Comparative Econ

1. Obstacles to development in Less Developed countries of the world: Environmental factors (Environmental: land-man ratio is small, too hot difficult to work, heat burns organic matter, too rainy or no rain at all, humidity conducive for growth and multiplication of insects, pests diseases that attack working people and work animals, Cultural factors: (Some cultural associations: historically all rich countries except Japan have been Christian, Protestants of NA richer than Catholics of South America, Muslims except those with natural resources have been poor, Hindu caste and Karma belief systems hinder labor mobility and encourage fatalism, East Asian growth associated with Confucian work ethics), Institutional factors: (common ownership, feudalism and other land tenure systems in less developed countries not conducive for economic growth, Muslim inheritance system results in inefficient holdings, dual labor markets, no farm to market roads, barter system, dual labor markets, no financial and credit facilities available to poor)

2. How does the “vicious circle of poverty” explain economic backwardness in LDCs? (saving and investment, health and education, market size, population growth, political instability, high dependency ratio, Kuznets pattern)

3. What factors, according to imperialism and dependency theorists, are responsible for poverty and economic backwardness in less developed countries (LDCs) of the world. (Rich countries exploit poor countries through investment (rich country MNCs make excessive profits, introduce inappropriate technology and products, create a local loyal elite, make legislation more favorable to MNCs than local country, crowd out local investors), rich countries exploit poor countries and keep them poor through trade (rich countries manipulate trade in their favor, rich produce manufactured luxury goods, poor countries produce primary goods/ necessities, according to Engel’s law income elasticity of demand for luxury...