Aids Midterm

What is the modern definition of Development?

The multidimensional study of how societies improve their collective well-being.

Identify the '$C$' component in the standard GDP formula.

Private consumer spending which is the largest component of GDP.

What does the '$G$' represent in the formula $GDP = C + G + I + NX$?

Government expenditures on payroll and infrastructure and equipment.

In the GDP formula what does '$I$' signify?

Private domestic capital expenditures such as business machinery.

What is the calculation for Net Exports ($NX$) in GDP?

Total exports minus total imports.

Which metric compares different currencies through a basket of goods approach?

Purchasing Power Parity or $PPP$.

Why is Ireland's GDP per capita considered an outlier in development analysis?

Multinational profit concentration inflates the figure relative to domestic living standards.

Which nation successfully combines massive economic scale with high individual wealth?

The United States.

Define Official Development Assistance or $ODA$.

Government to government aid intended to promote economic development and welfare.

What is the current World Bank threshold for extreme poverty?

$2.15$ Purchasing Power Parity per day.

What is the international poverty line for lower middle income nations?

$3.65$ per day.

Define the concept of Rent Seeking.

The process of capturing wealth without adding actual productivity to the real economy.

What is the estimated scale of wealth held in global tax havens?

Approximately $7.6$ trillion dollars.

How does the Finance Curse affect an economy?

It decouples earnings from the real economy through shadow banking and excess rents.

What is the carbon footprint ratio of the richest $1\%$ compared to the poorest $10\%$?

The footprint of the richest is $175$ times higher.

Who pioneered the development as freedom paradigm shift?

Amartya Sen.

What statistical tool measures income distribution on a scale from $0$ to $1$?

The Gini Coefficient or Gini Index.

In the Gini Index what does a value of $0$ represent?

Perfect equality.

Which theory identifies core and periphery dynamics to explain exploitation?

Modern World System Theory.

Define Structural Distortion in the context of dependency theory.

When resources are extracted in poor nations but processed in core nations.

What are the four pillars of the Asian Development Model identified by James Fallows?

National strength and power concentration and market distrust and national borders.

What three dimensions are combined in the Human Development Index?

Income and life expectancy and education.

According to Amartya Sen what is the India and Bangladesh paradox?

Bangladesh has lower wealth but higher life expectancy than India.

What does SDG Target $10.1$ specifically demand?

Income growth for the bottom $40\%$ at a rate higher than the national average.

What is the UN target for $ODA$ as a percentage of Gross National Income?

$0.7\%$.

Define Governance according to the $WDR$ $2017$ framework.

The process through which state and nonstate actors interact to design and implement policies.

Which governance function involves the ability of actors to rely on policy credibility?

Commitment.

What governance failure occurs when firms wait for others to invest before acting?

Coordination failure.

What is the result of a cooperation failure in governance?

The erosion of the social contract leading to tax evasion.

Define the power asymmetry known as Capture.

The ability of narrow elite groups to divert policies toward their own interests.

What is Clientelism in a political context?

An accountability for sale model where material goods are exchanged for political support.

Which governance lever involves lowering barriers to entry for the policy arena?

Contestability.

What is the Command Role of law?

Utilising coercive power to create incentives for compliance.

Why is Technical Assistance or $TA$ vital for development?

It builds the governing structures and expertise necessary for sustainable progress.

What is the scale of the annual $SDG$ financing gap compared to current $ODA$?

The gap is approximately $19$ times larger than $ODA$.

Name the three criteria a flow must pass to be classified as $ODA$.

Official provider and development purpose and concessional terms.

What is Bi multi or earmarked aid?

Bilateral funding channeled through multilateral agencies for specific projects.

Which regional organization collectively remains the world's largest donor of $ODA$?

The European Union.

Name a high performing nation that meets the $0.7\%$ $GNI$ target.

Luxembourg.

What is the primary role of the $OECD$ Development Assistance Committee?

Standardising and verifying international aid flow data for accountability.

What is a Social Business?

A model that prioritises social objectives through financially viable operations.

Explain the concept of Tied Aid.

Aid that requires the recipient to purchase goods or services from the donor nation.

How much does tying aid typically add to procurement costs?

$15$ to $20$ percent.

What is the Dutch Disease in development economics?

Currency appreciation from large inflows making local exports uncompetitive.

Identify the primary difference between Sachs and Easterly on aid.

Sachs advocates for a technocratic big push while Easterly empowers local searchers.

What is the Samaritan's Dilemma in aid conditionality?

Withdrawing aid to punish a government harms the poor the aid intended to save.

Name the five pillars of the Paris Declaration on Aid Effectiveness.

Ownership and alignment and harmonisation and results management and mutual accountability.

What is a Development Impact Bond or $DIB$?

A model where a donor pays an investor only after specific results are achieved.

What is the gold standard for micro development economic evaluation?

Randomized Control Trials or $RCTs$.

Define Geospatial Impact Evaluations or $GIEs$.

Using satellite imagery and georeferenced data to measure program impacts.

What is the principle of Neutrality in the $UN$ development system?

The one country one vote rule in decision making.

How do Multilateral Development Banks differ from commercial banks?

They provide lower cost financing with the goal of improving economic conditions.

What is the Iron Triangle in the context of $US$ food aid?

The alliance between agribusiness and maritime industry and $NGOs$ to maintain in kind aid.

Define Philanthrocapitalism.

Applying business efficiency and performance goals to philanthropic activities.

What governance asymmetry involves the barring of specific groups from bargaining?

Exclusion.

What is the primary objective of the Millennium Challenge Corporation or $MCC$?

Providing grants based on good governance and country ownership and results.

In the Results Chain what is the definition of Outcomes?

The short term and medium term effects of an intervention's outputs.

What is the purpose of the International Aid Transparency Initiative or $IATI$?

Creating a global standard for reporting how aid money is spent.

Explain the concept of Blended Finance.

Using $ODA$ to de risk investments and crowd in private sector capital.

What is the primary critique of $NGO$ accountability?

They face more incentives to satisfy donors than to satisfy ultimate beneficiaries.

Define the term Global Public Goods.

Benefits that reach across borders such as pandemic preparedness or biodiversity.

What is the scale of the current $SDG$ investment gap per year?

Approximately $4$ trillion dollars.

What percentage of rich Africans' wealth is estimated to be held offshore?

$30$ percent.

Which governance malfunction describes the use of votes as a commodity?

Clientelism.

What is the purpose of the $OECD$ Better Life Index?

Measuring well being across $11$ topics using both official data and polls.

What is the Human Capital rationale for aid?

Maximising population potential through investments in health and education.

Define Green $GDP$.

$GDP$ adjusted for the value of environmental degradation and resource loss.

What is the primary objective of $SDG$ Goal $17$?

Revitalising the global partnership for sustainable development.

In aid terminology what is the definition of Concessionality?

Assistance provided as grants or soft loans with very favorable terms.

What determines whether investment leads to inclusive growth or exploitation?

Institutional quality.