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barriers to developing countries' effort to grow and develop :smiley: …
barriers to developing countries' effort to grow and develop :smiley:
:warning: :warning:
economic barriers :check:
limited access to infrastructure
importance of infrastructure
infrastructure a type of physical capital, results from investment
important to function effectively
part of telecommunications, internet access, piped water supplies and sanitation
20% of total investments in developing countries
offers contributions to economic growth, economic developments and poverty alleviation
government responsibility
barriers to infrastructure
2015 1 in 4 healthcare facilities did not have access to basic water services, 2 in 10 people lacked access to baseic drinking water, 2.4 billion people did not access to basic sanitation services
problems financing --> government charge users for their consumption of infrastructure however, in developing countries, government social policy intended to make services affordable, prices charged for infrastructure services have been kept below cost, insufficient revenue for state enterprises
inadequate maintenance and poor quality --> lack of revenue, poorly maintained and low quality unreliable services
limited access by the poor --> constraints in quantity of infrastructure can be constructed, poor suffer disproportionately from lack of access in rural and urban slums
misallocation of resources --> facilities may be underused while others that require better maintenance might be neglected
neglect of environment --> numerous negative environmental effects, failure to adequatley control unnecessary emissions
Limited Access To technology
Different Climate and Ecological Conditions:
technology developed in rich countries are inappropriate to climates geography and ecological conditions of many developing countries
relevant to the needs of agriculture
Difficulties in Development of Appropriate Technologies:
developing countries very few resources to devote to R and D and new technology
developed spend 2% of GDP, Sweden 3.3%, Japan 3.2%
lower income 0.5% far lower GDP per capita, spend next to nothing
private sector faces incentive to engage but low income countries few incentives and it barely contributes to the private sector
developed produce and innovate for large markets
firms in less developed countries dont have the resources nor market to support R and D
Different Factor Supplies (Labour and Physical Capital):
labour-using (labour-intensive) technologies use more labour in relation to capital. they result in increases in local employment and the use of local skills and materials, increases in income and poverty alleviation, and save on the use of scarce foreign exchange
capital-using (capital-intensive) technologies use more capital in relation to labour. in developing countries with large supply of labour, they displace workers and increase unemployment, reduces income and throw people into poverty, and require skill levels that may be costly and difficult to acquire, as well as the use of foreign exchange for imports
Informal Economy:
Economic Inequality:
high-income inequality is not necessary and greater equality in income distribution allows for more growth and development
economic inequality has no correlation to income distribution
according to the World Bank, income inequality increased in 34 out of 83 countries monitored in 2008-2013. this is due to more rapid income growth among the higher income groups, which results in higher economic inequality
Low Levels of Human Capital
Barriers to Education
insufficient funding for education (tertiary, secondary)
families might call back their children from studying at a higher level to work with them (ie. on a farm)
Barriers to Achieving Good Health
insufficient funding for health care
political barriers :pen:
Legal System
Weak Institutional Framework
there is a need to,
develop institutions relating to property rights: laws that define rights to ownership, use and transfer of property
a well-functioning legal system that provides effective enforcement of laws, contracts and mechanism for settling conflicts
an efficient, fair and transparent tax system
banking and credit institutions that provide effective links between savers and investors, and broad access by the poplation to credit
institutions that protect against corruption
legal framework and access to justice:
equal access to justice for all, including vulnerable groups
access to justice is necessary to eliminate poverty, as poverty is often the result of disempowerment, exclusion and discrimination
necessary to have the appropriate institutions in place that provide a legal framework for the proper functioning of the economy, including effective tax collection systems and protection of property rights, as well as effective ability to resolve disputes
Inappropriate Governance
Corruption:
Ineffective Taxation Structures
revenues are needed for investments in human capital, infrastructure and activities required for growth and development
however, developing countries often have inadequate taxation institutions and tax structures, resulting in low levels of revenues, often with negative impacts on equity and resource allocation
developing country tax systems typically display,
high dependence on indirect taxation
inefficient and highly bureaucratic tax systems
weak tax collection systems, often marked by a significant level of corruption
concentration of political and economic power in wealthy groups, enabling them to influence government tax policy so as to minimise their tax burden
Banking
social barriers :silhouettes:
Gender Inequality:
gender inequality means that people still believe women belong in the household and should be domesticated
fewer women being employed in the workforce
this results in a lower productivity of labour in the country because there are not as many people available to work and earn money, and so households may miss out on potential income
Property Rights and Land Rights