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GCSE 3. Development

Tourism This service industry is used by many LEDCs to develop their economies
Aid Money or assistance given by MEDCs to improve living standards in LEDCs
Apporopriate technology Cheap, easily maintained technology which does not increase dependence on MEDCs for fuel or parts
Non Governmental Organisations (NGOs) Charities which depend on voluntary contributions. This aid is generally spent on small scale community projects
'Bottom Up' Small scale community projects which involve local people in the decision making
Bilateral aid Aid given from one country to another country. Often spent on large scale 'top down' projects such as dams. May lead to debt.
Multilateral aid Aid given via international organisations such as the UN
GDP The Gross Domestic Product is the wealth generated by a country's economy
Indicators of Development Statistics that can be used as a measure of economic or social development.
Economic Indicators Statistics concerned with the money side of life (eg GNP and economy)
Social Indicators Statistics concerned with society, people, eg life expectancy
Informal sector Employment which is not registered with the government for tax purposes (eg. Shoe cleaner). It is often a large sector in LEDCs.
Literacy rate The amount of people who can read and write.
HDI The Human Development Index - method used by the UN measures development by using three indicators... *Purchasing Power (what an amount of money will buy in that country) *Educational attainment (literacy and years in school) *Life expectancy at birth
Infant Mortality The number of babies that die under the age of one per 1000 live births
trade blocks Countries group together to give trade advantages, eg OPEC and EU
Manufactured products These products are often expensive and high value such as cars and computers
Primary products LEDCs tend to sell these products, such as bananas or iron ore, competition leads to low prices
Consumer Products As a country becomes richer, its people can afford more of these products, such as electrical goods from Japan
Tariffs Taxes put on foreign imports to make them more expensive so customers buy home-produced products
Exports Goods sold by a country
Imports Goods bought by a country
Trade deficit When the value of imports is greater (exceeds) the value of imports. This leads to debt.
Tourist dollar The money bought to a country by tourists which can provide cash to exchange
Colonies Many MEDCs used to have LEDC countries in their empires - eg. India was a colony of the UK
dependency Colonies relied on the export of a raw material to the factories in the colonial power. MEDC prevented colony from setting up its own industry
Fair Trade Trade which aims to give a fairer share of the price to the workers involved
Protectionism Where a country puts a tariff or trade barrier on manufactured imports from LEDCs. This helps their own industries but makes it hard for LEDCs
debt LEDCs took out cheap loans in the past, but as interest rates have risen, many owe more than they originally borrowed causing a debt burden.
Created by: Rayrayy