4.3 - Emerging and developing economies

Question 1

Advanced economies

4.3.1 - Measures of development

Answer 1

Acording to the IMF there are 41 advanced economies with 28 being in Europe

Question 2

Aid

4.3.1 - Measures of development

Answer 2

Overseas development assistance from one country to another. Might take the form of humanitarian assistance, technical expertise and project aid etc.

Question 3

BRICS economies

4.3.1 - Measures of development

Answer 3

The BRICS grouping - Brazil, Russia, India, China and South Africa - has become short-hand for the rise of emerging markets in the global economy

Question 4

BRICS development bank

4.3.1 - Measures of development

Answer 4

BRICS New Development Bank (NDB) was launched in 2015. The NDB will lend money to developing countries to help finance infrastructure projects. The NDB is an alternative to the World Bank and also the International Monetary Fund (IMF)

Question 5

Capital flows

4.3.1 - Measures of development

Answer 5

Movements of capital between countries. Outward capital flows are movements of domestically owned capital abroad; inward capital flows are movement of foreign-owned capital to the domestic economy

Question 6

Economic development

4.3.1 - Measures of development

Answer 6

Progress in expanding economic freedoms, a sustained improvement in economic and social opportunities and growth in personal and national capabilities

Question 7

Economic structure

4.3.1 - Measures of development

Answer 7

The balance of output, incomes and employment drawn from different sectors - ranging from primary (farming, fishing, mining) to secondary (manufacturing and construction indsutries) to tertiary and quaternary sectors (tourism, banking, software industries)

Question 8

Emerging economy

4.3.1 - Measures of development

Answer 8

Typically, a lower to middle income country that is progressing toward becoming more advanced, usually by means of rapid growth, urbanization and industrialization

Question 9

Genuine Progress Indicator (GPI)

4.3.1 - Measures of development

Answer 9

An attempt to measure whether a country’s growth, increased production of goods, and expanding services have actually resulted in the improvement on the welfare (or well-being) of the people in the country

Question 10

Gross Domestic Product per capita

4.3.1 - Measures of development

Answer 10

National income per head of population = total GDP/total population

Question 11

Gross Domestic Product

4.3.1 - Measures of development

Answer 11

The total value of an economy’s domestic output of goods and services

Question 12

Gross National Income (GNI)

4.3.1 - Measures of development

Answer 12

This is broadly the same as GDP except that it adds what a country earns from overseas investments and subtracts what foreigners earn in a country and send back home. GNi is affected for example for profits from businesses owned overseas and also remittances sent home by migrant workers

Question 13

Hard infrastrucutre

4.3.1 - Measures of development

Answer 13

Examples include power, transport and telecommunications systems

Question 14

Heavily Indebted Poor Countries Initiative

4.3.1 - Measures of development

Answer 14

A global initiative to provide external debt relief to heavily indebted low-income countries

Question 15

Human Development Index

4.3.1 - Measures of development

Answer 15

The HDI has become the most widely used measure for communicating a country’s development status. HDI is a broad measure of development, since it captures not only the level of per capita income but also incorporates measures of health (life expectancy) and education (school enrolment and literacy rate)

Question 16

Humanitarian Aid

4.3.1 - Measures of development

Answer 16

Emergency disaster relief, food aid, refugee relief and disaster preparedness

Question 17

Inclusive Wealth Index

4.3.1 - Measures of development

Answer 17

Assesses changes in a country’s productive base, including produced, human, and natural capital over time

Question 18

Income distribution

4.3.1 - Measures of development

Answer 18

Income distribution is how income is divided up among all the citizens in a country. The most common measure of income distrbution is the Gini Coefficient

Question 19

Inequality-adjusted HDI

4.3.1 - Measures of development

Answer 19

The IDHI takes into account not the average achievements of a country on health, education and income and how those achievements are distributed among its citizens by “discounting” each dimension’s average value according to its level of inequality. The average world loss in HDI due to inequality is about 23% - ranging from 5% (Czech Republic) to 43.5% (Namibia)

Question 20

Informal sector

4.3.1 - Measures of development

Answer 20

The sector of the economy, normally comprising of msall businesses, which is unregistered with the tax authorities

Question 21

Infrastructure

4.3.1 - Measures of development

Answer 21

The transport links, communications networks, sewage systems, energy plants and other facilities essential for the efficient function of a country and its economy

Question 22

Intellectual Property (IP)

4.3.1 - Measures of development

Answer 22

Private property rights over ideas and other inventions including copyrights, patents, trademarks, and industrial designs

Question 23

Least Developed Countries (LDCs)

4.3.1 - Measures of development

Answer 23

A group of countries that have been classified by the United Nations as least developed in terms of their low gross domestic product (GDP) per capita, weak human assets and high degree of economic vulnerability

Question 24

Living standards

4.3.1 - Measures of development

Answer 24

The baseline measure for the standard of living is real national income per capita measured at constant prices and adjusted for purchasing power parity i.e. GNI per capita ($) at PPP

Question 25

Natural Capital

4.3.1 - Measures of development

Answer 25

The stock of natural ecosystems that yields a flow of valuable ecosystem goods or service into the future. Natural capital may also provide services like recycling wastes or water catchment and erosion control

Question 26

Overseas assets

4.3.1 - Measures of development

Answer 26

Assets such as businesses, shares, property which are owned in overseas countries and which might generate a flow of investment iincome which is a credit item on the primary income account of the balance of payments

Question 27

Primary sector

4.3.1 - Measures of development