Strategies to reduce development gap

• What is one strategy used to reduce the development gap?

  Investment
• How does investment in LICs help reduce the development gap?

  It provides employment and income
• Which companies are investing in Africa?

  Chinese companies
• What sectors do Chinese companies mainly invest in Africa?

  Energy, mining, construction, manufacturing
• What is the effect of industrial development on employment and income?

  It brings higher incomes and employment
• What is the multiplier effect in industrial development?

  Increased investment leads to more jobs and income
• What significant economic shift did China make?

  Moved from agriculture to manufacturing
• How did China's economic shift affect its growth?

  Made it one of the fastest-growing economies
• What is free trade?

  No tariffs and quotas between countries
• How does free trade benefit LICs?

  Encourages trading free of taxes and charges
• What is one impact of tourism on countries?

  Increased investment and income
• How does tourism affect infrastructure?

  Improves infrastructure and creates jobs
• What vulnerability does tourism face during economic downturns?

  It can become vulnerable during a recession
• What is the role of aid in reducing the development gap?

  Donates resources to improve lives
• What forms can aid take?

  Money, emergency supplies, food, technology
• How much aid has the UK given to Pakistan?

  £350 million
• What is one use of the aid given to Pakistan?

  To improve education facilities
• How can aid fund infrastructure projects?

  By investing in development projects
• What is the focus of most aid projects?

  Health care, education, and services
• What is Goat Aid?

  Helps families buy goats for resources
• What is intermediate technology?

  Suitable and sustainable projects for communities
• How is intermediate technology tailored to communities?

  Fitted to the needs and wealth of locals
• What is an example of intermediate technology in Nepal?

  Micro-hydro projects
• What benefits do micro-hydro projects provide?

  Electricity for studying and communication
• What is Fairtrade?

  Movement for fair trade standards
• How does Fairtrade benefit producers?

  Helps them get a fair deal and invest locally
• What is a significant aspect of Fairtrade farming?

  Environmentally friendly practices
• What happens to part of the end price in Fairtrade?

  Invested back into the local community
• What percentage of small coffee farmers in eastern Uganda joined Gumutindo Coffee Cooperative?

  Over 90%
• What advantage does Gumutindo Coffee Cooperative provide to farmers?

  Allows milling before roasting for added value
• What issue did many LICs face after borrowing money?

  Fell into serious debt and high interest
• Why did many LICs borrow money in the 1970s and 1980s?

  To develop their economies
• What action did the IMF take in 2006?

  Cancelled debts of 19 poorest countries
• How can saved money from debt relief be used?

  For development projects like infrastructure
• What risk is associated with debt relief funds?

  Corrupt governments may misuse the money
• What has the Ugandan government done with saved debt money?

  Provided safe water to over 2 million people
• What are microfinance loans aimed at?

  Small start-up businesses, usually for women
• What was the purpose of Grameen Bank in Bangladesh?

  To help women develop small businesses
• What was the initial loan purpose for women at Grameen Bank?

  To buy mobile phones for profit
• How did women repay their loans at Grameen Bank?

  By charging villagers to use the phone