Development

Question 1

Eco deve

Answer 1

Increase in welfare and living std over time

Question 2

Savings gap

Answer 2

Diff bet actual lvl of savings and the level of savings needed to finance the i required for a higher rate of E.G.

Question 3

Harrod-Domar model

Answer 3

Y=s/k, s=savings k=capital output ratio (the captal need to produce a unit of output, smaller=more efficient)

Question 4

Capital flight

Answer 4

When savings are sent abroad by citizens and firms to another country which might be more secure/money can be hidden from gov authorities/higher returns

Question 5

Restow’s stages of growth model

Answer 5

From the pre-conditions for take off to take-off Harrod-Domar comes in to industrialisé and move from agri to manu

Emphasise industrial over agri
And capital and saving

Question 6

Lewis 2-sector model

Answer 6

MRP of agri decline so could be made more productive if this surplus labour is transferred into urban industrial sector.
MRP reflects prod so wage rise and this is an incentive
Reinvestment of profit expand output and migration continues

Question 7

Prebisch-Singer Hypothesis

Answer 7

Countries which spécialisé in primary products will suffer falling tot

Question 8

AP primary product dependency

Answer 8

Egypt 32% agriculture

Question 9

AP savings gap

Answer 9

Savings ratio 17%developing and 31%developed

Question 10

AP poor infrastructure

Answer 10

Power blackouts in India

Question 11

AP human capital

Answer 11

Edu spending in china (ing) Korea, Singapore (ed)

Question 12

AP foreign currency gap

Answer 12

97 Asian crisis

Question 13

Microfinance scheme

Answer 13

Provide extremely poor people with small loans (microcredit) to help them engage in productive activities or to grow their tiny businesses

Question 14

microfinance

Answer 14

Small loans provided to poorest HH in LEDCs not traditionally available from large indigenous bank

Question 15

Brain drain

Answer 15

The emigration of highly skilled workers who are able to earn higher salaries abroad

Question 16

Joint venture

Answer 16

When 2 or more businesses agree to act collectively to set up a new business venture w/ all parties contributing equity to fund the set up and the purchase of assets

Question 17

Buffer stock

Answer 17

Maintain mkt price received by producers bet a min and a max

Question 18

Fair trade

Answer 18

Alleviate poverty based on certified exports at a higher p

Question 19

HDI

Answer 19

Comprise GNI per capita
Life expectancy at birth
Expected and mean year of schooling

Question 20

forex gap

Answer 20

The exports are too low to finance the purchase of imported cap needed for E.G.