The economic situation which exists in the developing world today, is the result of the
relationship between the modern, and developing nations of the world. Modernized nations
benefited from this relationship because it gave them access to natural resources.
However, because of this relationship, many developing nations now suffer from severe
problems. These nations are attempting to change the situation in which they struggle.
A political cartoon I have recently seen illustrated the economic relationship between
the industrialized world and the developing world. It shows that the industrial nations,
The United States and Europe, are located in the northern hemisphere. On the other hand
most of the developing world, Central and South America and Africa, are found in the
southern hemisphere. The "well fed", well dressed individual holding the industrialized
world indicates that the modernized nations of the world are prosperous, and have a high
standard of living. The skinny, poorly dressed individual holding the developing world
indicates that the developing nations of the world are not prosperous, and have a lower
standard of living than do industrialized nations. Both individuals are supporting each
other in such a way that if one is removed, the other will fall. Without resources to
use, industry would not be able to maintain its existence. Likewise, without a market
for their resources, or the products of industry, the developing world would not be able
to maintain its existence.
Two current problems which exist in the developing world today are political instability,
and rapid urbanization. Political instability causes economic problems in places such as
Africa, and South America, where many governments are being overthrown. When a
government is inconsistent, a tax system cannot be established and revenue can't be
collected. If a government doesn't receive revenue, it cannot provide sanitation, or
health care, and cannot build or repair roads or buildings. Also, political instability
can result in the control of a nation "switching hands". For example, frequently in
Latin America, Coup d'etat occur and military dictators take control.
The second problem which exists in the developing world today is rapid urbanization.
Rapid urbanization can be defined as the sudden growth in city population. It results in
problems such as congested streets and poverty. For example, when people flock to city
to find jobs, not all of them are able to find work, these people remain unemployed.
Those who manage to find work, face long hours and low pay. With so many people there is
a shortage of food, housing, and health care. Also, sanitation is poor if there is any
at all, and the water is contaminated because of the sewage running through it. This is
why political instability and rapid urbanization cause problems in the developing world
today.
Nations within the developing sections of the world have attempted to improve their
situation in many ways. For example, these developing nations want to promote economic
diversity and education. Economic diversity can be defined as producing various kinds of
crops and goods so that the nation is not dependent on a single export.
By promoting education, governments set up schools to train students in the skills needed
in a modern industrial economy, therefore creating more skilled workers for jobs in the
management field as opposed to labor. The examples of economic diversity and education
are ways in which nations within the developing world have attempted to change their
situations.
In conclusion, the economic situation which exists in the developing world today, is
dependence on the industrialized world. They are dependent because they need a market
for their resources, and the products of industry. This situation contributed to
problems such as political instability, and rapid urbanization. Developing nations are
attempting to change these situations through the promotion of economic diversity, and
education.
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