How do tropical climates and endemic diseases hinder economic progress ?
Development of technology slower due to climate
Crops grow slower and less quality -> affects health of people
Diseases can spread more easily in tropical climates -> affects health -> thus human capital
How do weak instituation frames hindeeconomic progress ?
Honest and fully functioning legal system essential for economic development -> if person cannot guarantee their ownership of property -> no incentive to improve property -> dead capital
How does being landlocked hinder economic progress ?
Less trading -> less capital
Higher importing costs
Bribery and border delay problems
How do ineffective taxations hinder economic progress ?
Taxes necessary for government -> if no efficient taxation due to lack of information, low corporate tax revenue, corruption, tax exemption
If country involved in foreign trade -> difficult to collect taxes
Informal markets lead to no taxation
Trade liberalisation lead to low taxation
How does gender inequality hinder economic progress ?
When women empowered
-> education improves of children
-> health improves of family
-> lower rate of population
-> women earn more
->quality and quantity work force improves
How does corruption hinder economic progress ?
Leads to unfair allocation of businesses
Increased costs of businesses -> leads to higher prices
Reduces trust in economy thus (foreign) investment in economy
Monetary gains allocated out of country
-> no domestic capital
Reduces governance quality
Reduces capital available for internal i’m estment
How does political instability hinder economic progress
Less FDI (foreign direct investment ) -> usually no short term growth but sometimes longt term development at risk
May lead to complete economic breakdown
How does unequal political power and status hinder economic progress ?
Ownership of resources and income in an economy concentrated among small percentage of population
those individuals disproportionate say in development of government policies
no pro-poor growth -> e.g. have less chances carriers wise -> low human capital
How does a banking system play a role in hindering economic progress ?
Developed and financial institutions are essential for economic growth
When untrustworthy & weak financial situations ->people with investment income buy assets and invest money outside of country
Poor people find It impossible to gain access to traditional banking and financial systems -> since lack of assets to use as collateral are often unemployed -> borrow money at high interest rates
Last changeda year ago