Reducing the Global Development Gap

• how does investment reduce the development gap?

  foreign direct investment (where people buy property/invest in infrastructure in a different country) - leads to better access to finance, technology and improved infrastructure/industry
• how does aid reduce the development gap?

  aid is money/resources given to a country by a charity/foreign government - the money is used for development projects, it is sometimes wasted by corrupt government and once it runs out projects cannot be maintained
• how does fair trade reduce the development gap?

  companies who label items as 'fair trade' pay producers a fair price (allowing them to provide for their families). sometimes only a tiny proportion of the money reaches the producers
• how does using intermediate technology reduce the development gap?

  includes tools, machines and systems that improve quality of life but are also simple to use, affordable and cheap to maintain - e.g. solar powered light bulbs are used in nepal where the other sources of light are dangerous
• how do microfinance loans reduce the development gap?

  microfinance (small loans given to those who can't get them from banks) allow people to become financially dependent, can cause debt issues
• how does industrial development reduce the development gap?

  in countries with low development, agriculture makes up a large portion of the economy - developing industry boosts gni and development as productivity, skills and infrastructure are improved
• how does debt relief reduce the development gap?

  debt relief = when all of a countries debt is cancelled/interest rates are lowered