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Chapter 13: International Development

This activity contains 5 questions.

How might the strong economic growth of the Asian NICs and of China affect proposals for an Asian free-trade area similar to NAFTA and the EU? What would be the interests and worries of Japan, of China and the NICs, and of the poor states of the region, in such an arrangement?

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Past successes in economic development have depended heavily on developing a manufacturing base, which requires access to scarce capital. How do you think the information revolution and the increasing role of services in the world economy might change this pattern? Might any countries in the global South find a niche in these growing sectors of the world economy and bypass manufacturing? What states or regions might be candidates for such an approach, and why?

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How does the global South's debt problem compare with the U.S. debt, discussed in Chapter 9, in magnitude and effect? Do the two debt problems arise from similar causes? Which problem do you consider more serious, and why?

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Some scholars criticize the IMF for imposing harsh terms in its conditionality agreements with poor states. Others applaud the IMF for demanding serious reforms before providing financial resources. If you were a leader negotiating with the IMF, what kinds of terms would you be willing to agree to and what terms would you resist? Why?

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If the states in North America, Western Europe, and Japan/Pacific all met the target of providing 0.7 percent of GNP in foreign assistance, what might the effects be? How much additional aid would be made available? To whom would it likely go? What effects might it have on the recipient states and on third world economic development overall?

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