From poverty to power - Oxfam-Québec

GLOSSARYCarbon tradingComparativeadvantageCorruptionCreativedestructionDebt/financialcrisisDumpingHowever, in many cases it has also led to volatilityand instability in financial markets.The two main types of carbon trading are emissionstrading, or ‘cap and trade’, under which governmentsset a ceiling on emissions from a particular sector andcompanies are allocated a tradeable allowance for theiremissions; and offset trading, which involves reducingemissions from projects outside an economy that hasa mandatory cap on emissions (for example, in adeveloping country).Theory advanced by nineteenth-century economistDavid Ricardo that countries can attain greaterwealth by producing only goods that are relativelyefficient to produce, then trading those goods withother countries, rather than trying to produce allgoods for themselves.Corruption is the abuse of entrusted power forprivate gain.‘Corruption for need’ refers to smallscalecharges levied by officials who are themselvespoorly paid; ‘corruption for greed’ is graft on agrander scale, typically involving senior officials,governments, or transnational corporations.Term popularised by economist Joseph Schumpeter(in his 1942 book Capitalism, Socialism andDemocracy) to describe transformation and upheavalthat leads to radical innovation. According to thisconcept, entrepreneurs play a particularly importantrole in stimulating economic growth.Can take different forms: for example, in poorcountries, governments may have unmanageable debtsowed to creditor governments or to internationalfinancial institutions; in middle-income countries,mass default on private debt can destabilise theeconomy, or governments may be unable to repaypublic and private creditors. The first is typically achronic problem (debt crisis); the second two tend tobe sudden-onset crises linked to capital markets(financial crisis).In international trade, when a government ormanufacturer in one country exports a product toanother country at a price lower than the domesticprice, or lower than the cost of production. The501