Comparative Economic Development Flashcards
What remains the most striking feature of the global economy despite substantial development progress in the developing world?
The extreme contrasts between nations, especially in terms of output per worker, life expectancy, and literacy rates.
Why is the future development of developing nations a major concern for all nations?
Because there can no longer be two futures—one for the few rich and the other for the very many poor.
How are developing countries commonly defined, and what classification does the World Bank use?
Developing countries are defined by per capita income. The World Bank classifies countries as low-income, lower-middle-income, upper-middle-income, and high-income.
What are some regions typically included in the characterization of the developing world?
Sub-Saharan Africa, North Africa, the Middle East, Asia (except Japan and South Korea), Latin America, and the Caribbean.
Which regions or countries primarily make up the developed world according to the high-income OECD classification?
The developed world includes countries from Western Europe, North America, Japan, Australia, and New Zealand.
What special distinction is sometimes made among upper-middle-income or newly high-income economies?
Some upper-middle-income or newly high-income economies are designated as newly industrializing countries (NICs), having achieved advanced manufacturing sectors.
How does the World Bank classify developing nations based on international indebtedness?
The World Bank classifies nations based on their degree of international indebtedness as severely indebted, moderately indebted, and less indebted.
What classification does the United Nations Development Programme (UNDP) use to measure the human development level of countries?
The UNDP classifies countries as having low, medium, high, or very high human development.
What are the three criteria a country must meet to be classified as a least developed country (LDC) by the United Nations?
A country must have low income, low human capital, and high economic vulnerability.
What is social fractionalization, and how does it affect low-income countries?
Social fractionalization refers to ethnic, linguistic, and social divisions within a country, which often lead to political instability or conflict in low-income nations.
Why do researchers use purchasing power parity (PPP) to compare GNIs and GDPs across countries?
PPP allows for more accurate measurement of living standards by accounting for differences in domestic prices through a “basket of goods” approach.
According to Sen’s Capability approach, why is it necessary to evaluate health and educational attainments alongside average income?
It is necessary to evaluate health and educational attainments to reflect a nation’s core capabilities beyond just income.
What are some key health indicators used to measure development?
Health indicators include the under-5 mortality rate, life expectancy, and the prevalence of malnutrition (% of underweight children under age 5).
What are some key education indicators used to assess a nation’s development?
Education indicators include the primary completion rate (as a % of the relevant age group) and the literacy rate.
Basic indicators of Development:
What is the most widely used holistic development measure?
The most widely used holistic development measure is the new Human Development Index (HDI), presented by the UNDP in the Human Development Reports.
On what scale does the new HDI rank countries?
The new HDI ranks countries on a scale of 0 (lowest human development) to 1 (highest human development).
What are the three goals of development that the new HDI is based on?
The three goals of development are:
- A long and healthy life, as measured by life expectancy at birth.
- Knowledge, as measured by a combination of average schooling attained by adults and expected years of schooling for school-age children.
- A decent standard of living, as measured by real per capita gross domestic product adjusted for purchasing power parity (PPP).
List the following:
The characteristics of the developing world
- Lower Levels of Living and Productivity
- Lower Levels of Human Capital (health, education and skills)
- Higher Levels of Inequality and Absolute Poverty
- Higher Population Growth rates
- Greater Social Fractionalization
- Larger Rural Population but Rapid Rural-to-Urban Migration
- Lower Levels of Industrialization and Manufactured Exports
- Adverse Geography
- Underdeveloped Markets
- Colonial Legacy and External Dependence
What percentage of the world’s population lives in low- and middle-income developing nations, and what share of the world’s income do they receive?
Five-sixths (84%) of the world’s population lives in low- and middle-income developing nations, but they receive only about 46% of the world’s income.