EAE 204: Economic Development

Flashcards covering major concepts in development economics drawn from the course material.

Economic Growth

A quantitative, sustained increase in a country’s output/income accompanied by expansion in its labor force, consumption, capital, and volume of trade.

Economic Development

Encompasses both quantitative and qualitative changes in the economy, including technological and structural transformations.

Vicious Circles of Poverty

A cycle where low income leads to low demand, which leads to low investment and low economic productivity, perpetuating poverty.

Classical Theories of Economic Growth

Economic theories proposing that growth is achieved through rational individual behavior, characterized by perfect competition and diminishing returns.

Marxist Theory

A theory that classifies society into propertied and non-propertied classes, emphasizing economic struggle and conflict as driving forces of development.

Keynesian Theory

A theory that emphasizes the role of aggregate demand in the economy, stating that total income is determined by the level of employment.

Rostow's Stages of Growth

A model that outlines five stages of economic development from traditional society to the age of mass consumption.

Lewis Theory of Unlimited Labor Supply

A theory proposing that underdeveloped economies can utilize unlimited labor from the subsistence sector to fuel industrial growth.

Solow Model

A neoclassical growth model highlighting the importance of capital accumulation, labor growth, and technological progress in economic growth.

Endogenous Growth Theory

A theory suggesting that economic growth is primarily determined by internal factors, such as investments in human capital and innovation.

Sen’s Welfare Theory

A framework focusing on individual capabilities rather than simply economic growth, emphasizing the importance of freedoms and rights in development.

Vision 2030

Kenya's development blueprint aimed at transforming the country into a globally competitive and prosperous nation with a high quality of life.

Micro-Type Development Strategies

Specific strategies targeting particular sectors or issues in economic development.

Macro-Type Development Strategies

General strategies aimed at overall economic growth and development.

Poverty Measurement

The process of evaluating the extent of poverty in a population, commonly using income thresholds to define absolute and relative poverty.

Barriers to Development

Factors that impede economic development in a country, including low capital formation, socio-cultural constraints, and inadequate human resources.

Anti-Poverty Programs

Initiatives and policies aimed at reducing poverty, often implemented by governments and NGOs.