Economic Development and Policy

A collection of flashcards focusing on key vocabulary and concepts related to economic development and policy.

Economic Growth

A sustained increase in economic prosperity, measured by the total goods and services produced in an economy (GDP).

GDP (Gross Domestic Product)

The total value of goods and services produced within a country over a specific period.

Economic Growth

A sustained increase in economic prosperity, measured by the total goods and services produced in an economy (GDP).

GDP (Gross Domestic Product)

The total value of goods and services produced within a country over a specific period.

Harrod-Domar Growth Model

A model that suggests capital investment is essential for economic growth.

Solow Growth Model

Introduces diminishing returns to capital and emphasizes technological progress as the main source of long-run growth.

Inclusive Institutions

Promote broad participation in the economy, enforce property rights, and support equitable governance.

Extractive Institutions

Centralize power and discourage investment, leading to economic inequality.

Diminishing Returns

A reduction in the incremental output or benefit derived from an additional unit of input.

Technological Progress

Innovation and advancements that drive sustained economic growth in the long run.

Colonialism

A historical context that has left lasting impacts on institutions and economic development trajectories.

Market Failure

A situation in which the allocation of goods and services is not efficient, often justifying government intervention.

Externalities

Costs or benefits arising from a transaction that affect third parties not involved in the transaction.

Public Goods

Non-rival and non-excludable goods that are provided by the government (e.g., clean air, public health systems).

Corruption

The abuse of public power for private gain.

Petty Corruption

Decentralized corruption involving small, everyday transactions.

Grand Corruption

Centralized corruption involving significant amounts of money, often at government levels.

Asymmetric Information

A situation where one party has more or better information than the other, leading to market failures.

Behavioral Biases

Human tendencies that deviate from rational decision-making and affect economic outcomes.

Impact Evaluation

The assessment of a program's effectiveness in achieving its intended outcomes.

Randomized Controlled Trials (RCTs)

Experimental techniques used to evaluate the impact of interventions by randomly assigning participants to treatment and control groups.

Cost-Benefit Analysis

A systematic approach to comparing the strengths and weaknesses of alternatives in terms of their costs and benefits.

Causal Relationship

A connection between two variables where one directly affects the other.

Market Power

The ability of a firm or group of firms to control the price or supply of a good or service.

Poverty Traps

Self-perpetuating conditions where poor socioeconomic circumstances prevent individuals from escaping poverty.

Fetal Origins Hypothesis

The theory that environmental factors influencing fetal development can have lasting effects on health and socioeconomic outcomes.

Deworming Programs

Health interventions aimed at reducing parasitic worm infections, often linked to improved educational attendance rates.

Public-Private Partnerships (PPP)

Collaborations between government and private sector entities aimed at financing and delivering public services.

Infrastructure Investment

Expenditures aimed at building or improving foundational systems like transportation, water supply, and energy.

Network Externality

The increasing value of a product or service as more people use it, often seen in telecommunications.

Human Capital

The economic value of a worker's skills and knowledge.

Statistical Trends

Patterns or changes in data points over time, often used to analyze economic growth or decline.

Coordination Failures

When individuals or groups fail to coordinate their actions effectively, leading to suboptimal outcomes.

Electoral Systems

The methods by which voters select representatives in an election, impacting governance and accountability.

Perception Surveys

Tools used to gauge public attitudes about various issues, including corruption.

Top-down Monitoring

External oversight meant to detect and address inefficiencies and corruption from higher authorities.

Bottom-up Community Monitoring

Local grassroots efforts to hold officials accountable for corruption and service quality.

Behavioral Economics

The study of psychological factors that influence economic decision-making.

Inclusive Development

An economic strategy that aims to reduce inequality and promote equality of opportunity.

Merit Scholarships

Financial awards for students based on academic achievement to promote education access.

Education Supply vs. Demand

The debate surrounding the need to provide more educational resources versus encouraging attendance and performance.

Community Health Promoters (CHPs)

Local individuals who facilitate health service delivery and education within communities.

Impact of Geography on Development

The influence that geographical factors have on a region's economic opportunities and growth potential.

Incentive Structures

Systems designed to encourage specific behaviors in individuals or organizations.

Rural Development

Efforts and policies aimed at improving the living conditions and economic prospects of rural areas.

Skill Mismatch

A discrepancy between the skills possessed by individuals and those demanded by employers.

Electronic Voting Systems

Technology used to facilitate the voting process in elections, aimed at increasing participation.

Financial Constraints

Obstacles arising from insufficient funds that restrict individuals' investment capabilities.

Public Health Systems

Institutional frameworks and services aimed at promoting and protecting public health.

Social Capital

The networks and relationships that facilitate cooperation and collective action in a community.

Conditional Cash Transfers

Direct monetary assistance provided to individuals or families that must meet certain conditions, typically related to health or education.

Market Equilibrium

A state in which supply equals demand in a market, leading to stable prices.

Long-run vs Short-run Goals

The distinction between objectives aimed at immediate results versus those intended for future sustainability.

Cultural Context in Education

The influence of societal norms and values on educational outcomes and policies.

Lessons from Failure

Insights and knowledge gained through unsuccessful attempts that inform future successful strategies.

Teaching at the Right Level (TaRL)

An educational approach that customizes instruction to match the competencies of diverse learners.

Health-based Poverty Traps

Cycles in which poor health outcomes contribute to ongoing poverty, limiting individuals' economic mobility.

Investment in Human Capital

Putting resources into education and health to enhance productivity and economic growth.

Network Effects

The phenomenon whereby increased numbers of participants improve the value of a good or service.