The Development Gap

Is the difference between the richest and poorest country in terms of economic attributes and quality of life
Widening Gap
1. It is extremely difficult to prove or disprove
2. It only shows that whilst some countries are proving the gap is crossable, equally it is possible for some countries to stagnate or decline
3. Some industrialising countries are crossing the gap showing nothing about the width of the gap
Colonialism
1. Many LEDCs used to be Colonies, usually governed by a MEDC
2. Many African countries are former colonies
3. During colonial periods, the colonies were used for a cheap and reliable source of raw materials in exchange for manufactured goods
4. This meant colonies weren't given an opportunity to develop their own industry
5. Most colonies are now independent but were hindered in trade and development
6. MEDCs gained initial advantage and gained momentum for development from colonies
7. Early economic success increases political and military strength helping develop resources and colonies new land
Economic factors
1. Decolonialisation occurred stopping MEDCs political domination leaving LEDCs financially vulnerable
2. LEDCs took out loans to with high interest rates from MEDCs and the 'World Bank' to keep developing, but would have high debts which they can not repay
Trading Blocs
1. Unfair trade
  1. Two most powerful: the US and the EU, have made links with neighbouring countries, denying access to rivals
  2. Products of LEDCs face many obstacles in entering the markets of rich countries influencing high tariffs
  3. Most rich countries have high tariffs on raw materials, which makes it harder for developing countries to industrialise
2. Former 'heads of colonies' have kept their momentum by becoming influent leaders in trading blocs
3. a group of countries that join together in some form of agreement in order to increase trade between themselves and/or to gain economic benefits from cooperation on some level
4. Poor countries need to grow their way out of poverty
5. Trade is a key engine for development
6. Poor countries caught in a vicious circle
7. To break the circle they need to export

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The Development Gap

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