Strategies to Reduce the Development Gap Flashcards

All 9 cards in this deck

What is intermediate technology?

Simple, affordable technology that local people can build, use and repair themselves, e.g. a hand-operated water pump.

What is fairtrade?

A scheme that guarantees farmers in LICs/NEEs a fair, secure price for their crops, with extra money invested in the local community.

What is microfinance?

Small loans given to individuals, especially women, in poorer countries to start or expand a small business.

What is debt relief?

The cancelling of part or all of a country's debt by the countries or banks it owes money to.

How does debt relief help reduce the development gap?

Money once spent repaying loans can be spent on health, education and improving living standards, so people are healthier, better educated and able to contribute to the economy.

Give one disadvantage of aid as a strategy to reduce the development gap.

It can be mis-spent, or it can encourage dependency on the donor country.

How does investment by foreign companies help reduce the development gap, and what is one drawback?

It improves technology and infrastructure, but it is easily withdrawn by foreign investors.

How does industrial development reduce the development gap?

Factories create paid jobs and tax income, and the multiplier effect spreads wealth into other services and infrastructure.

True or false? Income from tourism can improve a country's balance of payments and give the government more money to spend on infrastructure and social facilities.

True. Tourism also works through the multiplier effect, though earnings can be insecure because of seasonality and external shocks.