DEVELOPING NATIONS - CH 3

Page 34-35 Notes

Chapter 3 Notes – pg 34-35

Private Sector (private individuals and businesses)
-Do MOST of saving and investing for economic development


They also produced Most of the goods and Services
PRIVATE INDIVIDUALS
owned small enterprises
- agricultural supply market
- mom and pop hardware store
- retail stores

BUSINESSES
owned large enterprises
- factories and businesses

Government - Gets money from Taxes and loans from home or abroad or another country

Uses it for help build and operate basic facilities that are used for business and enable economic development


Government Action Benefits for the Private Sector


Build roads Enables transportation of workers, goods and services, and agricultural production.

Communication systems for the country
Helps carry information in long distances


Build ports Import, export

Healthcare
Keeps workers healthy

Education schools universities
Human capital

*** ALL OF THIS IS GREAT IN THEORY… BUT IT NEEDS TO BE AFFORDABLE!!!!


Encourage Economic Activity
1.) Raise Interest Rates on Savings Accounts – encourage MORE SAVING

2.)lower taxes for FACTORIES that employ large amounts of workers.

3.)sell Tools and Seeds to Farmers AT A LOW COST



Things that the Economic Planning Board take into consideration

LOOK AT WHAT YOU HAVE IN YOUR COUNTRY

Do we have:
Agricultural Production?
Raw Materials for EXPORT?
Human Capital?
Physical Capital?
Relationships with other countries?

LOOK AT WHAT YOU NEED IN YOUR COUNTRY

“NEED” for what?

Need for ECON DEV.