26 terms

chapter 9: development

a process of improvement in the material conditions of people through diffusion of knowledge and technology.
more developed country (mdc)
Also known as a relatively developed country or a developed country, a country that has progressed relatively far along a continuum of development.
less developed country (ldc)
Also known as a developing country, a country that is at a relatively early stage in the process of economic development.
Human development index (HDI)
indicator of level of development for each country, constructed by United Nations, combining income, literacy, education, and life expectancy
gross domestic product
the value of the total output of goods and services produced in a country in a given time period
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.
secondary sector
The portion of the economy concerned with manufacturing useful products through processing, transforming, and assembling raw materials.
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.
quaternary sector
Service sector industries concerned with the collection, processing, and manipulation of information and capital. Examples include finance, administration, insurance, and legal services.
The value of a particular product compared to the amount of labor needed to make it.
value added
the gross value of the product minus the costs of raw materials and energy.
literacy rate
the percentage of a country's people who can read and write
Gender-Related Development index
Compares the level of development of women with that of both sexes.
gender empowerment measure
Compares the ability of women and men to participate in economic and political decision making.
World Trade organization
An international agency which encourages trade between member nations, administers global trade agreements and resolves disputes when they arise.
foreign direct investment
investment made by a foreign company in the economy of another country
transnational corporation
A company that conducts research, operates factories, and sells products in many countries, not just where its headquarters or shareholders are located.
the world bank
an organization whose main aims are to provide aid and advice to developing countries, as well as reducing poverty levels and encouraging and safeguarding international investment.
the imf
This organization works to improve payment arrangements between countries.
fair trade
Alternative to international trade that emphasizes small businesses and worker owned and democratically run cooperatives and requires employers to pay workers fair wages, permit union organizing, and comply with minimum environmental and safety standards.
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.
Rostows development model
1. traditional society 2. the preconditons for takeoff 3. the takeoff 4. the drive to maturity 5. the age of mass consumption
purchasing power parity
the theory that in the long run, exchange rates move to equalize the purchasing powers of different currencies
nongovernmental organizations
Nonprofit international organizations devoted to investigating human rights abuses and providing humanitarian relief. Two NGOs won the Nobel Peace Prize in the 1990s: International Campaign to Ban Landmines (1997) and Doctors Without Borders (1999).
sustainable development
the level of development that can be maintained in a country without depleting resources to the extent that future generations will be unable to achieve a comparable level of development
the four asian dragons
South Korea, Singapore, Taiwan, and Hong Kong
-had very few natural resources but promoted development by producing a handful of manufactured goods (clothing, electronics)
-had lower labor costs allowing them to sell products inexpensively in MDCs