Theme 3 - 3.1 - Development Flashcards
Define development.
The use of resources to improve the quality of life in a country.
Define Gross National Product.
The total value of goods and services produced by a country in a year, plus income earned by the country’s residents from foreign investments (and minus income earned within the domestic economy by overseas residents).
Define Gross Domestic Product.
The total value of goods and services produced by a country within its borders, by national citizens and foreign citizens.
What does GDP stand for?
Gross Domestic Product
What does GNP stand for?
Gross National Product
What is the difference between GNP and GDP?
Both are a measure of the goods and services produced by a country.
GDP takes into account products and services within a country, regardless of who earns the money.
GNP takes into account products and services by citizens of a certain country, regardless of where they are.
What are GDP and GNP measured in?
Dollars
Define Gross National Product per capita.
The total GNP of a country divided by the total population.
Define development gap.
The difference in wealth, and other indicators, between the world’s richest and poorest countries.
Define Human Development Index (HDI).
Combines 4 indicators of development: life expectancy at birth; mean years of schooling for adults aged 25 years; expected years of schooling for children of school entering age; GNI per capita (PPP$)
Define least developed countries.
The poorest of the developing countries. They have major economic, institutional and human resource problems.
What does LDCs stand for?
Least developed countries
Define newly industrialised countries.
Nations that have undergone rapid and successful industrialisation since the 1960s.
What does NICs stand for?
Newly industrialised countries
Define Gini coefficient.
Technique used to show the extent of income equality.
Define cumulative causation.
The process whereby a significant increase in economic growth can lead to even more growth as more money circulates in the economy.
Define formal sector.
That part of the economy known to the government department responsible for taxation and to other government offices.
Define informal sector.
That part of an economy operating outside official recognition.
Define product chain.
The full sequence of activities needed to turn raw materials into a finished product.
Define globalisation.
The increasing interconnectedness and interdependence of the world economically, culturally and politically.
Define transnational corporation.
A firm that owns or controls productive operations in more than one country through foreign direct investment (FDI).
Define diffusion.
The spread of phenomena over time and space.
Define internet.
Basically a group of protocols by which computers communicate.
Define new international division of labour.
Divides production into different skills and tasks that are often spread across a number of countries.
What does TNC stand for?
Transnational corporation
What does NIDL stand for?
New international division of labour
Is there a difference between economic growth and development?
Yes. Economic growth is an increase in GDP, while development is a wider concept concerning many more aspects of the quality of life.
What are some indicators of development?
- GNP (per capita)
- Literacy
- Life expectancy
- Infant mortality
- Doctors per 100,000
- Energy consumption (per capita)
- Percentage of population living in urban areas
- Internet penetration rate
- Diet
When was the Human Development Index developed and who by?
1990 - United Nations
What are the 4 indicators that make up HDI?
- Life expectancy at birth
- Mean years of schooling for adults aged 25
- Expected years of schooling for children of school entering age
- GDP per capita
(Sometimes, the 2 about education are substituted by adult literacy)
What factors affect quality of life?
Economic • Income, Job security, Standard of living Physical • Diet/nutrition, Water supply, Climate, Environment Social • Family/friends, Education, Health Psychological • Happiness, Security, Freedom
Explain the most simple division of countries in terms of development.
- In the 1980s, the Brandt report divided the world into the rich north and poor south.
- The north included the more economically developed countries (MEDCs)
- The south included the less economically developed countries (LEDCs)
- Since then, the poorest countries have been given the name of least developed countries (LDCs) and the wealthier, quickly developing LEDCs are now called newly industrialised countries (NICs)