Economic Development Flashcards
When does economic growth exist
When there is an increase in real GDP
When does economic development exist
When there is an increase in real per capita GNI
What does economic growth imply
Implies an increase in the capacity of the economy to produce goods and services
What does economic development imply
An increase in the capacity of the population to produce more goods and services
What is the emphasis of economic growth
Increasing GDP, perfect markets, maximum profit
What is the emphasis of economic development
Higher standards of living, more employment, less poverty
What are the 6 economic development methods
Attracting new business
Building community capacity
Expanding local markets
Use of outdated facilities
Promoting direct investment
Natural resources
Read bottom of page 63
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What are the 6 characteristics of developing countries
Low living standards
Low levels of productivity
High population growth and dependancy
High levels of unemployment
Dependence on the primary sector
Deficient infrastructure
Ensure you understand points on pages 64 and 65
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What are the 5 development strategies / methods
Human Resources
Natural Resources
Entrepreneurship
Capital
Technology
What are human resources as a development strategy
Refers to the labour force
The most important asset of the country
What are the four ways that human resources can be improved
Education and training
Improving health
Population planning
Motivation
What are the two types of natural resources
Land
Minerals and fuels
What is capital formation
When a country increases their stock of capital
What are the 4 ways that capital formation can be increased
Increase voluntary savings
Increase forced savings through taxation
Attract foreigners to invest
Negotiate foreign loans
What are the 5 areas of macroeconomic policies
Satisfaction of basic needs
Development of the economy
Development of human resources
Promoting freedom of choice
Government intervention in the economy
What are the 3 sectors of development of the economy
Regional Development
Export industries
International competition
What are the 3 reasons for government intervention in the economy
Strengthen the functioning of markets
Promote economic growth and development
Ensure a redistribution of income and wealth
What is Marginalisation
Marginalisation describes both a process and a condition that prevents individuals or groups from full participation in social, economic and political life
What are Indigenous knowledge systems
A complex set of knowledge, skills and techniques
What is IKS important for (5)
Economic development
Development processes on 3 levels
Problem solving strategies for local communities
Both local communities and the global community
The livelihood of the poor
