

increase in the gaps between social groups

greater economic dependence

political and social crises
To do: Workbook page 179 #7.
Video Clip, Power of One, episode 7 and 8
https://www.youtube.com/watch?v=ayTRujPD-14&list=PLvzOwE5lWqhS4jY8K27Xjp9r5p1DuMFY5
https://www.youtube.com/watch?v=EASqF1BwXk4&list=PLvzOwE5lWqhS4jY8K27Xjp9r5p1DuMFY5