Chapter 17

Some Critical Issues for the Twenty-First Century

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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

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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.
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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

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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

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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

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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

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Globalization and International Financial Reform, contd

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

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Concepts for Review

Absorptive capacity Agenda 21 AIDS Biodiversity Earth summit Global commons Global factories

Globalization Global warming Greenhouse gases Human immunodeficiency virus (HIV) Ozone depletion

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