Trade Vs Aid Flashcards
1
Q
What is ‘the development gap’?
A
The difference between the development levels of HICs and LICs.
2
Q
What is neoliberalism?
A
Idea that free trade is essential for economic growth.
3
Q
What are the criticisms of neoliberalism?
A
Gap between rich and poor countries widened.
LEDCs can’t invest in industry line HEDCs.
Majority of LEDCs rely on cheap agricultural exports - little profit.
4
Q
What are the good points of neoliberalism for LEDCs?
A
Some countries really developed - Asian Tigers. (Gong King, Taiwan, Singapore etc…)
5
Q
What are the problems with aid?
A
Countries don’t give the amount of aid recommended by the UN.
Corruption.
Not used effectively
Tied aid.
