Development & Globalisation Flashcards
What is the definition of Globalisation?
The increasing interconnectedness of the world economically, culturally and politically.
What is the definition of development?
An economic, social and political process which leads to a cumulative rise in the perceived standard of living.
What is structural adjustment?
A set of policy changes countries are required to undertake in order to receive loans through the IMF and World Bank.
What is Horizontal integration?
The process of buying up the competition.
What are the four factors that promote globalisation?
- Flows of Capital
- Flows of Production
- Flows of Services
- Flows of People
What is the development continuum?
The process which countries go through on the way from being LEDCS to becoming MEDCS.
How much wealth does the North possess?
The north possesses 75% of the world’s wealth. (Even though it only makes up around 25% of the world’s population.
What is the Human Development Index?
It is a composite statistic of life expectancy, education and income indices used to rank countries.
What are the 5 stages of Rostow’s Model called?
Stage 1: Traditional Society (economy based on agriculture)
Stage 2: Preconditions for take Take-Off
Stage 3: Take-Off (secondary sectors take over primary)
Stage 4: Drive to Maturity (Beginning of Tertiary sector)
Stage 5: Age of Mass Consumption (primary sector is off little weight to the economy)
What is Clark Sector’s Model?
- It is based on the Uk’s transition through development.
The model clearly shows the transition from an economy dominated by the primary sector to one dominated by the secondary and tertiary sector.
Why can the NIC’s economic growth be seen as unsustainable?
- They are using vast amounts of their natural resources for the manufacturing of products.
- Wealth disparities often increasing between rural-urban areas.
- As labour costs and standards of living go up this causes TNCs to look elsewhere for cheaper alternative labour. (Caravan capitalism)
What is the Core Periphery Model?
As a country develops a single strong centre emerges, dominating the local areas.
As a country begins to post-industrialise its economy the peripheral areas begin to diminish.
N.B: Countries who gained independence are often still suffering the causes of post colonialism and being a periphery power dependent on the core MEDC power, e.g Chad gaining independence in 1960 from France.
What is the Dependency Theory?
Countries are dependent on more powerful, frequently colonial powers who often then exploit the weak nations.
- The resources from the peripheral power flow to support the consumers in the overseas country. (E.g many African Countries growing crops for Europe even though 47% of people living in Sub-Saharan Africa are below the poverty line)
What are the economic reasons as to why countries are underdeveloped?
- Poor trade links (many LEDCS have little involvement with world trade - the poorest 49 countries only account for 0.4% of world trade)
- High levels of debt (Uganda debt burden $19bn in 1992, but this was cancelled by the Heavily indebted poor countries (HIPC) programme)
- Trade in low profit goods (LEDCS rely on exporting cheap primary goods)
- Trade deficit (Many LEDCS spend more money on imports than exports)
- Economic instability (LEDCS rely heavily on single cash crops which are at risk of failing e.g Ghana relies on Cocoa which is its 2nd largest export)
What is the Big Push Model?
The theory that underdeveloped countries require large amounts of investments to embark on the path of economic development.
