• an indicator of the overall size of the nation's economy
• the total value of all goods and services produced in a country during a given year

• a measure of the value of the output produced by the nationals of a country, produced on the country's soil
• deals with nationality- produced by a certain country

• promote business investment in low-income countries
• the economies of China and India are considered to be the largest

• Brazil, Russia, India and China
• emerging national economies distinguished by their large, fast-growing economies and significant influence on regional and global affairs

Top dominant economies in the world

US, Japan, United Kingdom, France, Germany, Italy and Canada

1. leading long healthy lives
2. be knowledgeable
3. have accesses to the resources needed for a decent standard of living

1. life expectancy at birth
2. adult literacy rate
3. school enrollment
4. GNI per capita

1. proportion of seats held by women in national parliaments
2. percentage of women in economic decision making positions (administrative, managerial, professional and technical)
3. female share of earned income

• a visual depiction of the north-south divide between their economies proposed by Willy Brandt.
• passes between North and Central America

• modernization theory
• neoliberalism
• more practical, offering suggestions and policy advice for development efforts

• dependency theory
• world system theory
• more academic, pointing out causes of the widening gap between the developed and the developing

• a theory used to explain the process of modernization with societies. looks at the internal factors of a country while assuming traditional countries can be brought to development in the same manner more developed countries have
• observing other successful countries and adapting to their ways

• a political philosophy whose advocated support economic liberalization, free trade, open markets, privatization, deregulation, decreasing the size of public sector and increasing the role of private sector in modern society
• promoting small businesses

• cause of poverty is unfairly-structured international trade
• developing countries import overpriced manufactured goods, while exporting underpriced agricultural goods and natural resources
• the path to development is to withdrawal from trade and have a self-sufficient economy
• criticism of this theory is the danger of economic isolation
• import substitution industrialization: replace foreign goods with domestic goods; everything has to be domestic

World System Theory

• cause of poverty is historical, structural constraints for development with continuous exploitation of the periphery (neighboring) countries through trade and multinational firms
• the path to development is to reconstruct the capitalist system through a revolution
• criticism is that east asia's economic success is an expection

• narrow economic bases with high dependency on limited export items and lowe value-added-products
• colonial legacy
• political instability- civil wars and conflict
• debt burden
• AIDs
• natural disasters

1. traditional society
2. preconditions for take-off
3. take-off
4. drive to maturity
5. age of high mass consumption

• there are only 300 miles of paved roads
• people are forced out of coltan rich areas
• they lost $20 million a month during coltan boom

• dominance of the oil sector in the economy
• mismanagment of oil revenues
• the ogoni struggle

• accounts for 95% of the government's revenue
• 97% of export earnings

1. Singapore
2. Hong Kong
3. Taiwan
4. South Korea

1. good governance
2. export-oriented
3. investment in human capital
4. US and foreign aid during the Cold War
5. Japanese development model "flying geese"

1. East Asia NIC's
2. East Asian lessons for other low-income countries
3. multi-ethnic, cultural southeast Asia countries might set a better example for other developing economies if/when they become developed
4. Asian NIC's success vs. China's success

1. to help Africa to open their economics and create free markets
2. provide trade preference for quotas

South Africa is the most prosperous country but also has a significant AIDs epidemic.

1. Guangdong Province (linked to Hong Kong) and Fujian Province (linked to Taiwan)
2. the Yangtze Delta
3. the Beijing- Tianjin Region