How can we reduce the development gap?

Trade vs. Aid

TARGETS:Explain the role of trade in development.Explain the role of aid in development.Evaluate the options.

What does economic growth

bring?

Initial ideas – what role might

trade play?

TradeThe way forward for the south...

Increased trade in industrialising economies – allowing revenues to flow.

Countries in the south have to go through the same processes as the north have historically.

Three dependency factors...1. Western capitalism.

2. Economic growth trickling down.

3. Promotion of free trade – neolibralism – Thatcher and Regan.

What examples back up this assertion?

How might this link with the DTM?

Barriers to trade and development...

ACTIVE VIEWING...

What are the barriers to promoting

development through trade?

Trade vs. Aid

TARGETS:Explain the role of trade in development.Explain the role of aid in development.Evaluate the options.

What is aid?

Bilateral Aid

Multilateral Aid

Non-government organisations.

Short-term Aid

Long-term Development Projects

“Top Down” Aid

“Bottom Up” schemes

Aid given directly from one country to another.

Aid given by governments to international aid organisations.

Charities such as Oxfam, raise money for development projects.

Given in response to a sudden incident in a country.

Investment in agriculture, health, education and infrastructure.

A responsible body directs operations from the top.

Aid that involves people working in close relations to communities.

The downsides of aid?

The downside of aid...• Aid does not reach those that need it.• Lack basic infrastructure to effectively deploy

it.• Corruption.• Aid dependency – especially on food.• Strings attached – tied aid with conditions.

Trade vs. Aid

TARGETS:Explain the role of trade in development.Explain the role of aid in development.Evaluate the options.

To what extent can aid help with development?

(15 marks)