CHAPTER 56
Development
LEARNING OBJECTIVES
Compare and contrast characteristics of developed and less developed countries.
Discuss the impacts of colonialism and neocolonialism on less developed countries and –
OUTLINE OF CHAPTER
I. Economic Growth
II. Facts of Economic Underdevelopment
III. Is the Gap Increasing or Decreasing?
IV. A Broader Definition of Development
IX. Foreign Obstacles to Progress: How Global Corporations Take Part of the Surplus
Financial Crises
X. Has Globalization Affected Development?
XI. Summary
KEY TERMS
less developed economies
economies that have not industrialized
ANSWERS TO END OF CHAPTER REVIEW QUESTIONS
Compare and contrast characteristics of developed and less developed countries.
1. What are measures used to compare economic outcomes of developed and less
developed countries?
The most common measure is GDP per capita. Developing countries also tend to have a
2. Why is underdevelopment based on several measures instead of just one?
Gross national income calculated by dividing gross domestic product by the population.
Discuss the impacts of colonialism and neocolonialism on less developed countries and –
developed countries.
3. Define underdeveloped country, colony, neocolony, and surplus of a country.
Underdeveloped and less developed are used interchangeably to mean relatively less
4. How do the native elite of underdeveloped countries use the surplus?
Describe and discuss the various obstacles to development.
5. What are the roles played by trade, investment, and finance in extracting the surplus
from an underdeveloped country and sending it abroad?
Less developed countries are dependent on investment by international corporations who
6. What are some obstacles to development? Describe how the obstacles impact some of
the specific measures discussed in questions 1 and 2.
The low income, low technology and low infrastructure of many less developed countries
Note:
APPENDIX 56.1
Effects of Militarism on U.S. Development
LEARNING OBJECTIVE FOR APPENDIX 56.1
Compare and contrast the benefits and costs of militarism.
OUTLINE OF APPENDIX
KEY TERM IN APPENDIX 56.1
ANSWERS TO APPENDIX 56.1 REVIEW QUESTIONS
Compare and contrast the benefits and costs of militarism.
1. Does the average American have a net benefit or a net loss from wars conducted to hold
neocolonies?
2. Do any corporations benefit directly or indirectly from such wars?