FACTORS AFFECTING ECONOMIC GROWTH:
The World Bank's World Development Report (1999) notes that there are several factors that can influence economic growth beyond financial or economic factors.
1. Social and political stability: Countries with stable political systems and low levels of social unrest tend to attract more investment and experience more economic growth.
2. Education and human capital: A well-educated workforce can drive innovation and productivity, leading to higher economic growth.
3. Technological progress: Technological advancements can lead to increased productivity and efficiency, leading to economic growth.
4. Infrastructure: Adequate infrastructure, including transportation, communication, and energy, is necessary for economic growth.
5. Natural resources: Countries with abundant natural resources, such as oil or minerals, can experience rapid economic growth if these resources are managed effectively.
6. Demographic factors: Population growth, age distribution, and urbanisation can all affect economic growth.
7. Cultural and historical factors: Cultural and historical factors can shape economic institutions and policies, which can impact economic growth.