Top Down Development Strategies
- Various approaches to tackling the problems of low and widening development gap
- These are seen at both large and small scales and involve individual or multiple organisations (global players such as Trans National Corporations (TNCs), IGOs (International Governmental Organisations) and governments
- They can be an economic or holistic approach but both have advantages and disadvantages and aim to have a multiplier effect
- Top down strategies are aimed more at an economic level and include large projects which hope to improve incomes for people through developing industry
- A high level of technical support is usually needed with funding from foreign loans and IGOs such as the IMF and World Bank
- Examples include:
- Major roads, bridges, and railways
- New airports and ports
- Hydroelectric power dams
- Freetrade:
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This approach is where countries do not charge tariffs and quotas between themselves, this encourages trading which is free of taxes and charges
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This can be beneficial to developing and emerging countries
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- Investment:
- Where countries and TNCs invest money in developing countries which provide employment and income
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Example: Chinese companies investing in Africa (mainly energy, mining, construction and manufacturing)
- Industrial development:
- Brings employment, higher incomes and opportunities to invest in housing, education and infrastructure
- This has a multiplier effect
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Example: China’s move away from agriculture to manufacturing made it one of the fastest growing economies in the world
- Tourism:
- Some countries have become tourist destinations
- Which leads to investment and increased income
- Infrastructure is improved and direct and indirect jobs created
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Tourism can become vulnerable during a recession
- Debt relief:
- Many developing countries borrowed money to develop their economies during the 1970s and 1980s
- Some of these countries have fallen into serious debt and are unable to pay back these loans because of the high rates of interest
- In 2006, the International Monetary Fund (IMF) agreed to cancel the debts of 19 of the world’s poorest countries
- This money saved in debt can now be used for development projects such as industry, resources and infrastructure
- But corrupt governments may keep money
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Example: Ugandan government has spent money to provide safe water to over 2 million people