Lagging global economic development

(Ref. 701)
Problem Components
Policy issue area: World
Policy issue: Economy
Description: Economic development of most Third World countries slowed down significantly.
Symptoms: Growth of Gross World Product (GWP) is declining (16% between 1982 and 1990); massive unemployment (as much as 40%); continuing poverty; hunger and famine in many areas.
Causes: Population growth (annual increase over 100 million); insufficient development aid; the arms race (global military expenditures reach $950 billion); political mismanagement by local elites; insufficient investment in education.
Cost of problem: -
Solution Components
Resources: International financial institutions; governments of industrialized countries; multinational corporations.
Goal: 1. Provide economic, financial and technical support to, and encourage trade with the developing countries
2. Work for the equitable participation of all countries in international economic relations.
Program area: World economic development
Program-remedy: 1. Increase development aid to 1% of the GNP
2. Remove trade barriers on manufactured goods, and stabilize prices of primary products in connection with the exports of developing countries
3. Move toward arms reduction, and divert a significant portion of the savings toward world economic development (the U.S. Grand Moral Strategy).
Program-prevent: World political development, to secure the emergence of competent governments able to bring about economic development for their countries.
Cost of program: -
Beneficiaries: Populations of Third World countries.

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