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Appropriate Technology
the concept that technology and machinery in
economically developing countries need not
imitate that of the economically developed
countries, particularly in terms of cost, and
that indigenously designed products from local
raw materials makes better sense for investment.
Backwash Effect
- exploitation of the peripheral poor areas in
order to sustain economic growth in the rich
core. This often involves a flow of resources and
labour from the periphery to the core. The
long-term effect of such a flow out of the
periphery is polarisation, as poor areas continue
to get poorer and rich core areas gain more
wealth.
Bilateral Aid
- aid which goes from one government to another.
Colonialism -
the principle or practice of having or keeping
colonies. Includes the economic, political and
social policies by which colonies are governed by
the sovereign state.
Comparative Advantage
- cost advantages of a country or region for the
production of manufactured goods. Such advantages
include abundant resources or human skills.
Core Area -
Central, more prosperous area/region, which tends
to attract 'investment and control functions eg
HQ of TNCs
Centrally Planned
Country - a socialist country such as
China and Cuba where all resources, industry,
housing and infrastructure are owned and managed
by the state.
Cold War - a
term used to describe the tense and mutually
untrusting relationship between the former USSR
and the USA from 1945 to the end of the 1980s
when eastern Europe broke up and moved towards
democracy.
Co-operative
- an organization formed by a group of people who
share their tools, planning and profits
Cumulative Causation
- theoretical process which leads to the
formation of core and periphery areas. New
economic development in the core often simulates
local economy and attracts migrants searching for
work. The cumulative effects of movements of
people and resources increases wealth in the core
Cycle of Poverty
- vicious spiral of poverty and deprivation.
Poverty leads to inadequate schooling and poorly
paid employment. Children growing up in such
areas start off disadvantaged and so the cycle
continues.
Decentralization
- the dispersal of services and industry, often
as a result of government intervention from one
area, usually the capital city and surrounding
area, to areas needing economic growth to reduce
regional imbalance.
Development Agencies
- organisations which work towards the
improvement of opportunities and standard of
living for countries in the ELDCS.
Developed Countries
- economically more advanced countries
characterised by high standards of living, large
industrial and service sectors and high GNPs
Developing Countries
- countries where the GDP is inadequate for
generating investment in agriculture and
industry. Characterized by low standards of
living, large primary sectors and low GNPS.
Downward Spiral
- Process of decreasing wealth in peripheral
areas as people and resources move out of the
periphery into the richer core areas.
Dual Economy
- the existence of traditional subsistence
activities alongside international high-tech
business in an ELDC.
Economic Gap
- Differences in levels of economic prosperity
between nations, as measured by indices such as
GNP.
Economic Migrant
- person leaving her/his native country to
seek better economic opportunities and so settle
temporarily in another country.
Endemic Diseases
a disease confined to a particular environment eg
malaria in humid areas.
European Union
the former European Community since the signing
of the Maastricht Treaty.
First World -
the group of countries mostly located in the
Northern and Western Hemispheres which have high
standards of living.
Formal Sector
- where people work to receive a regular wage and
are assured certain rights eg paid holidays,
sickness leave. Government recognizes work in
format sector for tax purposes.
Free Market Economy
- an economic system where individuals and
firms privately hold methods of production. The
market then determines the levels of supply and
demand.
Free Trade -
International Trade that takes place without
trade barriers eg tariffs, quotas and so allows
the free movement of goods and services between
countries.
GATT -
General Agreement on Tariffs and Trade, body set
up in 1948 to decide the world rules on trade.
Replaced by the World Trade Organization in 1995.
GDP - Gross
Domestic Product. Total value of goods produced
and services provided in one year in a particular
country excluding foreign earnings from
investments.
GNP - Gross
National Product. Total value of goods produced
and services provided in one year in a particular
country including foreign earnings from
investments.
Growth Corridor/Pole
- an area where governments deliberately
encourage investment and resources to stimulate
economic development.
Import Substitution
- the development of local industries and
production to replace imported goods, reduce
imported goods, reduce dependency on imports,
conserve foreign exchange and improve the balance
of payments of a country.
Informal Sector
- work done (both paid and unpaid) without
the official knowledge of the government and
therefore without formal control.
Indigenous -
native
Intermediate Technology
- technology which may be more expansive and
efficient than traditional methods but is still
smaller in scale and more labour intensive than
technology transferred from developed countries.
IMF -
International Monetary Fund
Mercantilism
- economic theory prevalent in Europe during the
17th and 18th centuries which stresses the
importance of trade and commerce as a source of a
nation's wealth. Depends on wealth and power
through exports and the possession of precious
commodities eg gold, silver.
Multilateral Aid
- aid given from a group of countries or an
international organization eg World Bank, M.
Neo-colonialism
- control, by an outside power, of a country that
is in theory independent - especially through the
domination of its economy.
Newly Industrialising
Country - (NICS) - countries which
have developed their industries very rapidly in
recent years. eg Taiwan: GNP per capita between
US$ 1 0003000.
NGO - a
non-governmental organization involved in
development. eg Oxfam, Save the Children,
Christian Aid.
OECD -
Organization for Economic Co-operation and
Development. Set up in 1961 by a group of mainly
EMDCs to develop both each other's economic
growth and that of developing countries.
Outworkers -
people who work for an industry in their own
homes rather than in a factory.
Oversea3 Development
Administration (ODA) - aid wing of the
UK Government's Foreign and Commonwealth Office.
It manages Britain's development assistance to
around 150 developing countries as well as
Central and Eastern Europe and the former USSR.
Periphery -
area which is geographically remote from a
central core area. The periphery often suffers
from a lack of resources and wealth and can occur
at local, regional, national and global scales.
Pricing Mechanism
- allocation of scarce resources through price in
a competitive society.
Protectionism
- EMDCs patent new technology, which ensures that
ELDCs remain dependent on transnational companies
for their industries.
Regional Imbalance
- where regions within a country experience
different rates or levels of development. This
can be measured by GNP per capital rates of
employment and other social and economic
indicators. eg North/South divide in Italy.
Second World
- group of countries with centrally planned
economies.
Spread Effects
when benefits from development spread from the
core to the peripheral areas. This concept is
often associated with the growth pole theory,
Structural Adjustment
Programme (SAP) - a set of conditions
imposed on countries borrowing money from the
World Bank. These often result in the government
of the borrowing country having to cut national
spending.
Subsistence Sector
- the part of the economy which does not enter
trade. The production of agricultural produce for
the consumption of the family.
Sustainability
- Long-term management of the environment in
order to maintain its natural resources.
Tariff - a
tax or duty charged by a government on imported
goods.
Third World -
Group of developing countries characterized by
low incomes and low levels of social and economic
development. These countries are mostly located
in Africa, Asia and South America.
Trade Bloc -
group of countries united to promote common
economic interests. Transnational Company -
organization with interests, assets and
production in more than one country. Usually
based in an EMDC.
Urban Bias -
policy of investing in cities at the expense of
rural areas in the view that industrialization
was necessary for development.
World Bank -
agency set up by the United Nations in 1945 to
make loans to poorer countries. It lends for
terms of 15 years which -is longer than
commercial creditors.
World Trade Organization
- set up in 1945 to replace GATT. Main
interests include decreasing tariffs and opening
up markets, agreeing trade on services and trade
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