Unit 4 Development Economics Flashcards
absolute poverty
inability of a family or individual to afford a basic standard of goods and services because their income is below the “poverty line”
bilateral aid
refers to foreign aid that is offered by an individual country to another country
common access resources
resources which have properties similar to public goods in that it is very difficult or impossible to prevent people from using or consuming the resource
corporate social responsibility
approach taken by firms where they attempt to produce responsibly or ethically towards the community and environment, demonstrating a positive impact on society
corruption
abuse of public office for private gain
debt cancellation
act of eliminating the debt owed by y developing country government in order to allow it to achieve development objectives
development indicators
statistics that may be used to assess the level of development of an economy, e.g. HDI, infant mortality rate
diversification
strategy to reduce reliance on the export of a narrow range of exports by re-allocating resources to a wider range of industries
dual-sector model
model that assumes that an economy has two sectors: an economically advanced urban industrial sector and a traditional low productivity rural sector
economic development
multidimensional concept involving improvement in standards of lining, reduction in poverty, improved health and education along with increased freedom and economic choice
economic growth
increase in the actual level of output of goods and services produced by an economy, e.g. an increase in real GDP over time
export-led growth
refers to a growth and trade strategy where a country attempts to achieve economic growth by expanding its exports
export promotion
strategies to encourage economic growth through increased international trade and the promotion of export industries
factor endowment
factors of production that a country has available to produce goods and services
fair trade organizations
organizations in developed countries that have established a trading system promoting equitable and fair trading relationships between poor producers in developing countries and consumers in developed countries
foreign aid
consists of financial flows from a developed world to less developed countries, and includes loans and grants
foreign debt
total debt owed by the government of one country to foreign lenders
foreign direct investment FDI
long-term investment by a multinational company in a foreign country
grants
type of foreign aid consisting of funds that are in effect gifts (they do not have to be repaid)
import substitution
strategies to encourage the domestic production of goods in order to reduce imports and stimulate local producers
indebtedness
level of external debt or foreign debt of a country
infant industry
new domestic industry that has not had the time to establish itself and achieve efficiencies in production, and may therefore be unable to compete with other firms from abroad
inward orientation
orientation of an economy in which efforts are made to limit imports of goods and services through protectionist policies and to achieve self-sufficiency in production
micro-credit
loans of small amounts that given to people who use the loans to start up small-scale businesses
Millennium Development Goals
8 goals adopted by international leaders in 2000, to be achieved by 2015, including goals and targets on income poverty, hunger, maternal and child mortality, disease, inadequate shelter, gender inequality, environmental degradation and the Global Partnership for Development
multilaterial aid
foreign aid that is offered by an international organization
multinational corporations MNCs
companies based in one country that set up production units, e.g. factories, farms, mines or retail outlets, in other countries
non-government organizations NGOs
organizations that are not associated with a government that exist to promote economic development and/or humanitarian ideals and/or sustainable development
official aid
foreign aid that is offered by countries or by international organizations
official development assistance ODA
aid that is provided to a country by another government or an official government agency. It may be multilateral or bilateral in nature
outward orientation
orientation of an economy in which efforts are made to seek integration of the economy with the world market through the expansion of exports
poverty
inability of a family or individual to afford a adequate standard of goods and services; this standard may be absolute or relative
poverty cycle or poverty trap
any circular chain starting and ending in poverty, meaning that poverty perpetuates itself
primary sector
part of an economy that is dominated by agriculture, and also including fishing, forestry and mining
relative poverty
inability of a family or individual to afford an adequate standard of goods and services because their income is below a particular percentage of a country
secondary sector
part of an economy that includes manufacturing
soft loans
loans that are offered as part of foreign aid at lower interest rates and with longer repayment periods
structural change model
model that refers to the change in the structure of an economy from a predominantly rural, agricultural economy to a modern, industrial one
sustainable development
development which meets the need of the present without compromising the ability of future generations to meet their own needs
tertiary sector
part of an economy that includes commerce, finance, transport and all other services like education, health care
tied aid
grants or loans that are given to a country, but only on the condition that the funds are used to buy goods and services from the donor country
adult literacy rate
proportion of the population aged 15 and over which is able to read and write
Gender-empowerment measure GEM
composite index that brings together three variables: share of women‘s seats in parliaments, share of women‘s positions in leadership and management, share of income earned by women
Gender-related development index GDI
composite index that looks at the HDI-variables and at the inequalities in these indicators for men and women
Genuine progress indicator GPI
measures whether a country’s growth (increase in GDP) has actually resulted in the improvement of the welfare of the people in the country
Gross domestic product (GDP) per capita
total value of all final goods and services produced in an economy in one year per head of population
Gross national income (GNI) per capita
total income earned by a country‘s factors of production per head of population
Human development index HDI
measure that combines: life expectancy at birth, mean years of schooling, expected years of schooling, GNI per capita
Human poverty index HPI
combines: % of people who don‘t reach the age of 40, % of adults who can‘t read nor write, % of people without access to safe water, % of children who are underweight
infant mortality rate
total number of deaths of children under the age of 1 year per 1,000 live births in a given year
life expectancy at birth
average number of years that a person can be expected to live
net enrolment ratio in primary education
ratio of the number of children of primary school age who are enrolled in primary school to the total number of children of primary school age
