startergies to reduce the development vap

• Strategies for reducing the development gap

  • Investment
  • Industrial development
  • Tourism
  • Aid
  • Using intermediate technology
  • Fairtrade
  • Debt relief
  • Microfinance loans
• Investment


  Countries, organisations (e.g., the World Bank) and TNCs invest in low-income countries to increase profits. They often invest in large projects.
• Industrial development


  • Leads to developments in employment opportunities, e.g. manufacturing, services and tourism.
• Tourism


  Investing in tourist attractions and facilities to encourage visitors to stay longer and spend money.
• Aid


  Usually in the form of financial assistance offered by countries, organisations and TNCs. Aid can also include improving water, sanitation and education.
• Intermediate technology


  Providing basic technology for people to use on a small-scale, eg., hand water pumps and solar ovens.
• Fairtrade


  Involves paying farmers a fair price for their products and investing in local communities. It also promotes fair wages for farmers.
• Debt relief


  Involves cancelling money owed by a country to allow investments in development projects.
• Microfinance loans


  Offer financial support to community groups or individuals to start a small business.
• How strategies reduce the development gap

  • Can help large areas of the country affecting many people
  • Attracts further investment and creates jobs
  • Brings in valuable currency
  • Raises incomes for local people and creates the multiplier effect
  • Can provide much needed support after a disaster
  • Can help countries in the long-term
  • Improves quality of life for those in more rural communities
  • Increases wealth of local people
  • Means more money is available to invest in infrastructure and services
  • Often benefits rural communities and local women
• Limitations of strategies

  • Might not benefit local rural communities
  • Investment often benefits the companies more than local people
  • Can lead to environmental damage affecting people's health
  • Can suddenly decline if a pandemic/event occurs
  • Jobs may be seasonal and low paid
  • Might not reach the people who need it most
  • Countries can become dependent on it
  • Very small-scale- doesn't benefit the whole country
  • Technology may be too basic
  • Only benefits certain industries within a country
  • Countries may still have significant debts to pay back
  • May be conditions attached or a timeframe given
  • Very small-scale - doesn't benefit the whole country