chapter 10: development Flashcards
define development
process of improvement in the material conditions of people through diffusion of knowledge and technology
what is the difference between a developed and a developing country
developed: progressed relatively far along a continuum of development
developing: at a relatively early stage in the process of development
what is the Human development index HDI
indicator made by the UN to measure the level of development for a country through a combination of income, education, and life expectancy
the human development index is a function of _____, _______, _________.
standard of living, long and healthy life, access to knowledge
what two things does the UN use to measure standard of living
- 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
what are the three different job sectors? What shares do they have in developed/developing countries?
- primary sector: portion of economy concerned with the direct extraction of materials from earth, generally through agriculture
- high in developing, low in developed - secondary sector: manufacturing useful products through processing, transforming, and assembling raw materials
- decreased in developing - tertiary sector: transportation, communications, utilities, sometimes all goods and services
- large in all
what is productivity?
value of product compared to amount of labour needed to make it
what is value added
gross value minus costs of material and labour
what two things about education does the UN take into account for the HDI
- years of schooling to todays adults
2. years of schooling for todays youth
what is the literacy rate
percentage of a country’s people who can read and write
what is the inequality-adjusted human development index
modification of the HDI to account for inequality
what is the gender related development index
measure the gender gap in the level of achievement in terms of income, education, and life-expectancy
what is the gender inequality index
measures extent of each country’s gender inequality in terms of reproductive health, empowerment, and labour market
what is the adolescent fertility rate
number of births per 1000 women ages 15-19
what is the female labour force participation rate
percentage of women holding full-time jobs outside the home
what are the 2 models to development
- self sufficiency: encourage domestic production, discourage foreign ownership, protect businesses from international competition
- international trade: open to foreign investments and international markets
what are the key paths to self-sufficiency
- balanced growth: invest equally across all sectors
- import barriers: limit imports through taxes and quotas
what are the key paths to international trade
must identify some unique economic asset
what are the WW Rostow stages
- traditional society
- preconditions for takeoff
- takeoff
- drive to maturity
- age of mass consumption
why doesn’t self-sufficiency tend to work
- inefficient industries
- lack of competitiveness
- corruption
- black market
developing countries receive finance from what 2 sources
- foreign direct investments: investments from foreign company in economy of another country
- micro finance: provisions of small loans and financial services to individuals and small businesses in developing countries
what is the structural adjustment program
economic policies in a developing nation by an International agencies to encourage international trade
what is fair trade
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.
what are the standards for fair trade
fair wages, union rights, environment and safety standards
