Reducing the development gap

• Strategies to reduce the development gap (8)

  • Investment
  • Foreign direct investment
  • Aid
  • Fair trade
  • Using international technology
  • Microfinance
  • Industrial development
  • Debt relief
• Foreign direct investment (FDI)


  When people or companies in one country buy property or invest in infrastructure in another country
• FDI


  • Leads to better access to finance, technology and expertise
• Aid


  Money or resources given to a country by a charity or foreign government, used for development projects
• Aid can definitely help but sometimes it is wasted by corrupt governments
• Fair trade


  The fair trade movement is all about farmers in low-income countries getting a fair price for the goods that they produce
• Companies who want to sell products labeled as fair trade have to pay producers a fair price, but sometimes only a tiny proportion reached the producers while the rest boosts retailers profits
• Intermediate technology


  Tools, machines and systems that improve quality of life but are also simple to use and affordable to buy
• Intermediate technology


  • Solar powered LED bulbs which allow people to work later and can conserve money
• Microfinance


  Small loans given to people in low-income countries who may not be able to get loans from Banks, enabling them to start their own businesses and become financially independent
• Although microfinance works for some people, it can also be a cause by encouraging people to get into debt
• Industrial development


  In countries with a very low level of development, developing industries boosts GNI and development as productivity increases
• Debt relief


  When some or all of a country's debt is canceled or interest rates are lowered, meaning the country has more money to spend on development