Chapter 15 Poverty And Development

Front 1

Development

Back 1

Growth, the act of improving, enlarging or refining; development is commonly linked to economic growth, but the term is deeply contested.

Front 2

Absolute poverty:

Back 2

: A standard of poverty that is based on an income level or access to resources, especially food, clothing and shelter, which are insufficient to ‘keep body and soul together’.

Front 3

Relative poverty

Back 3

Relative poverty

Front 4

Purchasing power parity

Back 4

A calculation of purchasing power that takes account of the relative cost of living and the inflation rates of different countries, sometimes based on the ‘international dollar’.

Front 5

Positive freedom

Back 5

Freedom defined in terms of selfrealization and the development of human capacities; freedom to be or do something

Front 6

Gross domestic product:

Back 6

The total value of all the goods and services produced in an economy, a measure of national income.

Front 7

Modernization theory:

Back 7

The theory that there is a single, linear path to development, reflected in the transformation of western countries from traditional, pre-industrial, agrarian societies to modern, industrial and mass consumption ones.

Front 8

Trickle down:

Back 8

The theory that the introduction of freemarket policies will, in time, benefit the poor and not only the rich through an increase in economic growth and a general rise in living standards.

Front 9

Import substitution:

Back 9

An economic strategy through which domestic industries are protected from foreign competition, at least during their infancy

Front 10

Debt crisis:

Back 10

A situation in which a country is unable to service its debts because economic surpluses are insufficient to meet interest repayments.

Front 11

Conditionality

Back 11

The requirement, usually made by the IMF and the World Bank, that certain conditions about the future direction of economic policy are met before loans are agreed or made.

Front 12

International aid

Back 12

(sometimes called foreign aid or overseas aid) refers to the transfer of goods or services from one country to another country, motivated, at least in part, by the desire to benefit the recipient country or its people

Front 13

Tobin tax:

Back 13

: A transaction tax on foreign currency dealings, proposed by the US economist James Tobin.

Front 14

Green revolution:

Back 14

The introduction of pesticides and high-yield crops to boost agricultural productivity.

Front 15

Corruption

Back 15

A failure to carry out ‘proper’ or public responsibilities because of the pursuit of private gain, usually involving bribery or misappropriation.

Front 16

Food dumping

Back 16

The donation of surplus food to poor countries for free or at cheap rates in order to maintain market shares or prop up global prices.

Front 17

Debt relief

Back 17

Agreements to write off foreign debt or reduce it to ‘sustainable levels’, often linked to conditions about good governance.

Front 18

Fair trade

Back 18

Trade that satisfies moral, and not merely economic, criteria, related to alleviating poverty and respecting the interests of sellers and producers in poorer areas.