Chapter 20: Economic Growth in Developing Nations
"One World Bank"
Students have learned how the creation of strong economies
could solve many of the problems that developing countries
face. In this exercise, students will research the World Bank
to learn why developing countries' problems affect all of
the economies of the world, and what measures the World Bank
is taking to eliminate poverty.
Students will use information from The World Bank Web site
to learn about the mission and actions of the World Bank.
Students will read about why economic development in developing
countries is everyone's challenge and what the World Bank
does to assist those countries. Students will also read statistics
about world poverty and what advances have been made in developing
countries' economic development. Students will then answer
four questions and apply this information by creating a poster
depicting the challenges that developing nations face and
the solutions offered by the World Bank.
developing nations: nations with little industrial
development and low standards of living
developed nations: nations with relatively high standards
of living and economies based more on industry than on agriculture
Content Standards (from the National Council on Economic Education)
Standard 15: Investment in factories, machinery, new
technology, and the health, education, and training of people
can raise future standards of living.
1. Students will to able to state the concern for the plight
of the developing countries, and identify the methods used
by the World Bank to improve their economies.
2. Students will be able to use this knowledge to create posters
illustrating the challenges faced by developing nations and
the solutions offered by the World Bank.
Web Activity Answers
1. The World Bank believes that economic growth in its client
countries is a long-term process that will eventually lead
to transforming whole societies. Empowering the people, building
roads, writing laws, educating and recognizing women, eliminating
corruption, protecting the environment, and protecting children
are ways to build economic strength, but these methods also
serve to transform impoverished nations.
2. In developing countries, life expectancy has increased
from 55 to 65 years; incomes per person have doubled; the
proportion of children attending school has risen from less
than half to more than three quarters; and infant mortality
has been reduced by 50 percent. Still, among the World Bank's
clients, 3 billion live on less than $2 a day, and 1.3 billion
on less than $1 a day; 40,000 die of preventable diseases
every day; 130 million never go to school; 1.3 billion do
not have clean drinking water.
3. Economies today are closely meshed in a fast-changing global
economy. Because of new technology and communications, volatility
in one nation's market can have immediate effects on other
markets worldwide. Markets react to global political and economic
developments. Wealthier nations' exports and investment opportunities
are enhanced by achievements in developing nations' economies.
Promoting economic growth and development in developing countries
expands trade, jobs, and incomes in wealthier nations. Additionally,
disease, poverty, political instability, and environmental
destruction are issues that know no borders. It is in the
best interest of wealthier nations to become involved in finding
solutions to the problems of developing nations.
4. By serving as the world's largest source of development
assistance, the World Bank provides nearly $30 billion in
loans annually to its clients. Its programs stimulate developing
countries' economies by investing in basic health and education
assistance; protecting the environment; supporting and encouraging
private business development; strengthening the delivery of
government services; promoting reforms to create a stable
macroeconomic environment; and focusing on poverty reduction
through social development, inclusion, governance, and institution-building.
The World Bank also helps to strengthen conditions that attract
5. Students' posters will vary.
Go To Student Web Activity