DEVELOPMENT Flashcards
DEVELOPMENT LEVELS
- Developed Countries (DCs)
- Less Developed Countries (LDCs)
WORLD LEVELS
- First World (Capitalist)
- Second World (Communist or Socialist)
- Third World (Less Developed)
- Fourth World (Severely Underdeveloped)
ECONOMIC LEVELS
- High-Income
- Upper-Middle-Income
- Lower-Middle-Income
- Low-Income
GROSS NATIONAL PRODUCT
the total value of officially recorded goods and services produced by the citizens and corporations of a country in a given year
GROSS DOMESTIC PRODUCT
encompasses only goods and services produced within a country in a given year
GROSS NATIONAL INCOME
monetary worth of what is produced within a country plus income from investments outside the country minus income payments to other countries
Note: Only Measures Formal Economy transactions
GNI PURCHASING POWER PARITY
the total value of all goods and services produced in a country divided by its population
INEQUALITY IN US
5% of Households own 2/3 of America’s Total Wealth
The Richest 1% of Americans Gained $7 Trillion during COVID
WORKER PRODUCTIVITY
analyzes the number of workers relative to amount of production in a given sector to reveal efficiency
DIGITAL DIVIDE
caused by lack of internet access in less developed countries
DEPENDENCY RATIO
measure of the number of dependents in the population relative to every 100 people of working age
HUMAN DEVELOPMENT INDEX
quantifies aspects of human development as a composite index of life expectancy, education, and income
WALT ROSTOW’S MODERNIZATION MODEL
assumes countries follow a similar path of development through stages:
- Traditional (Subsistence Farming)
- Preconditions for Takeoff (New Leadership)
- Takeoff (Industrial Revolution Like)
- Drive to Maturity (Tech Diffuses and Trade Expands)
- High Mass Consumption (High Incomes and Widespread Production)
- Beyond Consumption
NEOCOLONIALISM
The major world powers continue to control the economies of the poorer countries, even though they are now politically independent states
STRUCTURALIST THEORY
large-scale economic arrangements shape what is possible for a country’s development in fundamental ways
DEPENDENCY THEORY
the political and economic relationships between countries and regions of the world control and limit the economic development possibilities of lower-income areas
DOLLARIZATION
the process of adopting the US dollar as a country’s currency
BREAK-OF-BULK LOCATIONS
important nodes where goods traded on one node of transport are transported to another mode of transport
Example: Timbuktu (Camel to Boat)
COMMODITY CHAIN (SUPPLY CHAIN)
series of links connecting the many places of production and distribution that are involved in the creation of a final product that is bought and sold on the market
INTERNATIONAL FINANCIAL INSTITUTIONS (IFIs)
governments influence development through investments, alliances, trade deals, and purchases, as well as foreign aid and support for international financial institutions and investment banks
Note: We Give Aid to Stop Refugees
US FOREIGN AID
most of America’s foreign aid to Israel has historically been for military purposes
WORLD BANK AND IMF
the post-World War II Bretton Woods Conference created them to promote economic reconstruction, free trade, and economic exchange
CHINA DEVELOPMENT BANK
established in 1944 and is one of the four largest banks in the world
Note: Chinese Loans are More Serious
SOCIAL CONDITIONS AND DEVELOPMENT
- High Birth Rates
- Low Life Expectancies at Birth
- High Infant Mortality Rates
- Lack of Sanitation
- Unsafe Water
- Healthcare is Poor
- Education is Poor
- Trafficking
POLITICAL CORRUPTION AND DEVELOPMENT
a wide divide often exists between the very wealthy and the poor due to corruption and the issue of democracy versus autocracy
SPECIAL ECONOMIC ZONES
offer favorable tax, regulatory, and trade agreements to foreign firms
DESERTIFICATION
results from humans destroying native vegetation and eroding soils through the overuse of lands for livestock grazing or crop production
TOURISM INDUSTRY
Negatives: Local Resentment, Debasement of Culture, Few Dollars to Local Economy, Cruise Ships have Own Ports
Positives: Leasing and Growing Industry, Allow Air Connections, Non-Polluting
APPALACHIAN REGIONAL COMMISSION
created to develop Appalachia through investment in roads, schools, health care, water, and sewer systems
ISLANDS OF DEVELOPMENT
when a government or corporation builds up and concentrates economic development in a certain city or small region
MICROCREDIT PROGRAMS
give loans to poor people, particularly women, to encourage development of small businesses
