Unit 4 Development Economics Flashcards Preview

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Flashcards in Unit 4 Development Economics Deck (52)
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1
Q

absolute poverty

A

inability of a family or individual to afford a basic standard of goods and services because their income is below the “poverty line”

2
Q

bilateral aid

A

refers to foreign aid that is offered by an individual country to another country

3
Q

common access resources

A

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

4
Q

corporate social responsibility

A

approach taken by firms where they attempt to produce responsibly or ethically towards the community and environment, demonstrating a positive impact on society

5
Q

corruption

A

abuse of public office for private gain

6
Q

debt cancellation

A

act of eliminating the debt owed by y developing country government in order to allow it to achieve development objectives

7
Q

development indicators

A

statistics that may be used to assess the level of development of an economy, e.g. HDI, infant mortality rate

8
Q

diversification

A

strategy to reduce reliance on the export of a narrow range of exports by re-allocating resources to a wider range of industries

9
Q

dual-sector model

A

model that assumes that an economy has two sectors: an economically advanced urban industrial sector and a traditional low productivity rural sector

10
Q

economic development

A

multidimensional concept involving improvement in standards of lining, reduction in poverty, improved health and education along with increased freedom and economic choice

11
Q

economic growth

A

increase in the actual level of output of goods and services produced by an economy, e.g. an increase in real GDP over time

12
Q

export-led growth

A

refers to a growth and trade strategy where a country attempts to achieve economic growth by expanding its exports

13
Q

export promotion

A

strategies to encourage economic growth through increased international trade and the promotion of export industries

14
Q

factor endowment

A

factors of production that a country has available to produce goods and services

15
Q

fair trade organizations

A

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

16
Q

foreign aid

A

consists of financial flows from a developed world to less developed countries, and includes loans and grants

17
Q

foreign debt

A

total debt owed by the government of one country to foreign lenders

18
Q

foreign direct investment (FDI)

A

long-term investment by a multinational company in a foreign country

19
Q

grants

A

type of foreign aid consisting of funds that are in effect gifts (they do not have to be repaid)

20
Q

import substitution

A

strategies to encourage the domestic production of goods in order to reduce imports and stimulate local producers

21
Q

indebtedness

A

level of external debt or foreign debt of a country

22
Q

infant industry

A

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

23
Q

inward orientation

A

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

24
Q

micro-credit

A

loans of small amounts that given to people who use the loans to start up small-scale businesses

25
Q

Millennium Development Goals

A

eight 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

26
Q

multilaterial aid

A

refers to foreign aid that is offered by an international organization

27
Q

multinational corporations (MNCs)

A

companies based in one country that set up production units, e.g. factories, farms, mines or retail outlets, in other countries

28
Q

non-government organizations (NGOs)

A

organizations that are not associated with a government that exist to promote economic development and/or humanitarian ideals and/or sustainable development

29
Q

official aid

A

refers to foreign aid that is offered by countries or by international organizations

30
Q

official development assistance (ODA)

A

aid that is provided to a country by another government or an official government agency. It may be multilateral or bilateral in nature

31
Q

outward orientation

A

orientation of an economy in which efforts are made to seek integration of the economy with the world market through the expansion of exports

32
Q

poverty

A

inability of a family or individual to afford a adequate standard of goods and services; this standard may be absolute or relative

33
Q

poverty cycle or poverty trap

A

any circular chain starting and ending in poverty, meaning that poverty perpetuates itself

34
Q

primary sector

A

part of an economy that is dominated by agriculture, and also including fishing, forestry and mining

35
Q

relative poverty

A

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

36
Q

secondary sector

A

part of an economy that includes manufacturing

37
Q

soft loans

A

loans that are offered as part of foreign aid at lower interest rates and with longer repayment periods

38
Q

structural change model

A

model that refers to the change in the structure of an economy from a predominantly rural, agricultural economy to a modern, industrial one

39
Q

sustainable development

A

development which meets the need of the present without compromising the ability of future generations to meet their own needs

40
Q

tertiary sector

A

part of an economy that includes commerce, finance, transport and all other services like education, health care

41
Q

tied aid

A

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

42
Q

adult literacy rate

A

proportion of the population aged 15 and over which is able to read and write

43
Q

Gender-empowerment measure GEM

A

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

44
Q

Gender-related development index GDI

A

composite index that looks at the HDI-variables and at the inequalities in these indicators for men and women

45
Q

Genuine progress indicator GPI

A

measures whether a country’s growth (increase in GDP) has actually resulted in the improvement of the welfare of the people in the country

46
Q

Gross domestic product (GDP) per capita

A

total value of all final goods and services produced in an economy in one year per head of population

47
Q

Gross national income (GNI) per capita

A

total income earned by a country‘s factors of production per head of population

48
Q

Human development index HDI

A

measure that combines: life expectancy at birth, mean years of schooling, expected years of schooling, GNI per capita

49
Q

Human poverty index HPI

A

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

50
Q

infant mortality rate

A

total number of deaths of children under the age of 1 year per 1,000 live births in a given year

51
Q

life expectancy at birth

A

average number of years that a person can be expected to live

52
Q

net enrolment ratio in primary education

A

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