Economic Issues of Developing Countries

Assess the significance of three factors which might limit economic development in the developing countries.

Assess the significance of three factors which might limit economic development in the developing countries.

Income inequality and poverty and are issues affecting a majority of people around the different parts of the globe. These issues exist and are increasingly becoming a major concern in both developing and developed countries. The purpose of this paper is to show some of the causes and effects of income inequality and poverty in developing and developed countries. Income inequality varies especially by region, education and social standing and hence increasingly widening for so many years. In addition, a large group of people in the world have the inability to access high-quality education, shelter, food, clothing, and basic medicine. Business activities are an important factor in the economy and have the ability to aid in eradicating poverty through providing fair wages reducing the uneven distribution of income.

Both developing and developed nations were part of the set. The developed nations consisted of 47% of the total set. We started with 43 nations and dropped a few countries later from the analysis because of missing data.

A common misconception about family poverty is that the parents don’t work. Contrary to this, it is shown that most families living in poverty have at least one working adult. To raise the living standards, of these children, we should first raise the minimum wage to at least $10 per hour in all provinces, to ensure that families will make an income above the poverty line. As well, job stability is essential to the economic well-being of poor working families. This can be insured, by promising parents/guardians below the poverty line a chance to work at a job for 10 months, without being laid off or dismissed.

Negative impact of globalization in developing countries Rosa (Su Min Son) ILSC Toronto Thesis statement: Globalization arouses matters to develop developing countries’ economy. Ⅰ. Excessive outflows of brain and money. A. Studying abroad and immigration keeps increasing. B. Cultural toadyism and international vogue decrease consumption of own country’s products. Ⅱ. Excessive competition in the world market A. Developing countries have low competitiveness. B. Each of countries evades cooperation with other countries. Ⅲ. Increase of economic polarization A. A lot of people who live in developing countries are afflicted with the exploitation of labor by multinational corporations.

Global poverty and inequality have steadily increased since the 1980s. The causes of this gross inequity are the policy choices that governments make, the institutions that govern economic relationships, the power and influence of the world's largest corporations, the history, the war and political instability, the national debt and the vulnerability to natural disasters.

In recent years, sub-Saharan African countries have experienced macro economic growth. The growth rate per annum averaged 5.2% over the past decade between 2000 and 2011 (Kulundu, 2013). The growth rate has outpaced Middle East, Latin America and Eastern Europe after being the slowest growing region for many years. In Tanzania, the growth rate averaged 6.8% from 2005 to 2011. It was ranked 1st in East Africa and 8th in sub Saharan Africa. In 2014 the GDP was expected to grow by 7.2% and continue growing at annual averaged rate of 7.7% in medium term (MOF, 2014). Ifzal et al (2007) observed that, economic growth does not guarantee all people to benefit equally, because growth itself is not sufficient for poverty reduction. If poor or marginalized people are left behind, it will result in increase of income inequality (Ifzal et al 2007). Vijayakumar et al (2012) showed the importance of economic growth by identifying its effect in the economy. It’s observed that, if GDP growth decreases by 1%, it might trap 20 million more people into poverty. Therefore, it is evident that unstable growth will definitely have severe adverse impact on vulnerable groups of people in the society. Furthermore high and increasing levels of inequality may reduce the effect on poverty reduction resulting from a given rate of growth. Thus inequality has implications for social cohesion and political stability required for growth sustainability. This has been studied in several research works that have

Poverty The gap between rich and poor nations is still growing. Although rich nations have provided aid and technical assistance to Third World nations, the developing nations face many obstacles in their drive to modernize. The population explosion, inflation, natural disasters, poor planning, and even government corruption have upset the development plans of many Third World nations. Some progress has been made in increasing food production. Researchers developed new

This paper seeks to indubitably forward that the expansion of capitalism has hindered ‘the developing countries of Asia, Africa and Latin America’, therefore contributing to poverty: The state of being extremely poor’. Capitalism is an economic system, dependent solely on capital: the force that increases the productivity of labour, creating ‘wealth of nations.’ Adam Smith expressed capitalism’s exclusivity, driven by the ‘invisible hand’ mechanism, exclusive to developed countries and capable of causing such poverty. The British Empire, competitive pricing and globalisation reflect this. Postmodern scholar, Ricardo Hausman challenges my analysis, arguing that capitalism has not spread enough.

Developing countries want to gain wealth and stability, in order to do so they ask wealthy developed countries for financial assistance in the form of loans. They then can use these loans to increase their countries output by more than what it takes to repay their debt (FLS, 322). Many times they have to go through international financial organizations such as the IMF in order to gain these funds. The incentives for both sides is the high probability of the projected outcomes out-way the projected costs. However, maintaining payments of loans can be very difficult and can weaken the domestic economy in order to pay off the loans. If the government does not invest the money in social programs and just uses the money to help large corporations then there will be public outcry because the citizens will be negatively effected and feel like they did not benefit from the loans so should not have to pay the consequences. Thus loans can have both positive and negative outcomes for both lenders and borrowers.

The world has improved in the last two decades in ending the terms of inequalities and poverty. Many countries are determined to improve their economy, and become fully developed just like the United States. In my home country, Kuwait, poverty do not exist, however, inequalities do. Some of the countries

Country Economic Analysis Report Throughout the years, the United States of America has endured a very strong economy. Although there have been many obstacles of hindrance such as trade deficits, wars, hostile governments and embargo’s, the economic status of the United States still continues to prevail. Just to name a few, the economy of this country survives on simple commodities such as pork, oranges, precious metals and the productive efforts of its citizens. In this paper, I will not only introduce and discuss the logistics of both the United States and the United Kingdom; I will discuss its key economic obstacles and its economic well being.

3 Data I use data from the German Socioeconomic Panel administered annually from 1984 by the German Institute for Economic research (Wagner, Frick & Schupp 2007; Socio-Economic Panel (SOEP), 2017)). Starting 1991, GSOEP started including East German data. More than 10’000 individuals are resurveyed and asked a variety of questions concerning their education, employment, life satisfaction, family relations, etc. Each individual is also linked to a household, and household-specific questionnaires are also filled out annually. While the survey asks general questions, such as income and education level, on annual basis, other questions are asked once every couple of years or have only been asked few times to this date. This paper uses

Developing nations are filled with hope and aspirations of one day becoming a wealthy, dominating, and influential country. These nations can sometimes be unsafe, difficult to live in, and hard for workers to earn good compensation for their labor. On the other hand, living in a developed nation has many upsides. Developed nations are wealthy, which in turn have good infrastructure, labor and worker laws, and have less crime.