9. Barriers to Economic Growth and/or Economic Development Flashcards
How does political instability delay economic development?
It creates uncertainty, discourages investment, and can lead to inefficient resource allocation.
What impact does corruption have on economic growth?
Corruption diverts public resources, undermines trust in institutions, and increases the cost of doing business.
How can inadequate infrastructure impede development?
Poor infrastructure limits access to markets, reduces efficiency, and increases production costs.
How does inadequate education impede economic development?
It results in a less skilled workforce, reducing productivity and limiting innovation.
What effect does poor healthcare have on economic growth?
It leads to a less healthy workforce, increasing absents and decreasing productivity.
How can over-reliance on a single export commodity hinder development?
It makes an economy vulnerable to price fluctuations and demand changes in global markets.
How does political instability deter foreign investment?
Uncertainty and potential risks make investors hesitant to commit resources to unstable regions.
What role does inadequate access to credit play in limiting economic growth?
It restricts entrepreneurs and small businesses from investing and expanding, stifling innovation and job creation.
What impact does income inequality have on economic development?
High inequality can lead to social unrest and limit overall economic growth by restricting access to opportunities for large segments of the population.
How can environmental degradation act as a barrier to development?
It depletes natural resources, reduces agricultural productivity, and increases health costs, all of which can impede sustainable economic growth.
