Cases and Concepts in Comparative Politics Chapter 10: Developing Countries

Colonialism

An imperialist system of physically occupying a foreign territory using military force, businesses, or settlers. (page 486)

developing countries

Lower and middle income countries. (page 484)

empire

A single political authority that has under its sovereignty a large number of external regions or territories and different peoples. (page 486)

export oriented industrialization

A mercantilist strategy for economic growth in which a country seeks out technologies and develops industries focused specifically on the export market. (page 498)

imperialism

A system in which a state extends its power to directly control territory, resources, and people beyond its borders. (page 486)

import substitution

A mercantilist strategy for economic growth in which a country restricts imports in order to spur demand for locally produced goods. (page 498)

informal economy

A segment of the economy that is not regulated or taxed by the state. (page 504)

lower income countries

Countries that lack significant economic development or political institutionalization or both; also known as less-developed countries (LDCs). (page 484)

microcredit

A system in which small loans are channeled to the poor through borrowing groups whose members jointly take responsibility for repayment. (page 505)

middle income countries

Historically less-developed countries that have experienced significant economic growth and democratization; also known as newly industrializing countries (NICs). (page 484)

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. (page 498)

neocolonialism

An indirect form of imperialism in which powerful countries overly influence the economies of less-developed countries. (page 498)

neoliberalism/structural adjustment programs/Washington consensus

A policy of economic liberalization adopted in exchange for financial support from liberal international organizations; typically includes privatizing state-run firms, ending subsidies, reducing tariff barriers, shrinking the size of the state, and welcoming foreign investment. (page 499)