Introducing Economic Development: A Global Perspective

Flashcards covering key terms and concepts from an economics lecture on development, poverty, and global inequality.

Economic Development

Aims to improve the overall well-being of a society, encompassing economic growth and qualitative improvements in living standards, including enhancing education, healthcare, infrastructure, and the overall quality of life.

Amartya Sen’s Capability Approach

Focuses on well-being in terms of being well and having freedoms of choice, emphasizing capabilities as freedoms enjoyed in terms of functionings or beings and doings, rather than merely a lack of income.

Extreme Poverty

Characterized by income below $1.90/day (adjusted for purchasing power parity), limited access to food, water, shelter, and sanitation, and is still widespread in rural areas of low-income countries.

Gross National Income (GNI)

Total income earned by a nation's residents, including GDP (value of goods/services produced domestically) plus net foreign factor income (income from abroad minus income paid to foreigners locally).

World Bank

An international organization dedicated to providing financing, advice, and research to developing nations to aid their economic advancement.

Gender Equality in Development

Empowering women leads to higher investments in children’s health, education, and nutrition, improved household welfare and economic growth, and greater civic and labor force participation.

Sustainable Development Goals (SDGs)

A set of 17 global goals adopted by the United Nations to achieve a better and more sustainable future for all, addressing global challenges such as poverty, hunger, inequality, and climate change.

Philippine Classification (World Bank)

Classified as a Lower-Middle-Income Country based on its Gross National Income (GNI) per capita using the Atlas method.

Extreme Poverty Threshold

The World Bank sets the extreme poverty line at $1.90/day, using Purchasing Power Parity (PPP) to reflect what that amount buys in the U.S., adjusted by local cost of living.

Gross National Happiness (GNH)

Bhutan's model that measures development using indicators such as mental well-being, cultural preservation, environmental protection, and good governance—shifting the focus from “how much we produce” to “how well we live.”