Ch. 10 (Developing Countries) Flashcards
Colonialism
An imperialist system in which a foreign territory is physically occupied, using military force, businesses, or settlers
Developing Countries
Lower and middle income countries
Empire
A single political authority that has under its sovereignty a large number of external regions or territories and different peoples
Export-oriented industrialization
A mercantilist strategy for economic growth in which a country seeks out technologies and develops industries focused specifically on the export market
Imperialism
A system in which a state extends its power to directly control territory, resources, and people beyond its borders
Import Substitution
A mercantilist strategy for economic growth in which a country restricts imports in order to spur demand for locally produced goods
Informal economy
A segment of the economy that is not regulated, protected, or taxed by the state
Lower income countries
Countries that lack significant economic development or political institutionalization or both; also knows as less-developed countries
Microfinance
A system in which small loans are channeled to the poor through borrowing groups whose members jointly take responsibility for repayment
Middle Income Countries
Historically less-developed countries that have experienced signficant economic growth and democratization
Middle income trap
A situation where countries experience economic growth but are unable to develop at the speed necessary to catch up with developed countries
Neocolonialism
An indirect form of imperialism in which powerful countries overly influence the economies of less-developed countries
Neoliberalism/structural adjustment programs/ Washington Consensus
A policy of economic liberalization adopted in exchange for financial support from liberal international organizations; typically includes privatizing state-run firms, ending subsidies, reducing tariff barriers, shrinking the size of the state, and welcoming foreign investment
