International Developement Flashcards
Why is GDP per capita adjusted for PPP?
Since market exchange rates fluctuate substantially, when the GDP of one country measured in its own currency is converted to the other country’s currency using market exchange rates, one country might be inferred to have higher real GDP than the other country in one year but lower in the other; both of these inferences would fail to reflect the reality of their relative levels of production. But if one country’s GDP is converted into the other country’s currency using PPP exchange rates instead of observed market exchange rates, the false inference will not occur.
What is GDP and PPP?
Purchasing power parity (PPP) is a component of some economic theories and is a technique used to determine the relative value of different currencies. Gross domestic product (GDP) is the market value of all officially recognized final goods and services produced within a country in a year, or over a given period of time
What is the gini index?
measure of statistical dispersion intended to represent the income distribution of a nation’s residents
Why does the gini index matter?
This is the most commonly used measure of inequality.
What is the demographic transition?
refers to the transition from high birth and death rates to low birth and death rates as a country develops from a pre-industrial to an industrialized economic system.
What does NIC stand for?
Newly Industrialized Countries
Give examples of NICs
Four dragons: South Korea, Taiwan, Hong Kong, and Singapore. All succeeded in developing particular sectors and industries that were competitive on world markets
What is the Washington consensus?
a set of 10 relatively specific economic policy prescriptions that he considered constituted the “standard” reform package promoted for crisis-wracked developing countries by Washington, D.C.–based institutions such as the International Monetary Fund (IMF), World Bank, and the US Treasury Department.
What does the Washington consensus have to do with IR?
refer to a more general orientation towards a strongly market-based approach (sometimes described as market fundamentalism or neoliberalism)
What are the millennium development goals?
Set targets for basic needs measures to be achieved by 2015 and measured against 1990 data
Has the millennium development goals had any progress?
The first 8 goals is to cut in half the proportion of the world’s population living in extreme poverty, defined as income of less than $1.25 per day. The goal was met ahead of schedule in 2010, although Africa lagged far behind Asia in cutting poverty
