chapter 10 Flashcards
commodity chain
Series of links connecting the many places of production and distribution and resulting in a commodity that is on world market.
developing
With respect to a country, making progress in technology, production, and socioeconomic welfare.
gross national product (GNP)
The total value of all goods and services produced by a country’s economy in a given year. It includes all goods and services produced by corporations and individuals of a country, whether or not they are located within a country.
gross domestic product (GDP)
The total value of all goods and services produced within a country during a given year.
gross national income (GNI)
The total value of goods and services produced by a country per year plus net income earned abroad by its nationals; formerly called “gross national product.”
per capita GNI
The Gross National Product (GNP) of a given country divided by its population.
formal economy
The legal economy that is taxed and monitored by a government and is included in a government’s Gross National Product; as opposed to an informal economy.
informal economy
Economic activity that is neither taxed nor monitored by a government; and is not included in that government’s Gross National Product; as opposed to a formal economrmal y.
modernization model
A model of economic development most closely associated with the work of economist Walter Rostow. The modernization model (sometimes referred to as modernization theory) maintains that all countries go through five interrelated stages of development, which culminate in an economic state of self-sustained economic growth and high levels of mass consumption.
context
The geographical situation in which something occurs; the combination of what is happening at a variety of scales concurrently.
neo-colonialism
The entrenchment of the colonial order, such as trade and investment, under a new guise.
structuralist theory
A general term for a model of economic development that treats economic disparities among countries or regions as the result of historically derived power relations within the global economic system.
dependency theory
A structuralist theory that offers a critique of the modernization model of development. Based on the idea that certain types of political and economic relations (especially colonialism) between countries and regions of the world have created arrangements that both control and limit the extent to which regions can develop.
dollarization
When a poorer country ties the value of its currency to that of a wealthier country, or when it abandons its currency and adopts the wealthier country’s currency as its own.
world-systems theory
Theory originated by Immanuel Wallerstein and illuminated by his three-tier structure, proposing that social change in the developing world is inextricably linked to the economic activities of the developed world.
three-tier structure
With reference to Immanuel Wallerstein’s world-systems theory, the division of the world into the core, the periphery, and the semi-periphery as a means to help explain the interconnections between places in the global economy.
Millennium Development Goals
Eight international development goals that 192 United Nations member states and at least 23 international organizations have agreed to achieve by the year 2015. They include reducing extreme poverty, reducing child mortality rates, fighting disease epidemics such as AIDS, and developing a global partnership for development.
trafficking
When a family sends a child or an adult to a labor recruiter in hopes that the labor recruiter will send money, and the family member will earn money to send home.
structural adjustment loans
Loans granted by international financial institutions such as the World Bank and the International Monetary Fund to countries in the periphery and the semi-periphery in exchange for certain economic and governmental reforms in that country (e.g. privatization of certain government entities and opening the country to foreign trade and investment).
neoliberalism
A strategy for economic development that calls for free markets, balanced budgets, privatization, free trade, and minimal government intervention in the economy.
vectored diseases
A disease carried from one host to another by an intermediate host.
export processing zones
Zones established by many countries in the periphery and semi-periphery where they offer favorable tax, regulatory, and trade arrangements to attract foreign trade and investment
maquiladoras
The term given to zones in northern Mexico with factories supplying manufactured goods to the U.S. market. The low-wage workers in the primarily foreign-owned factories assemble imported components and/or raw materials and then export finished goods.
special economic zones
Specific area within a country in which tax incentives and less stringent environmental regulations are implemented to attract foreign business and investment
island of development
Place built up by a government or corporation to attract foreign investment and which has relatively high concentrations of paying jobs and infrastructure.
nongovernmental organization (NGOs)
International organization that operate outside of the formal political arena that are nevertheless influential in spearheading international initiatives of social, economic, and environmental issues.
microcredit program
Programs that provide small loans to poor people, especially women, to encourage the development of small businesses.
