Unit 3 Terms: Newly Industrializing and Less Developed Countries (Export…
Unit 3 Terms: Newly Industrializing and Less Developed Countries
Less developed countries: A country that is considered lacking in terms of its economy and industrial base. The population of this country often has a low standard of living and poverty.
Example: Nigeria. Although it has gone through some political and economic reform, it still has not developed distinct characteristics of advanced democracies because of economic difficulties, political instability, and authoritarian rule.
Failed states: A threat to newly developing and less developed countries to collapse. It is a situation in which the state may become weak and results in anarchy and violence
Example: Somalia is a failed state because they have been in a civil war for 2 decades. Even though many foreign interventions have attempted to assuage the civil war, many Somalians are still being killed by ethnicity-based factions
PPP: (Purchasing Power Parity) is a statistical tool that estimate the buying power of income across different countries by using prices in the US for means of comparison
Example: the PPP per capita for the UK in 2014 was $39,500.
Post-industrial Societies: Countries in which most people are no longer employed in industry
Example: United States, western Europe, and Japan after the Industrial Revolution in each respective country
Dependency theory: Theory holds that economic development of many countries in the world is blocked by the fact that industrialized nations exploit them
Example: Any country that is not able to develop because of the conflicts it has with other countries which limits the extent to which the countries can develop
Westernization model:Any country that wants its economy to grow should study the paths taken by the industrial nations can reap the benefits of modernization or "westernization"
Example: According to this theory, Britain was the first country to begin to develop its industry. The Industrial Revolution was spurred by prosperity, trade connections, inventions, and natural resources. Once this British model spread to other nations and the US and prospered because they were built on British economic practices.
Import Substitution: Based on the belief that government in poorer countries must create more positive conditions for the development of local industries.
Example: In the 1930s, this strategy was used widely in Latin America and in Africa and Asia.
Tertiary sector: (services) Part of the economy that involves services rather than goods.
Example: Construction, trade, finance, real estate, private services, government, and transportation
Neocolonialism:Unequal relationship in a world in which new indirect forms of imperialism
Example: European necolonialism --> Francafrique, "French Africa" was constituted by the close relationships between France and its former African colonies
Export-orientation Industrialization: this term has been used by the so-called "Asian tigers" (Hong Kong, South Korea, Taiwan Singapore). This strategy integrates the country's economy into the global economy by concentrating on economic production.
Example: Many Asian countries have benefited from this strategy with automobiles and electronics in their trade with the United states
Hybrid regimes: Many developing nations may be categorized as this for having some characteristics of a democracy, but still obtain many authoritarian qualities
Example: Russia under the rule of Putin
Political liberalization: A state that progresses from procedural democracy (regular competitive elections) to substantive democracy (civil liberties, rule of law, open civil society) through democratic consolidation
Example: Russia disbanding the KGB and having more political parties available to the public post- Soviet era.
GNP: (Gross National Product) Broad measure of a nation's total economic activity; the total market value of all goods and services produced in that country
Example: The GNP for the UK as of 2013 was 2.446 trillion US dollars
Economic Liberalization: Expanding private ownership of property
Example: Mexico privatized many sectors such as airlines and telecom
Newly Industrializing Countries: Countries whose economies are not quite "developed" but exhibit many characteristics of advanced democracies, including relative political and social stability as a result from democratization and economic growth.
Example: South Korea. A few decades ago, it was a fairly poor country but during the 20th and 21th century, it experienced democratization and rapid economic growth to develop into one of the world's largest economies
Compressed modernity: Rapid economic. social, and political change that transforms the country into a stable nation with democratic political institutions, stable economy, and abundance of nongovernmental institutions as well
Example: South Korea went under a drastic socioeconomic change in a span of 3 decades that took Europe over 2 centuries and Japan over 60 years to accomplish.
Secondary sector: (industry) Part of the economy that transforms raw materials into manufactured goods.
Example: Operations such as refining petroleum into gasoline and turning metals into tools and automobiles
Primary sector: (Agriculture) Part of the economy that draws raw materials from the natural environment. Largest in low-income, pre-industrial countries
Example: Fishing, farming, forestry, mining, agriculture industries