Unit 5: Topic 2: Economic Development

Human development index (HDI)

Composite measure of 3 components 1. Life expectancy 2. Education 3. Income Examples: Norway, Switzerland and Australia.

Commodity dependence

Countries in early stages depend on exporting raw materials to earn money.

Newly industrialized countries (NIC)

Countries that score in the middle on many measures of development. Examples: Mexico, Brazil and China

Less developed countries (LDC)

Countries that score worst on many measures of development. Examples: Africa

Gross Domestic Product

Measures all the goods and services produced in a country. Equation: consumption+ investment + government spending. For example: Qatar, Macau (China), Luxembourg.

Gender inequality index (GII)

Measures gender disparity between men and women. 1. Reproductive health 2. Empowerment 3. Labor Market participation.

Gros national income (GNI)

Measures the amount of income and wealth of residents and businesses in a country. Examples: Qatar, Macau (China), Singapore.

Gross National Product (GNP)

Measures the amount of income and wealth of residents and businesses in a country. BUT does not include foreigners living in the country and includes money made outside of the country.

Gini index

Measures the amount of income or wealth inequality in a country. Gap between the richest and the poorest residents.

Dependency theory

People believe that countries in early stages of Rostow's model are dependent upon the countries in the ate stages of Rostow's model.

Stage 5

Rostow's Stages of Economic Growth "Age of Mass Consumption" - Emphasis on tertiary (or higher) - Consumption of nonessential goods - "Nicer" goods become common - Example: USA, Japan, France, Germany

Stage 4

Rostow's Stages of Economic Growth "Drive to Maturity" - Mainly in secondary but pushing to tertiary - Middle class forming - Large improvements in energy, transportation, and communication. - Examples: China, Mexico, Turkey, India

Stage 2

Rostow's Stages of Economic Growth "Preconditions for Takeoff" - Focused on primary but leaning to secondary - Investments in infrastructure - Technology begins to spread - Examples: Ethiopia, DRC and Niger

Stage 3

Rostow's Stages of Economic Growth "Take Off" - Focused on secondary - Widespread industrialization - Beginnings of urbanization - Example: Bangladesh, Egypt, Philippines, Vietnam

Stage 1

Rostow's Stages of Economic Growth "Traditional Society" - Focused on the primary sector - Limited technology - Local trading - Examples: possibly none (maybe Sub-Saharan Africa)

More developed countries (MDC)

Sometimes called highly developed countries (HDC). Countries that score best on many measures of development. Examples: United States, Canada and Australia.

Climate change

The changing of the global climate due to human activity

Modernization theory

Theory that describes how countries shift from traditional to modern economies.

Semi-periphery

World System Theory - Countries that are developing and industrializing - Heavy focus on secondary sector and manufacturing - Export finished goods to core, import raw materials from the periphery - Example: India, Brazil and Mexico

Periphery

World System Theory - Least industrialized and developed countries - Heavily dependent on primary sector - Export raw materials to semi periphery - Examples: DRC, Tanzania and Bolivia

Core

World System Theory - Moist industrialized ad developed - Focus on tertiary+ - Import manufactured goods from semi periphery. - Examples: USA, France, Germany and Australia

Sustainable development

development that meets the needs of the present without compromising the ability of future generations to met their own needs.

Ecotourism

form of tourism that attempts to protect local ecosystems

Informal sector

part of economy not taxed nor monitored by government

Per capita

per person

Microloans

very small loans that can be used to start own businesses