<p>Understanding Economic Growth in the Third World</p><p>Objectives for Today: 1. Predict causes of world poverty 2. Explain why capital promotes economic growth 3. Define dead capital and the extralegal sector 4. Identify possible solutions to combat world poverty and promote growth </p><p>Go to the following website. http://www.changemakers.com/blog/defining-the-issue-of-dead-capital</p><p>Read the article by Changemakers and answer the questions individually but discuss them with your partner and come to a consensus. Put questions on separate sheet of paper and write neatly. Use complete sentences. </p><p>Activity #1: Reading Analysis 1. What is dead capital? 2. How does investment and “live” capital help promote economic growth? 3. How do government bureaucracies repress economic growth?</p><p>Assignment #2: Read the article below and answer questions. Be careful and read the entire articles. They are not long. https://regententrepreneur.org/rceresources/the-mystery-of-capital-why-capitalism-triumphs-in-the-west-and-fails- everywhere-else/</p><p>Read the Handout article. Type answers. 1. What is the “extralegal sector?” 2. How do “extralegal” businesses repress economic growth? 3. What role does property rights play in promoting economic growth?</p><p>4. What can governments do to promote economic growth?</p><p>5. What are the 5 Dramatic effects of Property Law? Click on Informality and Extra legality. Explain in your own words how these 5 effects promote economic growth in an economy. http://www.thepowerofthepoor.com/concepts/c6.php</p><p>Assignment #3: After reading DeSoto’s website, answer the following:</p><p>1. What is an open records system and why is it advantageous? 2. What does he mean when he says the “poor are far wealthier than thought?” 3. Go to any of the links on the left and once you read the page, summarize what he talks about and how that makes it hard for Third World Countries to have economic growth.</p>