APHUG Development Flashcards
commodity chain
a series of links connecting the many places of production and distribution resulting in a final product that is then bought and sold on the market
break-of-bulk location
where goods traded on one mode of transport were transported to another mode of transport.
gross national product (GNP)
total value of officially recorded goods/services produced by a country in a year (both inside and outside the country)
gross domestic product (GDP)
goods and services produced within a country
gross national income (GNI)
what is produced within a country + income received from investments outside the country - income payments to other countries
per capita GNI
GNI divided by the population of a country
GNI flaws
does not measure nonmonetary costs (informal economy)
flaws within GNI per capita
masks extremes, only measures outputs (not environmental depletion)
formal economy
the legal economy that governments tax and monitor
informal economy
the illegal or uncounted economy that governments do not tax or keep track of.
digital divide
high correlation between wealth and internet access
Millennium Development Goals
consensus regarding the key conditions needed to be changed to achieve economic development
1. eradicate extreme poverty/hunger
2. universal primary education
3. gender equality
4. reduce child mortality
5. improve maternal health
6. combat hiv/aids, malaria, and other diseases
7. ensure environmental sustainability
8. develop global partnership for development
Walt Rostow’s modernization model
All countries follow a similar path to development/modernization:
1. traditional - subsistence farming
2. preconditions of takeoff - great flexibility, openness, and diversification
3. takeoff - industrial revolution
4. drive to maturity - international trade/modernization
5. high mass consumption - high incomes/widespread production
context
Development reflects what has happened and what is happening in a place as a result of processes operating at the same time at multiple scales.
neo-colonialism
major world powers continue to control the economies of the poorer countries
structuralist theory
difficult-to-change, large-scale economic arrangements shape what is possible for a country’s development in fundamental ways
dependency theory
the political and economic relationships between countries and regions of the world control and limit the economic development possibilities of poorer areas.
- economic structures make poorer countries dependent on wealthier countries
dollarization
adopting the US dollar as a country’s currency
world-systems theory
incorporates space (geography), time (history), and power relationships (politics)
trafficking
occurs when adults and children fleeing poverty or seeking better prospects are manipulated, deceived, and bullied into working in conditions they would not choose
structural adjustment loans
countries have to agree to implement economic or governmental reforms such as opening the country up to foreign trade and reduce tariffs in order to recieve loans
Washington Consensus
set of policies surrounding structural adjustment loans. Opponents argue that the policies support and protect core country economies at the expense of peripheral and semiperipheral economies
neoliberalism
government intervention into markets is inefficient and undesirable
Leads to states having less control over their economic destinies as private corporations take over vital functions
export processing zones (EPZs)
offer favorable tax, regulatory, and trade arrangements to foreign firms
- Mexican maquiladoras
- special economic zones of China
