Odd one out?Odd one out?

How can we close the How can we close the development gap ?development gap ?

It is one thing to wish the world were a better place, and quite another to make it happen in the very near future. World leaders who proclaim that closing the gap between the rich and poor countries is the most urgent of times should ask themselves how this could be done. (Khan 1979)

Why is there such a large gap?Why is there such a large gap?• Closing the development gap between the

developed and less developed countries is very difficult.

• The problem started when LEDC’s were exporting their goods to MEDC’s as they were colonies of the rich MEDC’s (exports included tea, sugar and coffee)

• LEDC colonies were then granted independence but the way they only made money through export so they continued to do it. They had no industry of their own.

Why is there such a large gap?Why is there such a large gap?

• LEDC’s still export raw materials to MEDC’s and the MEDC’s then make something from the RM and earn a huge profit. This is called resource exploitation.

• Multi nationals take advantage of LEDC’s cheap labour, relaxed pollution laws and marketing opportunities to get bigger profits which they keep in the MEDC.

Why is there such a large gap?Why is there such a large gap?• LEDC’s have borrowed a huge amount

from MEDC’s. They have used this money to build large development projects (e.g. HEP dams).

• Sadly these projects haven’t been successful and so the countries have been paying massive amounts of interest on failed projects.

• E.g. Nigeria spends more paying back the interest on its loans than it does on health care.

What can be done to help this What can be done to help this place?place?

• Aid: the giving of a resource from one country to another.

• What are the different types of aid?

• Food

• Money

• Equipment and machinery

How can we close the How can we close the development gap ?development gap ?

1. AID PROGRAMMES • The aid is usually in the form of money (also can

be food, materials etc) and can be a direct donation or a loan.

• The money is then used in a variety of different ways such as disaster relief, building schools and hospitals, setting up industries.

• The best aid programmes are those which TEACH and INVOLVE local people and use APPROPRIATE TECHNOLOGY (simple and clear )

• People need to break out of poverty and be able to sustain a living without depending on aid.

How can we close the How can we close the development gap ?development gap ?

2. INVESTMENT PROGRAMMES• Some countries have developed rapidly

through investment and development of their manufacturing industries.

• The Newly Industrialising Countries (NICs) of Asia (Hong Kong, Singapore, Taiwan, Malaysia and South Korea) now account for 10% of world trade.

• The products are generally electrical goods and motor vehicles eg Sony and have been very successful.

AIDAID

What are the different What are the different types of aid ?types of aid ?

1. VOLUNTARY AID• This is aid from non-

governmental organisations (NGO’s) who rely on private donations and gifts. Examples include Oxfam, Save the Children, Red Cross etc.

• Apart from giving emergency aid, their aid programmes are often small scale and involve local knowledge and skills.

• See OXFAM website for examples.

MONEY

FOODTECHNOLOGY

Small scale

Involve locals

What are the different What are the different types of aid ?types of aid ?

2.BILATERAL AID

• This is aid given by one country directly to another eg British government gave money to Malaysia to build the Pergau Dam (see later).

What are the different What are the different types of aid ?types of aid ?

3. MULTILATERAL AID

• This is aid given to poor countries through international bodies such as UN (United Nations) and the World Bank.

• Funding comes from MEDC’s.

What are the problems with What are the problems with aid ? aid ?

What problems can aid create ? • Aid can increase dependence on

the MEDC’s• Tied aid is given in return for

trade agreements that LEDC’s can’t afford.

• Aid can be misspent by governments and not reach those most in need.

CASE STUDY :CASE STUDY :The Pergau Dam Project in The Pergau Dam Project in

Malaysia (LEDC)Malaysia (LEDC)

• This is an example of BILATERAL aid.

• Read the notes in your booklets about this.

WAS IT WORTH IT ? DID IT HELP DEVELOPMENT ?