Strategies influencing growth and development

T4 CC8 (keywords)

Subsidies

Financial assistance provided by the government to support or promote certain sectors or activities, often to reduce cost of production or encourage investment in key areas like agriculture or renewable energy.

Microfinance

Providing small loans, savings accounts and financial services to individuals or small businesses in developing countries who lack access to traditional banking services, helping them escape poverty.

Remittances

Money or goods sent by migrants back to their home country, usually to support their families, and an important source of income for many developing economies.

International Monetary Fund (IMF)

An international financial institution that provides loans to member countries facing balance of payments problems, often tied to structural adjustment programmes and fiscal reforms.

World Bank

An international financial institution that provides loans and grants to the governments of developing countries for the purpose of pursuing capital projects and reducing poverty.

Buffer stocks

Reserves of essential commodities, typically agricultural goods, that governments maintain to stabilise prices and supply during periods of scarcity or price volatility.

Joint venture

A business arrangement where two or more parties, often from different countries, collaborate on a project, typically in developing economies to share resources, risks, and profits.

The Lewis Model

A development model proposed by economist Arthur Lewis, which suggests that development in labour-surplus economies occurs as workers move from low-productivity agricultural sectors to higher-productivity industrial sectors, leading to economic growth.

Foreign Direct Investment (FDI)

Investment from a foreign country into productive assets in another country, such as businesses or infrastructure, often seen as a key driver for economic development in emerging markets.

Trade Liberalisation

The removal of trade barriers (such as tariffs and quotas) to encourage international trade, which can lead to economic growth and development if managed well.

Structural Adjustment Programmes

A series of economic policies promoted by the IMF and World Bank that focus on reducing government spending, privatization, deregulation, and liberalisation, often in developing countries facing economic crises.

Technology transfer

The process of sharing or transferring technological knowledge or innovations from one country or organisation to another, playing a key role in promoting development in less developed nations.

Foreign aid

Financial or material support provided by governments or international organisations to assist developing countries in achieving development goals, such as reducing poverty and improving infrastructure.

Economic diversification

The process of expanding the range of products and services produced by an economy, reducing dependence on a few sectors (e.g. oil or agriculture), and increasing resilience to external shocks.

Non-Governmental Organisations (NGOs)

Independent, non-profit organisations that work in developing countries to provide aid, promote human rights, and address social issues such as poverty, education, and health.

Sustainable development

Development that meets present needs without compromising the ability of future generations to meet their own, incorporating economic, social, and environmental considerations.

Inclusive growth

Economic growth that benefits all segments of society, reducing inequality and ensuring a more equitable distribution of wealth, often focused on ensuring growth reaches the poorest.