Commodity chain: Series of links connecting the many places of production and distribution and resulting in a commodity that is them exchanged on the world market.
Developing: With respect to a country, making progress in technology, production and socioeconomic welfare.
Gross national produce
Gross domestic product (GDP): The total value of all goods and service produced within a country during a given year.
Gross National Product (GNP): The total value of all goods and services produced by a country’s economy in a given year. It includes all goods and services produced by corporations and individuals of a country, whether or not they are located within the country.
Per capita GNP: the Gross National Product (GNP) of a given country divided by its population.
Formal economy: The legal economy that is taxed and monitored by a government and is included in a government’s Gross National Product (GNP); as opposed to an informal economy.
Informal economy: Economic activity that is neither taxed nor monitored by a government; and is not included in the government’s Gross National Product (GNP); as opposed to a formal economy.
Modernization model: A model of economic development most closely associated with the work of economist Walter Rostow. The modernization model (sometimes referred to as modernization theory) maintains that all countries go through five interrelated stages of development, which culminate in an economic state of self-sustained economic growth and high levels of mass consumption.
These are goods that cannot be provided by the private sector but are very essential to the development of a country’s economy. They are usually very expensive undertakings with fewer returns or take a long time for the investors to recoup their money back. This makes them to be less attractive to the private sector investors who are mainly driven by the profit motive and would thus be unwilling ...
Context: The geographical situation in which something occurs; the combination of what is happening at a variety of scales concurrently.
Neocolonialism: The entrenchment of the colonial order, such as trade and investment, under a new guise.
Structuralist theory: A general term for a model of economic development that treats economic disparities among countries or regions as the result of historically derived power relations within the global economic system.
Dependency theory: A structuralist theory that offers a critique of the modernization model of development. Based on the idea that certain types of political and economic relations (especially colonialism) between countries and regions of the world have created arrangements that both control and limit the extent to which regions can develop.
Dollarization: When a poorer country ties the value of its currency to that of a wealthier country, or when it abandons its currency and adopts the wealthier country’s currency as its own.
World system theory: Theory originated by Immanuel Wallerstein and illuminated by his three-tier structure, proposing that social change in the developing world is inextricably linked to the economic activities of the development world.
Three-tier structure: With reference to Immanuel Wallerstein’s world- system theory, the division of the world into the core, the periphery, and the semi-periphery as a means to help explain the interconnections between places in the global economy.
Trafficking: When a family sends a child or an adult to a labor recruiter in hopes that the labor recruiter will send money, and the family member will earn money to send home.
Structural adjustment loan: Loans granted by international financial institutions such as the World Bank and the International Monetary Fund to countries in the periphery and semi-periphery in exchange for certain economic and governmental reforms in that country (e.g. privatization of certain government entities and opening the country to foreign trade and investment).
An economy is flourishing and is shown to be beneficial and fruitful for the people living in it only when the growth of the economy goes up continuously. It is essential for a country to not only develop politically or socially but it also needs to demonstrate economic development in order to sustain in the international market and in order to come ahead of other countries. But it is not very ...
Vectored diseases: A disease carried from one host to another by an intermediate host.
Malaria: Vectored disease spread by mosquitoes that carry the malaria parasite in their saliva and which kills approximately 150,000 children in the global periphery each month.
Export processing zone: Zones established by many countries in the periphery and semi-periphery where they offer favorable tax, regulatory, and trade arrangements to attract foreign trade and investment.
North American Free Trade Agreement (NAFTA): Agreement entered into by Canada, Mexico, and the United States in December, 1992 and which took effect on January 1, 1994, to eliminate the barriers to trade in, and facilitate the cross-border movement of goods and services between the countries.
Desertification: The encroachment of desert conditions on moister zones along the desert margins, where plant cover and soils are threatened by desiccation-through overuse, in part by humans and their domestic animals, and, possibly, in part because of inexorable shifts in the Earth’s environmental zones.
Island of development: Place built up by a government or corporation to attract foreign investment and which has relatively high concentrations of paying jobs and infrastructure.
Nongovernmental organizations (NGOs): International organizations that operate outside of the formal political arena but that are nevertheless influential in spearheading international initiatives on social, economic, and environmental issues.
Microcredit program: Program that provides small loans to poor people, especially women, to encourage development.