Challenges and Paths in Economic Development

These flashcards cover key concepts surrounding the challenges and paths in economic development, including self-sufficiency and international trade approaches.

Self-Sufficiency Challenges

Issues faced by countries trying to protect inefficient businesses from international competition.

Inefficiency

Lack of improvement in product quality due to protection from international competition.

Large Bureaucracy

A complex administrative system that encourages inefficiency and requires significant resources.

Rostow's Modernisation Theory

A theory proposing 5 stages of development that countries progress through over time.

Pre-conditions for Take-off

In this stage, leadership and infrastructure are developed to prepare for economic growth.

Take Off

The stage where rapid growth occurs, driven by investments from profits earned through trade.

Drive to Maturity

Modern technology spreads across various industries, leading to a more complex commercial base.

Stage of Mass Consumption

The final stage signifying a shift from heavy industry to consumer goods production.

International Trade Path

Approach focusing on leveraging a country's unique assets to engage in trade and improve economic conditions.

Dependence on Developed Countries

The risk that developing nations allocate too many resources to exports, neglecting local needs.

Market Decline

Challenges faced by developing countries in a world market experiencing reduced demand.