Key Development Classifications Quiz
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Questions and Answers

What is the central idea of the concept "Government Lack of Fragmentation" as applied to development?

Development benefits are often unevenly distributed, leaving some regions or segments of the population without significant improvements.

Explain how globalization might contribute to economic disparities between countries.

Globalization can lead to excessive competition in a global division of labor, potentially favoring developed nations with greater resources and technological advantages, leaving less developed countries at a disadvantage.

What is the primary intended use of microcredits, and what issue often arises with their application?

Microcredits are meant to be used for income-generating activities to support sustainable economic development. However, they often get used to repay existing debts, hindering their effectiveness for new income streams.

Describe the relationship between global governance and good governance in the context of development challenges.

<p>Global governance aims to address global issues, like economic disparities and climate change, through collective action by international organizations. Good governance, in turn, promotes transparent, effective, and equitable government management within countries, which is crucial for successful development cooperation.</p> Signup and view all the answers

What are the central goals of Agenda 2030, and what are the key tools it emphasizes for achieving them?

<p>The goals of Agenda 2030 are sustainable development, poverty reduction, and improved well-being for all. It emphasizes international cooperation and good governance as essential tools for addressing development challenges.</p> Signup and view all the answers

Explain the main difference between 'developed countries' and 'developing countries' using the terms 'industrialization' and 'economic development.'

<p>Developed countries have achieved advanced stages of industrialization and economic development, while developing countries are in various stages of these processes.</p> Signup and view all the answers

What are the key characteristics of a 'traditional society' according to Rostow's Modernization Theory?

<p>A traditional society is characterized by a subsistence, agriculture-based economy, intensive manual labor, minimal manufacturing, low trade, and low population growth.</p> Signup and view all the answers

How does the 'preconditions for take-off' stage differ from the 'traditional society' stage in Rostow's model?

<p>The 'preconditions for take-off' stage involves the development of external links, exploitation of natural resources, and the emergence of urban systems and transportation infrastructure, leading to growing inequalities.</p> Signup and view all the answers

What is the defining feature of the 'take-off' stage in Rostow's Modernization Theory?

<p>The 'take-off' stage is characterized by a short period of rapid economic growth, marking the beginning of industrialization.</p> Signup and view all the answers

What are the weaknesses of Rostow's Modernization Theory?

<p>Rostow's model is criticized for being Anglo-centric, assuming all countries should follow the Western model, and for not adequately considering variations within countries.</p> Signup and view all the answers

According to Dependency Theory, how do external forces shape national development in developing countries?

<p>Dependency Theory argues that political, economic, and cultural influences from developed countries impose their own development strategies on developing countries.</p> Signup and view all the answers

What is the main principle behind the concept of economic underdevelopment of former colonies according to Dependency Theory?

<p>Dependency Theory argues that former colonies remain underdeveloped due to historical exploitation and reliance on the dominant powers.</p> Signup and view all the answers

Provide an example of how a core country might influence a periphery country, based on Dependency Theory.

<p>A core country might exploit a periphery country's natural resources, paying low prices and benefiting from cheap labor, while the periphery country struggles to achieve economic independence.</p> Signup and view all the answers

Explain the core concept of modernization theory and how it relates to the transformation of traditional societies.

<p>Modernization theory argues that traditional societies develop into modern societies through economic growth, accompanied by political, social, and cultural changes. It emphasizes studying the conditions necessary for industrialization and economic growth.</p> Signup and view all the answers

What is the main argument about resource flow and wealth disparities between core and peripheral countries, according to the text?

<p>The text argues that wealthier core countries often benefit from the flow of cheap raw materials and labor from poorer peripheral countries. This unequal exchange perpetuates poverty in the periphery by hindering their economic development and capital accumulation.</p> Signup and view all the answers

Describe the historical evolution of terminology used to classify countries based on their development level.

<p>The text traces the evolution from terms like &quot;underdeveloped&quot; to &quot;less developed&quot; and then &quot;least developed&quot; countries. Other classifications emerged, including &quot;CILDCS&quot; for landlocked developing countries and &quot;Countries of the Global South.&quot;</p> Signup and view all the answers

What are the characteristic features of Newly Industrialized Countries (NICs), and provide an example of a well-known NIC?

<p>NICs are countries that have experienced rapid industrialization since the 1970s. They are characterized by rapid economic growth, often driven by manufacturing exports. A well-known NIC example is South Korea.</p> Signup and view all the answers

What are the defining features of a BRICS State, and give one notable example?

<p>BRICS States are emerging economies characterized by above-average growth rates, lower investments in infrastructure, high labor productivity, and relatively low wage levels. Brazil is one notable example.</p> Signup and view all the answers

In Cumar Mydra's theory, what is a key difference between a traditional/preindustrial age and a post-industrial era, focusing on economic development?

<p>In the traditional/preindustrial age, few regional disparities exist, relying on comparative advantages like natural resources. In contrast, post-industrial economies focus on acquired advantages like skilled workforces and infrastructure, shifting toward high-tech and high-value industries.</p> Signup and view all the answers

Explain how the growth strategy outlined in Cumar Mydra's theory leads to economic transformation.

<p>Mydra's theory emphasizes a growth strategy based on promoting exports, regulating imports, and transitioning import-oriented sectors to export industries. This focus on exports helps drive economic growth and development.</p> Signup and view all the answers

In Cumar Mydra’s theory, what is the significance of developing the service sector, and how does it relate to improved global competitiveness?

<p>The development of the service sector is critical for moving from manufacturing to high-value production. It drives economic growth and contributes to improved global competitiveness by creating higher-skilled jobs and enhancing the overall standard of living.</p> Signup and view all the answers

Explain the importance of basic human needs beyond mere survival in achieving a decent standard of living.

<p>Basic human needs encompass not only essential requirements like food and shelter but also social participation, security, and recognition. These factors contribute significantly to life satisfaction and overall well-being.</p> Signup and view all the answers

Define Gross National Income (GNI) and explain why using GDP alone as a measure of development can be problematic.

<p>Gross National Income (GNI) measures the total value of goods and services produced by a country's residents, including those abroad. Relying solely on GDP can be problematic because it doesn't capture economic activity in the informal sector, which is often significant in developing countries.</p> Signup and view all the answers

How does the Gini Index represent income or wealth inequality, visually and numerically?

<p>The Gini Index, ranging from 0 (absolute equality) to 1 (maximum inequality), graphically portrays income inequality with the population on the X-axis and wealth/income on the Y-axis. A higher Gini coefficient indicates greater inequality.</p> Signup and view all the answers

What is the defining characteristic of relative poverty, and how does it differ from absolute poverty?

<p>Relative poverty is found in affluent societies where absolute poverty is less prevalent. It refers to households or individuals earning significantly less than the average per capita income, making them feel relatively poorer within their society.</p> Signup and view all the answers

Describe the concept of perceived poverty, and how it differs from both absolute and relative poverty.

<p>Perceived poverty is a subjective experience of poverty, not solely based on income levels, but rooted in social isolation, discrimination, or feelings of insecurity and fear. This differs from absolute and relative poverty, which are based on income measurements.</p> Signup and view all the answers

In terms of economic and social indicators, what are some of the key characteristics of Least Developed Countries (LDCs)?

<p>LDCs are characterized by low GNI per capita, high infant mortality rates, high illiteracy, low primary school enrollment, widespread undernutrition, unstable agriculture, low industrialization, frequent natural disasters, and limited access to technology and expertise.</p> Signup and view all the answers

Flashcards

Fragmented Development

Development benefits are uneven, with only some regions or groups gaining.

Microcredits

Small loans aimed at farming families, especially women for economic activities.

Global Governance

Collective effort to address global challenges through international institutions.

Good Governance

Effective, transparent, and equitable management of government.

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Agenda 2030

A global framework for sustainable development and poverty reduction.

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Developed Countries

Wealthier nations that have advanced economies and industrialization.

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Developing Countries

Nations in various stages of industrialization and economic development, often referred to as Third World.

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Core Countries

Economically dominant nations that control high-value production.

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Periphery Countries

Nations that supply cheap raw materials and labor, remaining underdeveloped.

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Rostow's Modernization Theory

A model that outlines five stages of development from traditional society to high mass consumption.

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Take-off Stage

A short period of intense economic growth and beginning of industrialization in Rostow's model.

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Dependency Theory

Theory emphasizing the impact of external forces on national development and underdevelopment.

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Weaknesses of Rostow's Model

Critiques of the model for being Anglo-centric and not considering internal variations.

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Wealth Disparities

The economic gap between rich and poor nations, often due to exploitation.

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Resource Flow

The cycle where peripheral countries supply raw materials and labor to core countries, which sell finished goods back.

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Modernization Theory

A theory explaining how societies transition from traditional to modern through economic and social changes.

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First World Countries

Developed, capitalist nations characterized by advanced economies.

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Newly Industrialized Countries (NICs)

Nations like South Korea and Taiwan with rapid industrial growth since the 1970s.

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BRICS States

A group of emerging economies (Brazil, Russia, India, China, South Africa) noted for growth and influence.

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Cumar Mydra’s Theory of Development

A multi-stage process combining natural and acquired advantages to bolster development.

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Basic Human Needs

Essential requirements like food, water, and housing needed for a decent standard of living.

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Gross Domestic Product (GDP)

Total value of goods and services produced in a country within a year.

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Gross National Income (GNI)

Total income of a nation, including income from abroad, minus income sent abroad.

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Gini Index

A measure of income or wealth inequality in a population, from 0 (equal) to 1 (unequal).

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Absolute Poverty

Living on less than 1€ per day, a condition affecting billions worldwide.

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Relative Poverty

Income levels that are below average, creating a lower class in affluent societies.

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Perceived Poverty

Subjective feelings of poverty, often linked to social exclusion and discrimination.

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Least Developed Countries (LDCs)

Nations with low GNI, high infant mortality, and poor education and health outcomes.

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Study Notes

Key Development Classifications

  • Developed/Developing: Developed countries (First World) are wealthier, more industrialized nations; developing countries (often Third World or Global South) are in varying stages of development.
  • Core/Periphery: Core countries are economically dominant, controlling high-value production; periphery countries supply raw materials and labor, often remaining underdeveloped.

Rostow's Modernization Theory

  • Five Stages: Rostow's model outlines a five-stage path from traditional society to high mass consumption:
    • Traditional Society: Subsistence agriculture economy, little manufacturing or trade, low population growth.
    • Preconditions for Take-off: Development of external links (often colonial), exploitation of resources, urban growth, inequalities emerge, continued population increase.
    • Take-off: Short period of intense growth, industrialization begins, workers concentrate, income inequalities widen.
    • Drive to Maturity: Long-term standard of living increase, diversified national economy, service sector expands, population growth slows.
    • Age of High Mass Consumption: Advanced urban-industrial system, high consumer goods production, high consumption.
  • Criticisms: Anglo-centric, doesn't consider variations within countries.

Dependency Theory

  • External Influences: Developed countries (core) influence developing (periphery) nations' policies and development.
  • Underdevelopment of Former Colonies: Historical exploitation leads to continued underdevelopment.
  • Wealth Disparities: Rich nations often prosper at the expense of poor nations.
  • Resource Flow: Periphery supplies cheap resources; core nations buy, transform, and sell back expensive products, perpetuating underdevelopment.

Modernization Theory (Broader Context)

  • Transformation Process: Economic growth leads to political, social, and cultural changes.
  • Emphasis: Industrialization, globalization, and urbanization are key parts of this process.
  • Cold War Classifications: First World (capitalist, developed), Second World (socialist), and Third World (underdeveloped) emerged.
  • Evolution of Terminology: "Underdeveloped," "less developed," "least developed countries" (LDCs), and other groups (e.g., CILDCS, Global South) are used to describe developing nations.

Comparing Levels of Development

  • Past Developed Countries: Nations with long histories of development.
  • Newly Industrialized Countries (NICs): Rapid industrialization emerged since the 1970s, exemplified by "Tiger States" (South Korea, Taiwan, etc.).
  • BRICS States: Emerging economies, often acting as "extended workbenches" for developed (Northern) countries. Characterized by high growth rates, lower infrastructure investment, high labor productivity, low wages.

Cumar Mydra's Theory of Development

  • Multi-stage Process: Involves both natural and acquired advantages.
  • Traditional/Preindustrial Age: Few regional disparities, comparative advantages depend on natural resources, location, etc. Acquired advantages like infrastructure, skills evolve.
  • Industrialization Transition: Shift from labor-intensive to high-tech, high-value industries.
  • Growth Strategy: Policies promote exports, regulate imports, transition import-oriented sectors to export industries, development of service sectors.
  • Investment in Education: Improved education drives competitiveness and social welfare.

Basic Human Needs

  • Essential Needs: Food, housing, clothing, water, sanitation facilities, transport, healthcare, education.
  • Beyond Survival: Social participation, security, recognition are also important.
  • Correlation with Prosperity: As prosperity increases, life satisfaction tends to increase.

Indicators and Measures of Development

  • Gross Domestic Product (GDP): Total value of goods and services produced within a country.
  • Gross National Income (GNI)/Gross National Product (GNP): Value of goods and services produced by residents, including income from abroad. Incorporates income transferred in and out of country
  • Gini Index: Measures income or wealth inequality (0 = equal, 1 = maximum inequality)

Poverty Concepts

  • Absolute Poverty: Average per capita income below a certain level (e.g., €1).
  • Relative Poverty: Exists in wealthy societies, where individuals earn less than half the average income.
  • Perceived Poverty: Subjective experience of poverty, often linked to social isolation, discrimination, or insecurity.

Least Developed Countries (LDCs)

  • Criteria: Low GNI per capita (below 905 USD), high infant/illiteracy rates, low primary school enrollment, malnutrition, unstable agriculture, low industrial production, frequent natural disasters.

Economic Causes of Underdevelopment

  • Fragmentation of Development Benefits: Benefits may not be distributed equally across regions or populations.
  • Globalization Effects: Excessive competition in a global division of labor.
  • Policy Factors: Policies like liberalization, deregulation, privatization can increase inequalities.
  • Local Fragmentation: Development benefits may be concentrated in a select few segments of the population.

Microcredits

  • Definition: Small loans, primarily to farming families (especially women).
  • Purpose: Income-generating activities supporting sustainable development.
  • Issue: Loans may be used to repay old debts rather than create new income.

Global Governance & Good Governance

  • Global Governance: International institutions address global challenges (e.g., economic disparities, climate change).
  • Good Governance: Transparent, effective, and equitable government management, crucial for development cooperation.

Agenda 2030

  • Overview: Global framework for sustainable development, poverty reduction, and improved well-being.
  • Emphasis: International cooperation and good governance are key in overcoming development challenges.

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Test your knowledge on key development classifications, including developed vs. developing countries and core vs. periphery economics. Explore Rostow's Modernization Theory and its five stages of development. This quiz will enhance your understanding of economic development concepts.

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