IB Global Politics Development Questions & Answers Solved 100% Correct!!

GDP - total value of all goods and services produced in a country in a year Gini Coefficient - a statistical method of modeling/graphing the extent of wealth inequality GDP per capita - Gross domestic product divided by the number of people in the population. infrastructure - the basic systems and structures a state needs to work properly Privitization - the sale of a business that was owned and managed by government to a private company/individual trickle-down - a belief that wealth gained by the rich will effect economy positively because they can invest and make businesses Deregulation - removing government rules and controls from some type of business acticity IMF - International Monetary Fund agency to promote trade by, giving emergency loans, increasing the exchange stability of the major currencies mixed economy - An economy in which private enterprise exists in combination with a considerable amount of government regulation and promotion. Laissez-faire - Idea that government should play as small a role as possible in economic affairs. World Systems Theory (Wallerstein) - Core regions make decisions for the world, semi-periphery make decisions for themselves and the areas around them, periphery areas are dominated by core and semi-periphery, have little influenceDemocratic Socialism - A socialist form of government that guarantees civil liberties such as freedom of speech and religion. Citizens determine the extent of government activity through free elections and competitive political parties. planned economy - economy that relies on a centralized government to control all or most factors of production and to make all or most production and allocation decisions Austrian Economics - is a school of thought that stresses the free market, private ownership of property, and limited government. Rostow's Stages of Growth - emphasis on infrastructure, and the nurturing of industry with subsidies, investments, and trade relations Development as Modernization (Rostow) - emphasizes social change for economic advancement; profit over subsistence and self sufficiency World Bank - an international bank that offers low-interest loans, advice, and information to developing nations Marxist view of Development - emphasizes mode of production (class conflicts due to labor) and inevitably being its own demise; dependent of monopoly and then multinational capitalism Washington Consensus - An array of policy recommendations generally advocated by developedcountry economists and policy makers starting in the 1980s in D.C. , including trade liberalization, privatization, openness to foreign investment, and restrictive monetary and fiscal policies. sustainable development - help for the poor with the idea of self reliant development, while protecting the environment and meeting basic needs Keynesian Theory - Button up perspective of "pumping the prime" via government interference to channel inversamente or savings for high productivityModernization Theory - in order to better society one must remove the social and cultural barriers that inhibit economic growth (girls not getting education) Neoliberal Theory - removing state interference and emphasizing privatization as "trickle down" economics would have it be