Reducing development gap

• What is the main issue regarding global development?

  Development is uneven across the world
• What is the goal of reducing the development gap?

  To improve lives in less developed countries
• What are the strategies to reduce the development gap?

  1. Aid
  2. Investment
  3. Intermediate technology
  4. Debt relief
  5. Fair trade
  6. Industrial development
  7. Microfinance loans
• What is the first strategy to reduce the development gap?

  Aid
• What does aid involve?

  Donating resources to help develop countries
• What types of resources can aid include?

  Food, water, laptops, and building equipment
• What is a potential downside of aid?

  It can create dependency on external support
• What is short-term aid?

  Immediate assistance after disasters
• What is long-term aid?

  Support like building schools or water pumps
• What is bilateral aid?

  Aid given directly from one country to another
• What is multilateral aid?

  Aid given through organizations like the World Bank
• What is tied aid?

  Money given with conditions for specific actions
• What is voluntary aid?

  Donations made by individuals to charities
• How does investment help reduce the development gap?

  By creating jobs and generating tax revenue
• What is a potential issue with transnational companies?

  They may exploit natural resources and labor
• What is intermediate technology?

  Simple, affordable tools for local use
• How does intermediate technology empower local people?

  It allows them to take ownership of projects
• What is a problem with some intermediate technology projects?

  They may be poorly managed and ineffective
• What is debt relief?

  Paying off a country's debt to improve development
• What is a potential downside of debt relief?

  Funds may be mismanaged by the government
• What is fair trade?

  Ensuring farmers receive fair prices for products
• What is a challenge of fair trade products?

  They can be more expensive for consumers
• How does industrial development help countries?

  By shifting from raw materials to manufactured goods
• What is a risk of industrial development?

  Vulnerability to exploitation by corporations
• What are microfinance loans?

  Small loans for starting businesses
• How do microfinance loans empower individuals?

  They enable people to start their own businesses
• What is a limitation of microfinance loans?

  They must be repaid and are limited in scale
• What is the final strategy mentioned for reducing the development gap?

  Tourism development in countries like Kenya
• What is one proposed way to reduce development gaps between countries?

  Foreign direct investment (FDI)
• What is the main idea behind foreign direct investment (FDI)?

  Foreign companies invest in low-income countries
• How does foreign direct investment benefit local people?

  It provides training and skill development
• What is a notable example of foreign direct investment?

  Foxconn factories in China
• How does foreign direct investment affect a country's exports?

  It allows for high-tech goods to be traded
• What is the relationship between foreign direct investment and tax income?

  Increased trade leads to higher tax income
• What are some concerns associated with foreign direct investment?

  Economic leakage and environmental damage
• What is economic leakage in the context of foreign direct investment?

  Money leaving the local economy
• Why might foreign companies cause environmental damage in low-income countries?

  They face fewer environmental regulations
• What is traditional aid?

  Help given from one country to another
• What are the two types of aid mentioned?

  Tied aid and untied aid
• What is the difference between tied aid and untied aid?

  Tied aid requires repayment or agreements