Global Economy

Absolute poverty

A condition where individuals do not have enough income to meet the basic necessities of life

Appropriate technology

Technology suitable to the social and economic conditions of a country

Common access resources

Resources that are hard to exclude people from using, yet depletable

Debt relief (cancellation)

Forgiving a country’s debt to support economic development

Development aid

Financial or technical aid aimed at improving economic welfare in poorer nations

Economic development

A broad concept involving improvements in health, education, and living standards

Economically least developed countries (ELDCs)

Countries with low income, weak infrastructure, and high vulnerability

Foreign aid

Transfer of money or goods from one country to another to support development

Happiness Index

A measure of national well-being based on subjective and objective factors

Happy Planet Index

An index measuring sustainable well-being, not just income

Human Development Index (HDI)

Composite index of life expectancy, education, and income

Human Opportunity Index (HOI)

Measures inequality of access to basic services for children

Humanitarian aid

Short-term emergency aid for crises (e

g

natural disasters)

Microfinance

Provision of small loans to those without traditional banking access

Multidimensional Poverty Index (MPI)

A measure of poverty including education, health, and living standards

Non-government organization (NGO)

Independent group working towards social or development goals

OECD Better Life Index

Index measuring well-being across multiple life domains

Official foreign aid

Aid given by governments to support other countries

Poverty

Inability to meet basic needs such as food, shelter, and clothing

Poverty trap/cycle

Self-reinforcing cycle where poverty perpetuates poverty

Relative poverty

Poverty measured in relation to average income

Remittances

Money sent home by workers living abroad

Social enterprise

A business with a social or environmental mission

Social safety net

Government support to protect vulnerable citizens

Standard of living

The level of wealth, comfort, and access to goods and services

Sustainability

Meeting today’s needs without harming future generations

Sustainable development

Development that balances economic, social, and environmental goals

UN sustainable development goals (SDGs)

17 global goals set by the UN to end poverty and protect the planet

Universal basic income

Regular, unconditional cash payment to all citizens

World Bank

A global institution that lends money to developing countries