1. Structural adjustment programs (SAPs): policies implemented by the International Monetary Fund (IMF) and
the World Bank (Bretton Woods Institutions) in developing countries. These policy changes are conditions for
getting new loans from them or for obtaining lower interest rates on current loans. Conditions ensure money will
be spent accordingly- The goal of the program is to reduce the borrowing country’s fiscal imbalances. The SAPs
reduces the role of state in economy and promotes free trades and private market forces. Most importantly,
privatization is the key. The SAPs is significant as it ensures developing countries use the money they borrowed
accordingly and that it allows the economies of the developing countries to become more market oriented. It
forces them to concentrate more on trade n production to boost their economies. The SAPs implement free
market programs n policy and these programs include internal changes (privatization and deregulation) and
external (reduction of trade barriers).
2. Embedded Autonomy:
3. Enclosure movement: a movement in the 18 century which wealthy British landed aristocrats rationalize their
farms by using new farming technology and systems of crop rotation. By doing so, they forced the agrarian poor
off the old village commons that now became enclosed as private property. Those who were poor ended up
constituting the proletariat working class in the upcoming Industrial Revolution. The enclosure movement is
significant as it kicked rural proletarians off the rural land and more people were then able to work in industries,
which then contributed to England’s Industrial Revolution.
4. Industrialization: period of social and economic change that transforms a human group from an agrarian society
into an industrial one. It is part of modernization process, that social change and economic development are
closely related with technological innovation. This term is important as it improves the country’s economy as
well as transforming traditional societies into more of modern societies.
5. Colonialism: The policy or practice of acquiring full or partial political control over another country, occupying
it with settlers, and exploiting it economically. The countries of stronger power exploit the weaker country, using
its resources to strengthen their own economy. The term is important because colonialism formed the nature of a
country today, and colonial borders created long term issued that hasn’t be solved yet. In Africa for instance
those borders sliced right through tribal territories which cause violence.
6. Imperialism: The policy of extending a country’s power and influence through diplomacy or military force. In
other words, it is ruling over people or place through colonization, military power, economic or political power.
Examples include the European (France, England, and Portugal) domination of regions of North & South
America after discovery of the "new world," the rule and expansion of the Roman Empire, Japan's dominance
over the West Pacific pre WW II. Imperialism is important because it expanded the modernization of roads,
irrigation and technology to help Europe.
7. Decolonization: The act of changing colonial status into independent status—it is a political process and often
involves violence to gain independence. There is war of independence followed by revolution and there is also
non-violence way of Indian Independent movement. Independence is hard to achieve without supports and
encouragement from one or more external parties. Decolonization is important as many European countries
gained independence and away from slavery though the whole process was violent. An example would be Africa.
8. Import Substitution Industrialization (ISI): A trade and economic policy based on the premise (base or
assumption) that a country should attempt to reduce its foreign dependency through the local production of
industrialized products. ISI policies were passed by countries w/in global south with the intention of producing
dvp and self-sufficient through creation of internal market. It was abandoned by developing countries due to
structural indebtedness from ISI related policies on the insistence of the IMF and World Bank through SAPs of
market-driven liberalization aimed at the Global South. Instead of concentrating on your comparative advantage
(i.e. raw materials) and exporting the stuff to the rest of the world, you create industries to produce “substitutes”
for what you import. For instance, instead of selling manufactured goods to the rest of the world, and using the
profits to buy cheap electronics like computers from countries with a comparative advantage in them. You make
a tariff wall and keep out all cheap computers, so your own inefficient computer industry can have the domestic
market. Over time, your market will become efficient and competitive. This is significant because it makes you
less dependent on rich countries, which pays you little for your raw material and charges you a lot for
manufactured goods made from raw materials. They also restrict imports with high tariffs so local companies would be preferred and eventually grow to compete in global market. Lastly, the Weak enforcement of global
patents leads to stolen innovations.
- Indebtedness: obligation to pay money to another party
9. Export Oriented Industrialization (EOI): It is a trade or policy with a goal of speeding up the industrialization
process of a country by exporting goods a nation has a “comparative advantage”. It implies opening domestic
markets to foreign competition in exchange for market access in other countries. It is import because it only
makes couple of products and makes them well. They slowly stop making simple items and start making more
complex ones which leads to GDP growth as a result.
10. Human needs development
11. Mainstream development
12. Modernization Theory: The transitions from a traditional society into modern society- developing countries are
what we called traditional and developed ones are modern. The modernization theory is important as it tells us
what made a country underdeveloped, in this case traditional society. This theory also suggests that everybody
has the option to be developed and it is a single linear path to the modern society.
13. Dependency Theory: A theory that opposes the modernization theory saying that richer countries exploited
resources from poorer countries to gain benefits. This theory is important because it gives criticisms of the
modernization theory and tells us how rich countries exploited the poor.
14. Globalization: A political economic process wherein the tariffs on trade and other barriers to favor local
businesses are gradually eliminated making the economy globalized. Therefore, imported products will be given
similar privileges with locally produced products. The aim of globalization is to make the world a free market, a
global market, or an earth shopping mall. Globalization is important as it will eventually lead to a higher standard
of living for everyone on the p