Move into colour groups. Each group takes responsibility for deciding where their allocated strategies lie on the graph
Closing the gap expert groups 2
Closing the development gap 1 2 3 4 5Anna Toni Saul Rowan CurtisBen V Will Beth Chelsea JordanAdam Lydia Lauren Mitch EmilyChloe Lucy Elliot George ZoeConrad Tom Casey Ben W Get into groups with people in the same column as you
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 nothingLow Impact on people Minority of Majority of population population
Multi-lateral Bi-lateral aid NGO aid aid Bilateral aid Multilateral aid Voluntary (NGO aid)Aid given by one country Richer nations contribute Non-Governmentto another. This is usually funds to international Organizations (NGO’s) are“tied” or “conditional” organizations such as the charities that distributeaid, meaning that the World Bank and the voluntary aid. This mayreceiving country has to United Nations. The be may be short termmake use of goods and money is then (humanitarian aid to helpservices provided by the redistributed for in emergencies e.g.donor country; in other development projects. Shelter Box in the 2013words, aid with strings Examples are UNAids Mozambique floods) orattached. which fights HIV, UNHCR long term developmentBilateral aid is often used supports refugees and the projects such as Save Theto build expensive UN World Food Children’s Zambeziinfrastructure projects e.g. Programme which helps Floodplain Managementdams with expertise people affected by hunger. Programmeprovided by companiesfrom the donor country.
Fair trade Trade justiceFair trade is a system where farmers Trade Justice is a political movementare workers in poorer countries are that campaigns against unfair globalpaid a minimum “fair price” for their trade practices, for example theproducts This can help raise their “dumping” of cheap exports from richstandard of living especially when the countries into poor countries undermarket price for the products falls free trade rules.below the “fair price” Campaigners argue that countries likeFair trade has been criticized for South Korea which adopt protectionisthelping comparatively few producers measures (tariffs and quotas toand some argue that it hurts non fair protect their own industries have beentrade farmers by encouraging higher able to develop more rapidly.production which can then lead to a fall Countries such Haiti that have beenin market price that affects the poorest forced to adopt free trade in return forfarmers who are not part of the international bank loans haveFairtrade organization. remained poor. (Haiti rice e.g.)
Trading blocs Free tradeTrading blocs are agreements that are Free trade is a government policydesigned to benefit the economies of where a government does not applymember countries. Examples include tariffs or quotas to imports andthe African Union and the North subsidies to exports.American Free Trade Area (NAFTA.) Supporters of free trade argue that itTrade blocs encourage free trade by leads to lower prices through naturalreducing or eliminating tariffs and supply and demand and that byquotas between member states. removing barriers to trade, countriesSome trade blocs such as the European can earn more money.Union have gone further and developeda single currency and a common tariff Opponents argue that industries infor exports originating outside the EU. poor countries are unable to compete with those in richer countries leadingTrade blocs are criticized by some to increased unemployment and apeople for creating barriers to global tendency to rely on the export of lowfree trade. value raw materials.
Loans Micro loans RemittancesPoor countries can borrow Microloans are very small The money sent back bymoney from international loans made to poor migrants to their homeorganizations such as the borrowers. The idea countries is calledInternational Monetary Fund originated in Bangladesh with remittance.(IMF) and the World Bank) the Grameen bank and an For many poor countriesThe money has to be paid increasing number of NGOs remittances are now theback and often the lenders such as Kiva are using them to second largest moneywill insist on the country try and alleviate poverty. earner, far exceedingadopting free trade rules or Some NGO’s such as Global international aid.other conditions for example Giving only make micro loansprivatizing industries and to women. Now that remittance hasraising tax. These conditions Supporters claim that people’s become so valuableare called structural lives are often transformed as some people argue thatreadjustment programmes borrowers set up small foreign aid should be(SAPS) are can be very businesses and improve their stoppedunpopular with people. standard of living. Others altogether, especially asIf the loan isn’t paid back the argue that they have resulted the money goes direct tocountry goes further into in even more people falling people rather thandebt. into debt. governments.
Debt relief Conservation swapsDebt relief is when indebted poor Also known as debt for naturecountries are helped to pay back their swaps, this is when a poorloans. Campaigns such as Make Poverty country receives debt relief inHistory highlighted the problem faced by return for agreeing to conservethe Highly Indebted Poor Countries the environment. The World(HIPCs) In 2005 the 18 poorest HIPC Wildlife Fund has been a majorcountries had their debts cancelled (in player in conservation swapsreturn for agreeing to privatizing industries for example some of the debtand a reduction on spending on health owed by Ecuador has beenand education. “brought” by the WWF in return for the money going toSupporters of debt relief say that it is conservation projects in theimpossible for HIPCs to develop as all their Galapagos Islands.income is used to pay back loans ratherthan being used to increase standard of Tropical countries are mostliving. Opponents say that debt relief likely to take part in theseencourages reckless spending and is unfair schemes as they generallyon those countries that have managed have the most diverse naturaltheir economies properly. habitats.
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 nothingLow Impact on people Minority of Majority of population population
High Strategies for reducing the development gap Impact on national developmentLow Impact on people Minority of Majority of population population