Chapter 18 : Lesson 1 Global Economic Development

Essential Question: What are the major obstacles to economic growth in developing countries?

Developing Countries : Nonindustrial nations marked by extremely low gross national product (GNP), high poverty rates and economic instability.

Primitive Equilibrium : first stage of economic development during which the economy is stagnant

Crude Birthrate : number of live births per 1,000 people

Life Expectancy : average remaining life span in years for persons attain a given age

Zero Population Growth : a condition in which the average number of births and deaths balance so that population size is unchanged.

External Debt : borrowed money that a country owes to foreign countries and banks

Default : act of not repaying borrowed money

Capital Flight : legal or illegal export of the nation’s currency and foreign exchange

Micro Loans : small, unsecured loans made primarily to women to help them undertake an income-generating project in a developing country

International Monetary Fund (IMF) : international organization that offers advice, financial assistance, and currency support to all nations

World Bank: international agency that makes loans to developing countries; formally the international Bank for Reconstruction and Development

Soft Loans: loans that may never be paid back; usually involves loans to developing countries

Expropriation: government confiscation of private or foreign owned goods without compensation

Review Question: Chapter 18 : Lesson 1 Read pages 522-529 and answer Review Questions on page 529. Hand in Google Class Room.