1. Closing the development gap
1 2 3 4 5
Anna Toni Saul Rowan Curtis
Ben V Will Beth Chelsea Jordan
Adam Lydia Lauren Mitch Emily
Chloe Lucy Elliot George Zoe
Conrad Tom Casey Ben W
Get into groups with people in the same column as you

2. High
Strategies for reducing
the development gap
Bi-lateral aid NGO aid Remittances
Impact on national development
Trading blocs Trade justice
Multi-lateral Move into colour groups
aid
Decide where you will
place your allocated
Fair trade Micro loans Debt relief
strategies on the graph.
Conservation
Free trade Loans
swaps
Do nothing
Low
Impact on people
Minority of Majority of
population population

3. Multi-lateral
Bi-lateral aid NGO aid
aid
Bilateral aid Multilateral aid Voluntary (NGO aid)
Aid given by one country Richer nations contribute Non-Government
to another. This is usually funds to international Organizations (NGO’s) are
“tied” or “conditional” organizations such as the charities that distribute
aid, meaning that the World Bank and the voluntary aid. This may
receiving country has to United Nations. The be may be short term
make use of goods and money is then (humanitarian aid to help
services provided by the redistributed for in emergencies e.g.
donor country; in other development projects. Shelter Box in the 2013
words, aid with strings Examples are UNAids Mozambique floods) or
attached. which fights HIV, UNHCR long term development
Bilateral aid is often used supports refugees and the projects such as Save The
to build expensive UN World Food Children’s Zambezi
infrastructure projects e.g. Programme which helps Floodplain Management
dams with expertise people affected by hunger. Programme
provided by companies
from the donor country.

4. Fair trade Trade justice
Fair trade is a system where farmers Trade Justice is a political movement
are workers in poorer countries are that campaigns against unfair global
paid a minimum “fair price” for their trade practices, for example the
products This can help raise their “dumping” of cheap exports from rich
standard of living especially when the countries into poor countries under
market price for the products falls free trade rules.
below the “fair price”
Campaigners argue that countries like
Fair trade has been criticized for South Korea which adopt protectionist
helping comparatively few producers measures (tariffs and quotas to
and some argue that it hurts non fair protect their own industries have been
trade farmers by encouraging higher able to develop more rapidly.
production which can then lead to a fall Countries such Haiti that have been
in market price that affects the poorest forced to adopt free trade in return for
farmers who are not part of the international bank loans have
Fairtrade organization. remained poor. (Haiti rice e.g.)

5. Trading blocs Free trade
Trading blocs are agreements that are Free trade is a government policy
designed to benefit the economies of where a government does not apply
member countries. Examples include tariffs or quotas to imports and
the African Union and the North subsidies to exports.
American Free Trade Area (NAFTA.)
Supporters of free trade argue that it
Trade blocs encourage free trade by leads to lower prices through natural
reducing or eliminating tariffs and supply and demand and that by
quotas between member states. removing barriers to trade, countries
Some trade blocs such as the European can earn more money.
Union have gone further and developed
a single currency and a common tariff Opponents argue that industries in
for exports originating outside the EU. poor countries are unable to compete
with those in richer countries leading
Trade blocs are criticized by some to increased unemployment and a
people for creating barriers to global tendency to rely on the export of low
free trade. value raw materials.

6. Loans Micro loans Remittances
Poor countries can borrow Microloans are very small The money sent back by
money from international loans made to poor migrants to their home
organizations such as the borrowers. The idea countries is called
International Monetary Fund originated in Bangladesh with remittance.
(IMF) and the World Bank) the Grameen bank and an For many poor countries
The money has to be paid increasing number of NGOs remittances are now the
back and often the lenders such as Kiva are using them to second largest money
will insist on the country try and alleviate poverty. earner, far exceeding
adopting free trade rules or Some NGO’s such as Global international aid.
other conditions for example Giving only make micro loans
privatizing industries and to women. Now that remittance has
raising tax. These conditions Supporters claim that people’s become so valuable
are called structural lives are often transformed as some people argue that
readjustment programmes borrowers set up small foreign aid should be
(SAPS) are can be very businesses and improve their stopped
unpopular with people. standard of living. Others altogether, especially as
If the loan isn’t paid back the argue that they have resulted the money goes direct to
country goes further into in even more people falling people rather than
debt. into debt. governments.

7. Debt relief Conservation
swaps
Debt relief is when indebted poor Also known as debt for nature
countries are helped to pay back their swaps, this is when a poor
loans. Campaigns such as Make Poverty country receives debt relief in
History highlighted the problem faced by return for agreeing to conserve
the Highly Indebted Poor Countries the environment. The World
(HIPCs) In 2005 the 18 poorest HIPC Wildlife Fund has been a major
countries had their debts cancelled (in player in conservation swaps
return for agreeing to privatizing industries for example some of the debt
and a reduction on spending on health owed by Ecuador has been
and education. “brought” by the WWF in
return for the money going to
Supporters of debt relief say that it is conservation projects in the
impossible for HIPCs to develop as all their Galapagos Islands.
income is used to pay back loans rather
than being used to increase standard of Tropical countries are most
living. Opponents say that debt relief likely to take part in these
encourages reckless spending and is unfair schemes as they generally
on those countries that have managed have the most diverse natural
their economies properly. habitats.

8. High
Strategies for reducing
the development gap
Bi-lateral aid NGO aid Remittances
Impact on national development
Multi-lateral
Trading blocs Trade justice
aid
Fair trade Micro loans Debt relief
Conservation
Free trade Loans
swaps
Do nothing
Low
Impact on people
Minority of Majority of
population population

9. High
Strategies for reducing
the development gap
Impact on national development
Low
Impact on people
Minority of Majority of
population population