Development Flashcards

Flashcards for reviewing key concepts related to economic development, its measurement, and global patterns.

Development (traditional view)

Traditionally measured by focusing on wealth, using indicators like GDP and GNI.

GDP

Gross Domestic Product - the total value of the economy per year.

GNI

Gross National Income - the total value of all services and goods produced in a country per year (including earnings from abroad).

Poverty Line

The percentage of people who earn less than a certain amount per day (in 2015, this was set at $1.90 per day by the World Bank).

Limitations of Wealth Indicators

Being wealthy as a country does not necessarily mean that the country spends its money in a way that promotes development.

Development Gap

The gap between the richest and poorest countries.

Willy Brandt

German politician whose research led to the creation of a line splitting rich and poor countries in 1980.

Brandt Line

A line that split the rich and poor countries, with rich countries to the north and poor countries to the south.

Continuum of Economic Development

Dividing countries into categories of rich or poor only is too simple; refers to the scale of wealth from the poorest to the wealthiest.

High Income Countries

Countries with a GNI of more than $12,736.

Upper Middle Income Countries

Countries with a GNI between $4,126 and $12,735.

Lower Middle Income Countries

Countries with a GNI between $1,026 and $4,125.

LICs

Low Income Countries with a GNI of less than $1,025