How can the development gap be reduced? Flashcards
List me 8 strategies to help LICs develop
- Aid
- Intermediate technology
- Trade
- Debt Relief
- Microfinance Loans
- Investment
- Industrial Development
- Tourism
List me an example of sustainable aid.
UK aid to Pakistan
What is UK aid to pakistan
- 66m ppl in pakistan in poverty
- Spent mainly in education and to reduce poverty.
What is intermediate technology
Technology that is suitable to their education and economic level.
List me one example of intermediate technology
Irrigation at Ethiopia
Intermediate Tech
Irrigation at Ethiopia
What did it involve
Each family has an area of irrigated land with fruit trees.
Lists 2 ways of trade protection
- Tariffs - taxes on imports
- Quotas - limits on the quantity of imported goods.
What is Free Trade
- Trade without import tariffs or quotas
Key features of fair trade
- Guarantees the farmer a fair price.
- Farmers agree to farm in an environmentally-friendly way
How have LICs debts got so big?
- World’s poorest countries pay more than $1.5 bn a day in interest repayments
- High oil prices increased price of imports.
Debt Relief
2005, G8 countries agreed to cancel debts of LIC.
What is microfinance loans?
Small-scale financial support from banks set up to help the poor.
Example of microfinance loans
Grameen Bank in Bangladesh
Grameen Bank in Bangladesh
- Lend small sums of money to poorest ppl to start their own business.
- Lend to over 7 million people
- Small interest rate, 99% repaid
Advantages of foreign investment for African countries
Improve quality of life.