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Global Development

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The processes of change whereby the standard of living in a country improves. It is measured using development indicators.
Developed country
Country with very high human development (VHHD).
Developing country
Country with low human development (LHD); a poor country.
Emerging country
Country with high and medium development (HMHD); newly industrialised.
Economic Sectors
A division of a country’s population based on the economic area in which that population is employed – primary, secondary, tertiary and quarternary.
Primary Sector
Extractive industries such as farming, fishing, forestry and mining. Developing countries have high numbers of people employed in this sector.
Secondary Sector
Manufacturing industries; use of factories to create products. The number of people employed in this sector increases as a country develops.
Tertiary Sector
Service industries and jobs such as teaching. Few people are employed in this sector in developing countries.
Quarternary Sector
Financial services and telecommunications.
Informal Sector
Businesses selling products on the street. The do not rent shops or pay taxes.
Quality of Life
This is not only a measure of a persons financial wealth, but encompasses physical factors (e.g. diet and the environment), social factors (e.g. health and education) and psychological (e.g. freedom and security).
Life Expectancy
The average number of years a person born in a particular country might be expected to live.
Birth Rate
The number of live births per 1000 people per year.
Death Rate
The number of deaths per 1000 people per year.
Gross Domestic Product (GDP) per capita
The monetary value of all the finished goods and services produced in a country in a specific time period, divided by the number of people in the country.
Corruption Perception Index
This is the perceived corruption in governments and the public sector. It is ‘perceived’ as corruption is hidden and therefore difficult to measure. It means the government uses funds for its own betterment, not that of the country.
Inequality means extreme differences between poverty and wealth, as well as in peoples' wellbeing and access to things like jobs, housing and education.
Human Development Index (HDI)
A composite statistic of life expectancy, education and per capita income indicators. It is used to rank countries into four tiers of human development – Low, Medium, High and Very High.
Development Gap
The difference between parts of the world that have wealth and the parts that do not.
North-South Divide
A virtual socio-economic and political line on the globe which splits the developed and wealthy countries in the ‘North’ from the poorer developing countries in the ‘South’.
Spatial Variations
Differences in where something can be found on the Earth’s surface, for example, differences in wealth in different regions of a country.
Gini Coefficient
A measure of inequality. It is given as a statistical number, rather than as a graphical display. The higher the Gini coefficient, the higher the inequality.
Literacy Rates
The percentage of adults who can read and write.
Foreign Exchange Gap
Countries lack the money to pay for exports, such as machinery and oil, which are vital to development.
Savings Gap
Population pressures and other factors prevent the accumulation of enough money to invest in industry and infrastructure.
Technical Gap
A shortage of skills needed for development.
International Aid
Many governments will have set aside money in their budgets to give as international aid, either planned or in an emergency.
Bilateral Aid
This aid is given from government to another government, usually with attached agreements, e.g. the recipient country has to give back to the donor country through reduced cost exports and political support.
Multilateral Aid
Developed countries give money to international organisations such as The World Bank. The money is then redistributed to poorer countries as loans.
Official Government Aid
Governments provide money that charitable organisations can bid for to develop aid projects around the world.
Voluntary Aid
This is money raised from donations and charities. Organisations such as Oxfam raise money through fund raising, private donations and charity shops.
Emergency or short-term aid
Needed after sudden disasters such as aid sent from the UK to Nepal following the 2015 earthquake.
Long-Term or Development Aid
Usually large projects including a variety of aspects, such as involving local communities in education and skills for sustainable development.
Fair Trade
Small-scale producers group together to form a cooperative, which deals directly with retailers (cutting out the middleman) in developed countries who pay more than the world price for the products traded.
Foreign Direct Investment (FDI)
An investment made by a firm or individual in one country into business interests located in another country.
Debt Relief
Debt makes up a large proportion of spending in developing countries. Debt relief, given by the International Monetary Fund, reduces or cancels debts.
Money earned by migrants in one country is sent back to their families in their countries of origin. An important source of income for developing countries.
International Monetary Fund
Financial institution set up to promote international trade. It pools funds from 188 members who can make withdrawals when their economy is in difficulty.
The World Bank
A international financial institution that provides loans to developing countries.
Transnational corporation (TNC)
A large company that operates in several countries around the world, such as Coca Cola, Microsoft and Starbucks.
Top-down development project
Large-scale, expensive development projects funded by organisations such as national governments and/or the World Bank.
Bottom-up development project
Small-scale, sustainable development carried out and funded by NGOs (Non-governmental organisations) in partnership with local communities.
The influence of factors such as geography and economics on politics and foreign policy of a state.