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What are the macroeconomic problems of developing countries?
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In addition to the above problems, which are extremely significant, a lack of infrastructure and technology or a lack of natural resources can hold a developing country back a great deal.
If people wish to engage in production of some sort, they need a stable source of power and roads to distribute what they produce. Even in countries that were colonized in the 18th century, where some infrastructure was in place, it is usually dysfunctional and requires huge investments of time and money. That infrastructure, including water and sewerage treatment, as well as power and roads, is also necessary for the people in the country to live their daily lives and be able to even get to work. If people do not have the wherewithal to eat, drink, and travel safely, how can they produce much of anything? Addtionally, in today's globabl economy, production implies that a product might be sold anywhere in the world, and that, too, requires infrastructure and technology.
While many people in developing countries do, surprisingly, have cell phones, technology still lags behind in many other ways. Much production is done with technology today, and in order to compete in a global economy, it is needed, if only to keep the price of production competitive. Information is power in any nation's economy, and there are still many people who do not have access to information because they have no computers or access to the Internet. On a macroeconomic level, this has profound effects.
A developing country that is lacking in natural resources has significant difficulties growing an economy. To produce, it must purchase raw materials elsewhere or rely on developing a service economy, which means relying on human resources, people who are likely to be lacking in the education, experience and skills needed to be competent in a service economy, and also, since infrastructure is often lacking, unable to "serve" people who have no means of getting to wherever the service is being provided. Such countries often turn to tourism, which is fine, but still, a lack of education and infrastructure makes this a challenge.
So, in general, developing countries face significant challenges in growing their economies, but every nation was a developing nation at some point, and we can see many success stories, in history, and in the present day.
Posted by speamerfam on September 28, 2012 at 3:04 PM (Answer #1)
the problems of developing contries are Jobless, corruption, and less education
Posted by arfiyatinfifi on September 28, 2012 at 10:28 AM (Answer #2)
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