12 terms

Managing the development gap

STUDY
PLAY
Foreign Direct Investment (FDI)
FDI is where foreign companies (such as BMW) locate their factories or research and development facilities in another country
Aid
A form of help given from one country to another; or one person to another, or from a charity (often called Non-Government Organisations or NGOs) to a country or region
Development aid
Aid given to a country to help develop its economy
Short term aid
This is aid that only lasts for a short period of time - it is immediate aid e.g. after disasters
Tied aid
Aid given to a foreign country with conditions attached
Untied aid
Aid that is given to a country with no policy or spending requirements attached.
Intermediate or appropriate technology
A way of transferring technology from rich countries to poorer nations. Improves quality of life through mid-level technology - small-scale, labour-intensive, energy-efficient, environmentally sound, and locally controlled
Practical Action
A charity that has over 100 projects worldwide that are appropriate technology e.g. micro hydro-electric power stations to generate electricity so people can work their way out of poverty.
Trade
The buying and selling of products, can be used to help even out the gaps in development. If exports greater than Imports it will make money.
Fair Trade
trade in which fair prices are paid to producers in developing countries.
Debt relief
The reduction or cancellation of debt that LEDCs owe to either the World Bank or developed nations.
Microfinance loans
Very small loans which are given to people in the LICs to help them start a small business.