7.3 HGAP KBAR

Economic Development

The process by which countries improve the economic, political, and social well-being of their people.

Rowstow's Stages of Development

A theory that outlines five stages of economic development: Traditional Society, Transitional Society, Take Off, Drive to Maturity, and High Mass Consumption.

Traditional Society

The first stage in Rowstow's model characterized by subsistence agriculture and bartering.

Transitional Society

The second stage in Rowstow's model marked by specialization, agricultural surplus, and infrastructure development.

Take Off Stage

The third stage in Rowstow's model where industrialization, investment, regional growth, and political change occur.

Drive to Maturity Stage

The fourth stage in Rowstow's model involving diversification, technological advances, and reduced reliance on imports.

High Mass Consumption Stage

The final stage in Rowstow's model characterized by mass consumption, service sector expansion, and high standards of living.

Wallestein's World Systems Theory

A model that emphasizes sovereign socio-economic systems, dividing the world into core, semi-periphery, and periphery countries.

Core Countries

Nations that dominate and exploit peripheral nations, often characterized by advanced industries and high levels of wealth.

Semi-Periphery Countries

Nations that act as intermediaries between core and peripheral countries, playing a crucial role in the global economy.

Periphery Countries

Countries that are often exploited by core nations and have weaker economies.

GDP (Gross Domestic Product)

The total market value of all goods and services produced within a country's borders in a specific time period.

GNP (Gross National Product)

The total value of all goods and services produced by a country's residents, regardless of location.

GNI (Gross National Income)

The total income earned by a country's businesses and workers, including investments and foreign aid.

GDP per capita

A measure that divides a country's GDP by its total population, providing a per person economic output value.

PPP (Purchasing Power Parity)

An economic theory that compares different countries' currencies through a 'basket of goods' approach.

GII (Gender Inequality Index)

A measure that assesses gender inequality based on reproductive health, empowerment, and labor market participation.

HDI (Human Development Index)

A composite index measuring average achievement in three basic aspects of human development: health, education, and income.

Informal Economy

Economic activities that are not monitored or regulated by the government, often making up a large portion of developing countries' economies.

Formal Economy

The sector of the economy that is officially recorded and taxed, consisting of legal businesses and workers.

Income Distribution

The way in which income is shared among the members of a society, often unequal.

Healthcare Access

A measure of the ability of individuals to obtain healthcare services, which is crucial for overall well-being.

Fossil Fuels

Natural resources such as oil, coal, and natural gas that are extracted and used for energy.

Renewable Energy

Energy from sources that are naturally replenished, such as solar, hydro, and wind energy.

Economic Growth

An increase in the production of goods and services in an economy over time.

Social Development

The improvement of social well-being in a society, focusing on equality, education, and health.

Investment

The action or process of investing money for profit or material result, pivotal for economic growth.