Reason for the development gap

Reason for the development gap

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  • Many LEDCs are in debt to MEDCs and some of their income has to pay off these debts.
  • As the poor countries develop, they would keep borrowing money off the MEDCs to help develop their country further. 
  • Infrastructure such as schools, hospitals, roads and railway lines cost a lot of money to build so LEDCs borrow money of MEDCs
  • Countries run up huge debts with banks and MEDCs and they struggle to pay back the debt owed
  • LEDCs sometimes can't fully pay back their debt to MEDCs.
  • These payments will often mean that there is less money available to the government to help improve the lives of their citizens.
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