Development Economics Flashcards
What is the primary focus of development economics?
Development economics focuses on improving the economic, social, and institutional aspects of developing countries.
How does development economics aim to reduce poverty?
By analyzing factors that influence development and implementing policies to address economic inequalities, unemployment, and underdevelopment.
Why is structural change important in development economics?
It involves the transformation from traditional agricultural economies to modern industrialized ones, crucial for sustained economic growth.
What role do institutions play in development economics?
Institutions like governance, rule of law, and property rights shape economic outcomes and influence development.
Give an example of a policy in development economics aimed at fostering growth.
Infrastructure development, such as building roads or improving access to electricity, is a key policy.
What is the significance of sustainable development in development economics?
It ensures long-term growth without depleting natural resources or harming the environment.
Name two key challenges that development economics seeks to address.
Poverty and income inequality.
What is meant by human capital in development economics?
Human capital refers to investments in education, health, and skills that improve individuals’ productivity and economic potential.
How does globalization impact developing economies?
Globalization can boost trade, investment, and technology transfer but may also widen inequalities and increase dependency.
What does development economics say about the role of international aid?
International aid can provide resources for development but must be managed effectively to avoid dependency or corruption.
