Key learning points

1. Various strategies exist to reduce the development gap.
2. The global system of trade is not free or fair as trade blocs, tariffs and quotas hamper the flow of goods.
3. The Fairtrade movement aims to address some of the problems of the global trade system by supporting producers in LICs.
4. Debt relief enables the government in LICs to invest in public services and support the poorest.
5. International aid can support the development of essential infrastructure via the use of intermediate technology.

Keywords

• Trade - the buying and selling of goods and services between countries

• Fairtrade - a system that ensure producers in LICs and NEES get a fairer price for goods produced, improving their income and working conditions

• Debt relief - when a bank or government tells another governnment that they do not have to pay back the money they owe

• Aid - support (money, goods or services) given to improve the quality of life of a recipient

• Intermediate technology - technology suited to the needs, skills, knowledge and wealth of local people in the environment in which they live

Common misconception