How could the development gap be reduced?

Question 1

Ways to reduce the development gap…

Answer 1

Aid is the most obvious way to reduce the development gap, but the disadvantages of aid can outweigh the advantages. Aid must be appropriate for it to be worthwhile
Education
Investment
Fairtrade
SAPs
Technology
Debt cancellation- Jubilee 2000 debt campaign- HIPCs had some debt cancelled with some improvements (e.g primary education in Uganda)- Debt large contributor to poverty cycle

Question 2

Fair trade…

Answer 2

An NGO.
Ensures a fair price that is guaranteed.
Fair trade premium.
Helps people break out the poverty cycle.

Question 3

New technologies…

Answer 3

Appropriate.
Not capital intensive.
Mobile phones- infrastructure dependent/mobile phone connection concentrated in urban areas.
Internet (switched on and switched off places).
Biofuels/ solar energy.
GM Crops.
Plastic bottles with water in-light bulbs
Grameen bank- started in Bangladesh by a university professor. Provides microcredit loans to help the very poor. Usually the people who need loans the most are the ones that typically can’t get credit- banks won’t lend money because there’s no security, also quite often these people don’t want thousands of pounds. The people who borrow the money need to meet ethical and environmental criteria.

Question 4

South-south links…

Answer 4

Investment and trade between LEDCs

The Greater Arab Free Trade Area (GAFTA) and the African Union

Question 5

Tourism…

Answer 5

LEDCs are increasingly attractive to people in MEDCs as holiday destinations.
Tourisms can be a labour intensive industry.
Advantages and disadvantages…Cuba
Leakage

Question 6

Trade…

Answer 6

Key strategy in NICs and China
Trade = Growth
Not always positive- primary products
Depends on your approach

Question 7

Underlying philosophies / approaches…

Answer 7

• Modernisation – Rostow’s idea of transforming countries from traditional to modern.
• Neo-liberal – market forces and free trade.
• Marxist or structuralist – the need to alter the structure of the economy and society.
• Populist – giving people what they want.

Question 8

Reducing the development gap is important for a number of reasons:

Answer 8

Morally wrong/unfair people are in poverty whilst others have so much wealth.
Political reasons: poverty leads to unrest, conflict, terrorism
Migration- trying to flee poverty, this will only increase, brain drain.
Environmental consequences of poverty: biodiversity lost (rainforest/wilderness chopped down).

Question 9

Uncertainty with the future of the development gap.

Answer 9

Where is the global economy going?
China’s growth- we want it to be sustained.
Will the changing climate have an impact on the economy.
Migration rates.
Population- will birth rates continue to decline?
BRICs/emerging superpowers
Shift to a more asia-centric economy
Primary school education in increasing in LDCs-> educated population is more likely to make money and be environmentally sustainable