Strategies in reducing the development gap

Question 1

Strategies (8)

Answer 1

• Investment in industrial development
• Loans
• Debt relief
• Microfinance loans
• Aid
• Intermediate technology
• Fairtrade
• Tourism

Question 2

Investment

Answer 2

• Investment leads to multiplier effect

Question 3

Loans

Answer 3

• A sum of money that is borrowed on the understanding that is is paid back by the recipient, normally with interest
• Top down investment can lead to multiplier effect but also can lead to money going to HICs from TNCs

Question 4

Debt relief

Answer 4

• Debts can be cancelled
• This money can be used for development projects + multiplier effect

Question 5

Microfinance loans

Answer 5

• Small-scale financial support to help individuals or community groups to start small businesses
• Jobs, incomes - multiplier effect

Question 6

Aid

Answer 6

• Financial support made by countries, international organisations and charities
• Short term aid after natural disasters
• Long term supporting development projects - improving water supply, sanitation and energy provision

Question 7

Intermediate technology

Answer 7

• Technological improvements that are appropriate because they help economic development
• Sustainable using local resources and skills

Question 8

Fairtrade

Answer 8

• An organisation that promotes fair wages for farmers in LICs
• More money - multiplier effect