Overview of Chapters 1-6: History of Economic Development

Flashcards covering key economic development concepts and historical contexts essential for understanding the dynamics of economic growth and development globally.

GDP per capita

Gross Domestic Product adjusted for inflation and differences across countries, measured in international dollars.

The Great Divergence

The widening gap in income between rich and poor countries from 1800 to 1950.

Human Development Index (HDI)

An index measuring a country's average achievements in health, education, and income.

Underdevelopment

The state of experiencing deprivations in basic needs such as health care, education, and income.

The Malthusian trap

A situation where population growth outpaces agricultural production, leading to famine and poverty.

Social Capital

The networks and norms that enable collective action within a society leading to economic benefits.

Corruption

The abuse of entrusted power for private gain, often undermining development and economic growth.

Extractive institutions

Institutions that enable a small elite to monopolize power and economic resources, discouraging broad-based economic opportunity.

Inclusive institutions

Institutions that create broad participation in economic opportunities and political power, fostering development.

The Resource Curse

The paradox where countries rich in natural resources often experience less economic growth and worse development outcomes.

European Marriage Pattern (EMP)

A demographic pattern characterized by delaying marriage and having fewer children, leading to lower birth rates.

Cultural fragmentation

The division within a society into distinct cultural groups that may conflict, hindering social cohesion and development.

Economic Freedom Index

An index that assesses the economic freedom of countries based on various criteria, including property rights and government intervention.

The Black Death

A major epidemic in the 14th century that drastically reduced the population of Europe, affecting wages and economic structure.

Institutional legacy

The enduring structures and rules established during colonial times that impact a country's political and economic development.

Per capita income

The average income earned per person in a given area, used as an indicator of economic health.

Infant mortality rate

The number of infant deaths per 1,000 live births, used to assess the overall health of a population.

Literacy rate

The percentage of people above a certain age who can read and write, indicative of educational attainment and social development.

Political regimes

The form of government under which a country is administered, influencing economic stability and growth.

Gender Inequality Index

An index that measures gender disparities in reproductive health, empowerment, and the labor market.

Creative destruction

The process of industrial transformation that accompanies technological innovation, displacing older industries.

Absolute Poverty

A condition characterized by severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education, and information.

Relative Poverty

A condition in which people lack the minimum amount of income or possessions required to maintain the average standard of living in the society in which they live.

Human Capital

The stock of knowledge, habits, social and personality attributes, including creativity, embodied in the ability to perform labor so as to produce economic value.

Demographic Transition

The process of change in a society's population from a condition of high crude birth and death rates and low rate of natural increase to a condition of low crude birth and death rates, low rate of natural increase, and higher total population.

Rule of Law

The principle that all people and institutions are subject to and accountable to law that is fairly applied and enforced.

Modernization Theory

A theory used to explain the process of modernization within societies, focusing on the internal factors of a country holding it back from developing, and arguing that traditional societies will develop as they adopt more modern practices.

Gini Coefficient

A measure of income inequality within a country, ranging from 0 (perfect equality) to 1 (perfect inequality).

Purchasing Power Parity (PPP)

A theory that states that exchange rates between currencies are in equilibrium when their purchasing power is the same in each of the two countries.

Dependency Theory

A theory asserting that underdeveloped countries are exploited by developed countries, perpetuating their underdevelopment.

Washington Consensus

A set of 10 economic policy prescriptions considered a 'standard' reform package for crises-wracked developing countries championed by institutions like the IMF and World Bank.

Foreign Direct Investment (FDI)

An investment made by a firm or individual in one country into business interests located in another country.

Total Fertility Rate (TFR)

The average number of children that would be born to a woman over her lifetime if she were to experience the exact current age-specific fertility rates throughout her childbearing years.

Life Expectancy at Birth

The average number of years a newborn infant can expect to live if current mortality patterns hold true for the rest of its life.

Property Rights

The theoretical and legal ownership of resources and how they can be used, which are crucial for economic incentive and investment.

Colonial Extraction

The process by which colonial powers exploited natural resources and labor from colonized territories for their own benefit, often leading to long-term underdevelopment.

Industrial Revolution

A period of major industrialization and innovation that took place during the late 18th and early 19th centuries, fundamentally shifting economies from agrarian to industrial.

Sustainable Development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Microfinance

A category of financial services provided to low-income individuals or groups who traditionally lack access to conventional banking services.

Human Poverty Index (HPI)

An index focusing on deprivation in three essential elements of human life: longevity, knowledge, and a decent standard of living.

Terms of Trade

The ratio of a country's export prices to its import prices, indicating the purchasing power of its exports.

Inclusive Growth

Economic growth that is distributed fairly across society and creates opportunity for all, helping to reduce inequality and poverty.