International economic institutions

- Largest provider of development is the world bank (founded in 1940)
- raises money & accepts donations
-offers loans, advice, & other resources to more than 100 underdeveloped countries

United nations developement program

• dedicated to the elimination of poverty through development
• 90% of it's resources go to 66 of the poorest nations
• largest resource of grant funding

International Monetary fund

• establishes international exchange rates
• offers advice & technical assistance to UDC's
• last resort for struggling countries
• If a less developed country has trouble repaying it's debt, they may ask for a debt rescheduling

Centrally planned economy

• government owns & controls the factors of production
• What to produce
• how to produce it
• how to distribute goods & services

Market based economy

• is an economy in which decisions regarding investment, production, and distribution are based on supply and demand, and prices of goods and services are determined in a free price system.

Privatization

• the sale or transfer of government owned businesses to individuals.
• first step from moving from a centrally planned economy to a market based economy

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