Developing nations typically have 5 key characteristics: 1) widespread poverty where basic needs cannot be reliably met; 2) a large percentage (50-70%) of the workforce in agriculture, which is unreliable due to poor soil/tools/conditions and results in food shortages; 3) scarce capital both physical (tools, infrastructure) and human (education, skills); 4) limited imports due to low exports after meeting local needs with natural resources; and 5) rapidly growing populations which further strains limited resources.

1. 5 Characteristics of Developing CountriesThe five most common traits found in Developing Nations

2. Poverty is WidespreadWhat does “widespread” mean?Food, water, shelter…Education healthcare, clothing

3. Def of “poverty”BARELY able to satisfy their basic needs for food, clothing, shelter, education, health care, clean water....They have to work long hours and do not eran enough money

4. WHY???The Cannot produce enoughNot enough job opportunityNot enough skills, tool, machines.

5. % of Families in AgricultureWhat is “wrong” with Agriculture?Fickle MistressTenantsToolsHand to mouth

6. The key number here is...50-70If 50-70% of your work force is working in Agriculture...you’re gonna have problems...BIG problems.

7. Difficult conditionsPoor soilInconsistent rainNo irrigationInsects and/or blightGood some seasons...bad in others.Results in food shortages...leading to famine.

8. 3 types of farmersOwn Land – but small and poor qualityTenant Farmers – Renting landDay LaborersWhich would you rather be?

9. Why is it so bad on the farm?Handmade toolsOutdated toolsAnimals instead of machinesSick animalsPoor seedsProduce only enough to feed themselves

10. $$$Low production means low incomeLow income means low investmentsLow investments means low productionI know!!! Let’s borrow money from someone!!! Bad idea – high interest rates and often times the gateway to a life of debt.

11. Capital is ScarcePhysicalHumanCapital: what people use to increase their ability to produce the goods and services they need to improve their living conditions.

12. PhysicalPlows, warehouses, and irrigation systemsTools, machines, and factoriesOffice buildings, copy machines, telephonesPorts, roads, trucks

13. HumanThe knowledge and skills that people use to produce goods and services.How do you get it? Through training and education.You can’t have one without the other.

14. Imports are LimitedImports and Exports work together.If the Value of Exports is up...then the Value of Imports is up...and vice versa.

15. What are things you export? The things you produce that are LEFT OVER after to meet the local needs of your people.D.N.’s tend to export Natural Resources. Gifts of Mother Nature.

16. What are things you import?Goods and services that they cannot produce themselves...or cannot produce enough of.Food, energy, machinery, human capital,

17. If the two are imbalanced?You are in debt.You can take out a loan.I.N.’s are wary to lend to D.N.’sThe end result is a poor, country with low standards of living.

18. Populations are growing RapidlyThe Perfect storm:The introduction of Modern Medicine and old habits of ensuring the survival of a big family.When you combine these two factors...the result is a rapidly growing population

19. Puts a burden on the landNeed more:FoodEducationJobsHealthcareWaterDNs already have a limited number of these things to begin with!!!!