Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

economics > Economic Development and Growth > Flashcards

Economic Development and Growth Flashcards

chapter 25

1
Q

what are LDCs?

A

least developed countries!

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

name the 5 stages of economic growth!

A
  1. traditional society
  2. transitional stage
  3. take-off
  4. drive to maturity
  5. high mass consumption
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

name the economist who examined the 5 stages of economic growth?

A

Walt Rostow

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

define economic development!

A

an increase in GNP per head of population, which is accompanied by a fundamental change in the structure of society.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

define economic growth !

A

an increase in GNP per head of population, without any changes to the structure of society.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what are the limitations of Rostow’s Theory?

A
  1. not person-centred. should improve life of individuals in their existing environment. no mass movement into urban areas- industrial slums.
  2. may take a long time to trickle down to the average workers
  3. to general. not set down the detailed nature of the preconditions for growth.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

what constitutes a ‘fundamental change’bin the structure of society ?

A
  1. URBANISATION, move from rural to urban areas
  2. EDUCATION, provision of mandatory primary education for all citizens
  3. POLITICAL STABILITY, move from an unstable and corrupt political structure to a democratic constitution
  4. MOVE AWAY FROM SUBSISTENCE INDUSTRY, less dependance on agriculture and move into the manufacturing sector
  5. IMPROVEMENT IN HEALTH CARE SYSTEMS
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

what is the human development index?

A

a summary composite index that measures a country’s average achievements in 3 basic aspects of human development : health, knowledge and income

…was introduced as an alternative to conventional measures of national development

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

name a few characteristics of LDCs !

A
  1. high rate of population growth
  2. famine
  3. uneven distribution of wealth, economic dualism
  4. overdependance on one crop
  5. poor living conditions/inadequate infrastructure
  6. low per capita incomes in LDCs
  7. poor levels of education/literacy
  8. political corruption /unstable institutions
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

how can governments in LDCs promote economic development?

A
  1. PROMOTE POPULATION CONTROL
    encourage a reduction by educating population in family planning methods,…

2.IMPROVE INFRASTRUCTURE
capital projects, provision of clean water and proper sanitation, development of public housing, roads and power supply

  1. PROMOTE LAND/AGRICULTURAL REFORM
    decrease emphasis one one crop, diversify production
  2. EDUCATION/ LITERACY RATE
    provide primary education, teach technical skills
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

How can LDCs improve output in their agricultural sector? (primary sector)

A

wealth from nature: farming, mining, forestry, fishing

  • need for basic education
  • use of fertilizers
  • investment in irrigation schemes
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

How can LDCs improve output in their manufacturing sector ? (secondary sector)

A
  • investment in education
  • investment in infrastructure
  • investment in small home industries (entreprise)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

How can LDCs improve output in their tertiary sector? (supply of services)

A
  • encourage ecotourism
  • promote activity holidays
  • need to upgrade airports, hotels, etc.

… this is very difficult until educational levels have improved!

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

how can governments of developed countries promote economic development in LDCs?

A
  1. assist foreign aid programs/ capital provision
  2. restructure their national debts
  3. improve trading opportunities
  4. encourage multinationals to set up firms in LDCs!
  5. assist with skills and technologies
  6. assist with peace measures and promote political stability
  7. become future market for their products
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what are the benefits of economic development to LDCs?

A
  1. INCREASED STANDARD OF LIVING
  2. INCREASED EMPLOYMENT
  3. INCREASED RESOURCES AVAILABLE TO THE GOVERNMENT
  4. ALLEVIATION OF PROPERTY
  5. INVESTMENT IN RESEARCH AND DEVELOPMENT
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Cost of economic development to LDCs ?!

A
  1. unfair distribution of benefit/ widening of poverty gap
  2. costs to environment
  3. traditional values/ loss of tadition
  4. welfare may not improve
  5. scarcer resources
17
Q

steps towards resolving debt crisis…

A
  1. drop the dept (fresh start)
  2. reschedule the capital repayments (long term, let value decrease)
  3. lower the annual interest repayments (facilitate domestic needs)
  4. place a limit on interest repayments (encourages exports)
  5. barriers to prevent the flight of capital (many closed economies)
  6. dept swaps (to conserve habitats in danger - tropical forests)
18
Q

what are the opportunities that the expansion of the EU presents to LDCs ?

A
  • any trade agreements with the EU market open up much bigger markets, as barriers to entry to previous eastern bloc countries are eased.
  • easier to find markets in Europe as negotiating barriers are removed.
  • new sources for tourists for LDCs to target
  • new sources for investment in LDCs will arise as new EU states raise their own standards of living
19
Q

what are the challenges that the expansion of the EU presents to LDCs ?

A
  • EU agricultural subsidies are now directed to several new EU states and will make it harder for LDCs to sell their produce in Europe
  • LDCs may face stronger opposition for manufactured goods as the new EU countries benefit from investment by their EU neighbors
  • EU expansion allows freer movement of labour within most EU countries , this will keep labour costs down in the EU. it might be harder for LDCs to gain a market foothold for their goods in the EU.
  • new EU member states may obtain loans from their EU neighbors, thus limiting funds available to LDCs.
20
Q

what constitutes a fundamental change in the structure of a society ?

A
  • urbanisation
  • education
  • political stability
  • move away from subsistence industry
  • improvement in health care system
21
Q

what are the advantages of economic growth?

A

+ better standard of living
+ more employment and opportunity
+ emigrants have the chance to return home
+ improved palace of payments
+ greater freedom and choice
+ higher government revenue to fund public services and improvements in infrastructure
+ reduced poverty, reduced dependance on outside help

22
Q

what are the disadvantages of economic growth?

A
  • damage to the environment
  • benefits aren’t shared equally
  • stressful, materialistic society
  • sense of community can be lost
  • opportunity cost of growth: current expenditure must be foregone in order to invest in future growth
  • overcrowded urban areas, under inhabited rural areas
  • Manet makes things possible, but it cannot buy happiness
23
Q

what are less developed countries? LDCs?

A

one that exhibits the lowest indicators od socioeconomic development

24
Q

rostow’s stages of economic development : STAGE 1 !

A

TRADITIONAL SOCIETY

  • high dependance on subsistence agriculture
  • primitive farming methods
  • self sufficient, very little imports/exports
  • low output per worker
  • little or no manufacturing or services
  • poor infrastructure
  • country run by elite minority of landowners
  • conservative culture distrustful of change
25
Q

rostow’s stages of economic development : STAGE 2!

A

RRECONDITIONS FOR TAKE-OFF

  • more awareness of the benefits of improvements in farming methods and technology
  • disire to emulate more affluent societies
  • culture becomes more hopeful of change
  • infrastructure improves, exports increase
  • larger incomes allow saving and hence investment
  • industrialisation begins
26
Q

rostow’s stages of economic development : STAGE 3!

A

TAKE - OFF

  • greater application of technology in farming sectors
  • continued investment in industrial sector
  • production becomes more capital intensive
  • migration to cities to work in factories
  • fall in employment in agricultural sectors
  • emergence of services sector
  • infrastructure developed further
  • income rises, consumer demand rises
  • economic growth becomes self-sustaining
27
Q

rostow’s stages of economic development : STAGE 4!

A

DRIVE TO MATURITY

  • continued rise in investment and incomes
  • diversification of industry as new industries replace traditional ones
  • import substitution
    continued urbanization
    -government expands public services and welfare
28
Q

rostow’s stages of economic development : STAGE 5 !

A

MASS CONSUMPTION

  • services sector overtakes manufacturing sector
  • high income per capita
  • expansion of suburbs
  • development of electronic infrastructure
29
Q

problems with rostow’s theory of economic development…

A
  • development rarely follows a clear, inevitable path
  • countries often progress a little and then stagnate
  • each country faces a unique set of problems
  • investment doesn’t have to come from within a country.
30
Q

POST-INDUSTRIAL SOCIETY (stage 6)

*added after rostow

A
  • greater sophistication in manufacturing
  • preference for more leisure time
  • growing emphasis on the quality of life
  • more spending on health, welfare and further education
  • greater concern for the effects of development on the environment

economics (28 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions