ANSWERS: Terms and definitions for Differences in Development

Bilateral aid
This is two sided aid from one government to another government - could lead to one country being in debt
Bottom up aid
Aid that works on the ground level helping the local people first
Brandt line
This is a line that was developed in the 1970s to distinguish the MEDC’s from the LEDC’s but some countries have had rapid development since then so it may not be fully accurate
Composite indicators
Combines several other measures of development into a single figure. Broader and more useful indicator by combining several measures of develop. (ie.Gender-related Development Index - GDI)

Cycle of Poverty
Low income leads to low spending and low saving, and low demand for goods. This leads to low capital and low consumption of goods. Leading to low productivity and investments. Leading to low employment. Leading to low supply. Leading back to low income.
Debt relief
This is when you either cancel a countries debt, give them money to help towards the debt or to cancel the interest
Dependency theory
Suggested that as the more powerful country exploits the resources of its weaker colony causing the colony to become dependent upon the stronger force. It stresses that for a country to be developed they need to be self sufficient
Developed Country (MEDC)
More economically developed country. The "haves". Wealthy countries.
Developing Country (LEDC)
Less economically developed country. Poorer countries, but in the process of becoming "developed" economically.
Economic Development
Advancement in the quality and standard of life of a specific area through the improvement of the economic, political, and social well-being of people.
Economic Growth
Expansion in the size of a country's economy
Fair trade
Is trade that attempts to be socially, economically and environmentally responsible. It is trade in which companies take responsibility for the wider impact of their businesses.
GDP (gross domestic product)
The value of all goods and services produced within a nation in a given year divided by the population
GNI (gross national income)
Measures the total value of goods and services produced within a country together with the balance of income and payments from or to other countries.
HDI
Human Development Index. Uses 3 measures: GDP/capita (PPP), life expectancy, literacy rate. Attempts to balance social measures of development with economic measure (as resources and wealth is seen as an important aspect of quality of life).
Human development index (HDI)
Is a composite measure of development based on:
1. life expectancy
2. adult literacy and average years of school
3. standard of living
Infant Mortality rate
The number of children in a country who die before their 1st birthday per 1000 live births
Long term aid
Aid that helps for the future and is sustainable which is often better for making progress in development
Millennium Development Goals
8 goals set out by the UN aiming to reduce the disparities between the rich and poor world through international cooperation.
Multilateral aid
Governments give money to organisation such as the World Bank and the UN who then analyse and give it