Economic Growth and Development Lecture Notes

A set of flashcards covering key concepts from the lecture notes on economic growth and development.

What are the main challenges of development in Africa according to the lecture?

Poverty, youth unemployment, weak governance, huge infrastructure gaps, climate change impacts, high debt burdens, and limited industrialization.

What is the difference between economic growth and economic development?

Economic growth refers to increases in a country’s production or income per capita, while economic development includes broader improvements in human welfare and social transformation.

How does Dudley Seers define economic development?

A period of development occurs if GDP per capita rises while poverty, unemployment, and inequality decrease.

What does the term 'resource curse' refer to?

The phenomenon where countries with abundant natural resources experience less economic growth due to issues like corruption and conflict.

What defines the Low-Income Countries classification by the World Bank?

Countries with a GNI per capita of $1,135 or less, experiencing widespread poverty.

What three components does the Human Development Index (HDI) measure?

Life expectancy, education (mean years of schooling and expected years of schooling), and Gross National Income (GNI) per capita.

What is the significance of the concept of sustainable development?

It emphasizes meeting the needs of the present without compromising future generations, ensuring intergenerational equity.

Who is associated with the Linear Stages of Growth Model in economic development?

Walt Rostow, who proposed that all countries follow a linear path through five stages of development.

What are the core assumptions of Rostow's stages of development?

Development occurs in a linear, stage-by-stage process, with investment in physical capital as the main driver.

What is the role of institutional quality in economic growth?

Institutional quality determines how effectively a country can leverage its resources for growth, encompassing the rule of law, governance, and regulatory quality.