Problems of the third world countries


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A presentation of the Problems Developing Countries are facing.

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  • Source: World Bank, January 2011. Geographic classifications and data reported for geographic regions are for low-income and middle-income economies, as defined by the World Bank - Total of 144 countries.
  • The Role of Agriculture in the Development Process - Agricultural Progress in the Third World and its Effect on U.S. Farm Exports
  • Like Somalia, as # 147, Haiti as # 116,
  • Sources: IMF -- International Monetary Fund, World Economic Outlook Database, April 2005(*) CIA The World Factbook (covers countries not mentioned by the IMF, information may refer to 2004 or earlier.)Slightly different figures you will find at The World Bank Group
  • The GNI based on purchasing-power-parity (PPP) per capita in int'l Dollars. Sources: IMF -- International Monetary Fund, World Economic Outlook Database, April 2005(*) CIA The World Factbook (covers countries not mentioned by the IMF, information may refer to 2004 or earlier.)Slightly different figures you will find at The World Bank Group
  • * This entry gives the average annual number of births during a year per 1,000 persons in the population at midyear; also known as crude birth rate. The birth rate is usually the dominant factor in determining the rate of population growth. It depends on both the level of fertility and the age structure of the population.Source: 
  • * * This entry gives the average annual number of births during a year per 1,000 persons in the population at midyear; also known as crude birth rate. The birth rate is usually the dominant factor in determining the rate of population growth. It depends on both the level of fertility and the age structure of the population.Source:
  • See Literacy rates.docx
  • Nurse with undernourished child suffering from marasmus. Therapeutic feeding center in Bo, Sierra Leone, implemented by Action contre la Faim (ACF) a French non-governmental organisation (Action against Hunger). These centers give malnourished peopleRM Image No. 036223 | Burger-Hia Percy / Phanie
  • * Source:DYING FOR CHANGE, World bank & World Health Organization
  • Source: FAO: The State of Food Insecurity in the World 2006:
  • * Source:DYING FOR CHANGE, World bank & World Health Organization
  • From the voices of the people project of WB and WHO
  • *The author is Director of  Inter Region Economic Network.
  • source: Transparency International, 2011
  • Source: :
  • Problems of the third world countries

    2. 2. Third World Countries • The exact origin of the term “Third World Countries” is still unclear. • However, it is believed that the term was originally coined in times of the Cold War to distinguish those nations that are neither aligned with the West (NATO) nor with the East, the Communist block.
    3. 3. Third World Countries • Today the term refer to the less developed or developing countries. These are the nations that emerged from their colonial periods – at least politically.
    4. 4. 2011 LIST OF DEVELOPING COUNTRIES • Afghanistan • India • American Samoa • Argentina • Armenia • Benin • Bhutan • Bolivia • Brazil • Cambodia • Central African Republic • Chile • China • Congo, Dem. Rep. • Congo, Rep. • Cuba • Haiti • Indonesia • Iran, Islamic Rep. • Iraq • Jamaica • Jordan • Kazakhstan • Kenya • Kiribati • Korea, Dem. Rep. • Peru • Philippines
    5. 5. It can be noticed that Third World countries are mostly from Africa, Asia and Latin America
    6. 6. Characteristics of the Third World Countries
    7. 7. Developing countries have common characteristics. And these are the root cause of their poverty.
    8. 8. Subsistence Agricultural Economy
    9. 9. • The main economy of a less developed country depends on agriculture. Most of its people work in agriculture. • In most of Africa, Asia, and much of Latin America, a large percentage of people are primarily involved with feeding themselves from their own land and livestock.
    10. 10. • However, Third World Countries, are mostly adopting subsistence agricultural economy. –Subsistence agriculture is self- sufficiency farming in which the farmers focus on growing enough food to feed themselves and their families.
    11. 11. Characteristics of Subsistence Agricultural Economy 1. Natural calamities can easily shake the stability of such economy. - drought, flood, typhoon etc.
    12. 12. Natural calamities
    13. 13. 2. Prices of demand are subject to the decisions of the industrial countries. –the industrial countries put up unreasonable trade barriers to the detriment of agricultural products. – “beggar thy neighbor” policies
    14. 14. • Trade barriers are any of a number of government-placed restrictions on trade between nations. The most common sorts of trade barriers are things like subsidies, tariffs, quotas, duties, and embargoes. –Tariffs are a fairly common form of trade barriers, either (1) a tax on imports or exports(trade tariff) in and out of a country.
    15. 15. • Trade between EU Member States and trade with Norway and Iceland takes place according to the special rules that apply to the internal market of the EU. • The U.S. Department of Agriculture imposes extensive regulatory controls on agricultural markets.
    16. 16. • A Kenyan commentator about regulatory trade barriers: “why do developed countries impose their environmental ethics on poor countries that are simply trying to pass through a stage they themselves went through?” “If only people in developed countries… could see… the millions who are poverty stricken, sick, starving and even dying… they send us aid, but it would be better if they let us trade with them.”
    17. 17. Agricultural Products vs. Industrial Products
    18. 18. 3. Low productivity due to improper farming method, insufficient knowledge . 4. Insufficient government funds, facilities and support.
    19. 19. VS.
    20. 20. Per capita income • Per capita income is obtained by dividing national income of a country by its population in the year. Per capita income = national income in a year population in the year • It is the average income of an average person in that country.
    21. 21. Per capita income • World Bank compares the economic condition of the different countries by comparing their real per capita income. This determines which part of the world is rich and which is poor. • The concept of per capita income is used as an indicator to measure economic development of a country.
    22. 22. Third World Countries in Terms of their Gross National Income (GNI) Rank Country/Region GNI per capita 1 Timor-Leste/ South-East Asia *400 2 Malawi/ Eastern Africa 596 3 Somalia/ Eastern Africa *600 4 Congo/ Middle Africa 675 5 Tanzania/ Eastern Africa 720 6 Yemen/ Middle East 745 7 Burundi/ Eastern Africa 753 8 Afghanistan/Central Asia *800 9 Guinea-Bissau/ Western Africa 856 10 Ethiopia/Eastern Africa 859 11 Niger/ Western Africa 896 12 Liberia/ Western Africa *900 13 Sierra Leone/ Western Africa 901
    23. 23. Top 10: First World Countries in terms of their Gross National Income Rank Country/Region GNI per Capita 1 Luxembourg/Western Europe 66 821 2 Norway/Northern Europe 41 941 3 United States/North America 41 557 4 Ireland/Northern Europe 40 003 5 Bermuda (overseas territory of the UK) *36 000 /North America 6 Iceland/Northern Europe 35 686 7 Denmark/Northern Europe 34 718 8 San Marino/Southern Europe *34 600 9 Canada/North America 34 444 10 Switzerland/ Western Europe 33 168
    24. 24. Causes of low per capita income • Third world Countries have low per capita income – since the national income of a poor country is low and it is overpopulated.
    25. 25. Causes of low per capita income • The various causes of low per capita income of the LDCs can be categorized in the following groups: 1. National Income side causes - National income is low 2. Population side causes -
    26. 26. Causes of low per capita income National Income Side Cause: a. Backwardness of agriculture sector b. Industrial backwardness c. Limited savings and investment d. Unfavorable balance of trade e. Shortage of technical hands f. Problem of unemployment g. Low labor efficiency h. Inadequate transport and communication facilities i. Absence of innovative capabilities j. Political instability k. Corrupt bureaucracy
    27. 27. First World Countries vs. Third World Countries In First World Countries In Third World Countries
    28. 28. First World Countries vs. Third World Countries
    29. 29. High Birth Rate
    30. 30. High Birth Rate • The less developed countries have very high birth rates.
    31. 31. Rank Country (births/1,000 population) Date of Information 1 2 Niger Uganda 50.06 47.38 2011 est. 2011 est. 3 Mali 45.15 2011 est. 4 Zambia 43.51 2011 est. 5 Burkina Faso 43.20 2011 est. 6 Ethiopia 42.59 2011 est. 7 Somalia 42.12 2011 est. 8 Burundi 40.58 2011 est. 9 Malawi 40.42 2011 est. 10 Congo, Republic of the 40.09 2011 est. Top 10 Countries with the Highest Birth Rates
    32. 32. Countries with the Low Birth Rates Country births/1,000 population 1 Monaco 6.94 2 Japan 7.31 3 Germany 8.30 4 Singapore 8.50 5 Korea, South 8.55 6 Austria 8.67 7 Czech Republic 8.70 8 Slovenia 8.85 9 Bosnia and Herzegovina 8.89 10 San Marino 9.02
    33. 33. Reasons for High birth rates • Many parents will have a lot of children in the expectation that some will die because of the high infant mortality rate • Large families can help in looking after the farm • The children will be able to look after their parents if they become old or sick; there may not be a old age pension scheme • There may be a shortage of family planning facilities and advice
    34. 34. Developed countries have low birth rates because: • It is expensive to look after large families • More women prefer to concentrate on their careers • Increasing sexual equality has meant women have more control over their own fertility • There is a ready availability of contraception and family planning advice
    35. 35. Implications of High Birth Rate • High birth rates leads to increase in population especially when birth rate is faster than mortality rate. • A significant feature of the LDC’s is its young population. • This means, more dependent and less productive human capital.
    36. 36. High Illiteracy
    37. 37. Literacy • Literacy helps accelerate economic development. It is easier to impart proper attitudes, values, knowledge and skills to people who are literate. People become more rational and productive when they are trained or educated.
    38. 38. Literacy • Fajardo defined literacy as the ability to read and write in their own dialects. • In 1930 the U.S. Bureau of the Census defined illiterate as any person over ten years of age who was unable to read and write in any language.
    39. 39. Illiteracy • By the next census (1940), however, the concept of “functional” illiteracy was adopted, and any person with less than five years of schooling was considered functionally illiterate, or unable to engage in social activities in which literacy is assumed.
    40. 40. Reasons of High Illiteracy • Poverty • Inadequate Budget • Lack of schools and teaching staff • High Fees not Affordable • Religious Matters • Insufficient Funds • Feudal, Tribal or other Systems • Political Conflicts or Hurdles • Agricultural States In an article written by Madeeha Rashid she mentioned that good education is “A Challenge to Third World” due to these reasons:
    41. 41. Third World Countries First World Countries
    42. 42. Health, ill-health and poverty “We are all poor here, because we have no school and no health center. If a woman has a difficult delivery, a traditional cloth is tied between two sticks and we carry her for seven kilometers to the health center. You know how long it takes to walk like that? There is nobody who can help here, that’s why we are all poor here. - Togo, 1996
    43. 43. High death rates Country deaths per 1,000 population 1 Angola 23.40 2 Afghanistan 17.39 3 South Africa 17.09 4 Nigeria 16.06 5 Russia 16.04 6 Ukraine 15.74 7 Chad 15.47 8 Guinea-Bissau 15.27 9 Lesotho 15.19 10 Central African Republic 15.01
    44. 44. Poor Health • Many people on the less developed countries are afflicted with poor health. • In developing countries, millions of people suffer from avoidable health problems—such as infectious diseases, malnutrition, and complications of childbirth—simply because they are poor (April 2004, Population Reference Bureau).
    45. 45. • Many people in the less developed countries are either malnourished or undernourished. That make them susceptible to diseases. –Malnourished, not fed up with healthy food –Undernourished, not fed up with enough food
    46. 46. The Undernourished Map
    47. 47. Reasons for Poor Health • Hunger - hunger and malnutrition are seen as underlying causes of many diseases.
    48. 48. • lack of safe water • Sanitation problems – In Bangladesh, for example, poor people point out the scarcity of latrines, and say that long queues often form outside toilets. • poor housing or shelters, and often in dangerous or unstable areas. • Poor hospital facilities especially in far-flung places • No access to support, information and services.
    49. 49. “Everything is contaminated, land, water, plants, and people.” - Community member, Ecuador It’s draughty, humid, leaking. Just try live here in winter. Our children have fallen ill. And the adults too. There are bugs, cockroaches, what have you. It’s cold. - Roma men and women, Bulgaria “Just look how the kids are playing in the street with so much dirt. The water in the streets brings infections, and it is because of a lack of a sewage system… - A woman, Barrio las Pascuas, Bolivia
    50. 50. Negative Attitudes, Values and Institutions
    51. 51. • Some pervasive attitudes, values and institutions in the less developed countries are not favorable to economic development. • As mentioned by Fajardo, the greatest obstacle to development is MAN HIMSELF. • The development of people is the only real and enduring kind of development.
    52. 52. Negative Attitudes and Values and Institutions • In an article written by *James Shikwati, Why America Will Always Be Richer Than Other Nations, he enumerated the negative attitudes of people from the Third World Countries that contribute to their poverty as compared to developed countries like America and several countries in Europe.
    53. 53. • Tardiness • Laziness • Resistance to change • Lack of self-reliance • Colonial mentality • Fatalism • Nepotism • Extravagance – lavish and unnecessary expenditures • Poor systems
    54. 54. Inefficient Public Administration • Public administration has been generally inefficient in many developing countries. – high degree of nepotism and personal connections – Government corruption – the lack of effective supervision
    55. 55. 5 most corrupt countries 1. Somalia 2. North Korea 3. Myanmar 4. Afghanistan 5. Uzbekistan, Sudan, Turkmenistan (tied)
    56. 56. High Rate of Unemployment
    57. 57. Unemployment • The labor force is extremely underutilized in the less developed countries. –Unemployment refers to a situation where people who are willing and able to work cannot find a job
    58. 58. –Underemployment means people are working on part-time basis; . It may also include those who work on full-time but their productivity is extremely low –disguised unemployment which pertains to people who are actually working but they have no real economic contributions to production
    59. 59. Reasons for High rate of unemployment • High population • Poor education • Agriculture and a changing environment • Few job opportunities
    60. 60. Unemployment Rates of some countries Country (%) Date of Information Zimbabwe 95.00 2009 est. Nauru 90.00 2004 est. Namibia 51.20 2008 est. Haiti 40.60 2010 est. Afghanistan 35.00 2008 est. Spain 21.70 2011 est. Nigeria 21.00 2011 est. Philippines 7.00 2011 est.
    62. 62. Problems of the third world country