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Ideas Review

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Definition It means that people who make or grow a product are paid fairly for their work. Producers get paid directly at fair prices, cutting out the middlemen who would have taken most profit. * Coffee Farmers receive market payments that are lower than the costs of production, which keeps people in a cycle of poverty and debt. The world price for raw coffee has dropped by over 50% since 2000. This drop means people are working longer and harder for less money. * Deforestation to make way for land to grow coffee * Pollution from the spreading of pesticides "We get a higher price when we sell our coffee to 'Caf� Direct'. We are able to pay a doctor who will give treatment to our members. I can afford more food for my family and send my children to school" "My neighbour sells his bananas for $1 for a 40lb box of bananas. I sell mine to a fair trade market for $2.50. This means that I can have a much better standard of living" How FT has helped coffee producers * Fair trade guarantees a minimum wage for the harvests of small producers, this means they ...read more.


3. Consumers in MEDCs are able to keep their conscience clear as they know they have helped poor producers in LEDCs by trading in a moral way. It is the giving of resources by one country or organisation to another country. Resources can be in the form of: * Money * Expertise - ppl. who have skills and knowledge * Goods - food and technology 1. Short term aid - is also known as emergency aid and is aid given in response to a particular immediate need e.g. natural disaster 2. Long term aid - usually takes years before it is of benefit to a country e.g. improved education or a tree planting scheme Why is aid needed by LEDCs? LEDCs need aid to help cope with: Global inequalities due to differences in levels of development Introducing sustainable methods of development The importance of trade which causes a trade deficit 1. Bilateral aid - aid given directly from one country to another. It is sometimes 'tied' with strings attached. Advantages - can faster strong links between donor and recipient countries Disadvantages -large schemes used up land belonging to local ppl - aid can lead to debt as LEDCs often ...read more.


The relationship is strengthened by the fact that America lends EGYPT more aid. Countries also five aid for economic reasons e.g. MEDCs may see the potential in maintaining links with LEDCs many of whom may be ex-colonies because of the large market they provide. Projects may require long term assistance e.g. UK donated �100 million to assist building of Victoria dam - Sri Lanka. Many UK scientists & engineers were employed in construction the dam. Many countries and individuals feel they have a moral obligation to assist those countries facing difficulties of having limited financial reserves of their own Positive and negative outcomes of aid Aid can have positive benefits for recipient countries. Promoting development and improvements in standards of living and the quality of life of many while enabling ppl.to help themselves. However, it can also have negative outcomes. Doesn't always reach ppl.in most need, thereby widening differences. It can be used for overambitious schemes and some feel it can lead to over dependence of MEDCs Care must be taken to ensure that: 1. Aid programmes involve local people 2. Aid is appropriate to the situation 3. We do not assume that al types of aid are useful to developing countries ?? ?? ?? ?? 2 GCSE - Theme E - Fair Trade 1 ...read more.

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