/ micro loans are very small loans made to often impoverished borrowers who typically lack collateral, steady employment, or a verifiable credit history.

Microcredits  Credits  Small 

  includes machinery and technology that is and more appropriate for   than conventional technology used in wealthier nations.

technology  cheaper  smaller  LEDCs  Appropriate  Adapted 

Primary product dependency occurs when an LDC is dependent on producing and exporting     , which suffer from fluctuating   and supply side   because of natural disasters and extreme weather conditions (hurricanes, tornadoes, droughts and tsunamis).

shocks  prices  materials  commodities  secondary  primary 

Declining     are the result of when the market for a nation's major export product declines, often quite sharply through circumstances beyond that nation's control.

balance  trade  of  terms

OPEC stands for               and consists of LEDCs or former LEDCs that rely on the export of oil / gas to finance the lion share of their budget.

organisation  economic  producing  countries  community  exporting  petroleum  oil  of  

    are national currencies that cannot be traded officially on the world markets.

exchange  Non  convertible  rates  currencies None  

Agricultural subsidy are government incentives to agribusinesses and farmers which then acts as a   to .  This subsidy paid to farmers in the Developed world makes their goods cheaper than food produced in the developing world, when under normally circumstances the LEDC might expect to have a advantage.

barrier  creation  development  comparative  absolute  paid 

A   can be described as a company with manufacturing plants in different countries.  MNCs provide direct foreign   to different nations.

investment  company  production  international  multinational 

is an investment in the form of a controlling ownership in a business in one country by an entity based in another country.

CPI  FDI  HDI 

can be defined as any assistance provided to a country that would not otherwise have been given if left up to market forces.

Aid  HDI 

aid includes loans given to a nation, dependent on the condition that the funds are used to purchase goods and services from the donor country.

Bilateral  Multilateral  Tied 

Project or grant aid is aid given to a LEDC for a particular development project, in the form of a grant which does not need to be   .

provided  given  repaid 

   includes assistance provided in the form of technical help, such as the provision of doctors, teachers or engineers, rather than financial assistance.

Bilateral  aid  Technical Humanitarian  development 

    is provided from one nation e.g. USA to another, while multilateral aid - provided via a third party e.g. the UN or UNICEF.

Bilateral  Multilateral  Technical aid  development 

  is aid designed to alleviate suffering in a specific area, e.g. funds used to help rebuild infrastructure after a disaster as well as provide immediate relief to areas affected by natural disasters.

  aid  Multilateral  Technical Humanitarian  development 

  is designed to improve conditions in the long term, e.g. technical training, improvements to hospitals and schools.  The aim of development aid is to facilitate direct improvements in   through increased years of schooling and life expectancy levels.

Bilateral  aid  HDI Humanitarian  Development 

can be described as funds paid to family members back home by expatriates / refugees working overseas.

Hard  Soft  Loans  Remittances 

   are loans paid to a nation or organisation to be repaid at interest rates below the market rate.

Hard  Soft  loans  Remittances 

  are loans paid to a nation or organisation to be repaid at commercial rates of interest.

Hard  Soft  loans  Remittances 

Grant aid includes monies paid that do not have to be   .

provided  given  repaid 

s - usually non-profit organisations and often funded by governments, active in relatively small scale humanitarian, educational, health care and   projects in LEDCs.

  growth  development  NGO  IMF  World bank 

is an organization of 189 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.

 The  Development  NGOs  IMF  World bank 

  is an international financial institution that provides interest-free loans and grants to the governments of poorer countries for the purpose of pursuing capital projects.

 World  NGOs  IMF  bank 

    (  s) are fiscal and monetary conditions imposed on nations (usually LEDCs) that wish to access funds from the IMF or the World Bank.  These are often imposed to ensure that the borrowing nation to ensure that they are in a position to repay the loan.

adjustment  SAP  policies  export  led  Structural Regional  

    consist of capital flows into nations with higher interest rates and / or expected changes in exchange rates.  This provides a source of foreign capital for the nation.

Hot  flight  money  flows  Capital 

  occurs when assets or money rapidly flow out of a country, for example from the political and economic elites in LEDCs to safe havens in Developed nations.

Hot  flight  money  flows  Capital 

    represents the size of a nation's total debt as a % of its GDP.  By contrast the     ratio represents the ratio of a nation's debt service payments to its    earnings.

Debt  burden  Revenues  service  import  export 

    policies are aimed at promoting economic growth / development through market mechanisms e.g. privatisation, deregulation of markets, low taxation, free trade, low government intervention in business, floating exchange rates and an absence of capital controls.

market  development  Free  policies  Interventionist 

    are aimed at promoting economic growth / development through government intervention e.g. investments in human and physical infrastructure, protectionist trade policies, exchange rate intervention and regulation of monopolies.

market  development  Free  policies  Interventionist