Economics Today and Tomorrow

Introduction
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.

Lesson Description
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.

Previous Knowledge Expected
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

Applied 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.

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 private investment.
5. Students' posters will vary.