2.2.4 Strategies to Reduce the Development Gap

• More developed countries have a high GDP per capita and advanced industries
• What is the legacy of colonisation on development in less developed countries?

  Exploitation of resources
• What is a key social factor that distinguishes More Developed Countries (MDCs) from Less Developed Countries (LDCs)?

  High life expectancy
• What is the primary goal of fair trade initiatives?

  Equitable trading relationships
• What type of trade relationships does fair trade encourage?

  Direct trade relationships
• How do fair trade initiatives empower producers in less developed countries?

  Stable incomes and resources
• What is the role of multilateral aid in foreign aid efforts?

  Aid through international organizations
• What is multilateral aid channeled through?

  International organizations
• What does foreign aid support in less developed countries (LDCs)?

  Economic and social development
• Foreign aid can contribute to social improvements like healthcare and education.


  True
• Bilateral aid is provided directly from one country to another
• What is the primary goal of debt relief programs for less developed countries (LDCs)?

  Reduce or forgive debt
• What is crucial for debt relief to effectively reduce the development gap?

  Thoughtful design and implementation
• What is a key economic characteristic of more developed countries (MDCs)?

  High GDP per capita
• The development gap is often measured by factors like GDP per capita and life expectancy.


  True
• What complex factors influence the development gap?

  Economic, social, and political
• Fair trade initiatives aim to reduce the development gap by promoting equitable trading relationships.


  True
• Fair trade emphasizes direct trade relationships between producers and consumers
• Match the type of aid with its description:

  Bilateral Aid ↔️ Aid directly from one country to another

  Multilateral Aid ↔️ Aid through international organizations

  Humanitarian Aid ↔️ Emergency assistance during crises

  Development Aid ↔️ Long-term support for projects
• Aid directly from one country to another is called bilateral aid.
• One potential negative impact of foreign aid is over-reliance, also known as dependency.
• Match the type of aid with its description:

  Bilateral Aid ↔️ Aid directly from one country to another

  Multilateral Aid ↔️ Aid channeled through international organizations

  Humanitarian Aid ↔️ Emergency assistance during crises

  Development Aid ↔️ Long-term support for economic projects
• What is the moral hazard associated with debt relief programs?

  Irresponsible borrowing and spending
• The SDGs primarily focus on environmental challenges and have little relevance to economic development.

  False
• SDG 8 promotes sustained, inclusive, and sustainable economic growth.
• High debt interest payments are an example of a economic factor causing the development gap
• The development gap is exacerbated by weak governance and political instability
• Fair trade ensures guaranteed minimum prices for producers
• Fair trade social premiums are used for community development projects
• Foreign aid is the transfer of resources from more developed countries to less developed countries for their economic and social development
• Humanitarian aid is emergency assistance provided during crises like natural disasters or conflicts
• Humanitarian aid is emergency assistance during crises like natural disasters or conflicts
• Match the type of aid with its description:

  Bilateral Aid ↔️ Aid directly from one country to another

  Multilateral Aid ↔️ Aid through international organizations

  Humanitarian Aid ↔️ Emergency assistance during crises

  Development Aid ↔️ Long-term support for development
• Aid may distort local markets and undermine self-sufficiency
• Corruption is a potential negative impact of foreign aid.


  True
• Match the benefit of debt relief with its description:

  Frees up funds ↔️ Allows redirection to development projects

  Improves creditworthiness ↔️ Makes LDCs more attractive for lending

  Promotes economic stability ↔️ Reduces risk of debt crises
• The development gap is often measured by factors like GDP per capita and life expectancy.


  True
• What is a key economic factor that distinguishes MDCs from LDCs?

  GDP per capita
• What type of economy do LDCs typically rely on?

  Agriculture
• The development gap is solely caused by economic factors.

  False