chapter 8 Flashcards
global inequality
the systematic differences in wealth and power between countries
high income countries
Europe, United States, Canada, Japan, Singapore, Hong Kong and Taiwan
middle income countries
primarily east and southeast asia and oil rich countries of the middle east and north africa, Americas and what once made up the soviet union
low income countries
eastern, western and sub-saharan africa, vietnam, cambodia, india, nepal, haiti
newly industrializing economies
developing countries that over the past 2 or 3 decades have begun to develop a strong industrial base, like singapore and Hong Kong
market-oriented theory
theories about economic development that assume that the best possible economic consequences will result of an individual is free to make their own economic decisions, uninhibited by governmental constraint
modernization theory
a version of market-oriented development theory that argues that low income societies develop economically only if they give up their traditional ways and adopt modern economic institutions, technologies and cultural values that emphasize savings and productive investments
neoliberalism
the economic belief that free-market forces, achieved by minimizing government restrictions on business provide the only route to economic growth
dependency theories
Marxist theories of economic development arguing that poverty of low income countries stems from their exploitation by wealthy countries and the multinational corporations that are based in wealthy countries
colonialism
the process whereby western nations establish their rule in parts of the world away from their home territories
world-system theories
pioneered by wallerstein, emphasizes the interconnection among countries based on the expansion of a capitalist world economy. the economy is made up of core countries, semiperipherial countries and peripheral countries
core countries
the most advanced industrial countries which take the lion’s share of profits in the world economic system
peripheral countries
countries that have a marginal role on the world economy and thus depend on the core producing societies for their trading relationships
semiperipheral countries
countries that supply sources of labor and raw materials to the core industrial countries and the world economy but are not themselves fully industrialized societies
global commodity chain
a worldwide network of labor and production processes yielding a finished product
