Development Economics Cheat Sheet, Cheat Sheet of Economics

Download Development Economics Cheat Sheet and more Cheat Sheet Economics in PDF only on Docsity! 1. absolute poverty a situation where people are so poor that they cannot meet their basic needs 2. adult literacy rate the percentage of people over 15, who can read or write a short statement relating to their everyday life 3. aid assistance given to a country that would not have been given through market forces 4. appropriate technology capital that is suited to the demographic and economic needs of the population (existing factor endowments) 5. bilateral aid aid given directly by one country to another 6. capital deepening when there is an increase in the amount of capital for each worker (improves labour productivity) 7. capital flight when people take money out of a country to invest, usually because of high risk or economic / political instability in a country 8. capital widening when extra capital is used with an increased amount of labour, but the ratio of capital per worker does not change (labour productivity doesn't change) 9. child dependency ratio (burden) % of population under 15 / % of population 15 to 64 10. child mortality the number of children out of 1,000 that die before the age of five 11. corruption the use of power for personal gain 12. debt relief the process of forgiving some of all of the debts of LEDCs to free up money for development goals 13. debt-servicing the payment over time of debt plus interest 14. de- development worsening development conditions (sometimes brought about by structural adjustment policies of IMF) 15. development an improvement in standards of living, including improved health, education, freedom, and security 16. development aid long-term aid given to reduce poverty and improve the welfare of people; should have some part as grant aid 17. diversification moving from over-specialization to an increased number of products to produce and export; reduces the risk associated with focusing production of a few goods 18. drought when there is not enough rain to sustain food production 19. economic growth an increase in the total value of all goods and services produced in the country (increase in GDP) 20. export promotion (export-led growth) an outward-oriented economic growth strategy, based on increased international trade and less protectionism 21. fair trade an attempt to ensure that producers in developing countries receive fair prices for selling their products in order to improve the chances that their work will lead to improve development 22. financial markets institutions where lending and borrowing takes place 23. financial services the services of lending and saving, usually provided by banks 24. foreign direct investment (FDI) long-term investment by multinational corporations in other countries 25. GDP per capita the total value of all goods and services produced in a country divided by the population 26. gender related development index (GDI) a composite index that combines the HDI along with the differences in HDI indices between men and women. Inequality between men and women will result in a lower GDI than the HDI 27. GNI per capita the total income earned by a country's factors of production, regardless of where they are located, divided by the population 28. grant aid short-term aid provided as a gift and does not have to be repaid; includes food aid, medical aid, and emergency aid 29. Heavily Indebted Poor Countries (HIPC) Initiative a program by the World Bank and IMF that helps reduce debt levels among the poorest countries 30. Human Development Index (HDI) a composite index that measures health (through life expectancy), education (through the literacy rate and primary / secondary / tertiary school enrolment) and income (through GDP per capita) 31. humanitarian aid aid given to improve short-term suffering usually due to wars or natural disasters 32. import substitution (import substitution industrialization) a strategy that says that a country should, when possible, produce goods domestically rather than import them 33. income distribution how income is spread among the quintiles of the population 34. indebtedness the state of being in debt 35. infant mortality rate the number of babies out of 1,000 born who die before the age of one 36. informal markets (black markets, underground economies) markets that are not monitored or taxed by governments DEVELOPMENT ECONOMICS 37. infrastructure the essential facilities and services that are necessary for economic activity (roads, sewers, phone, etc.) 38. institutional factors the structures of human interaction that impact choices and affect the performance of societies and economies 39. International Monetary Fund (IMF) a multinational organization that develops global monetary cooperation, secures financial stability by helping members who have balance of payments difficulties, promotes international trade, promotes high employment and sustainable economic growth 40. interventionist development strategies government policies that involve an active role for government in the economy and markets to achieve goals; includes trade protectionism, import substitution, exchange rate intervention, regulation and nationalization 41. life expectancy at birth the average number of years that a person can be expected to live 42. market-led development strategies government policies to promote development that focus on letting free markets operate to achieve maximum economic efficiency; includes deregulation, privatization, free trade policies 43. micro-loans (micro credit) small loans, often given to women, that enable entrepreneurs to start small businesses to increase income or accumulate capital 44. Millennium Development Goals (MDGs) eliminate extreme poverty and hunger, reduce child mortality, improve maternal health, establish global partnerships for development, achieve universal primary education, promote gender equality and empower women, combat HIV/AIDS malaria and other diseases, ensure environmental sustainability 45. multilateral aid aid given by MEDCs to international aid agencies such as the World Bank and International Monetary Fund (IMF) 46. multinational corporation a firm that produces goods and services in multiple countries; a source of FDI 47. net enrolment in primary education the number of children enrolled in primary school divided by the total number of children of primary school age 48. non- convertible currency a currency that is not widely accepted for the purposes of global exchange 49. non- governmental organization (NGO) groups that work to improve development, but are not a part of government 50. odious debt refers to debt that is taken on by a government, but not used to help the people; many believe that odious debt should be forgiven by MEDCs 51. official development assistance (ODA) aid organized by a governments or multilateral agencies and given to governments 52. old age dependency ratio (burden) % of population over 64 / % of population 15 to 64 53. over- specialization when a country focuses too much on the production of a few goods, increasing the risks to economic growth if there are problems with the production or sale of those goods 54. poverty the state of being extremely poor 55. poverty trap (cycle) any linked combination of barriers to growth and development that form a circle 56. price volatility when the prices of goods changes significantly; depending on elasticity, can result in significant changes in revenues earned 57. primary commodities raw materials used for the production of other goods 58. productivity output per person 59. project aid money given for a specific project in a country, often targeted at infrastructure 60. property rights a group of rights that includes the right to own, use, sell and prevent others from using personal assets 61. pro-poor growth economic growth that leads to a fall in poverty 62. purchasing power parity (PPP) an adjustment to national income data, that considers the prices in various countries so as to better represent the purchasing power of a level of income 63. relative poverty a situation where people are poor relative to the average levels of income in their country 64. Structural Adjustment Policies policies demanded by the IMF as a condition for loans to prevent debt default in LEDCs; mainly market-oriented reforms like trade liberalization, privatization, and balancing government budgets through reduced government spending 65. sustainable growth when meeting the needs and wants of people today does not hinder the ability of future generations to meet their needs and wants 66. tariff escalation a situation where a country may increase tariffs on processed goods, thereby reducing the ability of some countries to add value to commodities to earn higher revenue 67. technical assistance aid aid in the form of training and assistance from experts on projects