Reducing The Development Gap

Question 1

how has industrial development reduce the development gap

Answer 1

developing industry boosts GNI and development, as productivity, skills, and infrastructure are improved

Question 2

how has using intermediate technology help to reduce the development gap

Answer 2

intermediate technology includes tools, machines, and systems that improve the quality of life but are also simple to use, affordable to buy or build, and cheap to maintain

e.g. solar powered led bulbs are used in parts of Nepal where only other lighting options are polluting and dangerous kerosene lamps and cheap to maintain

Question 3

how does debt relief reduce the development gap?

Answer 3

Debt relief when some of all of a country’s debt is cancelled, or interest rates are lowered, meaning the country has more money to spend on development

for example, Zambia had 4 billion of debt cancelled in 2005. in 2006 the country had enough money to start a free healthcare scheme for millions of people living around rural areas

Question 4

what are the seven different strategies to reduce the development gap?

Answer 4

investment

aid

fair trade

using intermediate technology

microfinance loans

industrial development

debt relief

Question 5

how does foreign direct investment reduce the development gap?

Answer 5

foreign direct investment ( FDI) when companies invest in properties or infrastructure

FDI leads to better access to finance, technology, and expertise, as well as improved infrastructure

Question 6

How does aid reduce the development gap?

Answer 6

money or resources are given to a country by a country or foreign government

this is used for development projects e.g. building schools, building dams and wells, and providing farming knowledge and equipment

aid can definitely help but sometimes is wasted by corrupted government or once the money runs out projects stop working if there isn’t enough local knowledge and support

Question 7

How does fair trade reduce the development gap?

Answer 7

the fair trade development gap is all about farmers in LICs getting a fair price for goods they produce

companies who want to sell products labeled fair trade have to pay producers a fair price

buyers pay extra on top of that so farmers receive a premium to help their local area

tiny portions of the extra money reach the producers while the rest boosts retailers profit

Question 8

how do microfinance loans reduce the development gap?

Answer 8

microfinance is when small loans are given to people in LICs who may not be able to get loans from banks. this enables them to start their own business or become financially independent

for example, in the Amhara region of Ethiopia, people who joined a microfinance organisation benefitted from higher incomes and were able to invest more livestock