GLOSSARY/283GROSS DOMESTIC PRODUCT (GDP)
The GDP represents the total wealth produced In a given territory,
calculated as the sum of added values.
GROSS NATIONAL PRODUCT (GNP)
The GNP represents the wealth produced by a nation, as opposed to a
given territory. It includes the revenue of citizens of the nation abroad.
HUMAN DEVELOPMENT INDICATOR (HDI)
This instrument is used by the UN to estimate the degree of
development of a country, in respect of per capita income, the level of
education and the average life-expectancy of the population.
IMF (THE INTERNATIONAL MONETARY FUND)
The IMF's capital consists of contributions in strong currencies (and
in local currencies) by member countries. According to the size of its
contribution, each member-state is entitled to Special Drawing
Rights (SDR) which are monetary assets freely and immediately
negotiable against the currency of a third state. SDRs are designed to
work in what is known as a short-term economic stabilisation policy,
in order to reduce the country's budget deficit and limit the total
amount of money in circulation. This stabilisation is usually the first
phase of IMF intervention in debtor countries. However, the IMF has
taken upon itself (since the first wave of the oil crisis, 1974-75) to
bring its influence to bear on the productive base of Third World
economies by restructuring whole sectors: this amounts to a longer-
term adjustment policy. It does the same thing with the countries said
to be in transition towards a market economy (Norel and Alary,
1992, p. 83).
INDUSTRIAL FREE ZONE
Geographical area where industrials producing for export are exempt
from paying duty on the production factors they import and to which
certain elements of other national regulations are often not
applicable. (Source: World Bank.)