Barriers Towards Economic Development

Political Structure/Governance

Corruption

Political instability

Restricted flow of labour force due to restrictions on specific nationalities/passport

Human Capital

Availability of Natural Resources

Geographical location can determine the abundance of natural resources that drives economic growth

More developed countries may exploit countries with great natural resources resulting in them trapped in the low-developed cycle despite them having high availability of natural resources

Poverty Cycle within the country

Poor access towards education and health

Low opportunities for jobs

Historical Background of Country

Colonialism

Countries with strong colonialism background may still suffer from exploitation and oppression despite gaining independence

Great wealth gap / Unequal income distribution

May be damaged due to natural disasters that may be more often in some countries than the other

Size

Influenced by the population size of the country. As bigger countries are more difficult to govern than smaller countries

Financial Capital

Countries with stronger GDP may have greater potential in developing their countries as they have more financial capital to invest in public and merit goods (education, transportations, infrastructures, road, healthcare)

Capital Flight

Remittances leaving the country may impact the domestic economy, providing lesser financial capital for the domestic country to grow

Social Conflict

Ethnic and religious conflicts resulting in disputes within the economy, potentially deforming the labour force market