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Economics AL Flashcards > T4.3: Emerging & Develping Countries > Flashcards

T4.3: Emerging & Develping Countries Flashcards

1
Q

What is aid?

A

Overseas development assistance from one country to another, which may include humanitarian assistance, technical expertise, and project aid.

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2
Q

What does BRICS stand for?

A

Brazil, Russia, India, China, and South Africa; it represents the rise of emerging markets in the global economy.

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3
Q

What is the New Development Bank (NDB)?

A

Launched in 2015, the NDB lends money to developing countries to help finance infrastructure projects.

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4
Q

What are outward and inward capital flows?

A

Outward capital flows are movements of domestically owned capital abroad; inward capital flows are movements of foreign-owned capital to the domestic economy.

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5
Q

What does HDI measure?

A

The Human Development Index (HDI) measures a country’s growth, production of goods, and expanding services in relation to the welfare of its people.

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6
Q

What is GNI?

A

Gross National Income (GNI) is the total value of an economy’s domestic output of goods and services, adjusted for overseas investments.

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7
Q

What is soft infrastructure?

A

The financial system, education system, legal framework, social networks, and other intangible structures in an economy.

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8
Q

What is sustainable development?

A

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

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9
Q

What is trend growth?

A

The long-term non-inflationary increase in output (GDP) caused by an increase in a country’s productive capacity.

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10
Q

What is trickle-down economics?

A

The process whereby the economic gains from growth pass down throughout society, leading to inclusive growth.

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11
Q

What is bilateral aid?

A

Aid that flows from one country directly to another.

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12
Q

What is brain drain?

A

The movement of highly skilled or professional people from their own country to another for better earnings.

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13
Q

What is a buffer stock?

A

A scheme to stabilize market prices of agricultural products by buying supplies when abundant and selling them when scarce.

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14
Q

What is capital flight?

A

The rapid movement of large sums of money out of a country, often due to lack of confidence in its economy.

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15
Q

What is the Corruption Perceptions Index?

A

An index that ranks countries based on how corrupt their public sector is perceived to be.

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16
Q

What is subsistence farming?

A

Farming where output is produced for the consumption of the farmer and their family, not for cash sale.

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17
Q

What is natural capital?

A

The stock of natural ecosystems that yields valuable goods or services into the future.

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18
Q

What is the Gini coefficient?

A

A common measure of income distribution within a country.

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19
Q

Development traps

A

Built on the research of Professor Paul Collier. 4 development traps are:
conflict, reliance on natural resources, being landlocked with bad neighbours and poor governance.

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20
Q

Exogenous shock

A

unexpected event beyond the control of the country’s officials that has a large negative impact on its economy.

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21
Q

What is foreign currency gap?

A

This is when currency outflows persistently exceed currency inflows, for example when a country is running a persistent current account deficit.

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22
Q

What is the Harrod-Domar growth model?

A

An idea that aggregate output (GDP) is proportional to the stock of physical capital. Investment is assumed proportional to output, which implies that it is also proportional to the capital stock.

23
Q

What is human capital?

A

The skills, experience, attitudes, and aptitudes of the human input into production.

24
Q

What is human capital flight?

A

Another name for a brain drain - when a country suffers net outward migration of skilled or younger workers.

25
Q

What is import substitution?

A

Replacement of imports by domestic production, perhaps protected using tariffs.

26
Q

What is infrastructure?

A

The transport links, communications networks, sewage systems, energy plants, and other facilities essential for the efficient functioning of a country and its economy.

27
Q

What is primary product dependency?

A

Heavy dependence measured as a share of GDP, total exports, or employment from the extraction or cultivation of primary commodities such as copper and oil.

28
Q

What is produced capital?

A

Machines, buildings, and physical infrastructure. Also known as fixed capital.

29
Q

What are property rights?

A

Rights to ownership of an asset such as land or ideas (intellectual property rights).

30
Q

What is protectionism?

A

Tariff and non-tariff restrictions on imports to protect domestic producers.

31
Q

What is resource efficiency?

A

Achieving more with less, i.e. producing more goods and services but with a lower environmental footprint.

32
Q

What is resource rent?

A

A measure of the financial return from operating in a natural resource industry, remaining after costs and subsidies are deducted from revenue.

33
Q

What is the savings gap?

A

Savings are needed to finance capital investment. In many smaller low-income countries, high levels of extreme poverty make it difficult to generate sufficient savings.

34
Q

What is the savings surplus?

A

The excess of aggregate savings over domestic investment, where investment is in fixed capital and inventories by both the public and the private sectors.

35
Q

What is aid?

A

Overseas development assistance from one country to another, which might take the form of humanitarian assistance, technical expertise, and project aid.

36
Q

What is green development?

A

A pattern of development that decouples growth from heavy dependence on resource use, carbon emissions, and environmental damage.

37
Q

What is the gross saving rate?

A

Gross saving = GDP minus consumption by government and the private sector, expressed as a percentage of GDP.

38
Q

What is the International Monetary Fund (IMF)?

A

An inter-governmental organization that oversees the global financial system by following the macroeconomic policies of its member countries.

39
Q

What is a joint venture?

A

An agreement between two or more companies to cooperate on a particular project or business that serves their mutual interests.

40
Q

What is the Arthur Lewis development model?

A

A development model of a dualistic economy consisting of rural agricultural and urban manufacturing sectors.

41
Q

What is microfinance?

A

Any form of credit service offered to low-income individuals not traditionally serviced by the formal banking sector.

42
Q

What is the middle-income trap?

A

Occurs when a country’s growth stagnates after reaching middle income levels, unable to compete with advanced economies or low-income economies.

43
Q

What are NGOs?

A

Private non-profit making bodies which are active in development work.

44
Q

What is ODA?

A

Abbreviation for official development assistance.

45
Q

What is the OECD?

A

Organisation of Economic Co-operation and Development - the group of leading advanced, high-income countries.

46
Q

What is off-shore banking?

A

Banks based abroad in a country where you pay less tax.

47
Q

What is official development assistance?

A

Loans, grants, and technical assistance provided to developing countries.

48
Q

What is outward oriented development?

A

Government policy that attempts to achieve development by encouraging free trade and the unrestricted movement of labour and capital.

49
Q

What is privatisation?

A

Selling off a state-run industry to the private sector.

50
Q

What are regional development banks?

A

Development Banks which serve particular regions, e.g., the African Development Bank.

51
Q

What is SEZ?

A

Abbreviation for special economic zones - areas set up by a government offering tax incentives to attract inward investment.

52
Q

Soft loan

A

loan made to a country on a concessionary basis with a lower rate of
interest.

53
Q

Trade liberalisation

A

Reductions in import tariffs and non-tariff barriers to enhance trade between
one or more countries.

54
Q

World bank

A

World Bank promotes the institutional, structural and social development of Less Developed Countries (LDCs) providing low interest loans for domestic investment projects and technical assistance.

Economics AL Flashcards (24 decks)

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