COMPARATIVE ECONOMIC DEVELOPMENT Flashcards
-Low income, low human capital, high economic vulnerability
- Haiti
LEAST-DEVELOPED COUNTRIES
Productive investment in people such as skills, values, and health resulting from expenditures on education, on the job training, and medical care
Human capital
This concept was introduced by the United Nations Development Programme (UNDP) in 1990.
They rank countries according to the level of human index.
Human development Index
The number of units of a foreign country’s currency required to purchase an identical quantity of goods and services in the local developing country market as $ 1 would buy in the US.
PURCHASING POWER PARITY
it implies how long a person lives, and how long a person is expected to live (life expectancy at birth).
Longevity
It means the status of education of the people
Knowledge or Educational Attainment
it implies the purchasing power of the people or their capacity to buy goods and services.
Per Capita Gross Domestic Product Adjusted
A cycle when low-income levels may lead to low investment in education and health, infrastructure, and equipment, which in turn may lead to economic stagnation
Lower Levels of Living and Productivity : Poverty trap
“Bringing the incomes of those living on less than $1.25 per day up to this minimal poverty line would require less than 2% of the incomes of the world’s wealthiest 10%.”
High levels of Absolute Poverty
The situation of being unable or only barely able to meet the subsistence essentials of food, clothing, shelter, and basic health care.
Absolute Poverty
the number of children born alive each year per 1,000 population
Crude Birth rate
0 + 15 years and 65+ years old
Dependency burden
Ethnic, linguistic, and religious diversity may be a cause of diversity and underdevelopment.
Greater Social Fractionalization
Landlocked areas in Africa have lower incomes than coastal areas.
The projected impact of global warming in Asia and Africa can alter the course of development.
. Adverse Geography
Lack of legal system
Lack of stable and trustworthy currency
Lack of infrastructure
Lack of well well-regulated and efficient banking system
Lack of substantial market information
Lack of social norms that facilitate long-term business relationships
Underdeveloped Markets
