Strategies to reduce the development gap

Question 1

How is investment used as a strategy to reduce the development gap?

Answer 1

• Investment: countries and TNCs invest in LICs which provide employement and income
• Large coumpanies place their businesses in LICs. This allows the LIC to develop as the company lays roads, builds internet cables and provides jobs

Question 2

How is aid used as a strategy to reduce the development gap?

Answer 2

• Countries or NGOs donate resources to a country to help or improve people’s lives
• Aid can take the form of money, emegrancy supplies, food or technology
• Helps reduce the development gap through investing in development projects

Question 3

How is Intermediate technology used as a strategy to reduce the development gap?

Answer 3

• Using technology and techniques that are suited and appropriate for that country to use
• Many poorer countries do not have the skills to maintain expensive equipment. Small-scale, basic solutions are usually more appropriate

Question 4

How is fairtrade used as a strategy to reduce the development gap?

Answer 4

• Paying producers a reasonable price for the good they produce
• Many farmers in LICs are paid low wages, meaning they cannot escape poverty
• Fairtrade gives farmers a better chance at life

Question 5

How is debt relief used as a strategy to reduce the development gap?

Answer 5

• Many LICs owe money to other countries
• Often the repayments and interest is so expensive that the LICs have no money left to invest in development
• Debt relief is when debt is made more manageable or reduced so that LICs can spend more of their money on development

Question 6

How are microfinance loans used as a strategy to reduce the development gap?

Answer 6

• Money is lent to LICs to help them develop
• Usually small scale loans with little interest rates
• Available to people to start businesses who may normally struggle to get credit