The challenges that Americans face are those associated with being industrialized—unemployment and pollution. Developing nations, however, struggle with life-threatening challenges such as widespread poverty and hunger. In many cases, developing nations must deal with keeping their people alive. This is the focus of Chapter 20.

Developing vs. Developed
Section 1 describes the characteristics of developed and developing nations and explains the factors that economists use to measure a nation's prosperity. Section 2 explains various ways of financing economic development, describes the major sources of foreign aid, and explores the reasons for giving foreign aid.

Obstacles to Growth
Section 3 explores several obstacles to economic growth in developing nations and explains the reasons that Indonesia failed to experience economic growth. Section 4 explores the problems associated with rapid industrialization in developing nations and explains the factors that determine the various routes to economic development.