APHG Development - AMSCO Chapter 17

World Systems Theory (Core-Periphery Model)

An example of a dependency model of development, categorizes the countries of the world into three categories, core, periphery and semi-periphery. It does not suggest all countries can reach the highest level of development, but indicates that the world system will always contain a combination of these types of countries; made by Immanuel Wallerstein

per capita

In order to make the numbers from different countries comparable, the income and output figures are usually converted to U.S. dollars and stated as a certain amount of money _______________, which means "per person"

Core

Includes the economically advantaged area of the world and the center of world businesses and finances; headquarters of most large multinational companies are located in this Focuses on higher skill, capital-intensive production Promotes capital accumulation Dominates periphery and semi-periphery economically and politically, and by paying low wages and exploiting weak environmental laws Benefits greatly from international trade Examples: USA, United Kingdom,Japan,Australia,Germany

Periphery

Includes the least-developed countries Has a high percentage of jobs in low-skill, labor-intensive production and extraction of raw materials Provides the core and semiperiphery with inexpensive raw materials, labor, and agricultural production Receives jobs but few profits from manufacturing Often have weak laws protecting workers and the environment Examples: Afghanistan,Zimbabwe,Peru,Kenya

Semi-periphery

Includes the middle-income countries Sometimes known as emerging economies Provides the Core with manufactured goods and services that the core once provided for itself, but no longer does Examples: India,Mexico,South Africa, Brazil,China

3 parts of Wallerstein's World Systems Theory

Core,Semi-periphery,periphery

Gender Inequality Index (GII)

a composite index for measuring gender disparity; considers the reproductive health, empowerment, and labor market participation of women to determine a country's composite score

Immanuel Wallerstein

a historian who proposed an alternate view to Rostow's on economic development; made a dependency model called the World Systems Theory. The World Systems Theory includes both political and economic elements, it is sometimes viewed as a political theory and sometimes as an economic theory.

Modernization Model

a model that that focuses on the shift from traditional to modern forms of society

Dependency Model

a model where countries do not exist in isolation but are part of an intertwined world system in which all countries are dependent on each other

Stages of Economic Growth Model

a modernization model developed by Rostow that assumes all countries want to modernize, that all would, though at different rates. Suggests that different ingredients and levels of investment were required to move a country from one stage to the next; is an economic model

W. W. Rostow

an American economist who developed a modernization model of development with 5 stages called the stages of economic growth. He saw economic development as a linear progression in which countries moved from one stage to the next until they reached the 5th and final stage- high mass consumption

Nongovernmental Organizations (NGOs)

are programs enacted by governments and international non-profit agencies that help women find jobs outside the home

purchasing power parity (PPP)

measurement on what an amount of money will buy; solves problems measuring development which includes: different currencies, changing currency values, and varying prices

Gini Coefficient (Gini index)

measures the distribution of income within a population. The values range from 0 to 1. A score of 0 would mean there is little to no income inequality in a nation, while a rating closer to 1 means there is a high level of income inequality in a state

microcredit (microfinance)

programs that provide small loans to start or expand a business to entrepreneurs who would not normally quality for credit from a traditional source. The majority of those using these loans are women in poor areas.

sustainable development

refers to any economic development that serves the current needs of people without making it harder for people in the future to live as well

gender gap

the differences in the privileges afforded to males and females in a culture; the size of a ___________ varies tremendously among countries based upon different aspects of society

Gross National Income (GNI)

the total domestic and foreign input claimed by residents of a country, including money that leaves and enters the country

Gross National Product (GNP)

the total value goods produced and services provided by a country during one year, equal to the Gross Domestic Product and net income from foreign investments

Gross Domestic Product (GDP)

the total value of goods produced and services provided in a country during one year, but it does NOT account for money that leaves and enters the country

Human Development Index (HDI)

this measure of development combines one economic measure (GNI per capita) with several social measures, such as life expectancy and literacy rate

5 Stages of Rostow's Economic Growth model

1. Traditional Society 2. Pre-Condition for Take-Off 3. Take-Off 4. Drive to Maturity 5. High Mass Consumption