Political Barriers Flashcards
Political barriers to economic growth and development
Weak institutional framework
- Legal system
- Ineffective tax structures
- Banking system
- Property rights
Gender inequality
Lack of good governance/corruption
Unequal political power and status
Weak institutional framework
What are institutions?
- Organizations founded for specific purpose.
- Some are government-run –> central bank, tax department, and justice system,
- Others, like banks, are regulated by law.
Weak institutional framework - Legal system
Weak institutional framework - Property rights
Weak institutional framework - tax structures
- Heavy reliance on indirect taxes
- Inefficient, bureaucratic tax systems
- Weak, corruption-prone tax collection
- Wealthy groups influencing tax policy to reduce their burden
Weak institutional framework - banking
Non-convertible currencies
A “blocked currency” is restricted from international trade and used only domestically
Gender inequality
Empowering women strengthens their economic, social, and political roles, driving development.
This is achieved by:
- Reducing gender disparities in education
- Addressing economic, political, and social inequalities
- Educating girls and women
- Women reinvest more in families and communities –> spreading wealth beyond themselves.
- Mothers prioritize spending on health and nutrition.
- Women handle unpaid work for household essentials.
- Dual-income families are more resilient to challenges.
- Educated women have more control over reproduction.
Lack of good governance/corruption
Stable governments attract:
- Both foreign and domestic investment
- Retain savings, and enable efficient long-term planning and citizen participation
- Boost business confidence and prevent capital flight.
Political instability leads to:
- Loss of life, displacement, economic decline, and infrastructure damage, stifling development.
Corruption
Dishonest exploitation of power for personal gain
Occurs when:
- Government is not accountable.
- Government spends on large projects.
- Poor accounting occurs.
- Government officials are not well paid.
- Political elections are not controlled/monitored.
- Weak legal structure.
- No freedom of speech.
Effects of corruption
- Elections are not the people’s wishes
- Reduced trust
- Capital flight
- Reduced well-being of citizens
- Public works money is directed to bribes
- Increased costs/prices
Forms of corruption
Bribery, Extortion, Blackmail, Fraud, Patronage, Nepotism, Embezzlement, Cronyism, Graft, Money laundering
Unequal political power and status
- Wealthier people may more say in the development of government policies
- Politicians develop policies that are in their own interests
- Low income people are less likely to become involved in the political process
