4.3 Development Flashcards

1
Q

Economic Development

A

Life sustaining goods and services- to increase the availability and widen the distribution of basic goods
Higher incomes- raising living standards, provision of jobs, better education
Freedom to make social and economic choices

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2
Q

Advanced or Developed Economies

A

Industrialised, high tech, not focused on agriculture, low population growth, high GNI

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3
Q

Developing economies

A

Reliant on agriculture
Low tech
High population growth
Reliant on aid
Possibly corrupt/ poor government

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4
Q

Emerging Economies

A

Rapid economic growth
Increased investment
Manufacturing
High income growth
Inequality

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5
Q

HDI

A

Human Development Index
Developed by the UN to identify the stage of development for economy

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6
Q

3 Aspects of HDI

A

Knowledge- Mean years of schooling and the expected years of schooling
Long+ Healthy life- Calculated using a min value of life expectancy of 25 years and maximum value of 85 years
Decent Standard of living- Gross national income (GNI) per capita adjusted to PPP standard

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7
Q

Advantages of HDI

A

Allows for comparisons between countries
Education and health are important also like GDP and so it provides the information along with infrastructure and opportunities

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8
Q

Disadvantages of HDI

A

Doesn’t consider human rights, gender equality or peoples cultural identity
Does not take into account the environment
Doesn’t consider distribution of income

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9
Q

Economic Factors influencing development

A

Dependency on one product
Savings gap- household income was low so savings are hard to make
Lack of foreign currency- weak currency so cannot afford to import tech Potential investment is diverted to other countries

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10
Q

Other factors influencing development

A

Geography
Demographic
Debt
Access to credit
Infrastructure
Education/ Skills
Lack of property rights
Political instability
Corruption

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11
Q

Ways to increase LRAS

A

Labour supply increasing
Capital- investment
Efficiency of allocation of resources e.g. shifting resources from rural to urban areas
Advancements in tech
Improvements in institutions like the banking system

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12
Q

Market based strategy to promote development

A

By promotion of enterprise and trade e.g. trade liberalisation, trade blocs, FDI

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13
Q

Interventionist strategy to promote development

A

Gov interventionist led to improve aggregate supply and infrastructure e.g. protectionism, managed exchange rates

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14
Q

Advantages of Market orientated strategies

A

Increased…
Trade
Entrepreneurship
Market efficiencies
Efficient allocation of resources

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15
Q

Disadvantages of Mkt orientated strategies

A

Inequality
Danger of monopolies
Policies will not improve health, education or infrastructure
Increased prices

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16
Q

Adv of Interventionist strategies

A

Can directly spend on weak areas of economy
Prices and wages can be controlled
Inflation controlled
Gov borrowing can be used to increase investment into the economy

17
Q

Disadv of interventionist strategies

A

Inefficient gov/ gov failure
Too much gov borrowing
Crowds out private sector
Possible inflation due to printing money

18
Q
A