AP HUG Unit 6A: Development

development

A process of improvement in the conditions of people through diffusion of knowledge and technology

developing country

A country that is at a relatively early stage in the process of development

BRICs/NICs

an acronym that refers to the economies of Brazil Russia India and China/ newly industrialized country

Human Development Index (HDI)

An indicator constructed by the U.N. to measure the level of development for a country through a combination of income, education, and life expectancy

gross domestic product (GDP)

The value of the total output of goods and services produced in a country in a year, not accounting for money that leaves and enters the country

gross national income (GNI)

The value of the output of goods and services produced in a country in a year, including money that leaves and enters the country

purchasing power parity (PPP)

The amount of money needed in one country to purchase the same goods and services in another country

Brandt Line

the concept of a gap between the global north and the global south in terms of development and wealth

primary/secondary/tertiary/quaternary sectors

how industries are classified

primary sector

The portion of the economy concerned with the direct extraction of materials from Earth, generally through agriculture

secondary sector

The portion of the economy concerned with manufacturing useful products through processing, transforming, and assembling raw materials

tertiary sector

The portion of the economy concerned with transportation, communications, and utilities, sometimes extended to the provision of all goods and services to people in exchange for payment

quaternary sector

the portion of the economy that involves knowledge based activities such as information technology, research, and development, as well as consulting services and education

formal economy

the legal economy that is taxed and monitored by a government and is included in a governments gross national product

informal economy

economic activity that is neither taxed nor monitored by a government and is not included in that governments gross national product

international division of labor

Transfer of some types of jobs, especially those requiring low-paid, less-skilled workers, from more developed to less developed countries

productivity

The value of a particular product compared to the amount of labor needed to make it

value added

The gross value of a product minus the costs of raw materials and energy

Gender-related Development Index (GDI)

An indicator constructed by the U.N. to measure the gender gap in the level of achievement in terms of income, education, and life expectancy

Gender Inequality Index (GII)

An indicator constructed by the U.N. to measure the extent of each country’s gender inequality in terms of reproductive health, empowerment, and the labor market

Rostow’s Development Model

a model that analyzes the 5 steps that it takes to move from an agricultural society to a service based economy

Wallerstein’s World Systems Theory

a theory that the world is one interconnected collection of nations and states that due to the initial wave of European colonialism in the late 15th and 16th centuries, is dominated by economic centers in Europe and North America

dependency theory

the core countries depend on the periphery for labor and raw materials while the periphery depend on the core for goods

World Trade Organization (WTO)

an intergovernmental organization that regulates and facilitates international trade

foreign direct investment (FDI)

Investment made by a foreign company in the economy of another country

transnational corporation

A company that conducts research, operates factories, and sells products in many countries, not just where its headquarters or shareholders are located

world bank

an international development organization owned by 187 countries

OPEC

an intergovernmental organization of 13 oil-producing countries that aims to coordinate and unify the petroleum policies of its member states

Mercosur

a regional integration process, initially established by Argentina, Brazil, Paraguay and Uruguay, and subsequently joined by Venezuela and Bolivia

international monetary fund (IMF)

an organization of 188 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.

structural adjustment program

Economic policies imposed on less developed countries by international agencies to create conditions that encourage international trade

microfinance

Provision of small loans and financial services to individuals and small businesses in developing countries

fair trade

An alternative to international trade that provides greater equity to workers, small businesses, and consumers, focusing primarily on products exported from developing countries to developed countries

cooperative store

A member-owned, member-governed business that operates for the benefit of its members according to common principles agreed upon by the international cooperative community

UN Sustainable development goals

a collection of 17 global goals aimed at improving the planet and the quality of human life around the world by the year 2030