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Development
The process of improving material conditions of people through the diffusion of knowledge and technology.
Gross Domestic Product (GDP)
The total value of goods and services produced within a country's borders in a given year.
Gross National Income (GNI)
The value of the output of goods and services produced by a country in a year, including money that leaves and enters the country.
GNI per capita
A measure of a country's GNI divided by its total population.
Purchasing Power Parity (PPP)
An adjustment made to GNI to account for differences in the cost of goods between countries.
Human Development Index (HDI)
A composite index measuring development based on standard of living, access to knowledge, and life expectancy.
Standard of Living (HDI)
Measured by GNI per capita at PPP.
Access to Knowledge (HDI)
Measured by mean years of schooling for adults and expected years of schooling for children.
Long and Healthy Life (HDI)
Measured by life expectancy at birth.
Primary Sector
Economic activities related to extraction such as agriculture and mining, dominant in LDCs.
Secondary Sector
Economic activities related to processing and manufacturing, dominant in developing countries.
Tertiary Sector
Economic activities related to services, dominant in MDCs.
Quaternary Sector
Economic activities focused on information handling and high-level decision making, exclusive to highly developed economies.
Gender Inequality Index (GII)
A measure of the extent of gender inequality within a country; higher scores indicate greater inequality.
Empowerment (GII)
The percentage of seats held by women in the national legislature and the percentage of women completing secondary school.
Labor Force Participation (GII)
The percentage of women holding full-time jobs outside the home.
Reproductive Health (GII)
Measured by the Maternal Mortality Rate (MMR) and Adolescent Fertility Rate.
Microfinance
The provision of small loans to individuals and small businesses in developing countries.
Rostow’s Stages of Economic Growth
A theory proposing that countries follow a linear path to development across five stages.
Wallerstein’s World Systems Theory
A perspective that argues that development is not linear but occurs in a global capitalist system with interdependent countries.
Core (Wallerstein)
Countries with high education, salaries, and wealth, often exploiting the resources of the periphery.
Semi-Periphery (Wallerstein)
Countries that manufacture and export goods, acting as a buffer between Core and Periphery.
Periphery (Wallerstein)
Countries with low education, salaries, and wealth, primarily exporting raw materials to the Core.
Complementarity (International Trade)
The concept that trade is successful when one country has a supply of a commodity that another country demands.
Comparative Advantage
The ability of a country to produce a good at a lower opportunity cost than another country.
Sustainability
The use of Earth's resources in ways that ensure their availability in the future.
Ecotourism
Tourism directed toward exotic natural environments intended to support conservation efforts.
UN Sustainable Development Goals (SDGs)
A collection of 17 interlinked global goals designed for a more sustainable future by 2030.