Unit 3 - World Issues

Famine

A short-term shortage of food caused by a temporary failure of food production or distribution that leads to starvation.

Starvation

Extreme hunger that occurs over an extended period due to the failure to receive essential nutrients from food.

Malnutrition

A medical condition of poor health caused by an imbalanced diet that includes too much or too little of one or more essential nutrients.

Chronic Hunger

Results from an insecure supply of food, affecting over 850 million people and contributing to high infant mortality rates and poor development.

The Global Hunger Index and what/how it measures

• The Global Hunger Index is a tool that attempts to measure and track hunger globally

• measures hunger using a composite score calculated from four key indicators: undernourishment, child stunting, child wasting, and child mortality

The categories and types of agriculture

• 1st Category:

  • Subsistence Farming

  • Cash Crop Farming

• 2nd Category:

  • Intensive Farming

  • Extensive Farming

Subsistence Farming

Farming system where crops and livestock are raised primarily to meet the immediate food needs of a family.

Cash Crop Farming

Farming that specializes in producing one or two products for sale in local and world markets, not necessarily consumed by the farmer.

Intensive Farming

Farming that uses a small amount of land and high levels of labour, machinery, and inputs to achieve high yields. (crops and animals)

Extensive Farming

Farming that occurs on a large area of land with lower labour/fertilization inputs and yields per hectare.

Green Revolution

A period starting in 1943 focused on increasing crop yields using technology and selective breeding, which had successes and failures in agriculture.

The Green Revolution’s Successes

• helped prevent post-WWII famines

• improved food supply in developing countries (they could focus on other issues)

• supported demographic transition

• increased food production by 20%

• lowered wheat and rice prices by 70%

The Green Revolution’s Failures

• costly with reduced genetic diversity

• harmed environmental sustainability by increasing mechanization and job loss

• mainly benefited regions with reliable rainfall and fertile soil, focusing on wheat, rice, and maize, leaving poorer countries with different diets behind

Rostow’s Economic Development Stages

Stage 1: Traditional Society

Stage 2: Establishing conditions for takeoff

Stage 3: Economic takeoff

Stage 4:Drive to maturity

Stage 5: High Mass consumption

Stage 1: Traditional Society

The economy relies on subsistence agriculture, with slow social change. Natural events limit population growth and social/economic progress, while some governments are dictatorships/monarchies.

Stage 2: Establishing Conditions for Takeoff

Society generates wealth and invests in key economic sectors, develops national purpose, and creates a more effective, responsive, central government.

Stage 3: Economic Takeoff

The economy shifts with technological innovations, agriculture becomes commercial, manufacturing rises, and the tertiary sector grows alongside urbanization.

Stage 4: Drive to Maturity

Sustained economic growth boosts per capita wealth, diversifies the economy through expanded manufacturing and services, increases investment, and leads to national maturity 50–60 years after takeoff.

Stage 5: High Mass Consumption

Incomes exceed basic needs, driving demand for more goods and services, while society invests in social programs like pensions and health care.

Colonialism and its impacts

When one country rules another and conducts trade with that country for its own benefit.

Impacts: economic disparities, systemic racism, environmental degradation, and continued political instability in many formerly colonized countries

Neo-Colonialism

A modern form of economic and cultural dominance that occurs without direct political control of territories.

Three types of Economy

1. Free Market

2. Command Economy

3. Mixed Economy

Free Market Economy

In a free market economy, private individuals and businesses control the economic decisions

Key characteristics:

• Minimal government intervention

• Prices are determined by supply and demand

• Private ownership of production and resources

Command Economy

• The government controls all economic decisions

• Central planning determines production and distribution

• Limited individual economic freedom

Mixed Economy

• Combines elements of free market and government regulation

• The government provides some economic oversight

• Balances private enterprise with public welfare

Keynesian Economics

An economic theory developed in the 30s, which argues that government intervention can help stabilize the economy, especially during recessions.

How does Keynesian Economic relate to economic recessions?

Keynesian economics puts the role of management for economics in the government's hands and forces the government to do good for the people. Believes recession comes from insufficient demand for goods.

Neo-Liberal Thought

• Prioritizes free market solutions and minimal government intervention

• Believes individual economic freedom drives innovation and growth

Progressive Thought

• Focuses on reducing economic inequality through government intervention

• Believes in strong social safety nets and public services

The difference between Neo Liberal and Progressive Thought

Difference: neo-liberals prioritize market efficiency, while progressives prioritize social equity and collective well-being.

How do tariffs protect domestic industries from foreign competition?

Tariffs protect domestic industries by increasing the price of imported goods, making them less competitive compared to domestically produced alternatives. This encourages consumers to buy locally, boosting demand for domestic products and potentially supporting jobs in those industries

How do international trade policies influence supply chains for multinational companies?

Influencing costs, operations, and strategy. Tariffs, trade agreements, and regulatory changes create both challenges and opportunities for businesses, forcing them to adapt and innovate.

What are some possible solutions in addressing the problem of poverty?

• Developing countries must find a way to control their economies for their own benefit

• The population growth rate needs to be reduced

• Effective, affordable treatments for HIV/AIDS and other infectious diseases would boost the economic growth rate

• Cancelling or reducing debt

• An honest government in developing countries

Development assistance

the process by which money moves from richer to poorer countries

What are the two parts of developmental assistance?

1. Official development assistance (ODA), which is delivered by governments

2. Private development assistance (PDA), which is delivered by NGOs

What are the reasons for developmental assistance programs?

• Religious and Humanitarian motives

• Economic motives

• Political motives

• Historical motives

How do remittances play a role in addressing economic disparities?

• Remittances can play a vital role in addressing economic problems

• Canada’s outflow of remittances was 6.5 billion in 2020

• Money moves from richer to poorer countries and is injected directly into local economies

How did the debt crisis happen?

• A “perfect storm” of interconnected events

• ~39 thousand per person of debt in the world

• The government often goes into debt because they are funding a new city, region, or to get resources for war

• Foreign exchange rate can contribute to a higher percentage of debt

What are some debt relief options for developing countries?

• The Highly Indebted Poor Countries (HIPC) Initiative has resulted in some debt relief, with more to come

• Created by the World Bank (WB) and the International Monetary Fund (IMF)

• The first serious attempt to reduce the debt faced by the poorest countries in the world

Three main stages for the HIPC

• Pre-decision point - determining eligibility for the program

• Decision point - the country must prepare, with the country’s civil society organizations, and with the aid of the WB and the IMF, an acceptable Poverty Reduction Strategy Paper (PRSP)

• Completion Point - The World Bank and IMF agree that the plan is working satisfactorily