Key Concepts in Development and Economics

Flashcards covering key concepts related to development and economics.

Adolescent fertility rate

The number of births per 1,000 women ages 15 to 19.

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.

Developed country

A country that has progressed relatively far along a continuum of development.

Developing country

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

Development

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

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.

Female labor force participation rate

The percentage of women holding full-time jobs outside the home.

Foreign direct investment (FDI)

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

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 UN to measure the extent of each country's gender inequality in terms of reproductive health, empowerment, and the labor market.

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.

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.

Inequality-adjusted index (IHDI)

A modification of the Human Development Index to account for inequality.

Literacy rate

The percentage of a country's people who can read and write.

Maternal mortality rate

The number of women who die giving birth per 100,000 births.

Microfinance

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

Millennium Development Goals

Eight goals adopted by the U.N. in 2002 to reduce disparities between developed and developing countries by 2015.

Primary sector

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

Productivity

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

Pupil/teacher ratio

The number of enrolled students divided by the number of teachers.

Purchasing power parity (PPP)

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

Secondary sector

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

Structural adjustment program

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

Sustainable Development Goals

Seventeen goals adopted by the U.N. in 2015 to reduce disparities between developed and developing countries by 2030.

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.

Value added

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