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27 terms

Chapter 9: Development

STUDY
PLAY
development
A process of improvement in the material conditions of people through diffusion of knowledge and technology
Gender Empowerment Measure
compares the ability of women and men to participate in economic and political decision making
Gender-related Development Index
compares the level of women with that of both sexes
HDI
Indicator of level of development for each country, constructed by United Nations, combining income, literacy, education, and life expectancy
GDP
The value of the total output of goods and services produced in a country in a given time period
LDC
A country that is at a relatively early stage in the process of economic development
literacy rate
The percentage of the country's people who can read and write
MDC
A country that has progressed relatively far along a continuum of development
primary sector
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
secondary sector
portion of the economy concerened with manufacturing useful products throguh 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 publicy owned utilities to private corporations, and charging citzens more for services
tertiary sector
Portion of the economy concerned with the transportation, communications, and utilities, sometimes extended to the proision of all goods and services to people in exchange for payment
value added
the gross value of the product minus the cost of raw materials and energy
Rostow's Development Model
Modernization Model: 5 stages of economic development
1. traditional society
2. pre-conditions to take-off
3. take-off
4. matuirty
5. mass consumption, etc.
Richard Nolan's Stages of Growth Model
general theoretical model which describes the IT (technological) growth stages that can occur in an organization.
World Trade Organization (WTO)
an international organization that deals with the rules of trade between nations
transnational corporation
a corporation that conducts research, operates factories, and sells products in many countries, not just where its headquarters or shareholders are located.
Foreign Direct Investment (FDI)
An investment abroad, usually where the company being invested in is controlled by the foreign corporation. (loan given by the transnational corporation)

An example of FDI is an American company taking a majority stake in a company in China.
World Bank
Bank is an international financial institution that provides loans to developing countries for capital programmes
IBRD
internation bank for reconstruction and development (part of World Bank)
IDA
internation development association (part of World Bank)
International Monetary Fund (IMF)
loans to countries who have balance of payment problems
Policy Framework Paper (PFP)
outlines the structural adjustment program
Fair Trade
Products are made and traded fairly and in a way that protects workers and small businesses in LDCs
Core-Periphery Model
Proposed by Immanuel Wallerstein
Core (MDCs)= high socio-economic level
Periphery (LDCs)= dependent on core, supplier of raw materials and labor
Dependency Theory
a theory of how developing and developed nations interact. It can be seen as an opposition theory to the popular free market theory of interaction. Dependency theory was first formulated in the 1950s, drawing on a Marxian analysis of the global economy, and as a direct challenge to the free market economic policies of the post-War era.