Diplomacy & Politics Glossary

The IMF and World Bank created to promote international monetary cooperation and economic development.

Measures that reduce or restructure the debt burden of developing countries to improve repayment capacity.

An assessment of a country’s ability to service its debt without external assistance or default.

An analytical tool used by international organizations to assess a country's ability to manage its external debt without defaulting.

A financial arrangement where a country's external debt is exchanged for equity stakes in domestic companies.

An agreement where a portion of a country's debt is forgiven in exchange for commitments to environmental conservation.

The process by which a country increases the variety of products and markets in its export portfolio to reduce economic vulnerability.

An economic strategy that emphasizes expanding exports to drive national economic development and increase GDP.

An economic policy aimed at reducing foreign dependency by encouraging domestic production of goods previously imported.

An economic strategy that promotes domestic production of goods to replace imports and foster industrial growth.

The justification for protecting new industries until they become competitive against established foreign firms.

Trade policy measures that temporarily shield new domestic industries from international competition to help them grow.

Government aid designed to promote economic development and welfare in developing countries.

A self-reinforcing mechanism that causes poverty to persist over time, making it difficult for individuals to escape without external help.

A set of basic social security guarantees ensuring access to essential health care and income security.

Provisions in WTO agreements granting developing countries flexibilities and longer timeframes to implement commitments.

Economic policies imposed by international financial institutions on developing countries to promote market liberalization and fiscal discipline.

Economic policies imposed by international financial institutions requiring developing countries to implement reforms in exchange for loans.

The reallocation of economic activity from agriculture to industry and services during development.

Long-term unemployment caused by changes in the economy that make certain skills obsolete or industries decline.

The process of expanding the variety of products and markets in a country’s trade portfolio to reduce dependency risks.

Trade liberalization effects describe changes in economic growth, employment, and income distribution following tariff reductions.

An international institution that offers loans and development assistance to reduce poverty and support development projects.