Contemp Test 2 Part 1 Flashcards
Main economic indicators
Gross Demoestic Product, Gross national income, annual growth, inflation rate, and imports and exports
GDP
measures the wealth created in a given year(# of inhabitants)
GDP per capita
measures the standard of living and attributes a value to the population’s purchasing power
Gross national income
average income earned by a country’s population
Annual growth
annual growth of the GDP
Inflation rate
measures overall increase in the price of goods and services
Imports and exports
Imports are goods and services entering the country. Exports are those that a country sells to another country
What is the human development index based on
Based on a vision development that goes beyond income and economy
What does the HDI take account of
Aspects related to the well-being and ability
How is the HDI calculated
-1/3 GDP to represent the average standard of living
-1/3 life expectancy at birth:indicates pop’s health
-2/9 Adult literacy rate: % of ppl over the age of 15 that can read or write
-1/9 enrollment rate: proportion of young ppl who are educated
Number difference of result of HDI
btween 0(deplorable) and 1(excellent)
HDI of less developed countries
Have an HDI under 0.5
HDI of developed countries
Have an HDI score of above 0.8
How is wealth distirbuted around the world
Unequally, only concemtrated in a few dozen countries
Developed countries and wealth (HDI and GDP per capita)
Wealthiest countries. GDP per capita over US$8,000 or HDI at least 0.8. In Northern and industrialized countries
Developing countries wealth (HDI)
Country with HDI above 0.5. Southern countires, a hetergeneous group.
Emerging economies
Subcategory of developing countries. Impressive economic growth , standard of living starting to resemble that in Northern countries (Brazil, Russia, India, China and the Asain Dragons and Tigers
Least developed countries and wealth (HDI and GDP per capita)
The poorest with GDP under US$900 and HDI of less than 0.5. In 1970: 25 but now 49 and most in Sub-Saharan Africa
Foreign Debt
Money a country owes to foreign creditors. Could be international institutions (IMF or World Bank), other States or private creditors
Is debt a bad thing?, what can it do as a positive
Being un debt is not necessarily a bad thing, since money can be used to create wealth and stimulate economic growth
What happened to developing countries after decolonization
They contracted sizable debts with the IMF, World Bank and other States. This enabled many to gain their independence
What was the money borrowed from the developing countries used for
For infrastructure or industrialization and to finance civil wars or to line pockets
How much did the debt of developing countries rise up to
1960: US$8 billion to US $2.6 trillion in 2004
How much have developing countries paid back since 1960
10 times what they borrowed
