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Reducing the development gap (Aid (Reduces the gap by enabling countries…
Reducing the development gap
Investment
TNCs invest money and expertise in LICs which supports the LICs development by proving employment and income
Chinese companies have invested billions of dollars in Africa, including investing in a power plant in Zimbabwe and railway construction in Sudan
There are many benefits, but some think it is exploiting Africa's resources in order to benefit HICs and their economies
Industrial Development
Brings in employment, higher incomes and opportunites to invest in housing, education and infrastrcture
The population then becomes better educated and healthier which provides more opportunities to invest in industries and business
Multiplier effect
Malaysia
Dramatic growth in its wealth since the 1970s
It has made use of foreign investment to exploit its natural resources and develop a thriving manufacturing sector
Tourism
Countries with tropical beaches, spectacular landscapes or abundant wildlife have become tourist destinations
This has led to an investment and increased incomes from locals - which can be used for improved education, healthcare, housing and infrastructure
Can be vulnerable in times of economic recession
Aid
Develops or improves people's lives, as it provides investment in services
Aid can take the form of money, emergency supplies, food or technology and specialist skills such as doctors
Reduces the gap by enabling countries to invest in development projects such as roads
Increases accessibility
Also focuses on improving health care, education and services at a local scale
Only works if it is long term and sustainable
Intermediate Technology
Intermediate technology is sustainable and appropriate to the needs, knowledge and wealth of local people. It takes the form of small-scale projects
Such as the Adis Nifas damn in Ethiopia where it's created a reservoir to collect water close to field for irrigation
Used local building materials and provides local employment
Fair trade
Rich countries protect their trade by two ways
Tariffs: a taxes paid on imports to make locally produced goods cheaper
The EU has a 15% import tariff on chocolate but not cocoa beans. Therefor countries such as Ghana are forced to trade primary products instead of developing its own industries which would be more valuable
Quotas are limits on the quantity of good that can be imported
Free trade
When countries don't charge tariffs or have quotas
Fair-trade is an international movement that sets standards for trade to ensure that producers in LICs get a fair deal
The farmer gets a fair price and all the money made from the sale of the crop
Farming id done in an environmentally friendly way
Part of the price is invested in local community development projects
The product also gains a stronger position in the global market
Debt Relief
Many LICs borrowed money to improve their economies but with rising interest rates and a reduced value of their products, it has caused a debt crisis
Debt relief has helped LICs invest in infrastructure and services
Micro finance: Small scale financial support to help people start up small businesses
Tourism
Creates employment and investment, can also boost the economy
Jamaica
Economy
In 2014, tourism made up 24% of Jamaica's GDP
Income from tourism is US$2 billion each year and taxes contribute further to the development of the country
Infrastructure
Increased development on the North coast
However some parts of the island are still very isolated
Improvements in roads and airports have been slower than other facilities
Quality of life
In the northern tourist areas of Montego Bay and Ochos Rios, wealthy Jamaicans have a high standard of living
However large numbers of people live nearby in poor housing with inadequate access to clean water, health care and education
The enviroment
Conservation and landscaping projects provide job opportunities
Community tourism and sustainable
ecotourism
is expanding in more isolated regions
Mass tourism can create problems such as footpath erosion, excessive waste and harmful emissions
Employment
Tourism provides 200 000 jobs, either directly or indirectly
Employment in tourism provides income which helps to boost the local economy
Those in employment learn new skills