Exam 3 Flashcards
What percentage of people in the Democratic Republic of Congo live on less than $3.20 per day?
Over 60%
Based on IMF 2020a data.
In the World Economic Forum’s measure of organized crime, how many of the top eleven countries are from Latin America?
Ten
According to World Economic Forum 2018.
How many of the fifty most corrupt countries according to the World Bank’s ‘Control of Corruption’ rankings are in Africa, Asia, Latin America, or the Middle East?
Forty-eight
The exceptions are Russia and Ukraine.
Which region has the highest levels of economic and social inequality in the world?
Southern Africa
Countries include South Africa, Lesotho, Botswana, Namibia, and Zambia.
What percentage of adults aged fifteen to forty-nine years in Botswana have HIV?
22.8%
According to UNAIDS 2019.
How many of the bottom twenty-six countries in infrastructure are in Africa?
Twenty-two
Based on GSU 2019.
Which two countries have the highest rates of ‘missing women’ due to sex-selective abortions and female infanticide?
China and India
According to OECD 2020b.
How many people does air pollution kill annually in India?
1.25 million
Based on Broom 2020.
What significant event in 1945 marked the beginning of the modern state system?
Formation of the United Nations with 51 member states
Much of Asia and Africa were still under colonial control at that time.
How many new sovereign states have joined the UN since 1945?
142
As of UN 2020b.
What major historical factors have influenced the development of LDCs?
Racism, slavery, conquest, mercantilism, and colonialism
These factors shaped political, economic, and social development.
What role does geography play in the development of states within the international system?
It has contributed to differentiation among developing countries
Geography and history both influence state development.
Fill in the blank: The legacies of ________, ________, and ________ significantly impacted the political institutions of LDCs.
racism, slavery, colonialism
These legacies affect how wealth and prosperity are distributed.
True or False: The colonial history of a country has no effect on its current political economy.
False
Colonial history influences the political economy and wealth distribution.
What is known as bottom-up development?
Steps to put resources and tools directly in the hands of the poor
What did classical liberals argue was necessary for developing countries after World War II?
Create market economies based on free monetary flows and comparative advantage
According to classical liberals, what should LDCs primarily depend on for development?
Private capital flows and private borrowing
What economic sectors did classical liberals believe LDCs should rely on?
- Agriculture
- Mineral ‘primary products’
What theory suggests that LDCs would modernize into free market democracies over time?
Modernization theory
What historical events kept the suspicion of free market capitalism alive in many LDCs?
- Colonialism
- The Great Depression
What development strategy did most developing countries choose after WWII?
Mercantilist import substitution industrialization (ISI)
Which region deviated from ISI while still following a mercantilist strategy?
East Asia
What did the IMF and World Bank press for in the 1980s and 1990s?
‘Structural adjustment’ in countries facing economic downturns
What does import substitution entail?
- Protecting domestic industries from world market competition
- Import tariffs
- Business regulations and licenses
- Quotas
- Subsidies
- Bars on some imports
What is the goal of import substitution?
Build domestic ‘infant industries’ and give them time to develop
Which countries are noted for employing import substitution strategies?
- Latin America
- India
- Other regions
What is often imported for use in protected industries under import substitution?
Machinery and other capital goods
What approach has import substitution generally minimized?
Reliance on international trade
What are the four income categories defined by the World Bank?
Low, lower-middle, upper-middle, and high-income countries
These categories are used to classify countries based on their income per capita.
What percentage of the world’s population lived on less than $1.90 a day in 2015?
10 percent (734 million people)
This was a significant decrease from nearly 36 percent (1.9 billion people) in 1990.
Which two countries contributed most to the reduction of poverty rates from 1990 to 2015?
China and India
China, in particular, made remarkable progress in reducing poverty.
What global event is expected to reverse the progress made in poverty reduction?
Covid-19 pandemic
The pandemic is anticipated to have a devastating impact on the poor.
What was the wealth distribution of the bottom half of the world’s population in 2019?
Held less than 1 percent of the world’s total wealth
In contrast, the top 1 percent held 45 percent of the world’s wealth.
What index was created by the UNDP in 1990 to measure development beyond income per capita?
Human Development Index (HDI)
The HDI includes educational attainment and life expectancy as key indicators.
What does the Human Development Index emphasize as key criteria for assessing development?
People and their capabilities
This approach focuses on human well-being rather than economic growth alone.
Who argues for a ‘clinical economics’ approach to understanding state development?
Jeffrey Sachs
He advocates for thorough ‘differential diagnoses’ of a state’s background.
What is considered an important element in the development process according to the text?
Industrialization
Industrialization is often pursued through state strategies.
What economic approach have most developing states used to foster industrialization?
Mercantilism (protectionism)
Some countries have also liberalized their economies in response to globalization.
What is the GDP per Capita trend in China from 1990 to 2020?
Increase from 241 to a peak of 12,000
Source: IMF 2020.
Which country has the most polluted cities, second to India?
China
What has sharply risen in China, contributing to social issues?
Income inequality
How does China rank globally regarding gender equity?
One of the worst
What mercantilist strategy has led to countermeasures by the US?
China’s economic strategy
What major international conflict occurred during the Trump administration?
Trade war with China
What ongoing territorial tensions involve China?
Islands in the South China Sea
What has contributed to the slowdown of China’s economic growth recently?
Shift to a consumer-driven economy and Covid-19 crisis
What type of development strategies empower the poor directly?
Bottom-up development strategies
Name one key example of bottom-up development.
Micro-lending
What is another example of bottom-up development strategies?
Conditional cash-transfer programs
Fill in the blank: Mobile phone-based _______ transfers are an example of bottom-up development.
money
What must bottom-up efforts be combined with for maximum impact?
Effective state strategies and foreign aid
What is the main argument for bottom-up development strategies?
They can significantly improve people’s lives
What role do IGOs play in development strategies?
Support bottom-up efforts alongside state strategies
Who is the founder of the Grameen Bank?
Mohammad Yunus
Yunus is a Bangladeshi university professor who initiated the concept of micro-lending.
What was the initial loan amount that Yunus lent to women making bamboo furniture?
$26
This was to help them invest in materials for their livelihood.
What percentage of Grameen Bank borrowers are women?
97 percent
This indicates a strong focus on empowering women through micro-lending.
What is the loan range provided by the Grameen Bank?
$50 to $500
These loans are used for various purposes, including purchasing materials for businesses.
As of 2019, how many borrowers had the Grameen Bank lent to?
9.6 million
This showcases the significant impact of the bank on poverty alleviation.
How many branches does the Grameen Bank have?
2,500
The branches serve around 81,600 villages in Bangladesh.
What was the total amount of loans serviced by micro-finance institutions worldwide in 2020?
$124 billion
This amount was spread across loans for 140 million people.
What is the average repayment rate of the Grameen Bank?
96 percent
High repayment rates contribute to the success of micro-lending.
Fill in the blank: Micro-lending schemes often rely on _______ to ensure loan repayment.
community ties and peer pressure
True or False: Women are preferred borrowers in micro-lending because they are less likely to repay their debts.
False
Women are seen as more community-oriented and likely to repay their debts.
What is one criticism of micro-lending?
Recipients often lack basic business skills
This can prevent them from maximizing the benefits of their loans.
Another criticism of micro-lending is that it may lead to _______ among local borrowers.
redundant local enterprises
This can drive down profits for everyone involved.
What prompted Muhammad Yunus to speak out against for-profit micro-lending?
Shift from nonprofit status
Yunus advocated for the original focus on helping lift people out of poverty.
Micro-lending aims to empower which group of people?
the poorest of the poor
By giving them access to capital.
