Poverty and Development Flashcards
(23 cards)
What is the North-South Divide?
Perceived as the major global socio-economic and political divide, replacing terms like ‘the West’ and ‘the third world’.
It describes variations in economic development globally.
What does Modernisation Theory suggest?
Countries go through a predefined set of five stages before becoming a fully developed nation.
This theory outlines a linear path to development.
What is Dependency Theory?
Emphasises structural imbalances within capitalism that impose dependency on poorer states.
It critiques the relationship between developed and developing nations.
What is the Group of 7/8 (G7/8)?
An informal bloc of industrialised democracies including the US, Canada, France, Germany, Italy, Japan, and the UK.
They discuss global economic governance and international security.
When was the G7 formed?
1975, initially as the group of six before Canada joined the following year.
It was formed to address the global economy after the oil crisis.
What are the strengths of the G7?
Easier to reach agreement, made important interventions like debt cancellations and aid to Africa.
Its small size allows for more cohesive discussions.
What are the weaknesses of the G7?
Perceived as a rich countries’ club promoting a neoliberal agenda; less relevant due to the rise of G20.
The gap between G7 and LDCs continues to widen.
What is the Group of 20 (G20)?
Established in 1999, it promotes international financial stability and serves as the main economic forum of wealthy nations.
Its first summit took place in 2008.
How many countries are in the G20?
19 countries plus the EU.
It includes nations like the USA, China, India, and Brazil.
What is a key feature of the G20’s operation?
No formal organisation or membership; work conducted through a series of meetings.
The presidency rotates annually among member countries.
What is the Group of 77 (G77)?
Founded on June 15, 1964, during the UNCTAD, initially with 77 members, now has 130.
It aims to strengthen economic cooperation among developing nations.
What are the objectives of the G77?
- Strengthen economic cooperation among developing nations
- Promote a fairer international trade system
- Advocate for sustainable development and poverty reduction
- Represent the interests of the Global South in international forums
Key members include India, Brazil, Egypt, and Indonesia.
What was the IMF deal for Pakistan in 2024?
A $7 billion loan approved, with $1 billion given immediately and payments over 37 months.
Pakistan has relied on IMF loans for decades.
How is poverty measured?
Absolute poverty measures deprivation of necessities or earnings less than £1.90 per day.
Relative poverty is defined as income 50% less than the average household.
What is Amartya Sen’s view on poverty?
Poverty is not just about income; it includes the inability to meet non-material needs.
His ideas inspired the Human Development Index.
What does Dependency Theory argue about former colonies?
They remain economically dependent on their former colonial masters despite political independence.
Resources flow from the periphery to the core, leading to wealth accumulation.
What is World-Systems Theory?
Developed by Immanuel Wallerstein, it suggests a world economic system where some countries benefit while others are exploited.
It divides countries into core, semi-periphery, and periphery.
What does Modernization refer to?
A model of a progressive transition from a ‘pre-modern’ to a ‘modern’ society.
It describes stages of development, notably Rostow’s stages.
What is Lipset’s belief regarding economic development and democracy?
There is a link between economic development and democracy, where both influence each other positively.
Economic growth fosters democratic governance.
What is structural theory?
Argues that poverty results from global inequality perpetuated by transnational corporations and donor conditions.
It originated in South America.
What do developing states need to do according to structural theory?
- Protect their economies
- Intervene in domestic markets to promote industrialisation
- Reduce reliance on exporting primary goods
This approach seeks to enhance economic independence.
What does classical development theory suggest?
Poverty is a lack of income or resources, measured by GDP per capita.
It is linked to liberal international relations theory.
What is the neoclassical development theory based on?
It builds upon classical theory, advocating for market-driven economic growth influenced by Hayek and Friedman.
This approach led to structural adjustment programmes in the 1980s.
