45 terms

Chapter 9--Development

Rubenstein and Fellman
STUDY
PLAY
Brandt Line
division of the world between MDCs and LDCs (MDCs in north have relatively high HDIs while southern countries have lower indexes)
Core-Periphery model
a model that describes how economic, political, and/or cultural power is spatially distributed between dominant core regions, and more marginal or dependent semi-peripheral and peripheral regions
developing country
a country in which the society is less modern and less industrialized and in which inhabitants are generally poorer than they are in developed countries
economic indicators
measures a country's wealth, to decide if a country is developed or developing (i.e. GDP, types of jobs, worker productivity and availability of consumer goods)
economic development
the improvement of living standards by economic growth
GDP
(Gross Domestic Product)--the total value of the goods and services produced IN a country during a given time period (usually annually)
GNP
(Gross National Product)--the total value of all goods and services produced BY a country in a period of time
GEM
(Gender Empowerment Measure)--compares the ability of women and men to participate in economic and political decision making
GDI
(Gender-Related Development Index)--compares the level of development of women with that of both sexes
HDI
(Human Development Index)--indicator of level of development for each country, constructed by United Nations, combining GDP, literacy, education, and life expectancy
LDC
(Less Developed Country--country with low level of human well-being, as measured by economic, social, and demographic indicators
literacy rate
the percentage of a country's people who can read and write
MDC
(More Developed Country)--higher levels of per capita income, industrialization and modernization; they usually have lower levels of population growth
neo-colonialism
a disparaging reference to economic and political policies by which major developed countries are seen to retain or extend influence over the economies of less developed countries and peoples
primary sector
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
productivity
the value of a particular product compared to the amount of labor needed to make it
quaternary sector
the parts of the economy concerned with research, the gathering and dissemination of information, and with administration; often considered only as a specialized subdivision of tertiary activities
Rostow's Modernization Model
(also called Rostow's Development Model)--countries develop through five stages:
Stage 1: Traditional
Stage 2: Preconditions for takeoff
Stage 3: Takeoff
Stage 4: Drive to Maturity
Stage 5: Age of Mass Consumption
secondary sector
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
subsistence economy
an economic system of relatively simple technology in which people produce most or all of the goods to satisfy their own and their family's needs; little or no exchange occurs outside or the immediate or extended family
tertiary sector
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.
trickle-down effects
(also called spread effect)--the diffusion outward of the benefits of economic growth and prosperity from the power center or core area to poorer districts and people
transnational corporation
a company that conducts research, operates factories, and sells products in many countries, not just where its headquarters or shareholders are located
value added
the gross value of the product minus the costs of raw materials and energy
WTO
(World Trade Organization)--an international organization based in Geneva that monitors and enforces rules governing global trade
Foreign Direct Investment (FDI)
investment made by a foreign company (transnational corporations) in the economy of another country. This includes the purchase or construction of foreign factories and also merging with foreign companies.
agglomeration economies
a way to explain the clustering advantages of urbanization, industrialization and localization. (How does it benefit people to cluster in cities? What is the benefit for like industries to cluster? What benefit is there for a set of activities to cluster--like a transit terminal and university to be by a government center? Or what benefit is it for stores to cluster in malls?)
World Systems Theory
an approach to world history and social change that suggests there is a world economic system in which some countries benefit while others are exploited. This theory builds on the Dependency Theory. The most known world systems theory was developed by Immanuel Wallerstein
Immanuel Wallerstein
the geographer who developed the World Systems Analysis (he calls it "analysis", not "theory")
Dependency Theory
the notion that resources flow from a "periphery" of poor and underdeveloped states to a "core" of wealthy states, enriching the latter at the expense of the former. It's often considered a neo-marxist theory, where some countries are the "haves" and some are the "have nots"
import substitution industrialization (ISI)
a trade and economic policy which advocates replacing foreign imports with domestic production. ISI is based on the premise that a country should attempt to reduce its foreign dependency through the local production of industrialized products
sustainable development
development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
technology transfer
the transfer of new technology from the originator to a secondary user, especially from developed to less developed countries in an attempt to boost their economies.
income disparity (aka income inequality)
refers to the extent to which income is distributed in an uneven manner among a population. In the United States, income inequality, or the gap between the rich and everyone else, has been growing markedly, by every major statistical measure, for some 30 years.
Gini coefficient
a measure of statistical dispersion intended to represent the income distribution of a nation's residents, and is the most commonly used measure of inequality. (also known as the Gini index or Gini ratio) (Is wealth shared equally by all citizens of a country? Or are there a few very, very wealthy people and everyone else is really poor? Or somewhere in between)
uneven development
The increasing gap in economic conditions between core and peripheral regions as a result of the globalization of the economy.
natural resource depletion
Resource depletion is the consumption of a resource faster than it can be replenished. Natural resources are commonly divided between renewable resources and non-renewable resources. Use of either of these forms of resources beyond their rate of replacement is considered to be resource depletion.
basic industry
Industry that sells their products or services primarily to consumers outside the settlement. City-forming instead of city-serving.
nonbasic industry
Industries that produces goods or services that are consumed locally.
comparative advantage
The ability to produce a good or service at a lower opportunity cost than some other producer. This is the economic basis for specialization and trade.
joint-venture
Opening a new business with an incumbent in a target nation in which each party takes partial ownership
market orientation
the tendency of an economic activity to locate close to its market; a reflection of large and variable distribution costs (for instance, weight-gaining industries).
raw material orientation
The location of the manufacturing plant in relation to the source of raw materials. While most industries would prefer to locate near their markets in order to save the recurring costs of transportation, some industries - especially those that involve a loss of weight, bulk, or perishability in the process of manufacturing - might prefer to locate near their source of raw materials.
regional multiplier
The stimulation of economic growth by growth itself. As secondary industries develop they create a demand for raw materials and goods. Thus, machinery is made from steel and this stimulates steel manufacturing while the development of the steel industry requires more machinery. As manufacturing industry prospers, more jobs arise in service industries.