Chapter 4: Development Economics Flashcards
(26 cards)
Economic development
The improvement in living standards in the economy, including material consumption (higher per capita income), health, education and environmental concerns
Corruption
When a person in a public position entrusted with certain responsibilities misuses public funds or resources for illegal personal gains.
Poverty cycle
Self perpetuating flow that shows why certain members of society are stuck in a position of low income and wealth.
Life expectancy at birth
Average number of years a person is expected to live from birth
Infant mortality rate
Number of deaths of babies under 1 year old per thousand live births in 1 year
Adult literacy rate
Proportion of adult population above 15yo literate, as a % of whole adult population of a country at a point in time.
Foreign Direct Investment (FDI)
Long term investment by a private MNC
Aid
Any assistance given to a country that would have otherwise not been provided by normal market forces
Capital flight
Financial capital exiting a country legally or illegally into safer and more profitable financial centres.
Human Development Index (HDI)
Composite measure of development that focuses on health, education and income. Under health, it is the measure of life expectancy at birth. Under education, it is the measure of mean years of schooling of people aged 25 and above and expected years of schooling for a child entering school. Under income, it is the measure of GNI per capita in PPP terms.
Tied aid
Aid used to buy donor’s products
Project aid
For infrastructure, no need for repayment
Long term loan
Repaid in 10-20 years, repayable in local or foreign currency
Technical assistance aid
Aid used to increase technology and human capital
Commodity aid
Aid to increase productivity. Funds to buy commodities
Bilateral aid
Aid from one country to another
Multi-lateral aid
Given by rich countries to international aid organisations who decide on its best use.
Millennium Development Goals
Goal 1: Eradicate extreme poverty and hunger
Goal 2: Achieve universal primary education
Goal 3: Promote gender equality and empower women
Goal 4: Reduce child mortality
Goal 5: Improve maternal health
Goal 6: Combat HIV/AIDS, malaria and other diseases
Goal 7: Ensure environmental sustainability
Goal 8: Develop a global partnership for development
Absolute poverty
When the level of income earned is insufficient to buy necessities for survival, then the person is said to be in absolute poverty.
Relative poverty
A person is said to be in relative poverty if they do not reach an income level to sustain an average standard of living in their society.
Micro-credit
The provision of small loans to individuals who have no access to traditional sources.
Poverty
A state or condition in which a person or community lacks the financial resources and essentials to enjoy a minimum standard of life and well-being that’s considered acceptable in society.
Non-governmental organisations (NGOs)
Organisations usually independent of governments, typically aimed at pursuing developmental related projects.
Sustainable development
Development that meets the needs of the present generation without decreasing the ability of future generations to meet their own needs.
