How can the development gap be reduced

Using intermediate technology Intermediate technology is using equipment and techniques that are suitable for their country of use. Many poorer countries do not have the skills to maintain expensive equipment. Small-scale, basic solutions are usually more appropriate. Fairtrade Fairtrade is paying producers a reasonable price for the goods that they produce.

Many farmers in LICs are paid very low wages. This means that they cannot escape poverty. Fairtrade gives farmers a better chance in life. Debt relief Many LICs owe money to other countries.

Often the repayments and interest are so expensive that indebted countries have no money left to spend on development projects. Debt relief is when debts are either reorganised to make them more manageable, or reduced. Microfinance loans Microfinance loans are when money is lent to LICs to help them to develop. These are often small loans with reasonable interest rates. They are available to people and businesses who may normally struggle to get credit.

Large companies can locate part of their business in other countries. Aid is when one or more countries give money to other countries. In the s and s, many countries borrowed a significant amount of money for large scale development projects. Some of these countries have fallen into considerable debt repaying loans or high rates of interest. Debt relief involves cancelling money owed, allowing more significant investment in development projects such as road building and health care.

Micro-finance loans offer financial support to community groups or individuals to start a small business. Grameen Bank in Mongla in Bangladesh offers micro-loans to poor people. If you've found the resources on this page useful please consider making a secure donation via PayPal to support the development of the site. The site is self-funded and your support is really appreciated. If you've found the resources on this site useful please consider making a secure donation via PayPal to support the development of the site.

Strategies for reducing the development gap. Strategies for reducing the development gap The development gap is the difference in levels of development between the richest and poorest countries in the world. How can investment reduce the development gap? Investments lead to improvements in: infrastructure e. Related Topics Use the images below to explore related GeoTopics. What does world development look like? Topic Home. How can tourism reduce the development gap — Jamaica Case Study.

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