absolute poverty: Objective measurement of poverty level, including diet and health factors, income, and education level.

accumulation: Gathering or amassing of currency and goods in large amounts over a significant period of time.

African Development Bank: Established in Abidjan, Côte d'Ivoire, in 1964, the ADB borrows funds from the international money market in order to provide assistance to member countries for economic development.

Aid to Families with Dependant Children (AFDC): American federal program that entitles funding to single mothers so that they may stay home with young children. Replaced in 1996 by Temporary Assistance for Needy Families (TANF) in response to calls to drastically decrease welfare roles.

almshouse: Shelters and houses maintained by private organizations in order to assist the poor. A function of 18th century British philanthropy that was brought over in limited amounts to the United States.

allocation: Process of distributing resources for production and distributing goods and services for consumption by the public. Allocation is a significant problem in the developing world, when non-governmental organizations have difficulty providing aid through authoritarian governments or ineffective bureaucracies.

area deprivation: Also known as neighborhood socioeconomic deprivation, extreme poverty and ill health in an area such as a neighborhood in a city or a village in more rural areas. Common in some areas of the developed world as well as large areas of the developing world.

Asian Development Bank: Established in Manila, Philippines, in 1966. The bank was established to work against rising poverty levels in Asian nations and the Pacific Rim by providing public development funds for infra structural needs.

balance of payments: The difference between funds received and payments by country. This balance includes merchandise and service exchange, transfer, gift payments.

[Page 1212]balanced budget: Equality of revenue and expenditure in governmental budgets. In many countries, there is a wide gulf between the ability of local, state, and federal governments to balance annual budgets.

bankruptcy: Declaration initiated either by debtors (voluntary) or creditors (involuntary) when a consumer, corporation, or other economic entity has more liabilities than assets and is incapable of paying bills.

barrier to entry: Governmental, economic, or technological restrictions on a business entering a particular market or industry. These barriers include intellectual property and other legal restrictions and prohibitive start up costs.

barter economy: Economy based on exchange of goods and services by trade rather than by currency. Such economies have decreased significantly with the emergence of a more complex currency drive market, though barter economies still exist in the developing world and in times of lacking consumer confidence.

bilateral aid: Economic aid provided from one country, via appropriate agency, to another country.

black market: An illegal business or the act of selling goods and exchanging currency in violation of laws protecting price and supply levels.

capitalism: Economic structure with characteristics such as a relatively free marketplace, private ownership of most goods and services within political boundaries, and the ability to purchase goods and services with relative ease.

central planning: Planning of production and allocation by government agencies in lieu of competitive markets or free exchange of goods. Central planning is commonly found in communist nations.

charity: Institution that is established to distribute aid to the poor and needy or the act of individual assistance to the poor and needy.

child mortality: The rate of children per 1,000 that die between birth and age five, typically one measure of economic prosperity or demise.

Children's Defense Fund: Organization that works to increase minimum wage and create better jobs and benefits, especially educational and child care benefits, for workers with children.

Church World Services (CWS): Relief division of the National Council of Churches that provides emergency and relief aid to developing nations.

colonialism: Policy that a nation maintains or extends its control over foreign dependencies, typically divided into colonies used primarily for natural resources and colonies used primarily for political gain.

communism: Economy with foundation in common ownership, disappearance of government and needs based allocation to the public. Based on the works of Karl Marx, though it is mostly theory and has rarely been emulated as laid out by Marx.

competition: Economic actions between two or more individuals or companies in pursuit of higher profits and greater market shares. The less competition that exists within a market, the more control over the market for those few competitors that exist.

conditionality: Trade agreements between borrowing nations and international lending agencies that require conditions such as lower tariffs and price controls or changes to general trade policy.

Consumer Price Index: Index of prices on goods and services common to many consumers within a nation, typically characterized by a hypothetical “basket of goods.” Wide recognition in the United States as an indication of inflation and allows public a real indicator of the strength of an economy.

consumption: Satisfaction of consumer wants and needs by goods and services. Consumption is seen as part of gross domestic product and as a measure of demand.

Cost of Living: Income and funds needed to achieve certain standard of living based on measures of poverty, the middle class, and the upper class. This measure is tied to inflation and the purchasing power of consumers.

countryowned: Policies to improve domestic and international trade that are created and implemented by developing governments and not by outside governments or agencies.

[Page 1213]credit: Promise between consumers and creditors in which consumers receive goods and services in exchange for future payments plus interest. Credit is integral to the modern economy, given the need of businesses to purchase assets and build a customer base in the short term to stay viable.

currency: Paper bills or metal coins issued by national government to act as medium for exchange of goods and services between consumers and businesses.

culture of poverty: Culture created among the poor which is characterized by feelings of inferiority, marginalization, and a sense that no amount of work or effort will improve the status of the individual beyond poverty.

cyclical poverty: Poverty based on decline in macroeconomic indicators which improve and worsen on a regular basis. This cycle occurs when a recession occurs, bringing down demand, wages, and increasing unemployment.

Darwinism: Theory of biological evolution promoted by naturalist Charles Darwin, which states that all living beings arise through a selection of particularly favorable traits to natural and man-made environments. This is known in short as survival of the fittest and it was a popular notion (social Darwinism) in the late 19th and early 20th century in colonial empires.

debtor nation: Nation whose exports are less than imports and whom owe more to foreign governments than receive in trade from partners. Many of the world's debtor nations reside within the developing world, though the trend toward easy credit and poor savings has added some developed countries to the ranks.

debt relief: Relief of debts by creditor nations, either in part or in full, by decreasing interest on loans or the easing of preconditions on repayment of a loan.

debt service: Total payments, on both interest and principal totals, made by a country annually. A major issue for developing nations because interest alone typically expends any funds incoming from foreign trade sources.

deflation: Extended decline in the average level of prices. This condition is more likely in a stagnate market, but usually only in depressed economies.

demand: The motivation and capability to purchase a range of goods along a wide spectrum of prices.

demographics: Characteristics of human populations and population segments especially when used to study and analyze consumer markets.

dependency: territory under the jurisdiction of a state of which it does not form an integral part.

depreciation: Long term to permanent decrease in the value of a good, typically real estate and higher priced consumer goods. Depreciation based on the production cost, because of the need to replace depreciated goods with available capital.

deprivation: The state of extreme poverty including the removal or abstention of physical necessities (food) and social relationships (family).

deprivation index: Analytical tool composed of social and economic indicators to determine the significance of deprivation in the indexed area.

deserving poor: The distinction by government of those in poverty who are deserving of aid, due to many different educational, health, or social considerations.

destitution: Also known as complete poverty, an extreme want of resources or means of subsistence.

developed country: A nation considered wealthy because of industrial infrastructure, educational value, low child mortality, and high gross domestic product. Developed nations have been active in the last 50 years in the modernization of developing nations.

developing country: A nation considered poor because they lack sufficient industrial infrastructure, have high child mortality and poor health care. Developing nations are typically nations with young democratic governments or histories of authoritarian governments.

development economics: Subfield of economic study that attempts to determine how developing economies evolve into developed economies.

Development Gateway Foundation (DGF): Established in 2001, DGF is a collection of 100 plus public and private organizations worldwide that use information and emerging communication technologies to alleviate [Page 1214]poverty in the developing world and promote sustainable development.

disability insurance: Insurance managed by government or employers and paid into by workers for short term or long term debilitation, typically in the commission of a job task.

disequilibrium: The imbalance between supply (surplus) and demand (shortage) which requires market forces to change methods in order to reach equilibrium.

duopoly: Theoretical market condition in which two corporations dominate a particular industry with little to no competition. One noticeable example of a duopoly is in aeronautics, with Airbus and Boeing competing largely for the market share in Europe and North America.

economic growth: An increase in per capita income and production on a consistent basis that contributes to poverty reduction. Factors that prevent economic growth from eliminating poverty include imbalanced budget priorities and an uneven distribution of money to the upper class.

economic inequality: Disproportionate income attainment or asset ownership between one group of people and other groups of people in a particular market.

economic insecurity: Individual or familial economic precariousness due to economic downturn, temporary or underemployment, and poor health, among other considerations.

economic insufficiency: Economic states for individuals or families in which working members are underemployed or incapable of fulfilling basic needs with wages earned or have opportunity for economic advancement.

economics of scale: An average cost decrease when business increase market entry points and increase production. This happens within the realm of small business in transition into medium- to large-size businesses.

economics of scope: Production process by which two or more products can be created from one resource. This allows businesses to market and sell more products but can also cost companies in quality by decreasing focus on popular products, as well as public favor when unusable waste materials are produced.

educational vouchers: Government aid given to lower income families with the intention of sending children to private schools, typically with smaller class sizes and better resources, in order to gain a better education than in public schools.

efficiency: The attainment of the highest level of fulfillment in consumer desires and needs with the least amount of resources used.

elasticity: Relative change in one economic variable to another variable. This includes price elasticity of demand applied to the percentage change in the price of products.

employment rate: Ratio of employed individuals in a nation to the entire population of that nation which is over 16 and not institutionalized.

employment: An economic state in which people and resources are activated for production in exchange for wages and other incentives.

endemic poverty: Poverty that is prevalent in or peculiar to a particular region or people.

entitlement: A government program that guarantees and provides benefit to a particular group or for certain economic and social preconditions.

equity: A term referring to relative fairness in income and ownership.

exploitation: An economic state in which business owners and leaders are seen “taking advantage” of employees by withholding proper wages and remuneration.

externalities: The costs left out of the price of goods in the marketplace because of their absence in the supply and demand pricing process. One external benefit in the marketplace is education, which is implied in the quality of goods and services provided by a company. One external cost to consumers is pollution, which is not included in the price paid by consumers of a good.

extreme poverty: Level of poverty where individuals are unable to afford the necessities of living, including food, shelter, and medicine.

faith-based antipoverty programs: Programs established by churches and religious groups to remedy the symptoms [Page 1215]of poverty while attempting to effect larger social change through religious practice.

famine: Drastic, widespread food shortage, typical to developing nations and accompanied by malnutrition, disease, and economic difficulties.

feminization of poverty: The increase in the poverty rate among single women and single mothers because of underemployment, lack of education, and poor social welfare systems.

feudalism: Political and economic system popular in 9th to 15th century Europe based on the relationship of lords, whom own land and employed vassals. Vassals worked the land, engaged in military service, and paid homage to the lord in order to have a piece of land for themselves and a home.

fiat money: The medium of exchange useful in trade but with no material value. This term includes currency and checking accounts, which are based on the acceptance of fiat money by everyone in the marketplace and the confidence of its worth in trade.

food stamps: Government program that provides food credit to lower income families in order to ensure sufficient nourishment.

foreign direct investment: Investment in foreign companies to gain greater control over the marketplace, as well as construction of buildings and factories for domestic businesses on foreign soil.

foreign exchange market: Virtual market which is managed by various financial institutions that deals with global exchange in currency and stocks.

foreign exchange rate: The price of one nation's currency when compared to another nation's currency, measured by the amount of currency traded compared to a unit of another currency.

fraud: Deception deliberately practiced in order to secure unfair or unlawful gain in a market while harming another party physically or economically.

free market: Economic market that is competitive because of relatively unrestrained trade, with long term equilibrium ideally achieved by the macroeconomic forces of supply and demand. The downfalls of the free market come with decreased competition, devalued currency, and the involvement of external markets with different market limitations.

free trade: The unhindered trade of goods and services worldwide. Free trade provides lower prices to consumers through lowered tariffs, but can also lead to lower quality of goods, labor issues, and environmental concerns in the various marketplaces worldwide.

Free Trade Area of the Americas: Created in December 1994 during the Summit of the Americas, a single economic area in North and South America where barriers to trade are decreased with the goal of free trade in the near future.

G-8: Eight leading developed nations that meet on a regular basis to deal with economic issues. Members of the G-8 are Canada, France, Germany, Great Britain, Italy, Japan, Russia, and the United States.

gender discrimination: Determinate by a person or people in power of one gender to withhold economic or social opportunities to another gender. Most conspicuous in employment, but present throughout developed and developing societies.

gender equality: Standards set by nations and international organizations to ensure equal rights and opportunities in education, the workforce, and the law for both men and women.

gender gap: Measure of the difference between male and female achievement in areas such as income and education.

Gini Coefficient: Simple measure of income distribution, whereby the higher income is on a given range (between 0 and 1) equals a higher inequality in income distribution in the measured area.

global commons: An idea born in the development of environmental law that considers all environs (such as the atmosphere and oceans) as part of global well being. The most recent and controversial global commons argument is over the Kyoto Protocol, which would decrease global air emissions but to some would damage industry and the economy.

globalization: Long term international development involving decreasing barriers to trade, increased global [Page 1216]communications, and increased involvement of developed countries into the affairs of the developing world.

gold standard: The use of gold in determining the value of currency. This standard is either used directly, by the use of gold coins as currency, or indirectly, by the assurance that fiat money is backed by a stable amount of gold in a national reserve.

Great Society programs: Social programs created between 1965 and 1968 by President Lyndon Johnson in order to improve American culture and education. Programs included in the Great Society programs include Head Start, work-study programs for college, the National Endowment for the Arts, and the Corporation for Public Broadcasting.

Gross Domestic Product (GDP): Popular measure of economic progress, encompassing all goods and services produced for export, private and public sector, and capital goods minus imported products. Also can be divided by population to determine the productivity of an average person within a nation (called gross domestic product per capita).

Head Start: Federal preschool program for kids from lower income families, created during the Great Society.

hierarchy of needs: Psychologist Abraham Maslow's theory that people satisfy basic physical needs before fulfilling more complex psychological needs and social obligations. An explanation for the progress or regress of nations and societies, typically because of the prevailing political system and resource management.

homelessness: The state or condition of having no home or shelter, typically leaving an individual to live on the streets or in other public places.

Human Development Index: Measure of individual well being, combining economic and social factors such as income and life expectancy, updated yearly by the United Nations Development Program.

Human Poverty Index: Measure of individual poverty based on educational, environmental, and health factors contributing to deprivation. This index is updated yearly by United Nations Development Program.

hunger: Condition common among those in poverty where individuals are unable to afford sufficient food to fulfill basic nutrient needs. It is widespread among a majority of people in the developing world and the lower classes of developed countries.

immigration: The movement of people from one country to another, whether individually or in groups. The positives of immigration is a more diverse society, more competition for employment, and the decreased cost of production from the fulfillment of most production needs. The negatives of immigration have included increased taxes for social services, housing issues, and language barriers.

imperialism: Policy of extending a nation's authority by acquisition of new territories or holding economic and political hegemony over other nations. One example of imperialism would be the maintenance of French hegemony over former French colonies in Africa.

incentives: Benefit that motivates consumers or corporations to participate in economic or social activities. For example, price incentives influence the motivation to purchase goods or services, with higher prices decreasing the likelihood of a purchase and vice versa.

indentured servitude: Service by one person to another person or family for a prolonged period of time in exchange for food, money, shelter and/or land.

indigence: State of extreme poverty and neediness.

industrialization: The development of industry and infrastructure on an extensive scale for long term economic development.

inelasticity: An economic relationship in which major changes in one economic variable have minimal effects upon one or more other variables.

infant mortality rate: The rate of death among infants from birth to age one, measured in amount per one thousand births.

inflation: Consistent increase in the average price levels of goods and services in the economy, which is a common phenomenon in the global economy.

infrastructure: Capital used to improve telecommunications, electrical services and other structures needed to advance businesses, industries, and governments toward efficient production of goods and services.

[Page 1217]insolvency: Economic condition where liabilities exceed assets over a sustained period of time, typically leading to the declaration of bankruptcy.

interdependence: Psychological principle of macroeconomics where one company's decisions are influenced by or influence the decisions of other businesses.

InterAmerican Development Bank: Created in 1959 to aid in the regional development of the Bank's 46 Latin American and Caribbean nations. This aid comes in the form of development loans to businesses and governments along with technical assistance.

International Monetary Fund (IMF): Created in 1944 as a counterpart to the World Bank, the IMF offers short term loans to developing nations in order to stabilize currency and fledgling banking systems.

international poverty line: Income level at which a person in any area of the world is incapable of acquiring basic necessities, such as food and clothing.

Islamic Development Bank: Headquartered in Saudi Arabia, the IDB has 54 member countries worldwide, defined typically as nations with Muslim governments or large Muslim populations. The Bank participates in equity capital grants and loans for businesses and enterprises to its members.

Jubilee 2000: Also known as Drop the Debt, this 1990s campaign sought to relieve developing nations most harmed by debt.

Keynesian economics: Based on the book The General Theory of Employment, Interest, and Money by economist John Maynard Keyes, this economic outlook determines that aggregate demand is the culprit for most economic problems. As opposed to the supply side economics of the 1980s, Keynesian economics seeks to provide the bulk of services and economic prosperity to the lower and middle income in a nation in order to stimulate higher demand for goods. Popular in the Roosevelt administration and credited for fixing the problems of the Great Depression.

Laffer curve: Created by economist Arthur Laffer, a justification for the supply side economics of the 1980s. It states that at zero percent and 100 percent of tax rate, there is no revenue taken in by the government because at maximum taxation there is no motivation to work. This curve also shows that with decreased taxation, there is the possibility for greater revenues to be produced for the government.

Laissez-Faire: The theory that markets on their own can achieve efficient allocation of resources. This is in opposition to the idea of central planning and governmental paternalism and is becoming more popular in the modern form of free trade agreements and globalization.

Least Developed Countries (LDC): A group of 49 developing nations that meet certain criteria for low economic output, poor infrastructure, and ineffective government. A majority of LDC are African nations.

liberation theology: A response to structural conditions of poverty which includes breaking down social, economic, and political barriers and promoting a life satisfied by sufficient resources and the ability to practice religion, speech, and other liberties. Practiced extensively in Latin America and other developing areas.

Low-Income Cut-Offs (LICOs): Social indicator that measures relative income distribution. Measured by taking the percentage of income spent on necessities (preestablished by studying agency), which gives the relative place of an individual in the economy.

lumpenproletariat: Lowest, most degraded level of the working class (proletariat). Referenced by Karl Marx in his works, the lumpenproletariat typically included the unemployed, the criminal, and the mentally ill.

macroeconomics: The branch of economic study that analyzes the entire economy and its large components, including production, inflation, and general business cycles.

malnutrition: Health condition brought on by inadequate consumption of protein, calories, and vital nutrients. Experienced by many in the developing world due to inadequate aid or poor distribution of resources.

market adjustment: The study of market equilibrium caused by supply and demand determinants.

market efficiency: The idea that market competition automatically adjusts for efficient distribution of resources by equating demand and supply levels with price and quantity levels.

[Page 1218]market failure: The inefficient allocation of resources resulting in consumer dissatisfaction, whether by externalities, imperfect information to consumers, or other causes.

mass production: The production of large amounts of identical goods by the use of large scale machinery and production methods. A consequence of the Industrial Revolution resulting in mass goods by mass means.

maternal mortality: Rate of mortality for pregnant women or women during childbirth compared to the total number of births per year. One indicator of the strength of a nation's health care system and general quality of life.

means testing: Determination of the needs of people in need of government aid programs, such as education vouchers, food stamps, and financial aid for college.

Medicaid: Program initiated in 1965 by the United States government to provide health coverage to the poor, governed by individual states under federal regulations.

Medicare: Program initiated in 1965 by the United States government to provide health coverage to those who were over 65 years of age.

mercantilism: Predominant economic system of 16th, 17th, and 18th century Europe characterized by increased exports, the exploitation of raw resources, increased tariffs, and state control of most economic functions.

microcredit: Small loans given to farmers, small business owners, and factory workers whom are typically incapable of receiving a regular bank loan.

microeconomics: The branch of economic study that analyzes lower level economic activity, including demand and supply at the individual and business levels.

minimum wage: The legal price floor for labor wages, established in the United States in 1938 and exists in many industrialized nations. This wage was established to ensure a certain minimum level of fair wages for all jobs.

misery index: The sum of the unemployment level and inflation rate in a nation. Created in the United States during the 1970s, in a particularly stagnate economic period.

monopoly: Economic structure with one seller of a particular good without substantial competition. Monopolies essentially run the market on a particular good, including pricing and supply, but also are limited by consumer demand.

most-favored nation: Diplomatic and economic status established by trade agreements, whereby one nation receives least restrictive trade barriers in trade with another nation.

multilateral aid: Aid from multiple international sources channeled through appropriate organizations (i.e., the World Bank) to developing countries.

natural unemployment: Condition of unemployment existing when employment level is full, as well as when resources of demand and supply are equal and price levels are stable.

neoliberalism: Predominant economic belief in Western nations at present, which includes decreasing taxes, creating smaller domestic governments, embracing globalization and encouraging free trade principles.

New Partnership for Africa's Development (NEPAD): Initiative of African nations (OAU) promoted by South African President Thabo Mbeki, which would use the collective power of African states to create economic prosperity and promote future and sustainable development.

nongovernmental organization (NGO): Nonprofit organizations not associated with any level of government that attempt to provide aid to developing nations. non-income poverty

nonworking poor: Those in poverty whom are chronically poor and unemployed, typically because of a lack of education, incapability of entering the workforce or physical limitations to work.

normative economics: Division of economic study in which ideal standards of economy are prescribed.

North American Free Trade Agreement (NAFTA): Established in 1994, NAFTA is an agreement between Canada, the United States, and Mexico to eliminate [Page 1219]trade barriers between nations within a decade of inception. Free trade agreements such as this can create efficient trade and lower prices for goods but is also detrimental to labor and the environment.

odious debt: Debt accrued by nations under undemocratic leadership, with profit typically going to government officials and patrons.

oligopoly: Condition where a small number of major corporations involved in selling similar products dominate the market by obstructing other corporations from entering into competition.

Organization of American States (OAS): Created in 1948 with 35 member nations in North, Central, and South America, the OAS is the hemisphere's main conduit for political discussion. Issues dealt with by the OAS include human rights, the drug war, and the spread of democratic government.

Organization of Petroleum Exporting Countries (OPEC): An economic organization of over a dozen African, South American, and Middle Eastern states that produce oil and act to control a major market share of petroleum. OPEC has acted as a source of economic power for some nations that would otherwise have little influence in the global economy.

outsourcing: To sent out work or services to an outside provider or manufacturer in order to cut costs and make goods more readily available to world markets.

pension programs: Programs typically provided employers to insure post-employment or disability financial security for workers.

poverty gap: Measurement that determines the place of individuals or families in relation to the poverty line. A high poverty gap, for example, show that most people in poverty live well below the poverty line.

poverty line: The official measurement of the income needed by a household to stay out of poverty, according to several tangible requirements. The poverty line is a relative measure by nation, based on measures like income and family size as well as education and geographic location.

poverty rate: Ratio of those under the poverty line to the rest of a nation's population.

poverty threshold: The income threshold at which a family is in poverty for administrative and statistical purposes.

poverty trap: Large scale situation that forces those in poverty to remain poor despite efforts at money management. This is possible because of low incomes, trade deficits, and major infra structural gaps.

price ceiling: The legal maximum price for a good, with apartment and rental prices as one common example. Ceilings help control pricing but can create a shortage created by a restricted price range.

price floor: The legal minimum price for a good, with farm goods as one common example. Farmers, whom create a large amount of goods and typically are in debt due to the prohibitive costs of running a farm and owning land, benefit from price floors and subsidies that create competition for goods.

privatization: The transfer of government responsibilities to the private sector, for the purpose of decreased bureaucratic costs and more efficient management.

progressive tax: A type of income tax whereby an increase in income level means an increased tax rate. As opposed to a flat tax, where everyone that pays taxes pays the same rate, or a regressive tax, where higher incomes meet with lower tax rates.

pro-poor growth: Economic development and growth, particularly in developing countries, that favor the poor.

public good: A good or service usable by both payers and nonpayers, usable by many people at one time, and reusable for sustained periods of time. Examples of a public good are public parks, libraries, and the protection of the military.

racial discrimination: Discrimination by a person or group of one race against a person or group of another race, in terms of employment and public services.

rationing: The allocation of commodities by prescribed standards, typically based on the needs of the public.

recession: A general period of economic contraction, lasting at least two consecutive business quarters, with a decrease in gross domestic product and an increase in unemployment.

[Page 1220]redistribution: Economic theory that promotes reducing inequality in the distribution of wealth by reorganizing capital more evenly.

regressive tax: Tax system whereby higher income levels pay a increasingly lower tax percentages of income. Favorable to upper income levels and considered by some scholars to be effective in putting more money into the economy.

relative deprivation: Theory which compares the objective nature of an individual's work and home life with the subjective ideas on fairness, entitlement, or success by this same individual.

relative poverty: A definition of poverty that compares one individual or family to the poverty of others within the same area of measure.

right to work law: Legal restrictions on employers who want union membership as a prerequisite to employment. Employers are not able to force employees to join unions. Right to work laws allow the freedom of workers to participate in unions at every level, but also conflict with the public benefits of unionization, which are able to protect workers and provide benefits not available in nonlabor work.

rural deprivation: Extreme poverty on farm lands and other rural areas, made common by difficult agricultural markets, high farming costs, and the drastic increase in urbanization.

scarcity: Continuing condition in society because of the imbalance between an unlimited amount of wants and needs and limited resources. Scarcity is the major underlying theme of economics.

segregation: Practice of separating people of different racial, economic, and ethnic groups in public areas as a form of discrimination.

slavery: State of one individual bound to serve another individual and act as property in economic exchanges.

social democracy: Theory advocating the use of democratic means to achieve an eased transition from capitalism and socialism.

social insurance: Programs, popular largely in Europe and North America that allow workers to pay into pension and insurance programs for retirement, disability, and unemployment funding.

social mobility: The ability of individuals or groups to move within a social hierarchy with changes in economic and social indicators.

Social Security: A system providing economic assistance to the elderly, poor, and disabled whom participate in a system of taxation. In the United States, Social Security was established in 1935 during the Great Depression and has continued to the present, with similar programs in many Western nations.

social stratification: Condition of being arranged in social strata or classes within a group.

socialism: The government ownership of resources, workers control the production of goods and the distribution of products based on need. Socialism is considered the middle ground between capitalism and communism.

solidarity: The rallying cry for organized labor and the general labor movement to utilize a “us versus them” mentality across all industries in order to gain mutual benefits.

squatting: To settle an unoccupied land without legal claim.

stabilization: Government policies to act against economic fluctuations and prevent short term effects such as unemployment and inflation. One important stabilization method is the adjustment of interest rates on loans.

standard of living: The average real gross domestic product or the economy's ability to fulfill consumer needs.

starvation: State of extreme hunger from lack of essential nutrients over a prolonged period of time.

stigmatization: To be characterized as disgraceful or as a pariah, typically because of involvement in entitlement programs, prolonged poverty, or involvement in the culture of poverty.

subsistence: Minimal resources for living, often times associated with farmers and those in rural areas.

[Page 1221]Supplemental Security Income (SSI): American program created in 1974, providing a singular safety net under the Social Security Administration from several former programs providing assistance to the disabled, the blind, and the elderly.

supply: The ability and momentum by owners and producers to sell quantities of a good at a range of prices during a certain period of time.

supply-side economics: Emphasis on the production capability of available resources in national economic policy. Promoted vigorously by the Reagan administration during the 1980s as a counter to Keynesian economics, which was blamed for the stagnate economy of the 1970s.

sustainable development: Economic and social development that utilizes natural resources in an ecologically efficient manner, to ensure consistent development.

tariff: Typically a tax on imports which form a barrier to trade meant to protect domestic markets and generate revenue for the federal government.

Temporary Assistance for Needy Families (TANF): Replaced AFDC in 1996, TANF is a state administered block grant program designed to assist mothers off of welfare into the work force.

Third World: Term used for developing nations, made obsolete by the end of the Cold War. The First World refers to Western nations and the United States and the Second World refers to the Soviet Union and its satellite countries.

tied aid: Economic aid made available to developing nations contingent upon narrowly prescribed usage, typically on trade with donor nations.

trade deficit: Situation when a nation's imports are greater than a nation's exports. Deficits are remedied by trade barriers and the reduction of exchange rates on currency.

trade surplus: Situation when a nation's export are greater than a nation's imports, or when foreign markets purchase more than they sell to domestic markets.

trading bloc: Loose organization of nations that are economically intertwined, common in culture and proximity. Nations in a trading bloc coordinate foreign trade policies, including the North American bloc and the European bloc.

underclass: Lowest social strata, composed of the poor, needy, and underprivileged.

undeserving poor: The distinction of government officials of those in poverty whom are not deserving of aid, either because of their longevity in poverty or seeming inability to find work.

unfair competition: Deceptive or dishonest trade practices meant to hamper competitors and gain greater market share. Such practices include false advertisement, bribery, and industrial sabotage.

universal healthcare: Theory of national health care system that would provided health insurance to every person within a nation. Universal health care has been adopted in many Western European nations as well as Canada and has been a small part of the health care reform debate in the United States.

United States Agency for International Development (USAID): An organization run by the United States government that transfers technical and economic aid to developing nations.

urbanization: Social process in which cities experience increased growth and cultures become more urban and cosmopolitan.

Uruguay Round: Round of meetings between 1986 and 1994 that replaced the General Agreement of Tariff and Trade (GATT) with the World Trade Organization. These meetings also attempted a reduction of trade restrictions on member countries.

vagrancy laws: Laws at the local and state level that prevent loitering or other activities of those in poverty whom are trying to survive on the streets. The rationale for vagrancy laws is to protect tourism, public health, and to prevent crime. In some areas, vagrancy laws have been required to accompany the creation of shelters.

voluntary poverty: Choice made by individuals to go into poverty for personal, spiritual, or religious reasons.

wages: Payment to laborers for utilization of labor resources in the production of goods and services.

[Page 1222]War on Poverty: Series of government programs under President Lyndon Johnson between 1965 and 1968 to combat conditions of poverty, crime, and urban education standards.

welfare dependence: Condition cited by many conservatives that consists of welfare recipients not working or searching for work in order to stay in welfare programs.

welfare-to-work programs: Government programs that attempt to move individuals off of welfare assistance into one or more jobs to provide sufficient income. Popularized in several American states and nationally during the Bill Clinton administration.

working poor: Individual or groups that are at or below the poverty line whom work one or more jobs which do not provide sufficient income.

World Bank: Financial institution created in at the Btretton Woods conference 1944 to aid in the reduction of poverty worldwide, as well as attempt to address the issue of foreign debt of developing nations around the world.

World Trade Organization (WTO): Organization that mediates disputes in global trade such as tariff and intellectual property issues. The WTO also holds negotiations on increasing globalized trade and investment in developing nations.