Essentials of Comparative Politics: Chapter 10 - Developing Countries

export-oriented industrialization

A strategy that seeks to directly integrate the country's economy into the global economy by concentrating on economic production that can find a place in international markets. Used by several Asian countries.

import substitution

A mercantilist economic policy based on the belief that governments in poorer countries must create more positive conditions for the development of local industries. Countries restrict imports, raising tariff or non tariff barriers to spur demand for local alternatives.

lower income countries

A.KA. Less Developed Countries or LDC. Countries that have weak political and/or economic structures.

middle income countries

A.KA. newly industrializing countries or NIC. Less-developed countries that have experienced rapid economic development, democratization and social and political stability.

middle income trap

A situation where countries experience economic growth but are unable to develop at a speed necessary to catch up with developed countries

neocolonialism

An indirect form of imperialism where developed countries overly influence the economies of less developed countries

neo-liberalism/structural adjustment programs/Washington concensus

Policy of economic liberalization adopted in exchange for financial support from liberal international organizations; typically requires privatizing state-run firms, ending subsidies, reducing tariff barriers, shrinking the size of the state, and welcoming foreign investment

colonialism

The physical occupation of a foreign territory through military force, businesses or settlers. Colonialism is also often the means for making an empire stronger.

developing countries

Lower and middle income countries

empire

Single political authorities that have under their sovereignty a large number of external regions or territories and different people.

imperialism

The system whereby a state extends its power to directly control territory, resources, and people beyond its borders

informal economy

Economic activity that is neither taxed nor regulated by a government and is not included in that government's Gross National Product. Dominated by the self-employed or small enterprises

microcredit

A system where small loans are made available to small-scale businesses that otherwise lack access to capital.