Obstacles Toward Development
In this every day changing world, many of us are living in a comfortable home, have enough food to eat, well clothed, healthy, and financially independent. All these are provided to us because we are living in a well-developed country. Others in the third world nation are not so lucky. They may have no shelter, limited food supply, and unemployed. This is because their country is not well developed like ours. Problems that stop these countries from developing are
1. Low levels of living, comprising low incomes, high inequality, poor health and inadequate education. 2.
Low levels of productivity. 3
High rates of population growth and Dependency Burdens. 4.
High levels of Unemployment and Underemployment. 5.
Significant dependence on agricultural production and primary product exports. 6.
Dominance, dependence, and vulnerability in international relations.
Low levels of living is one of the major obstacles toward development. Low levels of living is comprised of low incomes, high inequality, poor health and inadequate education. The gross national product (GNP) is the most commonly used measure of the overall level of economic activity. The gross domestic product (GDP) measures the total value for final use of output produced by an economy, by both residents and nonresidents. Thus GNP comprises GDP plus the differences between the income residents receive from abroad for factor services (labor and capital) fewer payments made to nonresidents who contribute to the domestic economy. Many Third World countries have a low level of per capital income, in addition there is a slower GNP growth compare to the developed nations. Secondly, many people in third world countries are unhealthy and constantly battle with disease while trying to stay alive. The infant mortality rate is very high compared to the developed countries. One reason that leads to this is that they do not have the access to safe drinking water and health...
Bibliography: Todaro, Michael P., Economic Development, 5th editon, Longman, 1994.
McConnell, Brue and Barbiero, Microeconomics and Macroeconomics, McGraw-Hill
Ryerson , 1993, or any other introductory economics text.
Gillis, Pwerkins, Roemer, Snodgrass, Economics of Development, W. W. Norton and
Hogendorn, Economic Development, Harper Collins, 1996.
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