4.3 - Emerging and developing economies Flashcards
Advanced economies
4.3.1 - Measures of development
Acording to the IMF there are 41 advanced economies with 28 being in Europe
Aid
4.3.1 - Measures of development
Overseas development assistance from one country to another. Might take the form of humanitarian assistance, technical expertise and project aid etc.
BRICS economies
4.3.1 - Measures of development
The BRICS grouping - Brazil, Russia, India, China and South Africa - has become short-hand for the rise of emerging markets in the global economy
BRICS development bank
4.3.1 - Measures of development
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)
Capital flows
4.3.1 - Measures of development
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
Economic development
4.3.1 - Measures of development
Progress in expanding economic freedoms, a sustained improvement in economic and social opportunities and growth in personal and national capabilities
Economic structure
4.3.1 - Measures of development
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)
Emerging economy
4.3.1 - Measures of development
Typically, a lower to middle income country that is progressing toward becoming more advanced, usually by means of rapid growth, urbanization and industrialization
Genuine Progress Indicator (GPI)
4.3.1 - Measures of development
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
Gross Domestic Product per capita
4.3.1 - Measures of development
National income per head of population = total GDP/total population
Gross Domestic Product
4.3.1 - Measures of development
The total value of an economy’s domestic output of goods and services
Gross National Income (GNI)
4.3.1 - Measures of development
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
Hard infrastrucutre
4.3.1 - Measures of development
Examples include power, transport and telecommunications systems
Heavily Indebted Poor Countries Initiative
4.3.1 - Measures of development
A global initiative to provide external debt relief to heavily indebted low-income countries
Human Development Index
4.3.1 - Measures of development
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)
Humanitarian Aid
4.3.1 - Measures of development
Emergency disaster relief, food aid, refugee relief and disaster preparedness
Inclusive Wealth Index
4.3.1 - Measures of development
Assesses changes in a country’s productive base, including produced, human, and natural capital over time
Income distribution
4.3.1 - Measures of development
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
Inequality-adjusted HDI
4.3.1 - Measures of development
The IHDI 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 due 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)
Informal sector
4.3.1 - Measures of development
The sector of the economy, normally comprising of small businesses, which is unregistered with the tax authorities
Infrastructure
4.3.1 - Measures of development
The transport links, communications networks, sewage systems, energy plants and other facilities essential for the efficient functioning of a country and its economy
Intellectual Property
4.3.1 - Measures of development
Private property rights over ideas and inventions including copyrights, patents, trademarks and other industrial designs
Least Developed Countries (LDCs)
4.3.1 - Measures of development
A group of countries that have been classified by the United Nations as least developed in terms of thier low gross domestic product (GDP) per capita, weak human assets and high degree of economic vulnerability
Living standards
4.3.1 - Measures of development
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. real GNI per capita ($) at PPP
Natural capital
4.3.1 - Measures of development
The stock of natural ecosystems that yields a flow of valuable ecosystem goods or services into the future. Natural capital may also provide services like recycling wastes or water catchment and erosion control
Overseas assets
4.3.1 - Measures of development
Assests such as businesses, shares, property which are owned in overseas countries and which might generate a flow of investment income which is a credit item on the pirmary income account of the balance of payments
Primary sector
4.3.1 - Measures of development
An industry involved in the production of raw materials including agriculture
Soft infrastructure
4.3.1 - Measures of development
The financial system and regulation, education system, the legal framework, socail networks, values and other intagible structures in an economy
Subsistence farming
4.3.1 - Measures of development
Farming where ouptut is produced for consumption of the farmer and its family members and not for cash sale
Sustainable development
4.3.1 - Measures of development
To leave future generations the option or capacity to be as well off as we are
Sustainable growth
4.3.1 - Measures of development
Growth which meets the needs of the present without comprimising the ability of future generations to meet their own changing needs and wants. Each generation should bequeath to its successor at least as large a productive base as it inherited
Trend growth
4.3.1 - Measures of development
Trend growth is the long term non-inflationary increase in output (GDP) caused by an increase in a country’s productive capacity i.e. LRAS
Trickle down
4.3.1 - Measures of development
The process whereby the economic gains from economic growth pass down throughout the entire society eventually giving rise to inclusive development
Bilateral aid
4.3.2 - Factors influencing growth and development
Aid (development assistance) that flows from one country to another
Brain drain
4.3.2 - Factors influencing growth and development
The movement of highly skilled or professional people from their own country to another country where they can earn more money