Chapter 10 - Developing Countries

colonialism

An imperialist system of physically occupying a foreign territory using military force, businesses, or settlers.

developing countries

Lower and middle income countries

empire

A single political authority that has under its sovereignty a large number of external regions or territories and different peoples

export-oriented industrialization

A mercantilist strategy for economic growth in which a country seeks out technologies and develops industries focused specifically on the export market

imperialism

A system in which a state extends its power to directly control territory, resources, and people beyond its borders

import substitution

A mercantilist strategy for economic growth in which a country restricts imports in order to spur demand for locally produced goods

informal economy

A segment of the economy that is not regulated or taxed by the state

lower income countries

Countries that lack significant economic development or political institutionalization or both; also known as less-developed countries (LDCs)

microcredit

A system in which small loans are channeled to the poor through borrowing groups whose members jointly take responsibility for repayment

middle income countries

Historically less-developed countries that have experienced significant economic growth and democratization; also known as newly industrializing countries (NICs)

middle income trap

A situation where countries experience economic growth but are unable to develop at a speed necessary to catch up with developed countries

neocolonialism

An indirect form of imperialism in which powerful countries overly influence the economies of less-developed countries

neoliberalism/structural-adjustment programs/washington consensus

A policy of economic liberalization adopted in exchange for financial support from liberal international organizations; typically includes privatizing state-run firms, ending subsidies, reducing tariff barriers, shrinking the size of the state, and welcoming foreign investment