Unit 7 Development Flashcards
1
Q
development
A
the process of improving the conditions of people through the diffusion of knowledge and technology
2
Q
three factors in HDI
A
standard of living (GNI per capita), knowledge (mean yrs of schooling), and health (life expectancy)
3
Q
Inequality-adjusted Human Development Index (IDHI)
A
HDI adjusted by the GINI coefficient to account for inequality. Lower/greater difference=more inequality
4
Q
Wallersteins world systems model
A
a dependency model developed during colonialism/imperialism that puts countries in core or periphery categories (can be seen as structuralist), explaining how the global economy and development works
5
Q
core countries (NA, western Europe, australia)
A
- more developed and wealthy
- more high skill tertiary jobs
- high levels of education
- high access to tech
- more infrastructure
- exploit LDCs for cheap labor and natural resources
- headquarters of transnational
- more economically diverse
6
Q
periphery countries (Africa, SE asia, etc)
A
- less developed and less wealthy
-mostly low skill primary and secondary jobs - low levels of education
- more gender inequality
- more poverty
- less infrastructure
- weak, less central governments
7
Q
semi periphery countries (Mexico, China, India, etc)
A
it is a mix of core and periphery processes, countries moving toward industrialization, urbanization, and diversified economy.
8
Q
how is the periphery exploited by the core
A
The core (transnational companies) exploits the periphery for their cheap, low skilled labor, and raw materials
9
Q
three factors in GII
A
reproductive health, empowerment, and labor
10
Q
reproductive health in GII
A
Maternal Mortality Ratio (MMR) - rate of women dying giving childbirth. Adolescent Fertility Rate (AFR) - rate of teenage pregnancy
11
Q
empowerment in GII
A
Share of preliminary seats and % who attained secondary education (highschool)
12
Q
Gross national income (GNI) and GNI per capita
A
GNI - all income earned by individuals and businesses (compensation + investments) in the formal market, including money earned abroad
per capita - GNI divided by # of people (average)
13
Q
limitations of GNI per capita
A
doesn’t account for the inequalities within the distribution of wealth, and doesn’t account for the informal economy.
14
Q
formal economy
A
taxed and regulated by gov - more stable, better pay
15
Q
informal economy
A
Neither taxed nor monitored by gov - less stable, low pay, more common in LDCs, can be illegal, and includes home workers
16
Q
secondary jobs
A
manufacturing and refining
17
Q
tertiary jobs
A
service jobs. Quaternary (intellectual/data driven), Quinary (decision making)
18
Q
primary jobs
A
extraction of raw materials from earth
19
Q
productivity
A
how efficiently a product is made. comparison of a good’s value vs the raw materials, labor, and energy required to make it.
20
Q
consumer goods
A
goods purchased, transportation and communications being especially important
21
Q
mean yrs of schooling
A
the average # of yrs adults have gone to school
22
Q
life expectancy
A
the average # of yrs a newborn infant is expected to live
23
Q
infant mortality rate
A
probability that a child dies before age 1
24
Q
Brandts Line/North-South split
A
A line drawn to divide the Earth into a north (INCLUDING Japan and Oceania) and south.
25
effects of economic globalization on incomes
MDCs - high skilled workers benefit, low skilled workers don't
LDCs - areas connected to core benefit, others don't
26
primary jobs over time
decreased drastically in MDCs due to mechanization in late 1800s early 1900s, while starting to decrease in LDCs (higher % in LDCs)
27
secondary jobs over time
decreased in MDCs since the 80s due to automation and deindustrialization (relocation of low skill jobs to low wage regions), while increasing in LDCs (NOW higher % in LDCs)
28
tertiary jobs over time
continually increasing in MDCs, should increasing in LDCs with development (higher % in MDCs)
29
neo-colonialism
new form of control. the use of economic, political, cultural, or other pressures to control/influence other countries
30
structuralist
some models are seen this way because they state the difficult to change roles that countries play
31
industry
persistance of creating value
32
industrial revolution
series of improvements in industrial tech, transforming the process of manufacturing
33
shift in distribution of manufacturing
dispersed cottage industry (home based) to clustered factories
34
how did industry change as result of industrial revolution
increased productivity, higher standards of living, and population growth
35
origin of industrial revolution
northern england/southern scotland in late 1700s. later spread to western europe and N.A. in 1800s
36
where was industry clustered initially
industry was centered in large cities where there were large markets, big labor force (lots of farmers and immigrants), access to RRs, and access to capital
37
deindustrialization
relocation of low skill jobs to low wage areas. loss of industry and manufacturing jobs (especially in MDCs). due to economic globalization, mechanization, and free trade
38
industry site factors
labor, capital, land
39
labor intensive industry
wages make up high % of expenses (not necessarily high pay)
40
capital intensive industry
wages make up little % of expenses
41
capital
loans for investment, machinery, and inventory (funds needed to establish factories)
42
land
also includes environment factors (utilities). bid-rent theory = land is more expensive closer to marker/city center
43
situation factors in industry
proximity and transportation
44
New International Division of Labor (economic globalization)
companies in MDCs moving low-skill, labor-intensive, industrial jobs to LDCs - retaining high skill tertiary jobs
45
effect of NIDL on MDCs
relocation of secondary jobs to LDCs leads to the loss of these less skilled manufacturing jobs in MDCs (replaced by low skill tertiary). Meanwhile, tertiary sector (quaternary and quinary) benefit because of higher corporate gains, investment portfolios, and cheaper consumer goods
46
effect of NIDL on LDCs
areas connected to the core develop faster - middle class (consumerism, pop culture, fast food) develops faster. isolated, interior areas see little benefit/change. gives job opportunities to women, but leads to child labor and pollution, while weakening family relations due to migration
47
location theory
predicting where businesses should and will be located (to maximize advantage over competitors and profit)
48
friction of distance
Increase in time and distance = higher cost
49
Webers Model/least cost theory
manufacturers will locate where transportation costs are minimal and agglomeration is beneficial
50
agglomeration
lot of companies/industries clustering together, benefiting from close proximity with skilled labor, tech, and financial services
51
bulk gaining industry
industries minimizing transportation costs by moving closer to markets because the end product weighs than its inputs (heavier, larger, more fragile). Ex. fabrication of metals, beverages, automoible
52
bulk reducing industry
industries minimizing transportation costs by moving closer to the inputs because the inputs weigh more than the outputs (less bulky, lighter). Ex. copper, paper
53
reasons that industries move closer to markets (not weber's model)
-if they're single market manufacturers (specialized, supplying few customers)
-just-in-time delivery
-perishable products
54
modes of transportation
truck, train, airplane, boats. which one depends on several considerations: line costs (transporting), terminal costs (loading, transfer, unloading), and route flexibility
55
truck
short distances, most flexible
56
train
long distances, least flexible
57
airplane
fast but expensive
58
boat
slow but low cost per mi/km
59
break of bulk point
where transfer between modes takes place. often airports and seaports
60
containerization
the use of standard containers for sea shipping, reducing transportation costs. decreased the use of break-of-point shipping
61
entropot
seaport where goods are exchanged and stored, facing no import/export duties upon shipment. they would act as middleman's for trading, removing the need for long distance travel.
62
intraregional shifts in distribution of industry
city-->suburban
- due to development of interstate highways resulting in trucking, allowing for relocation away from RR hubs
- cheaper land
63
intraregional shifts in distribution of industry in U.S.
Northeast/Midwest-->South/West (Sunbelt)
- Right-to-work laws/non-union, open shop
64
international shifts in distribution of industry
MDCs-->LDCs
- cheap labor
- less environmental regulation
- free trade, ez transportation and communication
- outsourcing (shifting production responsibility of individual components to independent suppliers)
65
free trade
elimination of trade barriers, such as tariffs (import tax), quotas (# limit), an government subsidies (benefits local/domestic producers)
66
winners/loser with tariffs
winners - small domestic companies.
losers - workers in LDCs, large transnational corporations, consumers
- downsides: less competition (resulting in less innovation), higher consumer costs, less economic growth
67
winners/loser without tariffs
winners - large transnational companies, consumers, skilled workers in MDCs, secondary jobs in LDCs (only connected to core)
losers - small domestic companies, secondary jobs in MDCs
68
neoliberalism
theory that suggests reducing government intervention in economy (eliminating trade barriers)
69
Rostows International Trade Model
Opens up to foreign investment and international markets, engaging in free trade. Identifies its valuable assets to enter global trade. an optimistic model
70
five stages of Int'l trade model
- traditional society
- preconditions to “take-off”
- takeoff
- drive to Maturity
- age of Mass Consumption
71
traditional society
- subsistence farming
- large % of gov funds spent on military and religion
- rigid social structure
- technology changing slowly
72
preconditions to takeoff
- elite, well educated group take lead
- identifies valuable assets
- investment in infrastructure and technology
73
takeoff
- rapid growth in limited industries
- these industries achieve technological advances and become productive
74
drive to maturity
- tech diffuses to wide variety of industries
- workers become more skilled and specialized
- increasing int'l trade
- modernization
- slowing pop growth
75
age of mass consumption
- shift from heavy industry to consumer goods
- high incomes
- majority of workers entering service jobs
76
self sufficiency model
protects domestic industries by implementing trade barriers to isolate local companies from competition with large transnational corporations. investment is spread evenly across all sectors of the economy, incomes in countryside are equal with those in cities, and reducing poverty is more important than consumerism (even, but slow development)
77
advantage of int'l trade model
- evidence shows that it is the more effective path to overall development
- made easier by globalization
- neoliberalism (dominant theory by end of 20th century)
- WTO
78
criticisms of self sufficiency
- less incentive to innovate, improve quality/costs, and prioritize sustainable development because of the lack of competition
- large bureaucracy is required to regulate barriers, and corruption can occur
- black markets (illegally importing goods)
79
criticisms of int'l trade model
- single commodities, which depend on the world price (susceptible to collapse)
- commodities often controlled by outsiders (transnational corps)
- reliance on cash crops = need to buy food (less $$ for investment)
- income inequality
80
World trade organization (WTO)
promotes int'l trade model of development by reducing trade barriers and enforcing trade agreements
81
winners of int'l trade model
- transnational corps
- people in LDCs connected to core
81
loser of int'l trade model
- low skill workers in MDCs
- small businesses
82
sustainable development
achieves human development goals, conserving natural systems and present needs while without compromising the future
83
neo-malthusian
theory that the large population will result in the depletion of resources, that we are overcapacity (deterministic)
84
energy consumption in MDCs vs LDCs
50/50 split. However, MDCs have 3x higher per Capita, and there are more LDCs
85
fossil fuels
coal, natural gas, oil
86
fracking
breaking rocks with liquid at hydraulic pressure to release gas
87
pros and cons of fracking
Pros: new jobs, alternative to coal
Cons: earthquakes, and air/water pollution
88
renewable energies
biomass, geothermal, hydroelectric power, nuclear energy, solar energy, wind power
89
biomass
burning wood, animal and plant waste. sometime more energy to grow crops than energy produced. can lead to deforestation and reduce soil fertility
90
geothermic
energy from earth interior. most accessible at fault lines and volcanic areas
91
hydroelectric power
2nd largest source of electricity after coal
92
nuclear energy
high cost, radioactive waste, catastrophic accidents
93
solar energy
not consistent, expensive, disallowing grid parity (widespread implementation)
94
wind power
noisy, lethal to birds, visually not appealing
95
"cap and trade"/"emissions trading"
uses market concept, giving polluters allowances to pollute. unused allowances can be sold, incentivizing less pollution
96
Paris agreement
most countries signed it, agreeing to limit global warming to 2 degrees C, and eventually 1.5.
97
environmental racism
subjecting poorer (often minority) areas to poor environmental conditions, such as sending hazardous waste to other countries
98
Foreign Direct Investment (FDI)
LDCs getting funding for development, often from transnational corps
99
The World Bank
Loans to make reforms, strengthen financial institutions, and infrastructure projects
100
International Monetary Fund
Loans to countries with debt payment issues - with the goal of protecting int'l trade. realigns spending priorities, cuts non-productive spending, eliminates govt. bureaucracy, cut/privatize govt. jobs (neo-liberal)
101
Nongovernmental Organization (NGO)
non-profits for humanitarian issues, often social-political problems.
102
microcredit program
loans to small entrepreneurs in LDCs, guaranteed repayment by others in village. often targeted toward women
103
why is targeting women in microcredit program good
because it reducing birth rates, women help children, higher GNI per capita - leading to higher development
104
Export processing zones (EPZ)
designated areas where goods can be imported, manufactured, and exported with minimal taxes and regulation, etc for foreign firms, incentivizing business in LDCs, but can lead to unequal development in states. Ex. maquiladoras
105
islands of development
concentrated area with significant economic development, attracting businesses and FDI
106
forward capital
capital relocated in interior areas, drawing investment there or being a centripetal force (brings people together)
107
development impact in agriculture
subsistence farming to commercial farming - resulting in people needing to import food for themselves. also causes dessertification
108
development impact in tourism
lots of $$.
109
downsides of tourism
high infrastructure spending that can go towards the development of the natives, causing a lot of poverty. creates lots of jobs, but low pay. transnational companies profit mostly
110
ecotourism (sustainable tourism)
visits to fragile, pristine, untouched natural areas. low impact and small scale, funds conservation, benefits locals, and increases environmental awareness. however, it threatens indigenous cultures, causes ecosystem degradation, and travelling causes a global impact
111
fair trade
products are made and traded in a way that protects workers and small businesses in LDCs.
- small, democratic, high quality products, eco-friendly producing
- collective bargaining, good working conditions, higher wages (producers and workers receive higher % of profits)
- consumer pays more
112
UN sustainability goals
social, environmental, and economic
