chapter 10: development

Question 1

define development

Answer 1

process of improvement in the material conditions of people through diffusion of knowledge and technology

Question 2

what is the difference between a developed and a developing country

Answer 2

developed: progressed relatively far along a continuum of development
developing: at a relatively early stage in the process of development

Question 3

what is the Human development index HDI

Answer 3

indicator made by the UN to measure the level of development for a country through a combination of income, education, and life expectancy

Question 4

the human development index is a function of _____, _______, _________.

Answer 4

standard of living, long and healthy life, access to knowledge

Question 5

what two things does the UN use to measure standard of living

Answer 5

• Gross national income (GNI): value of output of goods and services produced in a country in a year, including money that leaves and enters country
• purchasing power parity (PPP): amount of money needed in one country to purchase the same goods and services in another country

Question 6

what are the three different job sectors? What shares do they have in developed/developing countries?

Answer 6

1. primary sector: portion of economy concerned with the direct extraction of materials from earth, generally through agriculture
   - high in developing, low in developed
2. secondary sector: manufacturing useful products through processing, transforming, and assembling raw materials
   - decreased in developing
3. tertiary sector: transportation, communications, utilities, sometimes all goods and services
   - large in all

Question 7

what is productivity?

Answer 7

value of product compared to amount of labour needed to make it

Question 8

what is value added

Answer 8

gross value minus costs of material and labour

Question 9

what two things about education does the UN take into account for the HDI

Answer 9

1. years of schooling to todays adults

2. years of schooling for todays youth

Question 10

what is the literacy rate

Answer 10

percentage of a country’s people who can read and write

Question 11

what is the inequality-adjusted human development index

Answer 11

modification of the HDI to account for inequality

Question 12

what is the gender related development index

Answer 12

measure the gender gap in the level of achievement in terms of income, education, and life-expectancy

Question 13

what is the gender inequality index

Answer 13

measures extent of each country’s gender inequality in terms of reproductive health, empowerment, and labour market

Question 14

what is the adolescent fertility rate

Answer 14

number of births per 1000 women ages 15-19

Question 15

what is the female labour force participation rate

Answer 15

percentage of women holding full-time jobs outside the home

Question 16

what are the 2 models to development

Answer 16

1. self sufficiency: encourage domestic production, discourage foreign ownership, protect businesses from international competition
2. international trade: open to foreign investments and international markets

Question 17

what are the key paths to self-sufficiency

Answer 17

• balanced growth: invest equally across all sectors

- import barriers: limit imports through taxes and quotas

Question 18

what are the key paths to international trade

Answer 18

must identify some unique economic asset

Question 19

what are the WW Rostow stages

Answer 19

1. traditional society
2. preconditions for takeoff
3. takeoff
4. drive to maturity
5. age of mass consumption

Question 20

why doesn’t self-sufficiency tend to work

Answer 20

• inefficient industries
• lack of competitiveness
• corruption
• black market

Question 21

developing countries receive finance from what 2 sources

Answer 21

1. foreign direct investments: investments from foreign company in economy of another country
2. micro finance: provisions of small loans and financial services to individuals and small businesses in developing countries

Question 22

what is the structural adjustment program

Answer 22

economic policies in a developing nation by an International agencies to encourage international trade

Question 23

what is fair trade

Answer 23

variation of international trade that provides greater equity to workers, small businesses, and consumers. focus mostly on products exported from developing countries.
essentially a set of business practices.

Question 24

what are the standards for fair trade

Answer 24

fair wages, union rights, environment and safety standards