Reducing the development gap
How might it be reduced and by whom?
Theories and Approaches to reduce poverty
1) How can we reduce poverty within countries?
Global economic growth (global economy)
Political stability
Globalisation trends
Aid and foreign investment
Government investment in infrastructure (ICT, social services etc.)
Food security
Trade strategies
Investment in healthcare e.g. AIDS
Addressing inequalities e.g. ethnic, women, rural/urban
Tourism development
Debt cancellation/ reduction
Legal empowerment of poor
International cooperation
2) Copy any you haven’t
got down and colour
code into those which
are internal Vs external
approaches
Theories and Approaches to reduce poverty
Public /
Government
Private
Top-down
Reducing
Poverty
Voluntary
Organisations
Bottom-up
Theories and Approaches to reduce poverty
Theory
Essential Info
Likely impact on
gap
NeoLiberalism
A set of economic policies popular towards the
end of 20th C esp. Thatcher/ Reagan. Based
upon market forces, privatisation and little state
intervention. Govts abandoned key principles in
2008/9 with huge investment to prop up
economies during recession.
Most developed and developing countries e.g.
USA, UK, Germany, Russia, WTO, IMF
No Change
Rich grow richer
and poor grow
poorer
Marxism
Capitalism is based upon the exploitation of
workers by ‘owners of the means of production’.
History recounts conflict between these
‘classes’ Marxism seeks to replace existing class
structure with on which manages society for the
good of everyone.
Cuba, China (reducing)
Reduction in the
gap
Populism
A philosophy which supports ‘the people’ against
the ‘elite’ in society. It urges economic, social
and political reform but does not have a strong
ideological identity.
France’s / Spain’s social state (to an extent)
Change unlikely
Theories and Approaches to reduce poverty
Theory
Essential Info
Likely impact on
gap
NeoLiberalism
A set of economic policies popular towards the
end of 20th C esp. Thatcher/ Reagan. Based
upon market forces, privatisation and little state
intervention. Govts abandoned key principles in
2008/9 with huge investment to prop up
economies during recession.
Most developed and developing countries e.g.
USA, UK, Germany, Russia, WTO, IMF
No Change
Rich grow richer
and poor grow
poorer
Marxism
Capitalism is based upon the exploitation of
workers by ‘owners of the means of production’.
History recounts conflict between these
‘classes’ Marxism seeks to replace existing class
structure with on which manages society for the
good of everyone.
Cuba, China (reducing)
Reduction in the
gap
Populism
A philosophy which supports ‘the people’ against
the ‘elite’ in society. It urges economic, social
and political reform but does not have a strong
ideological identity.
France’s / Spain’s social state (to an extent)
Change unlikely
Therefore there are lots
of different approaches
towards the goal of
development based on
different philosophies.
These are all mostly ‘modernist’ – That is they are
founded on the belief that all countries should develop
into ‘western’ states.
What might a NGOs philosophy be?
What might a government’s philosophy be?
What might a TNCs philosophy be?
Theories and Approaches to reduce poverty
Critique – an anti-development school of thought is emerging!!!
• ‘Development’ – what is it? We see it in a Eurocentric ideal
based upon material prosperity.
• It is a process which creates ‘dependency’ (both poor to rich
and vice versa)
• It undermines local cultures and ways of life
• It is environmentally unsustainable
•It infringes human rights and undermines democracy.
Aid and Investment Strategies
Ways to Reduce
the gap
Aid and Investment Strategies
Debt relief /cancellation
Fair prices for
primary products
Education
Ways to Reduce
the gap
Help to lessen the
impact of HIV/Aids
Political stability
Trade
Aid to develop education,
health services, safe
water supplies, modern
means of communication
Investment
Technology
Reducing the gap: Aid and Investment
Aid and Investment Strategies
1) Define these types of aid:
Humanitarian
Development
Project
Voluntary
Bilateral
Multilateral
2) Using page 207 Oxford explain
what the strategies of aid in terms
of top down and bottom up mean
3) Apply this to your definitions.
4) Using page 207, Explain clearly
what the difference between
Investment and Aid is.
Reducing the gap: Aid or Investment?
Task 1: p206
Define and categorise (top down / bottom up) these types of aid
-Humanitarian
-Development (ODA, OECD)
-Project
-Voluntary
-Bilateral
-Multilateral
aid
Reducing the gap: Aid and Investment
Task 3:
Evaluating real projects
a) What criteria would you use to judge a projects success? Discuss
in groups of two and come up with your criteria and a scoring system.
Scale of project, social impact, economic impact (types – individual/
company), environmental impact, reach of project, debt level received etc
etc etc
Evaluating Aid and Investment Projects
In pairs evaluate each of the seven
development projects on pages 207-213 in
turn using your criteria
Use the template table to help
Your will report your findings and evaluations
in your pairs with an idea of which project
was most successful according to your
criteria and which was least.
Reducing the gap: Aid and Investment
Project
-Scale
-BU / TD
-Aid,
investment
or populist?
Information
Where, when, players involved, money
and source of finance
Criteria
and
details
Criteria
and
details
Criteria
and
details
Criteria
and
details
Criteria
and
details
Overall
score/
evaluation
Reducing the gap: Aid and Investment
“ Which are most effective in
achieving development; Aid,
investment or populist
policies?”
Essay question:
“Evaluate which is the most effective means of achieving development: aid,
investment or populist policies.” (15)
Free trade or fair trade geofile
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