Test #4 Flashcards
What are the indicators of human development index (hdi)
HDI, is computed by the UN to reflect the quality of life
that gives equal weight to three indicators: “a long and healthy life, as measured by life expectancy at birth; knowledge, as measured by the adult literacy rate and…[school] enrollment levels; and a decent standard of living,
What are the indicators of social development index (sdi)
To measure this mix, a social development index has been calculated for each country to reflect the levels of:
Knowledge
Urban lifestyle
Health (measured as longevity and mortality rates to age five)
Communication capabilities
What is the global North
Geographically usually me northern hemisphere
Highest level of
:.avg health
Overall social development
Adult literacy
Communication media
Quality of healthcare
Material living
What is the global south
graphically usually in the south they are less developed/developing
Low GDP
Low social development literacy, urbanization, health
Low economical advancement
Measurement of economic development
GDP
per capita)
What is GDP
Measure economic performance
Gross domestic product
What are the pillars of stability
Democratization
Order maintenance
Political development
What are the pillars of security
Prestige
Influence
Survival
Autonomy
Dominance
What are the pillars of prosperity
Welfare distribution
Economic development
Economic growth
Goal of prosperity in developing countries
Statism
Produce for only domestic consumption
Mix of manufactured goods, services, and commodities
Collaboration with foreign capital (IMF) and SAP
Foreign aid
Outlier country gives money
Most aid from the Global North has been in the forms of shared technology, grants and loans (with no expectation of repayment), and debt forgiveness on existing loans been in the forms of shared technology, grants and loans (with no expectation of repayment), and debt forgiveness on existing loans.
Foreign direct investment
FDI ‘
Building factories in countries
NOT AID
invest in the developing country’s firms or set up their own firms within the country. Such investment is provided by those who expect substantial profits due to the rich resources, cheap labor, tax advantages, and minimal regulation in the developing country. Many less developed countries accept such foreign involvement in their economy on the assumption that capital, jobs, and other economic benefits will “trickle down” to their population
Microfinance
, a term that refers to loans, insurance, savings programs, and other financial services extended to the very poor.
microcredit—the lending of very small amounts of money, typically ranging from $100 to $500, to enable them to launch such ventures.
International monetary fund (IMF)
International Monetary Fund (IMF), a consortium of financial institutions that sets economic policy and monitors the behavior of global lenders and debtors. To grant additional loans or to reschedule payments on existing loans, the IMF requires “conditionalities”: the debtor state must fulfill specific conditions that the IMF sets.
SAP
facilitating free trade and foreign direct investment. Often, SAPs also require the state to reduce public spending, with particularly severe reductions in the state’s distribution of welfare services to its population, tax cuts, and privatization of state-owned firms
What me the challenges of prosperity for developing countries ?
Overpopulation
Corruption
Internal disorder
Neocolonialism
Competition in international market
Sub Saharan Africa
poorest and least economically developed region in the world
still characterized by aspects of neocolonialism, with limited control over their own resources and a dependency on foreign financial and technological assistance.
, political and social stability are problematic, and political structures still lack institutionalization
How do developed countries address prosperity?
Mixed economy - with both social market system and market economies
High GDP and HDI
Developed: Social market system
State encourages an extensive market economy but also committed to social welfare distribution and economic regulation
Market economies
Developed countries in which most economic activity is in the private sector and the gov. Has a limited role in regulatory and redistributive policies
PRIVATIZATION
Developed: challenges to prosperity
Erratic economicgrowth
Competitive globalized economic system
Eu competition and tension
Distribution of property
How do developing countries address stability?
There is a persistent political underdevelopment
Declan in order due to political decay and evident in military regimes and international war
Major loss of democracies according to freedom house
Challenges to reach stability
Interstate violence
Geopolitics vulnerability
What is interstate violence
War is interstate violence that is sustained and organized and (usually) involves hostilities between the regular military forces of the states ‘
Between less cleuloped countries