Economic Barriers
Lower-income countries tend to have larger __________ sectors of the economy.
What is the informal sector?
May allow the owner to use a good or resource for consumption, to generate income, or transfer it to someone else.
What is a property/land right?
Countries that have no direct access to the sea, which prevents integration with global trade
What are landlocked developing countries
When countries remove barriers to trade such as subsidies , tariffs , quotas and administrative barriers.
What is trade liberalization?
Small loans for people to start up or continue to finance a small-scale business.
What is micro-credit?
-To service outstanding debt
-To finance current expenditures
-To finance long-term infrastructure, industrial and public service projects
What are the 3 reasons why individuals, firms, and governments may borrow money?
Participatory, Consensus-oriented, Accountable, Transparent, Responsive, Effective and efficient, Equitable and inclusive, Follows rule of law
What is main principles of good governance?
_____________ _________ are attitudes, values, perceptions, assumptions, beliefs and expectations that affect system structures and patterns of behaviour.
Mental models
A development strategy where an ELDC country switches away from imported manufactured goods and develops a industrial base to produce these products in their own country.
What is import substitution
____ aid is conditional on the receiving country making special arrangements with certain businesses from the donor developed country, or where it must agree to only trade certain goods and services with that donor country
What is tied aid?
Positive correlation where both increase and decrease depending on government and investor reactions to economic conditions.
What is Capital Flight and Indebtedness ?
A form of corruption, where the government's decision-making is dominated by private / corporate power
What is state/regulatory capture?
Most countries in the world use one of, or a combination of, three legal systems.
What are civil law, common law and religious law?
Saturation of the manufactured goods market, protectionism retaliation, unsustainable growth, negative externalities, and rising income inequality
What are some disadvantages to export promotion?
DOUBLE JEOPARDY:
Provides direct support for regions that are currently experiencing difficulties that prevent people from fulfilling their basic needs.
Name the country (in South Asia) that received humanitarian aid after an earthquake in 2015 primarily by India.
What is humanitarian aid?
Where is Nepal?
According to the United Nations Conference on Trade and Development (UNCTAD), low-income countries are reliant on primary products for approximately this much of their countries' incomes.
What is more than 60%? or What is approximately 2/3 of their income?
Forms of corruption (name 3)
Name any 3
Bribery, extortion, embezzlement, nepotism, or graft
Isabel dos Santos, the daughter of former president and Africa's richest woman who exploited family connections to build her wealth while hiding it in tax havens abroad with the help of Western bankers, lawyers, accountants and consultants in this country. (hint: capital flight)
Where is Angola?
Increased competition from foreign firms should lower prices for consumers, improve the quantity and quality, improve productive efficiency, greater choice of products, and access natural resources and technologies that are not available in its own country.
What is benefits of increased imports?
Trade liberalisation and export promotion, removal of price controls, improved governance are known as__________________.
What are Structural Adjustment Programmes (SAPs)?
This focuses on the material dimension of development such that it increases incomes and the purchasing power parity of consumers in turn result economic growth
What is the impact of investment in infrastructure?
The US Financial industry spent USD 2.7 Billion Dollars between 1999-2008 on weakening these in these areas.
What are regulations on financial institutions, markets and products?
Afghanistan, Azerbaijan, Chad, Ethiopia, Kazakhstan, Paraguay, Republic of Moldova, Zimbabwe, Mali, Kyrgyzstan and Bhutan
What are examples of landlocked developing countries?
These four countries in this group used the strategy export promotion to boost their industries' competitiveness and greatly reduce poverty.
Where are Hong Kong, Singapore, South Korea, and Taiwan? Who are the Asian Tigers?
This initiative provides debt forgiveness from some bilateral and multilateral debt for countries with the worst debt-to-GDP ratios
The Highly-indebted Poor Countries initiative (HIPC)