Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
17 Cards in this Set
- Front
- Back
|
Economic development |
Combination of economic growth with an improvement in living standards opportunities and choices |
|
|
Three key elements of development |
-increase availability of basic life sustaining goods -raise living standards -expand the range of economic and social choices |
|
|
HDI |
Human Development Index- index of development with equal weighting’s for education, life expectancy and real GNI per capita |
|
|
IDHI |
Inequality adjusted HDI, had to have a spread of success across all of the categories |
|
|
MPI |
Multi Dimensional Poverty Index- goes into much more detail than HDI and looks at the intensity of poverty |
|
|
8 Economic factors influencing growth and development |
-primary product dependency -price volatility in commodity markets -levels of saving and investment -accessibility of credit and banking -foreign currency gap -capital flight -demographic factors -infrastructure |
|
|
What is primary product dependency and why does it limit growth |
When a high percentage of a country’s export revenue, GDP or employment comes from production of a primary commodity |
|
|
Prebisch singer hypothesis |
Due to low income elasticity of demand for primary products, as wages around the world increase the demand for primary products stays the same, therefore experience declining terms of trade over time |
|
|
Why is price volatility in commodity markets such a big problem for developing countries |
Dependent on primary products which have price inelastic supply and price inelastic demand meaning a small decrease in demand significantly lowers the price |
|
|
4 knock on effects of price volatility |
-influences terms of trade -creates fluctuations in income for workers -fluctuations in foreign exchange markets -fluctuates tax revenue |
|
|
Harrod-Domar model |
Higher savings cause higher levels of investment cause higher profits cause higher incomes |
|
|
Foreign currency gap, explain |
Low value of currency due to lack of demand for it, makes buying essential imports for development very expensive |
|
|
Capital flight and why it causes problems |
When individuals or countries rapidly move money out of foreign banks/assets, reduced tax revenue, fall in ex rate |
|
|
4 problems of poor infrastructure |
-challenges if accessing health care and education -moving goods is slow and expensive -puts off FDI -lack of communications makes it hard to contact foreign customers |
|
|
3 causes and 3 impacts of a lack of human capital |
-lack of provision of schools -no teachers as everyone is uneducated -can’t afford fees or can’t afford for children to not work ~low productivity ~difficult to move away from PPD ~difficult to attract FDI due to low skills |
|
|
Property rights |
Legal ownership and protection of assets and land |
|
|
5 non-economic factors affecting growth and development |
-corruption -poor governance -war -political instability -geography eg landlocked |
