NGOS From a non profit agency- short term/emergency and long term Can be from private contributors and philanthropy such as the Gates FoundationAdvantages: aid can target poorest and is given out quickly Disadvantages: relies on individual donations
Encouraging manufacturing goods Creates domestic jobs in, value added goods- FDI Advantages: creates new jobs, helps improve infrastructure and business culture Disadvantages: TNCs can move away at any time, dependency on TNCs
Drop the Debt (debt relief) Debt relief is when MEDCs /the World Bank reschedule orreduce a countrys debt. It is used to reduce the debt burden of countries that are repaying loans but seeing the outstanding sums grow despite repayments. Pros: This means LEDCs can use more money for development e.g. Health and education Cons: LEDCs will not will not learn how to manage their economyThe money saved may go to corrupt politicians and not on the countrys development.It may be seen as unfair on countries that have already repaid their debts.
What is it?• Aid from one country to another• E.g the UK gives 1% GNP in aid each year to LEDCs• It finances projects normally of interest to the donors because it will depend on the expertise that they supply
Advantages• Large sums given for big projects• 75% of aid is in this form
Disadvantages• Open to corruption and waste• Much of the money returns to the donor country
How does it help?• allows specialisation of production and exchanging goods (imports and exports)• can give the country the opportunity to have a trade surplus or reduce its trade deficit
advantages• income from what country does best• creates employment thus positive multiplier effect• aids independent development
disadvantages• could lead to trade deficit as LEDCs often specialise in low value primary product (& may be importing much higher value products)• TNCs dominate trade thus retain most of the profit so only small amounts will reach communities
Fair Trade• Fair trade ensures that the producers of of goods are paid a fair price for their products.• This is important now because there are so many multinational companies that receive the majority of the profit leaving their workers unfairly paid.
Debt-For-Nature • This is when MEDCs give money to or let LEDCs off some of their debt in return for the guarantee that a particular area of the LEDC be protected e.g. Large oil reservoir beneath a TRF in Ecuador. • This is beneficial as a lot of the environment can be protected from their own governments who may exploit them for economic purposes. • Some people argue that countries should not need to be bribed in order to conserve their natural ecosystem. Also there is no guarantee that the LEDC will agree to s policy in the long term.
Fair trade• Fair trade pays the farmer or producer more for their product ensuring they get a better deal• Example: Ecuador bananas• Advantage: income from what the country does best, provides jobs and helps independent development• Disadvantage: can lead to a trade deficit, LEDCs often specialise in low value primary products, TNCs dominate trade
Debt for nature-swaps• Reducing a countries debt in return for nature conservation, this allows countries to get out from under their debt without destroying their land• Example: Ecuador• Advantage: LEDCs can use more of their money for development: improving health and education• Disadvantage: No guarantee that countries will not exploit their environments in the future, people should conserve their environment anyway I.e. there should not need encourage from other countries
NGO,s• Non government organisations• They usually give emergency aid to countries.• Aid can be food, shelter, as well as longer term sustainable aid. An advantage of NGO, the money gets spent on the people who need it as opposed it other forms of aid which some of the money will not go to help the