Economic modernisation and Globalisation

Economic modernisation

In 1950 to prevent communism from spreading western countries invested in places such as India and South Korea. A man named WW Rostow produced a model that helped promote economic development and also reduced poverty.

Economic development is where HICs such as America invest money into LICs, this investment can include aid such as vaccinations to help reduce infant mortality rate. HICs also provided loans to allow countries to develop at a quicker rate, the economic development model that WW Rostow produced shows that LICs countries invest a large amount of their GDP back into industry allowing them to rapidly develop through the secondary sector and into tertiary and eventually into the Quaternary sectors.

Population modernisation  

As aid came in from HICs the death rate began to decrease and the average life expectancy began to rise this created a large youthful population such as India's population where 40% of people are under the age of 20, a direct result of such as big proportion of people being so young within a country is that there are huge amount of child labor “global number of children in child labour has declined by one third since 2000, from 246 million to 168 million children. More than half of them, 85 million, are in hazardous work (down from 171 million in 2000).”

India Population pyramid 2014

The transfer of western technology around the 1960s helped countries develop, the aid was focused in two main sectors : death control these reduced infant mortality and increased life expectancy the other main type of aid was called the green revolution and allowed mechanisation and high yielding seeds to take effect, without this it was possible that the rapidly developing countries would not have enough food to supply the growing population.

Because of the large amount of money that flooded into these south Asian countries which were primarily to stop the spread of communism these countries rapidly developed and became NICs and were known as the Asian tigers. there are now two separate groups of the Asian tigers and old and a new group, the old Asian tigers or original Asian tigers are Taiwan, South Korea, honk kong and Singapore

Globalisation

Globalisation focus on trade between countries and focuses on HICs investing and benefiting off low wages and cheap mass production of LICs such as China, where economic development differs from globalisation is that countries that undergo globalisation often get their resources striped and are then are neglected as NGOs move onto the next cheap developing country whereas countries such as South Korea which was given loans and aid rapidly develop through these stages and specialists in areas such as electronic equipment.

This site shows South Korea's top exports and gives a great insight into the total wealth and power this small county has

The way that globalisation trade works are that HICs purchase low end cheap goods and the LICs then purchase high end expensive equipment from HICs this then allows them to develop slowly, if the LICs were to process these low end goods and then manufacture goods making them worth more they would drastically increase their GDP.

HIC- high income country LIC- low income country NGO- non government organisation GDP- gross domestic product NIC- newly industrialised country