Unit 5: Political & Economic Change and Development

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Economic Globalization

the increasing interdependence of national economies through cross-border trade, investment, and capital flows.

International Monetary Fund (IMF)

an international organization of 189 member countries that works to foster global monetary cooperation, secure financial stability, facilitate international trade, and promote sustainable economic growth

World Bank

an international organization that provides loans, grants, and technical assistance to developing countries for projects focused on poverty reduction and economic growth.

World Trade Organization (WTO)

an international organization that regulates global trade by providing a framework for member countries to negotiate trade agreements, lower tariffs, and resolve disputes through a rules-based system.

Multinational Corporations (MNCs)

a company based in one country that operates and has subsidiaries in multiple other countries, often with the goal of maximizing profits by leveraging cheaper labor or resources.

Economic Liberalization

the process of reducing government intervention in the economy to promote free markets, competition, and private enterprise.

Neoliberalism

an economic and political ideology emphasizing free markets, deregulation, and privatization to promote economic growth. It advocates for a reduced role of the government in the economy, privatization of public services, and policies that favor free trade and competition.

Import Substitution Industrialization (ISI)

an economic strategy where a country aims to reduce its reliance on foreign imports by developing and protecting its own domestic industries.

Supranational organization

an international institution where member states voluntarily cede some of their sovereignty to a higher authority that can make binding decisions affecting them.

Economic Community of West African States (ECOWAS)

a regional group founded in 1975 to promote economic integration and cooperation among its 15 member states in West Africa.

European Union (EU)

a supranational political and economic union of 27 member countries that work together on shared policies like trade, agriculture, and foreign relations, with the goal of promoting peace and prosperity

Foreign Direct Investment

an investment made by a company or individual from one country into business interests in another country, typically involving a "lasting interest" and "degree of influence" over the foreign enterprise, often defined as owning 10% or more of the voting stock.

Rentier State

a country that derives a significant portion of its national revenue from external sources like natural resources, rather than from domestic production and taxation.

Resource Curse

The paradoxical phenomenon where countries with abundant natural resources tend to have worse development outcomes, including slower economic growth, less democracy, and weaker institutions, compared to countries with fewer resources.

Austerity

a set of government policies implemented during a financial crisis to reduce budget deficits by cutting spending and/or increasing taxes.

Keynesian Economics

a theory advocating for government intervention to stabilize the economy, especially during downturns.