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24 Cards in this Set

  • Front
  • Back
Infrastructure
the essential facilities and services such as roads, airports, sewage treatment, water systems, railways, telecommunications, and other utilities that are necessary for economic activity.
Corruption
dishonest exploitation of power for personal gain, which challenges growth and development
Capital Flight
when money and other assets flow out of a country to seek a safe haven in another country.
Human Capital Flight
emigration of educated workers and talented individuals from one country to another.
Non-Convertible Currencies
can only be used domestically and are not accepted for exchange
Relative Poverty
They do not reach some specified level of income
Absolute Poverty
Basic necessities for survival and the amount a person needs of them to live.
Poverty Cycle (growth)
low economic growth > low incomes > low savings > low investment
Poverty Cycle (development)
low education and health care > low human capital > low productivity > low income.
Harrod-Domar Growth Model
rate of growth of GDP = savings ratio/ (Capital/output ratio)
Structural Change/Dual Sector Model
moving the labor of one sector into a smaller sector.
Export-led growth
outward oriented growth strategy, based on openness and increased international trade--- increasing exports.
Import Substitution
developing country should produce goods domestically rather than import them --domestic industries will grow, as will economy.
Foreign Direct Investment
long term investment by private multi-national corporations in countries overseas.
Humanitarian Aid
given to alleviate short-term suffering, which may be caused by war, draught, or natural disasters.
Types of humanitarian aid
food, medical, emergency
Development aid
alleviates poverty in the long run and improves welfare
Long Term Loans/Soft Loans
repayable over 10-20 years
-low interest rates
Tied Aid
given to a developing country but on condition that they spend it on goods and services from the donor country.
Project Aid
given for specific project in a country, given in the form of a grant aid that requires no repayment.
Technical Assistance
raises level of technology by bringing in foreign technology and technicians. Raises the quality of human capital by provision of training facilities and expert guidance.
Commodity Aid
given by countries to increase productivity in developing countries--provides funds to purchase commodities including consumer items intermediate inputs, and industrial raw materials.
Bilateral Aid
given directly from one country to another
Multilateral Aid
given by rich countries to international aid agencies---they decide where it goes.