Development & Globalisation Flashcards
Define: Development Continuum
The contemporary way of viewing development; perceiving it as a continual process and recognising that it can occur in a number of different ways, not necessarily following the UK model.
Define: Foreign Direct Investment (FDI)
An investment by a TNC in countries other than its parent.
Essential for LEDCs to develop.
Define: Globalisation
The increasing interconnection of the world’s economic, political and cultural systems.
Define: Newly Industrialised Countries (NICs)
Countries in the developing world that have undergone rapid industrialisation since the 1960s.
Define: North-South Divide
The imagined line that separates the richer countries of the north from the smaller countries of the south.
First proposed by the Brandt Report in 1980
North consists of countries such as N.America, Europe, Russia, Japan, Australia
Define: Sustainable Development
Development that meets the needs of the present without compromising the ability of future generations to meet their needs.
Define: Transnational Corporations (TNCs)
A company that has the power to coordinate and control economic operations in more than one country.
The company doesn’t have to own the operations outside its country.
Define: Developed Countries
The most highly developed countries with high living standards.
Define: Developing Countries
Countries at a lower stage of development.
Define: Least Developed Countries
Countries with very low living standards: low life expectancy, high infant mortality, low levels of education.
Define: Recently Industrialising Countries
Countries that have begun to develop through industrialisation in the last 40 years- e.g Singapore.
Define: Centrally Planned Economies
An economic system in which the economic decisions are made by the state or government rather than by the interaction between consumers and businesses.
Define: Oil-Rich Countries
Countries that have plenty of natural oil under the ground from which it is able to make a lot of money. They tend to have a high GDP per capita, although the wealth is concentrated in the hands of the few.
What is the Brandt Line?
The Brandt line is a line proposed by the German Chancellor in a 1980 report to show the Development Gap and the North-South divide that separates the richer northern counties from the poorer southern.
The report demanded that poorer southern countries be integrated into the global economic system to improve the conditions in their countries.
What has happened to third world debt in recent years?
It has grown until the interest on the debts exceeds the amount that the country produces so it can never be repaid.
Define: Development Gap
The difference in affluence between the richer and the poorer countries of the developing world.
What are the 5 types of development?
Economic Demographic Social Political Cultural
What is economic development?
An increase in a country’s level of wealth.
It could be accompanied by a decrease in the no. employed in agriculture and an increase in the no. employed in manufacturing (at first) and services. There may be a greater access to and use of natural resources with an increase in energy use per capita.
What is demographic development?
An increase in life expectancy and an overall fall in death rate (inc. IMR) and falling birth rates.
What is social development?
A range of changes affecting the quality of life for the population.
E.g. Improved literacy+education levels, access to medical care, improved sanitation and better housing.
What is political development?
Increased freedom, allowing formation of a democratic government.
What is cultural development?
A range of changes such as: greater equality of women and better race relations in multicultural societies.
What is Gross Domestic Product (GDP)?
The total value of all finished goods and services provided by a country in a year.
(Usually expressed per capita)
What is Gross National Product (GNP)?
The total value of all finished goods and services produced by a country in a year, plus all net income earned by that country and it’s population from overseas.
(Usually expressed per capita)
What are the problems of using GDP or GNP to measure development?
May be a difference in wealth between regions of a country or between various groups (wealth may be concentrated with a few).
May fail to take into account the cost of living and thus the purchasing power of people’s incomes.
What is a better alternative to GDP or GNP to measure development?
PPP- the Real GDP per capita based on the Purchasing Power Parity of people’s incomes.
What does the Human Development Index (HDI) measure?
Life expectancy at birth
Adult literacy and enrolment in education at primary, secondary and tertiary levels
Real GDP per capita (PPP)
What is the highest figure on the HDI that a country can achieve?
1
A figure below 0.5 is considered to represent low levels of development.
Why is the HDI criticised?
Because some LEDCs have the same HDI as MEDCs as the countries can promote human development even if their income is low.
