Chapter 10 Flashcards
Development
The process of Curving the conditions of people through division of knowledge and technology
What are the 2 main categories of development?
developed and developing
What are the sub-categories of development?
high, medium, and low developing
What is the highest possible Human Development Index (HDI)?
1.0
What 3 factors contribute to the HDI?
a decent standard of living, access to knowledge, life expectancy
Gross national income (GNI)
Value of the output of goods and services produced in a country in a year including money that leaves and enters the Country
Gross domestic product (GDP)
value of national output produced in a country but excludes money coming in from the GNI
GDP v. GNI
The value of the output of goods and services produced in a country in a year The GDP does not account for money that leaves and enters the country
Purchasing power parity (PPP)
an adjustment made to the GNI to account for differences among countries in the cost of goods
primary sector jobs
is the extraction of raw goods from the earth- agriculture
Secondary sector jobs
taking the raw Goods that were you know taken or produced from The primary sector and then manufacturing goes into a finished product- manufacturing
tertiary sector jobs
retail, hospitality, real estate
productivity
The value of a particular product compared to the amount of Labor needed to make it
value added
the value of an article is increase that each stage of production
What does the U.N. consider to be the most critical measure in this category and what two specific factors does the U.N. measure?
years of schooling, health, and education
What is the main indicator the U.N. uses for this category and how does this differ on average
between developed and developing countries?
health is just as important as wealth and knowledge
What factors contribute to longer life expectancies in developed countries?
better medicine
What are the 2 scales of inequality?
regional, international and local levels and between males and females
What is the IHDI?
measures the extent of inequality in a state, ideally HDI and IHDI, should be equal
Gender-related Development Index (GDI)
measures gender gap in level of achievement: income, education, life expectancy, highest score is 1.0
Gender Inequality Index (GII)
measure the gender gap in reproductive health, empowerment, and developing, the higher the score the worse the inequality
What does empowerment mean in the context of gender inequality?
ability to achieve improvements in status; economic and political power
To narrow the gap between MDCs and LDCs, LDCs must develop more
Per capita GNI
What are two challenges LDCs regarding rapid development?
adopting policies that successfully promotes and sustain development, finding funds to promote development
Elements of the self sufficiency model
Import limits
-tariffs
-fixed quotas on imports
-redistricting licenses of legal importers
insulation
-fledgling businesses are nursed to success by being isolated from international competition
Equal investment
-investment is spread equally across all sectors
-equal income across the populous
Elements of the International Trade Approach
Rostow’s Development Model
Traditional society
-not started development higher # of people in ag.
Preconditions for takeoff
-elite group initiates economic activity elite promotes investment and technology
Takeoff
-rapid growth generated in a limited # of activities, textiles and food production
Drive to maturity
-modern tech diffuses widely to a variety of industries
Age of mass consumption
-economy shifts from steel and energy to consumer goods
Problems and criticisms of the self sufficiency model
insufficient industries
lack of competition
corruption
black market
Problems and Criticisms of of the International Trade Approach (Rostow’s Development Model)
resource rich countries that are poor benefit from international trade
international competitiveness increases and improves they way of manufacturing and conducting business
Which of the two models for development has shown the most success?
international trade
World Trade Organization (WTO)
- reduce or eliminate international trade restrictions on manufactured goods
- protects intellectual property on the internet
foreign direct investment (FDI)
Investment made by another foreign company in the economy of another country
apple is an example
structural adjustment programs
a structural adjustment program contains economic reforms or adjustments such as economical strategies for achieving objectives in external financing requirements.
reforms may include:
Spending only what it can afford
Directing benefits to the poor not just the elite
diverting investment for military spending to health and education spending
investing scarce resources where they will have the most impact
encouraging a more productive private sector
Fair Trade
provides greater equity to workers and small business in LDCs
Overall goals of fair trade
promotion of sustainability through better trading ad working conditions, Three sets of standards- producers, worker, consumers
Fair trade for producers
raise incomes, distribute profits and risks more fairly, promote safe and sustainable farming
Fair trade for workers
paid for wages, permitted to unionize, protect environment and safety standards
cooperative farm
Coops enable small scale farmer to undertake fair trade production, farmers pool resources, in certain areas of activity
cooperative stores
a member owned, member governed business that operates for member benefits
HDI
Gap between MDCs and LDCs has narrowed since 198- HDI has increased rapidly in LDCs
GNI per capita
increased more rapidly in developed regions
education
has increased at a similar rate in developed and developing
life expectancy
has increased at a similar rate in developed and developing
Sustainability goals
universal call to action to end poverty, protect the planet, and ensure peace and prosperity
