Economic Growth And Development Flashcards
What does Amartya Sen view development as
Freedom
Who views development as freedom
Amartya Sen
What is an emerging economy
An economy in the process of rapid growth and industrialisation
Common features of emerging economies
- primary sector dependence
- industrialisation
- fast long term economic growth
- many still in poverty
- struggle to access global market (trade barriers)
How can sustained growth spur development
- incomes rise
- higher profits (= investment)
- shifting economy towards manufacturing and services
- higher tax revenues
3 risks from rapid economic growth
- higher inflation and higher interest rates
- environmental effects
- inequalities of income and wealth
How can rapid economic growth cause a risk of higher inflation and higher interest rates
- fast growing demand = cost and demand inflation
- central bank may decide to raise interest rates to control inflation
How can rapid economic growth cause environmental effects
- pollution and waste
- risk of unsustainable resource extraction of finite resources
How can rapid economic growth cause inequalities of income and wealth
- rapid increases in RNO can lead to a higher level of inequality and social divisions
- many of the gains form growth may go to only a few people
Reasons for positive medium-long-term GDP growth trends for emerging markets
- urbanisation process continues
- population growth
- per capita income
Reasons for slow economic growth in many advanced countries
- ageing population
- high debt
- fall in corporate spending
- inequality in
What is human capital
The capital that is in human being rather than machines - physical, emotional, educational
What is human capital a measure of
Economic development
Ways of measuring the extent, durability and progress of improvements in human economic development
- risk of extreme poverty
- energy consumption
- access to clean water
- degree of primary export dependence
What is GNI per capita
GDP per capita plus net inflows of income for a country’s people from overseas investments and remittances