10. Economic Growth and/or Economic Development Strategies Flashcards
What is import substitution industrialization (ISI)?
An economic policy aiming to reduce foreign dependency by replacing imported goods with domestically produced goods.
Define export promotion as a development strategy.
A strategy that focuses on expanding a country’s exports to drive economic growth.
How does microfinance support economic development?
By providing small loans to individuals and small businesses lacking access to traditional banking services, fostering entrepreneurship and reducing poverty.
What role does foreign direct investment (FDI) play in development?
FDI brings capital, technology, and management expertise, potentially leading to job creation and economic growth.
Explain the concept of debt relief in the context of economic development.
The partial or total forgiveness of debt owed by developing countries, allowing them to reallocate resources towards development projects.
How can investment in human capital promote economic growth?
Enhancing education and healthcare improves workforce productivity and innovation, driving economic development.
What is the significance of infrastructure development in economic growth?
Improved infrastructure reduces production and transaction costs, enhances efficiency, and attracts investment.
Describe the role of technology transfer in development strategies.
The process of sharing skills, knowledge, and technologies to boost innovation and productivity in developing countries.
What is the purpose of conditional cash transfer programs?
To provide financial assistance to low-income families contingent upon certain behaviors, such as children’s school attendance and vaccinations, aiming to break the cycle of poverty.
How does trade liberalization serve as a development strategy?
By reducing trade barriers, countries can integrate into the global economy, access larger markets, and stimulate economic growth.
