States that LDCs tend to have a higher dependency ratio, the ratio of the number of people under 15 or over 64 to the number in the labor force.
Gross Domestic Product (GDP)
The value of the total number of goods and services produced in a country in a given time period (normally one year).
Gross National Product (GNP)
Is similar to GDP except that includes income that people earn abroad.
Gender Empowerment Index (GEM)
Compares the ability of women and men to participate in economic and political decision making.
Gender-Related Development Index (GDI)
Compares the level of development of women with that of both sexes.
Human Development Index (HDI)
Indicator of level of development for each country, constructed by the United Nations, combining income, literacy, education, and life expectancy.
The percentage of a country's people who can read and write.
Refers to the economic control that MDCs are sometimes believed to have over LDCs. Through organizations such as the IMF, the MDCs are able to dictate precisely what LDCs economic policies are, or are able to use their economic subsidies to put LDCs industries out of business.
The portion of the economy concerned with the direct extraction of materials from Earth's surface, generally through agriculture, although sometimes by mining, fishing, and forestry.
Rostow's "Modernization Model"
Developed the "Stages of Growth" model of economic development.
The portion of the economy concerned with manufacturing useful products through processing, transforming, and assembling raw materials.
Structural Adjustment Program
Economic policies imposed on less developed countries by international agencies to create conditions encouraging international trade, such as raising taxes, reducing government spending, controlling inflation, selling publicly owned utilities to private corporations, and charging citizens more for services.
The portion of the economy concerned with transportation, communications, and utilities, sometimes extended to the provision of all goods and services to people in exchange for payment.
The gross value of the product minus the costs of raw materials and energy.