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What does the term "Third World" refer to in historical context?
It was used during the Cold War to describe countries not aligned with either the capitalist West or communist East, often referring to developing nations.
What does GDP stand for and how is it used to measure economic development?
GDP stands for Gross Domestic Product and it measures the economic development based on the total monetary value of all goods and services produced in a country.
What is Purchasing Power Parity (PPP)?
PPP estimates the buying power of income across different countries using US prices, taking into account differences in the cost of living.
What are the three types of economic sectors?
Primary (agriculture), Secondary (manufacturing), Tertiary (services).
What does Transparency International measure?
It measures the level of corruption in a country, with a score closer to 100 indicating better integrity.
What is a Newly Industrialized Country (NIC)?
A country that has experienced significant economic growth and has started democratizing, typically by moving manufacturing to their regions.
What characterizes a Lesser Developed Country (LDC)?
LDCs often have low global influence, troubled economies concentrated in primary sector activities, and low quality of life.
Define 'Dependency Theory'.
A theory suggesting that the economic development of LDCs is constrained by their dependence on wealthier, developed nations.
What is Rostow’s Model?
It is a framework for understanding a country's economic development stages, suggesting that countries must follow the steps taken by the West to modernize.
What is Human Development Index (HDI)?
A composite statistic used to rank countries based on levels of human development, considering life expectancy, education, and income.
What role do the IMF and World Bank play in international economics?
The IMF provides financial assistance and monitors economic stability, while the World Bank offers loans and grants for development projects.
What does the term 'Debt Trap' refer to?
A cycle where a country takes on more debt to pay off existing debt, worsening its financial position over time.
What defines a 'failed state'?
A country where the government has lost the ability to provide basic services, maintain order, or exercise authority.
What is the significance of 'Foreign Aid'?
Foreign aid involves financial or material assistance provided by one country to another for humanitarian, development, or strategic purposes.
Describe the concept of 'microcredit'.
Microcredit refers to the provision of small loans to individuals in developing countries to support entrepreneurship and mitigate poverty.
What does 'Globalization' mean?
Globalization refers to the increasing interconnectedness and interdependence of countries through trade, communication, and cultural exchange.
