4.3 - Emerging and developing economies Flashcards

Question

Natural capital | 4.3.1 - Measures of development

Answer 1

The stock of natural ecosystems that yields a flow of valuable ecosystem goods or services into the future. Natural capital may also provide services like recycling wastes or water catchment and erosion control

Answer 2

Assests such as businesses, shares, property which are owned in overseas countries and which might generate a flow of investment income which is a credit item on the pirmary income account of the balance of payments

Answer 3

An industry involved in the production of raw materials including agriculture

Answer 4

The financial system and regulation, education system, the legal framework, socail networks, values and other intagible structures in an economy

Answer 5

Farming where ouptut is produced for consumption of the farmer and its family members and not for cash sale

Answer 6

To leave future generations the option or capacity to be as well off as we are

Answer 7

Growth which meets the needs of the present without comprimising the ability of future generations to meet their own changing needs and wants. Each generation should bequeath to its successor at least as large a productive base as it inherited

Answer 8

Trend growth is the long term non-inflationary increase in output (GDP) caused by an increase in a country's productive capacity i.e. LRAS

Answer 9

The process whereby the economic gains from economic growth pass down throughout the entire society eventually giving rise to inclusive development

Answer 10

Aid (development assistance) that flows from one country to another

Answer 11

The movement of highly skilled or professional people from their own country to another country where they can earn more money

Answer 12

Buffer stock schemes seek to stabilize the market price of agricultural products by buying up supplies of the product when harvests are plentiful and selling stocks onto the market when supplies are low

Answer 13

The rapid movement of large sums of money out of a country. There could be several possible reasons - lack of confidence in a country's economy and/or its currency and political turmoil. Capital flight occurs when owners of liquid assets move them to other countries perceived as safe havens or as offering better returns. It can be legal of illegal

Answer 14

The abuse of entrusted power for private gain, a key cause of government failure

Answer 15

Ranks countries/territories based on how corrupt thier public sector is percieved to be. It is a composite index, a combination of polls, drawing on corruption-related data collected by a varitey of reputable institutions

Answer 16

Built on the research of Professer Paul Collier. 4 development traps are: * Conflict * Reliance of natural resources * Being landlocked with bad neighbours * Bad governance/institutions

Answer 17

An unexpected event beyond the control of the country's officials that has a large negative impact on its economy

Answer 18

External debt is owed by governments, housholds and businesses in a country to external (overseas) creditors. Examples include government bonds sold to foregin investors and private sector credit from foreign banks. The scale of external debt is measued as a % of a country's GNI

Answer 19

Average number of children a woman will have in her lifetime, by country or region

Answer 20

This is when a country outflows persistently exceed currency inflows, for example when a country is running a persistent current account deficit

Answer 21

An idea that aggregate output (GDP) is proportional to the stock of physical capital. Investment is assumed proportional to output which implies that it is also proportional to the capital stock. Thus, some fraction of output is invested, which addes to the capital stock, which increases output

Answer 22

The skills, experience, attitudes, aptitudes of the human input into production

Answer 23

Another name for brain drain - when a country suffers net outward migration of skilled/younger workers which causes their labour force to contract and may have a damaging effect on the level of labour productivity

Answer 24

Replacement of imports by domestic production, perhaps protected using tariffs

Answer 25

The transport links, communications networks, sewage systems, energy plants and other facilities essential for the efficient funcitoning of a country and its economy

Answer 26

Heavy dependence measured as a share of GDP, total exports or employment from the extraction/cultivation of primary commodities such as copper and oil

Answer 27

Machines, buildings, physical infrastructure. Also known as fixed capital

Answer 28

Rights to ownership of an esset such as land or ideas (intellectual property rights)

Answer 29

Tariff and non-tariff restrictions on imports to protect domestic producers

Answer 30

Achieving more with less, i.e. producing more goods and services but with a lower environmental footprint

Answer 31

Resource rent is a measure of the financial return from operating in a natural resource industry - for example in the fishing sector, it is what remains after fishing costs and subsidies are deducted from revenue

Answer 32

Savings are needed to finance capital investment. In many smaller low-income countries, high levels of extreme poverty make it difficult to generate sufficient savings to provide the funds needed to fund investment projects. This increases reliance on aid or borrowing from overseas. This problem is known as the savings gap

Answer 33

The excess of aggregate savings over domestic investment, where investment is in fixed capital and inventories by both the public and private sector

Answer 34

Where planned capital investment is linked positivelt to the past and expected growth of consumer demand

Answer 35

Overseas development assistance from one country to another. Might take the form of humanitarian assistance, technical expertise and project aid etc.

Answer 36

A measure of the quality of aid delivery and maximizing the impact of aid on extreme poverty reduction and sustianable economic development

Answer 37

Buffer stock schemes seek to stabilize the market price of agricultural products by buying up supplies of the product when harvests are plentiful and selling stocks onto the market when supplies are low

Answer 38

The cancelling by a creditor or a debt to country or a company

Answer 39

Cancellation, rescheduling, refinancing of a nation's external debts

Answer 40

A tax on a good or service, which is judged to be detrimental to the environment. It may also be a tax on a factor input used to produce (supply) that final product

Answer 41

Trade between companies in developed countries and producers in developing countries in which fair prices are paid to the producers

Answer 42

FDI is the acquistion of a controlling interest in productive operations abroad by businesses resident in the home economy. May invovle the creation of new productive capactity such as a new factory or building of infrastructure

Answer 43

A pattern of development that decouples growth from heavy dependence on resource use, carbon emissions and environmental damage, and promotes growth through the creation of new green product markets, technologies, investments, and changes in consumption and conservation behaviour

Answer 44

Gross sacing = GDP minus consumption by government and the private sector, expressed as a percentage of GDP. A high gross domestic saving rate usually indicates a country's high potential to invest in capital

Answer 45

Human capital is a measure of individuals' skills, knowledge, abilities, social attributes, personalities and health attributes. These factors enable individuals to work, and therefore produce something of economic value

Answer 46

Inter-governmental organization that oversees the global financial system by following the macroeconomic policies of its member countries, in particular those with an impact on exchange rate and the balance of payments

Answer 47

Agreement between two or more companies to cooperate on a particular project or a business that services their mutual intersts. E.g. Google and NASA (Google Earth)

Answer 48

Arthur Lewis put forward a development model of a **dualistic** economy, consisting of rural agricultural and urban manufacturing sectors. It is a model of structural change as it outlines the development from a traditional economy to an industrialised one

Answer 49

Any form of credit service offered to low-income individuals not traditonally serviced by the formal banking sector

Answer 50

Occurs when a country's growth stagnates after reaching middle income levels. The problem arised when developing economies find themselves stuck in the middle, with rising wage and declining costs competitiveness, unable to compete with advnaced economies in high-skill innovations, or with low-income, low-wage economies in the cheap production of manufactured goods

Answer 51

Aid channelled through international bodies such as Oxfam or Save the Children for use in or on behalf of aid recipient countries

Answer 52

When the number of migrants coming into a country is greater than those leaving in a given time period

Answer 53

Private non-profit making bodies which are active in development work

Answer 54

Abbreviation for official development assistance

Answer 55

Organisation of Economic Co-operation and Development - the group of leading advanced, high-income countries

Answer 56

Banks based abroad in a country where you pay less tax

Answer 57

Loans, grants, and technical assistance provided to developing countries

Answer 58

Government policy that attempts to achieve development by encouraging free trade and the unrestricted movement of labour and capital

Answer 59

Selling off a state-run industry to the private sector

Answer 60

Tariff and non-tariff restrictions on imports to protect domestic producers

Answer 61

Development Banks which serve particular regions e.g. the African Development Bank or European Bank for Reconstruction and Development

Answer 62

Abbreviation for special economic zones - areas set up by the government offering tax incentives in a bid to attract inward investment and new jobs

Answer 63

A loan made to a country on concessionary basis with a lower rate of interest

Answer 64

Reductions in import tariffs and non-tariff barriers to enhance trade between one or more countries

Answer 65

The World Bank promotes the institutional, structural and social development of Less Developed Countris (LDCs) providing low interest loans for domestic investment projects and technical assitance

4.3 - Emerging and developing economies Flashcards

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