Development Definitions

Question 1

Economic Development

Answer 1

An improvement in the people’s general standard of living

Question 2

Economic growth

Answer 2

An increase in a country’s GDP over time

Question 3

Market-oriented policies

Answer 3

Policies that support the allocation of resources by supply and demand rather than through government intervention

Question 4

Foreign Direct Investment

Answer 4

When a multinational corporation from a foreign country invests in a lesser developed country- usually long-term investment and must be at least 10% ownership

Question 5

Poverty trap

Answer 5

A self-perpetuating mechanism that contributes to the persistence of poverty in a nation

Question 6

Micro-credit

Answer 6

Credit in small amounts of people who do not ordinarily have access to credit, requiring short-term repayment

Question 7

Foreign Aid

Answer 7

Any assistance given to a country that would not have been provided through normal market forces

Question 8

Sustainability

Answer 8

Development that meets the needs of the present generation without compromising the ability of future generations to meet their needs

Question 9

Official Development Assistance

Answer 9

Financial aid given from the government for the purpose of development/welfare