Midterm 1 Ch 1-8 Flashcards
Agro-export-led Growth
Development strategy according to which the necessary imports for the process of industrialization are financed by exports of agricultural commodities. In some cases the country will have a comparative advantage in the specific crop.
Dutch Disease
A sudden influx of foreign currency.
Economic Development
The process of creating wealth through the mobilization of human, financial, capital, physical, and natural resources to generate marketable goods and services.
Economic Growth
Sustained increases in the real GDP of an economy over a long period of time.
Economic Rent
Difference between the market price of a good/production factor and its opportunity cost. It is also known as price needed to produce a good or keep the factor of production in its current use.
Gross Domestic Product
Total market value of final goods and services produced within an economy in a given year.
Growth led by agricultural development
Strategy aiming at minimizing any conflict between growth and equity in development which has not actually been adopted in the Middle East.
Growth led by manufactured exports
Strategy which achieves foreign exchange without sacrificing the goal of industrialization as well as the reduction of production costs.
Import-Subsidizing Industrialization
Development strategy according to which economies traditionally dependent on the export of primary commodities and raw materials moved to producing goods that were previously imported and processing domestic raw materials.
LDC
Less developed countries, that is countries of low and middle income.
MENA
Middle East and North Africa.
Mineral-export-led Growth
Strategy aiming to acquire revenues from mineral exports in order to create an industrial base for sustained development after the natural resource is exhausted.
Monetary Dutch Disease
Stimulation of a rate of inflation that is higher than the one of the major Western trading partners of the exporting country due to the spending of the oil revenues.
Purchasing Power Parity (PPP)
Rate such that a representative basket of goods in country A costs the same as in country B if the currencies are exchanged at that rate.
Real Economy Dutch Disease
An increase in the demand for both tradable and non-tradable goods due to an increase in the spending of government revenues.
Social Actors
All interests, groups and classes that interact with the state, seek to shape its policies and are affected by the state’s growth strategies.
Standard of Living
The level of material comfort as measured by the goods, services, and luxuries available to an individual, group or nation.
State Structure
The organization of the monopoly of coercive means within society, the interventions into the economy that such a monopoly makes possible and the institutions through which intervention is carried out.
Structural Transformation
Process of unbalanced sectoral growth.
Urban Biased
Concentration on urban growth that may promote growth in certain sectors (durable consumer goods).
Agro-Poor
Poorest countries for which a growth strategy led by agricultural development seems the only solution.
Backstop Technology
Cost of production of the closest available substitute.
Coupon Clippers
Countries almost entirely dependent on oil and any income earned from overseas investments.
Debt Overhang
Refers to any country with a debt/exports ratio greater than 200% which deters private investors from risking their capital.
Derived Demand for Oil
Need for oil not for our own sake, but because we need to heat homes or move around.
External Cartel Problem
When prices are high, consumers and producers have incentives to change their behavior.
Internal Cartel Problem
Cartel members have an incentive to cheat on production quotas.
Minimum Price
Lowest price at which a good will be supplied and is determined by the cost of production.
Newly Industrializing Countries (NICs)
Countries with relatively large populations, good agricultural land, long experience with industrial production and not enough oil.
Oil Industrializers
Countries with substantial oil exports and revenues as well as large population.
Peak Oil Debate
Opposing views about whether the world oil production will reach its maximum.
Price Ceiling
Price that cannot exceed a predetermined level. It is also related to the “backstop technology”.
Pro-rationing System
Unintended outcome of the system to protect domestic producers.
Proved Reserves
Reserves that can be recovered using the existing technology and prices.
Stagflation
Recession combined with inflation.
Supply Side
Relates to countries’ attempts to get a higher percentage of the oil rents (cash) and the contest for control between nation states and oil companies (control).
Watchmakers
Countries with limited natural resources which focus on investing in human capital.
Children as Pension Funds
Parents’ expectation that their children will support them financially and take care of them when they will be in old age.
Demographic Dividend
The rise in the rate of economic growth due to a rising share of working age people in a population, which exhibits a relation with the level of the savings rate.
Demographic Momentum
Continued population increase despite reduced reproductive rates which ensures large total additions to the labor force.
Demographic Transition
This transition refers to the fact that despite the decline in the population growth due to declines in fertility, populations will still continue to expand.
Dependency Ratio
The number of people under fifteen and over sixty five years old, divided by the working age population.
Enrollment Ratio
The number of students enrolled in primary, secondary and tertiary levels of education, regardless of age, as a percentage of the population of official school age for the three levels.
Fertility Rate
Refers to the number of children the average woman will have during her lifetime.
Homogeneous Nation-State
Every citizen is equal to the others.
Infant Mortality
The number of deaths of infants under one year of age per 1,000 live births in a given population.
Opportunity Cost of Children
Having more children implies that the parents have less leisure time holding all the others constant. Also, the more the children, the higher the amount they have to spend on each children.
Population Pyramid
Graphical representation of a nation’s population at the time of the census which shows its composition, by age and sex.
Replacement Rate
The degree to which a population is replacing itself, based on the ratio of the number of female newborns to the number of women of childbearing age. It is also known as the gross reproduction rate.
The “would-be middle class”
Educated Middle Easterners who moved into white-collar professions and the educated Middle Easterners who aspired to move to such jobs, but they didn’t manage to.
Discouraged Worker
An individual who used to be unemployed, but because of his failure to find a job, he has given up looking for one. Formally, it is a worker who is not actively seeking for employment.
Growth Monitoring
Use of weight-for-age and weight-for-height charts in infant and early child care to identify children who are malnourished, and thus, susceptible to disease.
Labor Market Dualism
In the informal sector there are efficient markets determined by the supply and demand, but with poorer, less educated workers. On the other hand, government employees work in administered labor markets where the wages are not based on the laws of demand and supply.
Life Expectancy at Birth
How long, on average, a newly born child is expected to live. It summarizes health, nutritional and other welfare factors into an easily understood number.
Literacy Rate
The proportion of the population over age fifteen that can read and write.
On-the-job Training
The instruction of the employee at the work place in order to gain new work specific-skills.
Oral Rehydration Therapy
Mixture of sugar, salt and water that enables the body to retain the fluids whose loss is the cause of death in fatal cases of diarrhea.
Private Formal Sector
The group of firms for which there is a minimum of ten to fifty workers per firm, their workers have some job security and they usually receive higher wages than the ones in the public sector.
Private Informal Sector
Self employed workers along with those working in firms with fewer than ten workers per firm. It is also known as the “slum dwellers” or “poor people”.
“Proximate” causes of death
What diseases cause the death of children
Screening
A process which allows the employer to determine the applicant’s unobserved ability by examining the earned academic degrees.
“Serve the Revolution”
Slogan in many countries which calls the universities to contribute to the development of the nation. Its implicit content is that the universities should remain subservient to regime goals.
Social Mobility
The process by which people move between different social layers such as social classes or economic groups.
“Underlying” causes of death
Why children contract specific diseases and/or why they are not cured.
Vocational Training
Training designed to advance individuals’ general proficiency, especially in relation to their present or future occupations. It should not be confused with the on-the-job-training.
Wage Flexibility
The ability of changes in real wages to eliminate imbalances between the supply of and demand for labor.
Autogestion
Self management.
Bimodalism
A land-tenure system that combines a small number of owners holding very large estates with a large number of owners holding very small farms.
Demand for Water
The rest of water use which is not characterized as a need.
Elasticity
The percentage change in quantity demanded measured against the percentage change in price.
Embargo
Any sort of restriction on foreign trade; the restriction of exports destined for sale in another country. Unlike tariffs, import quotas, and other nontariff barriers that protect domestic producers from competition, embargoes are intended to punish the export destination country.
Externality
A cost or benefit that is not included in the market price of a good because it’s not included in the supply price or the demand price. Pollution is an example of an externality cost if producers aren’t the ones who suffer from pollution damages.
Farm Lobby
Urban entrepreneurs who have entered the production of horticultural crops, poultry and livestock.
Food Emergency
The ultimate in food insecurity, also known as famine or humanitarian emergency.
Food Gap
Escalating demand and constrained supply response have rendered Middle East the least food self-sufficient area in the world.
Food Security
Guarantee that consumers are reasonably certain of being able to eat properly.
Indirect Colonial Rule
The best agricultural land is held by the foreign conquerors for themselves. Relegating the indigenous population to marginal areas for subsistence farming.
Irrigation Efficiency
Ensures that food production will not decline with a reduced water use.
Macroeconomic Taxation
A form of compulsory surcharge on one or more types of private trade or other voluntary transactions. Is also known as “indirect taxation” including general sales taxes, import tariffs, marriage licenses, and so on.
Merit Good
A basic good to which everyone is entitled.
Sectoral Taxation
Price policy in which government marketing agencies enjoying monopsony power offer farmers prices well below the ones prevailing on the world markets.
Self-sufficiency Ratio
Percentage of total food consumption that is locally produced.
Shadow Price of Water
The amount by which one additional unit of water will increase one’s utility.
Virtual Water
Water contained in food.
Water-Stressed
A country which has less than 1000 cubic meters of available water supplies per person and per year.
Backwardness
A condition under which there is production of cheap agricultural goods, unskilled workforce and only a few privileged ones are allowed to get educated and acquire modern skills.
Economic Stagnation
A prolonged period of slow economic growth.
Economies of Scale
The decrease in unit cost of a product or service resulting from large-scale operations, as in mass production.
Five Year Plans
Blueprints for ISI putting emphasis on local processing of Turkey’s primary commodities and minerals and later on promoting heavy industrial growth.
Interventionism
An action taken by a government in a market economy or market-oriented mixed economy, beyond the basic regulations in an effort to affect its own economy.
Liberal Monarchies
Countries which professed liberal economic credos where the private sector was the leading force.
Populism
Masses are the object of political and economic policies as well as distributive issues are at the top of the policy agenda.
Socialist Transformation
Process of accumulation according to which the state captures the surplus of its own activities and has as its goal to dominate all aspects of resource allocation. Also known as “non-capitalist path”.
State Bourgeoisie
A dominant social group which controls but does not own the major means of production.
State Capitalism
An economic system, in which much of the capital is controlled by the state. Sometimes it is used equivalently to “state socialism”.
X-inefficiency
When an enterprise’s total costs are not minimized
Capital-Surplus oil exporters
Domestic Saving is higher than domestic investment in oil producing countries when oil price is high.
Resource GAP
When investment and debt repayment is higher than domestic saving.
Twin GAPs
When there are gaps between domestic savings and investment and between exports and imports
Balance of Payment
a record of the flow of economic transactions between the residents of one country and the rest of the world
World Bank
an international organization that provides loans to developing countries aimed toward poverty reduction and economic development
International Monetary Fund (IMF)
an international organization that provides loans to developing countries aimed toward poverty reduction and economic development
Economic Austerity
It refers to the measures taken by governments to reduce expenditures
Q1: What is NOT one of the things urgently needed for MENA countries to prosper in the 21st century?
a. A stronger focus on pro-poor growth
b. A preference of state over markets
c. Economic diversification
A stronger role of the private sector
b. A preference of state over markets
Q2: What is the single most important driver of food security?
a. Food imports
b. Food production per capita
c. Economic growth that raises incomes
d. Any economic growth
c. Economic growth that raises incomes
Q3: In MENA countries, the Dutch disease effect hampered the competitiveness of non-mineral export sectors by…
a. Appreciating the exchange rate and inflating the cost of domestic factors
b. Depreciating the exchange rate and inflating the cost of domestic factors
c. Appreciating the exchange rate and deflating the cost of domestic factors
d. Depreciating the exchange rate and deflating the cost of domestic factors
a. Appreciating the exchange rate and inflating the cost of domestic factors
Q1: Which is NOT a domestic factor in defining a rentier state?
a. Export sales of minerals and metals
b. Tourism expenditures
c. Speculation in real estate or financial instruments
d. Manufacturing industry
d. Manufacturing industry
Q2: Because the culture of rent generates a culture of easy life, consumerism and self-centeredness….
a. Arab economies import more, because it requires little effort
b. Arab economies export more, because it requires little effort
c. There is an increased and successful effort in developing an agricultural sector
d. Innovation and risk taking are encouraged
a. Arab economies import more, because it requires little effort
Q3: What is feature of an Arab rentier economy?
a. The private sector is dependent upon government spending to exist and prosper
b. Very little foreign debt in relation to GDP
c. Low levels of public and private debt
d. Most government revenue comes from taxes
a. The private sector is dependent upon government spending to exist and prosper
