1.6 What types of strategies exist for reducing the development gap and how effective are these strategies? Different types of aid: bilateral, multilateral and emergency aid. Free trade and fair trade. Foreign direct investment and the role of TNCs. Debt rescheduling, debt abolition and debt for conservation swaps.

Free trade vs Fair trade Read the information on pages 32 – 34 in the development booklet.

How many different products are there? Over 3,000 products from coffees to flowers are Fairtrade certified.

How has fair trade benefited Uganda? Watch the clip How has fair trade benefited Uganda?

Transnational Companies Watch the clip Transnational Companies

How many can you think of?

Foreign direct investment and the role of TNCs What are they? How do they effect our global economy and development? How do they aid development? What negative impacts do they have? You have done your own research into FDI and TNCs, use that information to help you answer the questions. Foreign direct investment and the role of TNCs

Watch the clip

Nike Case Study Look at the case study of Nike in the Development booklet provided at the start of the topic, page 34-35. Answer the following questions: Read the information in the PDF on the website.

How is Nike structured around the world? Nike says that it is in the business of marketing shoes, not making them. Is this all the influence they have? What are the working conditions like compared to the surrounding countryside? Why are workers open to exploitation? How many people work in Nike factories and where do they work around the World? Nike faces a number of on-going challenges, what are they? Why did Nike look for greener pastures? Where did they go and why? Use the booklet to get the answers

Sub case study – Child Labour issues in Pakistan Read the PDF on the website and pick out the main points of the case study.

Sub case study – The girl effect Look at the girl effect website and write a paragraph to outline the key purpose of the website.

Millennium Development Goals (MDGs) Positives Negatives Bullet point the + / - of the MDGs using pages 37 – 38 in the Development booklet

Case study - Vietnam Since 1980’s shown improvements in trade. Membership of ASEAN bloc since 1995 WTO since 2006 Aid - £50 million a year from the UK department for International Development. Improved human development indicators and economic growth rates. Poverty fell – 58% (1992) to 12% (2010). Life expectancy improved. Adult lit rate rising Primary school enrolment rates are 97.5% Average economic growth rate of 7.5% This is another case study to note in relation to the MDGs, what other case studies do you already have?

Case study - Vietnam Challenges – Inequality Corruption Bureaucracy Environmental deterioration.

DEBT Debt has a massive handicap to development, ways of eliminating debt have become important. 3 options: Debt rescheduling Debt abolition Debt for conservation Make notes on each of the following debt options and read the information on pages 36-37 in the development booklet.

Debt rescheduling Make payments easier. A practice that involves restructuring the terms of an existing loan in order to extend the repayment period. Debt rescheduling may mean a delay in the due date(s) of required payments or reducing payment amounts by extending the payment period and increasing the number of payments.

Debt abolition Cancelling the debt There is much debate about whether the richer countries should be asking for money to be repaid. HIPC initiative – 41 countries Mostly in sub-Saharan Africa Look at the debt relief initiatives Africa PDF on the website.

Debt-for-conservation Here a debt, or a portion of it, is written off and the money that would have been paid in interest on the debt is used to pay for conservation measures. Explored mainly in the 1990’s. Now largely defunct. In theory the environment should have benefited but few benefits were ever monitored. Ready the PDF case study on the website

Case study - Peru 10 of the most biologically diverse yet critically endangered rainforest areas escaped deforestation. Landmark swap that the US Nature Conservancy helped facilitate in June 2002.

Personal Study Identify to which section of 1.6 each of the following links and write a summary paragraph for each. UN Global Compact 2000 New Partnership for Africa (NEPAD) 2001 Commission for Africa (2004) Make Poverty History