Chapter 17 Some Critical Issues for the Twenty-First Century Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Global Interdependence and the Growth of Developing World Markets LDCs have long been dependent on developed countries Developed countries are increasingly dependent on LDCs for – Natural resources and raw materials – Markets for developed-country products Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 17-2 The Global Environment and the Developing World Pollutants and their consequences for the global environment MDC and LDC contributions to greenhouse gases Rain Forest Preservation as a Public Good: Who Should Pay? Searching for Solutions: The 1992, 1007, and 2002 summits. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 17-3 The Crisis in Sub-Saharan Africa 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 Overall economic growth lagged behind that in other regions The 1990s were not been much better Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 17-4 The Economic Crisis in SubSaharan Africa Economic dimensions of the problem 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 Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 17-5 The Economic Crisis in SubSaharan Africa 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 Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 17-6 Globalization and International Financial Reform National economies are increasingly integrated into the global economy 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 Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 17-7 Globalization and International Financial Reform, cont’d 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 Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 17-8 Concepts for Review Absorptive capacity Agenda 21 AIDS Biodiversity Earth summit Global commons Global factories Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Globalization Global warming Greenhouse gases Human immunodeficiency virus (HIV) Ozone depletion 17-9