Challenges Facing Developing Countries

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Challenges Facing Developing Countries Janita Aalto Principles of Microeconomics ECO 204 Instructor Kathryn Armstrong March 28, 2011 Challenges Facing Developing Countries Developing countries, also known as third and fourth world countries; face economic challenges that first world countries do not face, on a large scale. Poverty, low literacy rates, poor investments in both human capital and domestic capital, poor nutrition and devastation to populations due to the HIVAIDS pandemic contribute to developing countries moving towards development. The primary focus of this paper is to explore the impact the HIV/AIDS pandemic has had on Sub-Sahara African economies and to explore the challenges facing developing countries to stimulate…show more content…
2002, p. 235). This would most likely be a controversial plan, but the strategy would help the people in those groups and buy time for skills training and development of a new work force to replace those that will either lose their health or their lives. It would also boost the economy if industry production levels can be maintained and exports of goods can remain at a profitable pace. The pandemic is having a major effect on life expectancy, which has been dropping. “ In Zimbabwe, for example, life expectancy is 40 instead of 69. In seven countries in Sub-Saharan Africa, life expectancies are below 40 years of age”, (CHG, 2009, p. 3). Not only does this impact the work force, but impacts the children, many of whom lose not only one, but both parents, and other family members that might be able to take them in. Instead these children now become a government responsibility, as they are put into orphanages, group homes, etc. It is estimated that there are 15 million orphaned children across Africa. Standards of living are decreasing, and countries that were once starting to make progress both socioeconomically and economically are headed backwards instead of forward. Poverty is increasing as the family breadwinners are dying or becoming incapacitated by their illnesses. If
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