Evaluate any three (3) factors that influence economic development.
Economic development or economic growth refers to sustained efforts by people and businesses which result in improvement in the economic condition of the country. There are a number of factors that can affect the economic development of a country and they are generally divided into economic and non-economic factors. The economic factors include natural resources, type of economic system, marketable surplus, capital formation, etc. The non-economic factors include human resources, political freedom, technical expertise, social organization, corruption, etc.
Capital is one of the major impediments to economic development. A country not only has to generate capital, but also has to save it. Only then it can be invested in a fruitful fashion and reduce the dependence on foreign capital. Thus capital formation is one of the key ingredients for economic development.
Natural resources (such as land availability, minerals, type of soil, rivers, etc.) are a necessary ingredient to economic development. A country that is deficient in natural resources will be dependent on other countries to fulfill its requirements. An abundance of natural resources provides various options to a country (export the resources, process and then sell them, etc.).
Human beings carry out the work and are responsible for economic development (or are a hindrance to it). A skilled workforce is an asset, while a large population consisting of unskilled or lowly skilled workers is a liability. This necessitates investment in development of human resources, so that a country can have a large skilled workforce contributing to its economy.