Lemery Colleges, Inc.
A. Bonifacio St., Brgy. Bagong Sikat, Lemery, Batangas
LESSON 4: DIVERSITY AMONG
NATIONS
➢ Diversity means understanding that each
individual is unique, and recognizing their
individual differences.
➢ These differences can be along the
dimensions of race, gender, ethnicity, gender
and sexual orientation.
Most African and Asian nations were at one
time or other colonies of Western European
countries, primarily Britain and France but also
Belgium, the Netherlands, Germany, Portugal,
and Spain. The economic structures of these
nations, as well as their educational and social
institutions, have typically been modeled on
those of their former colonial rulers.
Countries like those in Africa that only recently
gained their independence are therefore likely
to be more concerned with consolidating and
evolving their own national economic and
political structures than with simply promoting
rapid economic development. Their policies
(e.g., the rapid Africanization of former
colonial-held civil service jobs) may
consequently reflect a greater interest in these
immediate political issues.
Perhaps more important, the European
colonial powers had a dramatic and long-
lasting impact on the economies and political
and institutional structures of their African and
Asian colonies by their introduction of three
powerful and tradition-shattering ideas: private
property, personal taxation, and the
requirement that taxes be paid in money rather
than in kind. As we will discover later, these
ideas combined to erode the autonomy of local
communities and to expose their people to
many new forms of potential exploitation.
Comparative Economic Planning ▪ S.Palino ▪ PAGE 1
This study source was downloaded by 100000881725933 from CourseHero.com on 03-01-2024 19:08:31 GMT -06:00
https://www.coursehero.com/file/94971163/LESSON-4-DIVERSITY-AMONG-NATIONSpdf/
In Latin America, a longer history of political
independence plus a more shared colonial
heritage (Spanish and Portuguese) has meant
that in spite of geographic and demographic
diversity, the countries possess relatively
similar economic, social, and cultural
institutions and face similar problems.
In Asia, different colonial heritages and the
diverse cultural traditions of the indigenous
peoples have combined to create different
institutional and social patterns in countries
such as India (British), the Philippines
(Spanish and American), Vietnam (French),
and Indonesia (Dutch).
The sheer physical size of a country, the size
of its population, and its level of national
income per capita are important determinants
of its economic potential and major factors
differentiating one Third World nation from
another.
The World Bank assigns the world’s
economies to four income groups—low,
lower-middle, upper-middle, and high-
income countries.
The assignment on Gross National Income
(GNI) per capita (current US$) is calculated
using the Atlas method. The classification is
updated each year on July 1st.
The classifications change for two reasons:
In each country, factors such as economic
growth, inflation, exchange rates, and
population growth influence GNI per capita.
Revisions to national accounts methods and
data can also influence GNI per capita.
To keep the income classification thresholds
fixed in real terms, they are adjusted annually
for inflation. The Special Drawing Rights (SDR)
deflator is used which is a weighted average of
the GDP deflators of China, Japan, the United
 Lemery Colleges, Inc.
A. Bonifacio St., Brgy. Bagong Sikat, Lemery, Batangas
Kingdom, the United States, and the Euro The current population of the Philippines is
Area. 110,663,267 as of Wednesday, March 31,
2021, based on Worldometer elaboration of
the latest United Nations data.
The Philippines population is equivalent to
Country's potential for economic growth is 1.41% of the total world population.
greatly influenced by its endowments of The Philippines ranks number 13 in the list of
physical resources (its land, minerals, and countries (and dependencies) by population.
other raw materials) and human resources
(both numbers of people and their level of
skills).
The natural resources of the Philippines
include copper, timber, nickel, petroleum,
Most Third World countries have mixed
silver, gold, cobalt, and salt.
economic systems, featuring both public and
Most of the country’s metallic minerals,
private ownership and use of resources.
including gold, iron ore, lead, zinc, chromite,
The public sector is government (national and
and copper, are drawn from major deposits on
local). Public sector jobs include doctors,
the islands of Luzon and Mindanao.
police, teachers and civil servants.
The Visayas are the principal source of
The private sector is private enterprises –
nonmetallic minerals, including limestone for
retail, manufacturing, local services.
cement, marble, asphalt, salt, sulfur, asbestos,
The degree of foreign ownership in the private
guano, gypsum, phosphate, and silica.
sector is another important variable to consider
Petroleum and natural gas are extracted from
when differentiating among LDCs.
fields off the northwest coast of Palawan.
Economic policies, such as those designed to
In the realm of human resource endowments,
promote more employment, will naturally be
not only are sheer numbers of people and their
different for countries with large public sectors
skill levels are important, but so also are their
and ones with sizable private sectors.
cultural outlooks, attitudes toward work, and
In economies dominated by the public sector,
desire for self-improvement.
direct government investment projects and
The level of administrative skills will often
large rural works programs will take
determine the ability of the public sector to alter
precedence, whereas in private oriented
the structure of production and the time it takes
economies, special tax allowances designed to
for such structural alteration to occur.
induce private businesses to employ more
The Human Resources of the Philippines
workers might be more common.
Aside from natural resources is one of the
bases of economic development. Strengths of the private sector
Its people are the most important resource of
any country. It is important to understand how ✓ Profit Incentive
people utilize and develop natural resources ✓ Bureaucracy
based on their character, diligence, and ✓ Crowding Out
creativity. ✓ Government Spending that Discourages
In fact, humans serve as the “driver” of the Productivity
world since the direction of it depends on them.

Comparative Economic Planning ▪ S.Palino ▪ PAGE 2

This study source was downloaded by 100000881725933 from CourseHero.com on 03-01-2024 19:08:31 GMT -06:00

https://www.coursehero.com/file/94971163/LESSON-4-DIVERSITY-AMONG-NATIONSpdf/
 Lemery Colleges, Inc.
A. Bonifacio St., Brgy. Bagong Sikat, Lemery, Batangas
Arguments for the Public Sector
✓ Public goods
✓ Merit goods and positive externalities
✓ Macro-economic stability
✓ No Crowding Out in Liquidity Trap
Classification of the three main economic activities:
the agricultural, manufacturing, and services
sectors.
Agriculture, both subsistence and
commercial, is the principal economic activity
in terms of the occupational distribution of the
labor force, if not in terms of proportionate
contributions to the gross national product.
Farming is not merely an occupation but a way
of life for most people in Asia, Africa, and Latin
America.
It is in the relative importance of both the
manufacturing and service sectors that we find
the widest variation among developing nations.
Most Latin American countries, having a longer
history of independence and, in general, higher
levels of national income than African or Asian
nations, possess more advanced industrial
sectors
In the 1970s and 1980s, countries like Taiwan,
South Korea, Hong Kong, and Singapore
greatly accelerated the growth of their
manufacturing output and are rapidly
becoming industrialized states.
In terms of sheer size, India has one of the
largest manufacturing sectors in the Third
World, but this sector is nevertheless small in
relation to the nation's enormous rural
population.
Third World development strategies may vary
from one country to the next, depending on the
nature, structure, and degree of
interdependence among its primary,
secondary, and tertiary industrial sectors.
Comparative Economic Planning ▪ S.Palino ▪ PAGE 3
This study source was downloaded by 100000881725933 from CourseHero.com on 03-01-2024 19:08:31 GMT -06:00
https://www.coursehero.com/file/94971163/LESSON-4-DIVERSITY-AMONG-NATIONSpdf/
The primary sector consists of agriculture,
forestry, and fishing; the secondary, mostly of
manufacturing; and the tertiary, of commerce,
finance, transport, and services.
Dependency can be defined as an explanation of the
economic development of a state in terms of the
external influences--political, economic, and cultural--on
national development policies (Osvaldo Sunkel,
"National Development Policy and External
Dependence in Latin America," The Journal of
Development Studies, Vol. 6, no. 1, October 1969, p.
23).
The degree to which a country is dependent on foreign
economic, social, and political forces is related to its
size, resource endowment, and political history.
Foreign dependency, global power structure
in which weaker countries are economically
reliant on stronger countries, allowing the
stronger countries to exercise significant
control over the weaker countries’ economic
and political behaviour.
Foreign dependency generally fosters
underdevelopment in the dependent country; a
country’s adoption of policies tailored to the
interests of a stronger country may inhibit the
weaker country’s domestic growth, speed
environmental destruction, or create
temporary growth that precludes sustainable
development and economic independence.
DEPENDENCY THEORY
This approach originated in the Third World
(primarily Latin America), rather than among
Western academics.
Third World dependency thinkers were
concerned with explaining the unequal and
unjust situations in which they and their
nations found themselves.
 Lemery Colleges, Inc.
A. Bonifacio St., Brgy. Bagong Sikat, Lemery, Batangas
Third World countries were poor while
"developed" countries were rich.

MAJOR PROPOSITIONS OF DEPENDENCY

THEORY

Third World countries do not exist in isolation

Within the world political and economic
system there is a tremendous amount of
interaction among core countries and
peoples, and between the core and the
periphery.
Politics and economics are related.
The underdevelopment of Third World
countries is directly related to, and makes
possible, the "development" of the powerful
countries of the industrialized core.
So long as capitalism remains the dominant
world economic system, there is no reason for
the situation of developed and
underdeveloped countries to change.

REFERENCE/S:

https://byjus.com/questions/what-do-you-mean-by-diversity/

http://www.c3l.uni-
oldenburg.de/cde/OMDE625/Todaro/Todaro%20Chapter%2
02.pdf

https://blogs.worldbank.org/opendata/new-world-bank-
country-classifications-income-level-2020-2021

https://www.economicshelp.org/blog/2634/economics/private
-sector-vs-public-sector/

https://udel.edu/~jdeiner/depend.html

Comparative Economic Planning ▪ S.Palino ▪ PAGE 4

This study source was downloaded by 100000881725933 from CourseHero.com on 03-01-2024 19:08:31 GMT -06:00

https://www.coursehero.com/file/94971163/LESSON-4-DIVERSITY-AMONG-NATIONSpdf/
Powered by TCPDF (www.tcpdf.org)