Development Gap – The difference in standards of living and wellbeing between the world's richest (HIC's) and poorest (LIC's) countries
To understand this mnemonic, see HIC's and LIC's.
There developed a gap which meant (development gap) there was a difference between the boy eating the ice cream and the girl who couldn't afford an ice cream.
Many experts believe the gap between the richest and poorest countries is getting wider. Reducing the development gap would result in an increase in the standard of living for many millions of people.
Ways of reducing the development gap include:
- Greater financial investment in poorer countries by richer ones.
- Aid to poorer countries aimed at sustainable development.
- Fairtrade – guaranteeing producers in poorer countries a fair price for their produce and products.
- Debt relief – many poorer countries have loans from richer ones, and owe large amounts of money as a result. Reducing debts or making them easier to pay back releases income for spending on development.
- Microfinance loans: small loans with reasonable interest rates to help particular businesses or schemes.