Chapter 10 - Less Developed and Newly Developing Countries Flashcards Preview

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Flashcards in Chapter 10 - Less Developed and Newly Developing Countries Deck (14):
1

Newly Industrializing Countries (NICs)

Countries with dramatic rates of economic growth and democratization. Emphasis of economic growth, but marked tendency toward democratization and political and social stability. Asia and Latin America.

2

Less Developed Countries (LDCs)

Countries that have remained weak or grown weaker over the past decades. Slipped into poverty, violence, and civil conflict. Lack of significant economic development or political institutionalization.

3

Empire

Single political authorities that have under their sovereignty large number of external regions or territories and different peoples. Lands and peoples that are not seen as part of the country itself is considered under direct control.

4

Imperialism

System whereby the state extends its power to directly control territory, resources, and people beyond its borders.

5

Colonialism

A greater degree than imperialism of physical occupation of a foreign territory through military force, business, or settlers. Colonialism is the means for consolidating the empire.

6

Institutions of Imperialism

Exportation of the State, New Social Identity, Dependent Development,

7

Challenges to Postimperialism

Building state capacity and autonomy (creation of successful and stable political institutions), Forging social identities (arbitrary cookie cutting), Generating economic growth.

8

Neocolonialism

Dependence of newly independent countries on old colonial masters. Generally unequal relationships where agriculture and natural resources are traded away in return for finished products, stifling industrialization and increasing dependency.

9

Import Substitution

Restriction of imports, raising tariff or non-tariff barriers to spur demands for local goods. State funds are used to create parastatal (partially state-owned) and subsidize businesses. Local businesses found to be less innovative and non-competetive over time. Results in large state-dependent industries unable to compete.

10

Export-Oriented Industrialization

Replaced Import substitution. Seeking out technologies and development of industries that are focused specifically on export, capitalizing on product life cycle. ie, copy cat industrialization. Also relies heavily on state funds and protectionism.

11

Structural-Adjustment Program or Washington Consensus

At the request of more advanced democracies or international agencies, LDCs and NICs pursue more liberal economic policy. End of state-run firms, subsidies, and tariffs. Shrinking size of the state and welcoming of foreign investment.

12

Informal Economy

Self-employed, small enterprises. Street vendors/ repairmen. Can account for 1/2 of GDP with women playing large role. Often corruption and bureaucracy often deter creation of formal small business. Does not generate tax revenue. Does not grow because of lack of capital and assets.

13

Microcredit

Refers to a system of small loans being granted to small scale businesses that otherwise lack capital.

14

Microfinance

Large spectrum of credit, savings, insurance, and financial transfers that are granted by nonprofit organizations to small scale businesses that need it. Failure to repay limits future loans etc.