There are obstacles to growth in some developing countries. Economic growth occurs, not by doing more of the same thing, but by making changes and by developing new products. Some of the industries that exist in developing countries make it harder for businesses to change and to go to the...
There are obstacles to growth in some developing countries. Economic growth occurs, not by doing more of the same thing, but by making changes and by developing new products. Some of the industries that exist in developing countries make it harder for businesses to change and to go to the next step. For example, a country that makes coffee is going to find it harder to go to the step in economic growth. The things that are needed to grow coffee may not help with the things that are needed to modernize and to change the economy. For example, it would be hard for a country growing coffee to develop new businesses that deal with technology. Also, the government must play an active role to facilitate the businesses going to the next step in economic development. This doesn’t always occur in some countries.
There are other obstacles to economic growth in developing countries. One is the lack of natural resources, such as land. Many of these countries are highly populated. With a lack of fertile land, food shortages occur. These countries won’t be able to export food, and they will face serious problems such as starvation. In some countries, resources exist, but they are untapped. Without the necessary technology to reach these resources, the resources remain untapped.
In some cases, there is a lack of human capital. Countries that have poor educational systems will lack the skilled workers needed to fill the jobs that are available. In countries with poor medical systems, there are higher mortality rates, and workers may not be healthy enough to work productively at all times.
Some countries don’t have a lot of capital available for investment. Because the people don’t have a great deal of money, there is not a lot of savings that can be used to invest in the businesses and in the economy.
Finally, there might not be a well-developed infrastructure system. With a poorly developed transportation system, such as roads and bridges, and with an underdeveloped communication system, economic growth will be slowed. This will hinder getting products to market and to consumers around the world.