Strategies to Reduce the Gap

Closing the development gap requires coordinated action from governments, international organisations, and the private sector. In this lesson you will explore the main strategies used to reduce the gap between HICs and LICs, including aid, trade, debt relief, Fairtrade, microfinance, and intermediate technology. You need to understand the strengths and limitations of each approach.

This diagram shows the main strategies used to reduce the development gap:

graph TD
    A[Reducing the Development Gap] --> B[Investment]
    A --> C[Aid]
    A --> D[Trade]
    A --> E[Debt Relief]
    A --> F[Intermediate Technology]
    B --> B1[TNCs create jobs]
    C --> C1[Short-term and long-term]
    D --> D1[Fairtrade improves income]
    E --> E1[Frees money for services]
    F --> F1[Affordable and sustainable]

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Aid

Aid is the transfer of resources (money, goods, expertise, or technology) from one country to another, usually from HICs to LICs.

Types of Aid