Economic Development, Theories, and Regional Case Studies

A complete set of practice flashcards covering economic indicators, classification systems, human capability metrics, development theories, and regional case study contexts.

How is Gross National Income (GNI) defined?

GNI measures the total value of all goods and services produced by the citizens and companies of a country during a given year, regardless of where the production occurs.

How is Gross Domestic Product (GDP) defined?

GDP measures the total value of all goods and services produced within a country's geographical borders during a given year, regardless of the nationality of the producers.

Why is GDP often much larger than GNI in small offshore financial centers like Singapore or Ireland?

Significant profits generated inside their borders by foreign entities are remitted back to foreign parent companies.

How does median household income differ from GNI per capita as an economic indicator?

Median household income represents direct median earnings of individual households and is not skewed by corporate aggregates or extreme wealth inequality.

What are the World Bank's four income group classifications by GNI per capita as projected for 2026?

Low-income ($\le \$1{,}175$), lower-middle-income ($\$1{,}176$ to $\$4{,}635$), upper-middle-income ($\$4{,}636$ to $\$14{,}375$), and high-income ($\ge \$14{,}376$).

What was the OECD created to succeed when it was established in 1961?

The post-WWII European economic recovery programs.

What is the projected threshold for the International Poverty Line as of 2026, and what are the primary drivers of extreme poverty?

The line is projected at $\$3\text{/day}$ (up from $\$1\text{/day}$ around 1999), with climate change and conflict serving as the primary drivers.

What group of people does the term "The Bottom Billion" describe?

Roughly one billion people living in the world's poorest, stagnating countries—primarily in Sub-Saharan Africa and Central Asia—who are left behind by global economic growth.

Who coined the term "Third World" in 1952, and how were the three Cold War blocs categorized?

French demographer Alfred Sauvy coined the term. The blocs were First World (US-aligned capitalist), Second World (Soviet-aligned socialist), and Third World (non-aligned, newly independent former colonies).

What is the Brandt Line, and what is a key criticism of the "Global South" concept?

Visualized by Willy Brandt in 1980, it drew an imaginary division between the rich industrial "North" and poorer agrarian "South"; it is criticized for oversimplifying the vast economic diversity within these regions.

Which countries make up the BRICS acronym?

Brazil, Russia, India, China, and South Africa.

What three dimensions and four specific indicators make up the Human Development Index (HDI)?

Health (life expectancy at birth), Education (mean years of schooling for adults aged 25+ and expected years of schooling for children), and Living Standards (GNI per capita adjusted for PPP).

What three dimensions are measured by the Gender Inequality Index (GII), and what does its numerical range represent?

It measures Reproductive Health, Empowerment, and Labor Market across a range from $0$ (perfect equality) to $1$ (perfect inequality).

What six areas are evaluated by the World Happiness Report to assess subjective well-being?

GNI per capita, healthy life expectancy, social support, freedom to make life choices, freedom from corruption, and generosity.

What is the core emphasis of Bhutan's Gross National Happiness (GNH)?

It evaluates collective happiness over GDP, emphasizing spiritual, emotional, and cultural well-being alongside sustainable development.

What are the five stages of development according to Walt Rostow's Modernization Theory?

1. The traditional society, 2. Preconditions for take-off, 3. The take-off, 4. Drive to maturity, and 5. Age of high mass consumption.

What is the primary criticism of Rostow's Modernization Theory?

It is highly Eurocentric and ahistorical, assuming all nations can follow the exact path of Western nations without accounting for the legacies of colonial exploitation.

What are the three core policies advocated by Neoliberal Theory to optimize economic growth?

Deregulation (reducing governmental oversight), Liberalization (eliminating trade and FDI barriers), and Privatization (selling state-owned enterprises to private firms).

How does Dependency Theory, proposed by Andre Gunder Frank, explain global underdevelopment?

Wealthy core countries exploit the resources and labor of peripheral satellite countries by importing cheap raw materials and exporting expensive manufactured goods back, causing continuous drainage of wealth.

How do the Classical and Marxist approaches to development differ in their attribution of underdevelopment?

The Classical approach blames internal governmental or societal failures ("blaming the poor"), whereas the Marxist approach blames global capitalist structures and historical inequalities ("blaming the system").

What historical factors contribute to structural development issues in Sub-Saharan Africa according to the lecture material?

Historical colonialism stemming from the 1884/5 Berlin Conference, the "tyranny of the map", colonial "divide and rule" strategies, resource curse issues, and infrastructure deficits.