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Global Development

Aid, trade, industrialisation and urbanisation

  • 2 things to know
  • Paper 2

Overview

Arguments for and against aid, fair trade, the two industrialisation strategies, and the problems of rapid urban growth.

What you need to know

Answer each one before you reveal it.

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Process

What is aid, and what do the World Bank and the IMF provide?

Key term

What problems can rapid urbanisation cause in developing countries?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    Define aid and identify the different forms it can take.

    Model answer

    Aid refers to the transfer of resources from developed to developing countries, which can be bilateral (country to country), multilateral (through international organisations), tied (with conditions), or untied (without conditions).

  2. 2

    What are three arguments in favour of international aid?

    Model answer

    Aid can address immediate humanitarian needs, fund infrastructure development, and support education and health programmes.

  3. 3

    What criticisms are made against international aid?

    Model answer

    Aid may create dependency, serve donor interests rather than recipients, support corrupt governments, and undermine local economies.

  4. 4

    How can trade function as a development strategy, and what limitation may developing nations face?

    Model answer

    Countries can export goods and services to generate income, though unequal terms of trade may disadvantage developing nations by keeping prices for their exports low.

  5. 5

    What do fair trade initiatives aim to achieve?

    Model answer

    Fair trade initiatives aim to ensure producers in developing countries receive better prices and working conditions for their goods.

  6. 6

    What is import substitution industrialisation?

    Model answer

    Import substitution industrialisation is a strategy that protects domestic industries from foreign competition to allow them to develop and replace imported goods.

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