401395 Management Issues: Business Ethics (Gruppe 01E)The access of poor countries to the new markets ...
ContentsFair Trade ..........................................................................................................
Fair Trade Fair trade is a social movement which aims to help developing countries in order to make bettertrading ...
 an economic vulnerability criterion, involving a composite Economic Vulnerability Index (EVI) based on indicator...
Third World Countries “The Third World” term came out first by French scientist Alfred Sauvy in 1952. Before French...
Foreign Aid and Development By the time Cold War, both First and Second World countries saw those countries as pot...
should focus on their strenghts such as mine, fruits and vegetables, human resources. They can increaseeducation in specif...
Because of the war that lasted 25 years a go, Afghanistan economy could not develop enough. Ithas a lack of foreign invest...
In order to extend trade between Afghanistan and neighbours, some fairs should be organizedsuch th one organized in 26-28 ...
ReferencesTomlinson, B.R. (2003). "What was the Third World", Journal of Contemporary Historyhttp://en.wikipedia.org/wiki/...
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Poor Countries

Published on: Mar 4, 2016
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Transcripts - Poor Countries

  • 1. 401395 Management Issues: Business Ethics (Gruppe 01E)The access of poor countries to the new markets Gamze SABA
  • 2. ContentsFair Trade ...................................................................................................................................................... 3Least Developed Countries .......................................................................................................................... 3Third World Countries .................................................................................................................................. 5 Foreign Aid and Development ................................................................................................................. 6 The Problems of Third World Countries .................................................................................................. 6Economy of Afghanistan .............................................................................................................................. 7 References .......................................................................................................................................... 10 2
  • 3. Fair Trade Fair trade is a social movement which aims to help developing countries in order to make bettertrading and to provide for them fair in trade. The movement defend the payment of higher price toexporters as well as higher social and environmental standarts. Strategic aim of this idea is helpingstrengthless producers and workers, so that they can fastinate profit and development, notmultinational companies. There are several recognized fair trade certifiers, including FairtradeInternational (formerly called FLO/Fairtrade Labelling Organizations International), IMO and Eco-Socialin order to show people the products that produced and traded fairly. Fair trade contributes sustainable development by offering better trading conditions, protectinghuman rights and environment. The level of the economy in countries around the world is not equal. In some countries it is veryhigh and in some countries it is really low. GDP, unemployment rate, laborforce participation, totaltrade, literacy rate, are several parameters in order to determine the level of country’s economy.Least Developed Countries Least Developed Countries (LCD) are the countries that are defined by United Nations accordingto the indicatiors of socioeconomic development which shows the process of social and economicdevelopment in a society. Why socioeconomic development important ? Because the changes insocioeconomic situation causes technological changing, changes in law, changes in the physicalenvironment and ecological changes and all those are connected to each other and they affect the levelof economy in a county. Only ecomomic indicators are not enough to develop and to increase yourtrade. “the Economic and Social Council of the United Nations used the following three criteria for theidentification of the LDCs, as proposed by the Committee for Development Policy (CDP):  a low-income criterion, based on a three-year average estimate of the gross national income (GNI) per capita (under $750 for inclusion, above $900 for graduation);  a human resource weakness criterion, involving a composite Human Assets Index (HAI) based on indicators of: (a) nutrition; (b) health; (c) education; and (d) adult literacy; and 3
  • 4.  an economic vulnerability criterion, involving a composite Economic Vulnerability Index (EVI) based on indicators of: (a) the instability of agricultural production; (b) the instability of exports of goods and services; (c) the economic importance of non-traditional activities (share of manufacturing and modern services in GDP); (d) merchandise export concentration; and (e) the handicap of economic smallness (as measured through the population in logarithm); and the percentage of population displaced by natural disasters.” (United Nations, website) 1. Zimbabwe 22. Tanzania (United Republic of) 2. Congo (Democratic Republic of the) 23. Djibouti 3. Niger 24. Angola 4. Burundi 25. Haiti 5. Mozambique 26. Senegal 6. Guinea-Bissau 27. Uganda 7. Chad 28. Nigeria 8. Liberia 29. Lesotho 9. Burkina Faso 30. Comoros 10. Mali 31. Togo 11. Central African Republic 32. Nepal 12. Sierra Leone 33. Papua New Guinea 13. Ethiopia 34. Mauritania 14. Guinea 35. Madagascar 15. Afghanistan 36. Benin 16. Sudan 37. Yemen 17. Malawi 38. Myanmar 18. Rwanda 39. Cameroon 19. Gambia 40. Ghana 20. Zambia 41. Bangladesh 21. Côte dlvoire 42. KenyaThe rankings above were published in the United Nations 2010 Human Development Report and reflect the countries with the lowest human development. 4
  • 5. Third World Countries “The Third World” term came out first by French scientist Alfred Sauvy in 1952. Before Frenchrevolution, it was used in order to distinguish the social classes such as: Clergy, nobles and peasants andit defined the lowest social class “peasantry”. Then, during the Cold War, its meaning became adefinition of the countries that remain non-aligned with neither capitalism (membership to NATO) norcommunism (membership to Soviet Union) after the First and the Second World War. First WorldCountries are the United States and its allies. Second World Countries are the Soviet Union, China, andtheir allies. Third World countries as I defined before, neutral and non-aligned countries with them. Till the end of imperialism, some of those countries were colonies of France, Germany, England,Spain, etc. After the end of imperialism they came face to face with many challenges on their own forthe first time. They found a chance for the development, after some countries has already developed.That is the reason why some people call them developing countries. Nowadays, the term Third Worldbecame a stereotype for all undeveloped countries, because of most of the Third World beingexcessively poor. It can be used to define poor and less developed countries of Africa, Asia and LatinAmerica, etc. 5
  • 6. Foreign Aid and Development By the time Cold War, both First and Second World countries saw those countries as potentialallies. Therefore, they tried to pull them to their side by helping economically, supplying military support. Cuba could be a good example for Soviet Union and Vietnam for The United States. After Cold War hadended, they chose the side of one that kept helping them.The Problems of Third World Countries In my opinion, the people who live in a 3th World Country have so many problems such as,poverty, hunger, lodging, health, war, freedom and so on. They are struggle to earn money for theirlifes. The major problem of Third World Countries is over populace. They have a big population withinthe borders to share all resources like water, medicineand to share money. Because of the low money,citizens also struggle to keep healthy. They are facing so many problems because of too muchpopulation and the people who aware of it, are migrating from their country to developed countries.Due to over-population and relatively limited resources, China has a One child rule where a couple canonly bear one child (H. A. Reitsma and J. M. Kleinpenning, 1985). “Another problem in the recent times is Globalization that upholds that everyone must benefitfrom modern transformation” (Phil Marfleet, 1998). The third world countries are dealing with all theproblems that i mentioned above. Therefore, they can not achieve development. They can’t benefitfrom trade like MNCs. Some MNCs’ revenue is much more bigger than one of third world countries.MNCs are also benefiting all the time more technology and minimizing their costs with low labor costs,high technology, poor quality. It causes getting poors poorer and riches richer than ever. My observation from all articles and news about poor countries, their general problem is thatthey face a lack of money needed to set up new profitable businesses and industries. Also, the citizensof poor countries are uneducated. Because they are suffering from lots of problems. Education is nottheir priority. However, education is the most important thing for development. All those countries 6
  • 7. should focus on their strenghts such as mine, fruits and vegetables, human resources. They can increaseeducation in specific departments such as IT, Customer services.Economy of Afghanistan Afghanistan is a country which is in the list of United Nations called Least Developed Countriesand one of the third World country . It has one of the poorest economy in the world. All informationsthat are shown below gave me the idea how the level of afghanistan economy low.GDP (purchasing power parity): $29.99 billion (2011 est.) country comparison to the world: 110 $27.36 billion (2010 est.) $25.91 billion (2009 est.) note: data are in 2011 US dollarsGDP - per capita (PPP): $1,000 (2011 est.) country comparison to the world: 214 $900 (2010 est.) $900 (2009 est.) note: data are in 2011 US dollarsUnemployment rate: 35% (2008 est.) country comparison to the world: 182 40% (2005 est.)Population below poverty line: 36% (FY08/09)Exports:$571 million (2010 est.) country comparison to the world: 166$547 million (2009 est.)Imports:$5.3 billion (2008 est.) country comparison to the world: 123$4.5 billion (2007) Resource : Central Intelligence Agency 7
  • 8. Because of the war that lasted 25 years a go, Afghanistan economy could not develop enough. Ithas a lack of foreign investment, too. Afghan economy is growing about %10. The backbone of country isagricultural production and transportation system.Some of agrecultural products are grapes, severalfresh and dry fruits like, melons, apricots, and nuts as well. I found some books that shows Afghanistanhas a quite big amount of gold, lithium, iron ore, copper and other minerals.A delegation fromAfghanistan private sector met at 8 May with the new Assembler of Islamic Republic of Iran. Afghanistanrepresentatives ,who are trying to improve the relations between Iran and Afghanistan, emphasized thatthere is a big potential to expand both countries businesses. They asked Iran to invest in priority sectorslike, oil purification, agriculture and mining (newsletter from ACCI). It is a step in order to fill the lack offoreign invesment In todays trade world, using the land of neighboring countries for transit of goods is a commonissue. Afghanistan is trying to increase its export by having some agreements with the countries aroundit. For example, they had a problem with Pakistan. There is an agreement between Afghanistan andPakistan which is called ATTPA (Afghanistan-Pakistan Transit Trade Agreement). “The agreementenables Kabul to export goods to India and in return, Pakistani trucks are allowed to reach Central Asia,Iran and Turkey through travelling Afghanistan. “ ( Siddiqui, 2012). Deputy Afghanistan Chamber of Commerce and Industries (ACCI) head, Khan Jan Alokozai said inthe past Afghanistan would export 80 percent of its fruits first to Pakistan and then India, but now mostof the fruits could not be delivered to India due to several problems facing Afghan traders in Pakistan.They were unable to sell their products on time and because of this problem %55 of fruits were soldwith lower rates. Afghan traders are really unhappy with this. Also, one of trader Nijabat said "I don’twant to export fruits this year to India through Pakistan, where the authorities created similar problemsfor us last year." He also asked the government the solution of this problem because the fruit season isabunt to start these days. In order to solve this problem the agreement should be reorganized. Maybe, they can decreasethe lengthy of clearance procedures, so that people stop worrying about fruits and vegetables. Fruitsand vegetables could prevent from decomposition because of hitch in the processes. They both benefitfrom this agreement and if they do not satisfy each other, it will be canceled or it is already not usefuland utility for them. Therefore, they should solve the problems by improving the agreement. 8
  • 9. In order to extend trade between Afghanistan and neighbours, some fairs should be organizedsuch th one organized in 26-28 March 2012. Chamber of Commerce and Industry of the Republic ofTajikistan and Afghanistan Chamber of Commerce and Industry organized the exhibition which hosts 65companies from 6 countries, Tajikistan, Kyrgyzstan, Belarus, China, India, Turkey. The number of afghancompanies was 37 which shows carpets, dried foods, spice, marble, IT and advertisement services. Tradebetween Afghanistan and neighboring countries increased in the last ten years and this can duplicate itevery year by the help of this kind of events. To set better conditions for investment and trade, and topromote visa facilitation for traders could be other improvements that are able to help improvement intrade. The economic corporation will improve the relations between countries and this could be a key inorder to end terrorism in region. 9
  • 10. ReferencesTomlinson, B.R. (2003). "What was the Third World", Journal of Contemporary Historyhttp://en.wikipedia.org/wiki/Third_World#Foreign_Aid_and_Developmenthttp://www.nationsonline.org/oneworld/third_world_countries.htmhttp://www.nationsonline.org/oneworld/third_world.htmhttp://www.un.org/en/http://ezinearticles.com/?Problems-of-the-Third-World-Countries&id=2450169http://acci.org.af/component/content/article/122-acci-ask-to-solve-afghan-trades-problems.htmlhttp://www.bgs.ac.uk/AfghanMinerals/docs/Gold_A4.pdf#search=gold%20and%20copper%20discovered%20in%20afghanistanhttp://pubs.usgs.gov/fs/2007/3063/fs2007-3063.pdfhttp://www.uvm.edu/ieds/node/568/ 10

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