DIVERSITY

AMONG
NATIONS
DIVERSITY
• Diversity means understanding that each
individual is unique, andrecognizing their
individual differences. These differences can
be along the dimensions of race, gender,
ethnicity, gender and sexual orientation.
01
Historical
Background
Historical Background
• Colonial Legacy:
⚬ African and Asian nations were former colonies of
Western European countries.
⚬ Primarily colonized by Britain and France, also by
Belgium, the Netherlands, Germany, Portugal, and
Spain.
⚬ Legacy includes economic, educational, and social
institutions modeled on colonial rulers.

• Impact on Economic and Social Structures:

⚬ Recent independence focused on consolidating
national structures over rapid economic
development.
⚬ Policies reflect immediate political concerns such as
the rapid Africanization of civil service jobs.

• Influence of Colonial Powers:

⚬ Colonial powers introduced powerful ideas like private
property, personal taxation, and money-based taxes.
Historical Background
• Latin America:
⚬ Longer history of political independence with a
shared Spanish and Portuguese heritage.
⚬ Despite geographic and demographic diversity,
countries share relatively similar economic, social,
and cultural institutions and face similar problems.

• Asia:
⚬ Diverse colonial heritages (British, Spanish,
American, French, Dutch) influenced institutional and
social patterns.
⚬ Indigenous cultural traditions also contributed to
shaping these patterns in countries like India, the
Philippines, Vietnam, and Indonesia.
02
Size and
Income Level
Size and Income
▪︎ The sheer physical size of a country, the size of its
population, and its level of national income per capita are
important determinants of its economic potential and major
factors differentiating one Third World nation from another.

▪︎ The World Bank assigns the world's economies to four

income groups—low, lower-middle, upper-middle, and high-
income countries.

Here’s the Process:

The process of assigning economies to income groups by the
World Bank involves several steps and criteria, with the
primary focus being Gross National Income (GNI) per capita,
measured in current US dollars using the Atlas method.

Atlas Method
• a statistical technique used by international organizations,
notably the World Bank, to convert economic indicators
such as Gross National Income (GNI) from national
currencies into a common currency, typically the US
Size and Income
Low-income countries: These are nations with a relatively low
GNI per capita. They typically have developing economies
with limited industrialization and lower standards of living
compared to other countries.

Lower-middle-income countries: This group comprises

economies with a moderate level of GNI per capita, higher
than low-income countries but still below the global average.
They often exhibit some level of industrialization and
economic diversification, with improving living standards.

Upper-middle-income countries: These countries have a

higher GNI per capita compared to lower-middle-income
countries but are not as affluent as high-income countries.
They generally have more advanced industrial sectors, better
infrastructure, and higher living standards.

High-income countries: This group consists of nations with

the highest GNI per capita, indicating advanced economies
with high levels of industrialization, technological
development, and wealth. They typically offer high standards
Size and Income

The classifications change for two reasons:

▪︎ In each country, factors such as economic growth,
inflation, exchange rates, and population growth influence
GNI per capita. Revisions to national accounts methods and
data can also influence GNI per capita.
▪︎To keep the income classification thresholds fixed in real
terms, they are adjusted annually for inflation. The Special
Drawing Rights (SDR) deflator is used which is a weighted
average of the GDP deflators of China, Japan, the United
Kingdom, the United States, and the Euro Area.
Size and Income
▪︎ Of the 145 developing countries that are full members
of the United Nations, 90 have fewer than 15 million
people, 83 fewer than 5 million. Large and populated
nations like Brazil, India, Egypt, and Nigeria exist side by
side with small countries like Paraguay, Nepal, Jordan,
and Chad. Large size usually presents advantages of
diverse resource endowment, large potential markets,
and a lesser dependence on foreign sources of materials
and products. But it also creates problems of
administrative control, national cohesion, and regional
imbalances. As we shall see that there is no necessary
relationship between a country's size, its level of per
capita national income, and the degree of equality or
inequality in its distribution of that income.
03
Resources
Resources
▪︎ Country's potential for economic growth is greatly
influenced by its endowments of physical resources
and human resources.

▪︎ Cite examples of natural resources in the

Philippines

▪︎ The Visayas are the principal source limestone for

cement, marble, asphalt, salt, sulfur, asbestos,
guano, gypsum, phosphate, and silica.

▪︎ Petroleum and natural gas are extracted from

fields off the northwest coast of Palawan. In the
realm of human resource endowments, not only are
sheer numbers of people and their skill levels are
important.
Resources
▪︎The Human Resources of the Philippines Aside from
natural resources is one of the bases of economic
development. Its people are the most important
resource of any country.

▪︎ Humans serve as the "driver" of the world.

▪︎ 110,663,267 as of Wednesday, March 31, 2021,

based on World meter elaboration of the latest
United Nations data.

▪︎1.41% of the total world population. The Philippines

ranks number 13 in the list of countries (and
dependencies) by population.

▪︎ Moreover, the level of administrative skills will

often determine the ability of the public sector to
alter the structure of production and the time it takes
04
Ethnicity and
Religion
Ethnicity and Religion
▪︎ Ethnicity is an identity based upon a presumption
of shared history and common cultural inheritance.
Ethnic identity is shaped by both ethnic affiliation
and ethnic attribution.

▪︎ The distinctive element we wish to emphasize is

that of culture. Religion is an important cultural
characteristic. How important the religious identity is
varies from people to people.

▪︎ As we evaluate all the various cultural

characteristics, we have to determine (discover)
which of those are most determinative within the
self-identity of the particular people themselves.
Different cultural characteristics are given different
relative value in each ethnic group.

▪︎ Comparing religious diversity across countries

05
Industrial
Structure
Industrial Structure
▪︎Classification of the three main economic activities:
the agricultural, manufacturing, and services sectors.

▪︎Agriculture, both subsistence and commercial, is

the principal economic activity in terms of the
occupational distribution of the labor force, if not in
terms of proportionate contributions to the gross
national product. Farming is not merely an
occupation but a way of life for most people in Asia,
Africa, and Latin America.

▪︎ It is in the relative importance of both the

manufacturing and service sectors that we find the
widest variation among developing nations. Most
Latin American countries, having a longer history of
independence and, in general, higher levels of
national income than African or Asian nations,
possess more advanced industrial sectors.
Industrial Structure
▪︎ In the 1970s and 1980s, countries like Taiwan,
South Korea, Hong Kong, and Singapore greatly
accelerated the growth of their manufacturing output
and are rapidly becoming industrialized states. In
terms of sheer size, India has one of the largest
manufacturing sectors in the Third World, but this
sector is nevertheless small in relation to the nation's
enormous rural population.

▪︎ Third World development strategies may vary from

one country to the next, depending on the nature,
structure, and degree of interdependence among its
primary, secondary, and tertiary industrial sectors.

▪︎ The primary sector consists of agriculture, forestry,

and fishing; the secondary, mostly of manufacturing;
and the tertiary, of commerce, finance, transport,
and services.
06
Importance of the
Public and Private
Sectors
Importance of the Public and Private
Sectors ▪︎ Most Third World countries have mixed economic
systems, featuring both public and private ownership and
use of resources. The public sector is government (national
and local). Public sector jobs include doctors, police,
teachers and civil servants.

▪︎ The private sector is private enterprises retail,

manufacturing, local services. The degree of foreign
ownership in the private sector is another important
variable to consider when differentiating among LDCs.

▪︎ Economic policies, such as those designed to promote

more employment, will naturally be different for countries
with large public sectors and ones with sizable private
sectors.

▪︎ In economies dominated by the public sector, direct

government investment projects and large rural works
programs will take precedence, whereas in private
07
External
Dependency
External
Dependency
▪︎ This approach originated in the Third World (primarily
Latin America), rather than among Western academics.
Third World dependency thinkers were concerned with
explaining the unequal and unjust situations in which
they and their nations found themselves. Third World
countries were poor while "developed" countries were
rich.

▪︎ Third World countries do not exist in isolation within

the world political and economic system there is a
tremendous amount of interaction among core
countries and peoples, and between the core and the
periphery. Politics and economics are related.

▪︎ The underdevelopment of Third World countries is

directly related to, and makes possible, the
"development" of the powerful countries of the
industrialized core. So long as capitalism remains the
dominant world economic system, there is no reason for