Reducing the Development Gap Flashcards
What strategies are used to reduce the development gap?
Strategies include investment, industrial development, aid, fair trade, microfinance loans, debt relief, and the use of intermediate technology.
What is investment, and how does it help development?
Investment involves companies or governments funding infrastructure, industries, and services to boost economic growth.
What is industrial development?
Industrial development involves creating jobs in manufacturing and services, increasing incomes and improving standards of living.
What is aid, and how does it help development?
Aid is financial or practical help given to LICs by HICs, charities, or international organizations to support development.
What is fair trade?
Fair trade ensures farmers in LICs receive fair prices for their goods, improving income stability and community development.
How do microfinance loans work?
Microfinance loans provide small amounts of capital to individuals in LICs to start businesses and improve economic status.
What is debt relief, and why is it important?
Debt relief cancels or reduces a country’s debt, freeing up money for investment in healthcare, education, and infrastructure.
What is intermediate technology?
Intermediate technology is simple, affordable, and easy-to-maintain technology that improves lives in LICs.
How does tourism help reduce the development gap?
Tourism generates foreign income, creates jobs, and funds infrastructure improvements in developing countries.
What is the multiplier effect?
The multiplier effect occurs when investment in one area leads to increased economic activity and development in surrounding areas.
