What factors hinder industrial development in 3rd world countries?

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Industrialization is seen as a tool for economic development in any country. During the late 19th Century and early 20th Century, factories helped build America’s economy. It is for this reason that most international agencies and NGO’s have been encouraging the development of the manufacturing sector in low-income countries. Organizations...

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Industrialization is seen as a tool for economic development in any country. During the late 19th Century and early 20th Century, factories helped build America’s economy. It is for this reason that most international agencies and NGO’s have been encouraging the development of the manufacturing sector in low-income countries. Organizations such as the UN and WTO see industrialization as a way to create jobs for emerging and third-world economies. Unfortunately, the manufacturing sector has not been growing as much as it’s supposed to in developing countries.

One of the main causes of this slowdown is protectionist policies. Countries that claim to support poor economies have created protectionist policies that make goods from third-world countries more expensive than local commodities. As a result, those goods aren’t selling as much as they should.

Another reason is misplaced priorities. Most third-world countries borrow money to fund their economies. These loans usually have a short-repayment period. Therefore, any income that the country makes first goes into repaying loans instead of investing in the manufacturing sector.

The lack of appropriate technology is another factor that hinders economic development in developing economies. Most third-world factories can't produce too many goods because the machines in those industries are not very advanced. These countries also lack the skilled manpower needed to operate some machines.

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