OECD Ministers recently asked the Organisation to study the success stories and the failures in reform efforts to extract lessons and propose best practices going forward. It is the mental urge for development of the people in general that is playing an important determinant for initiating and accelerating the process of economic development.
In this connection, Prof. To improve the impact and influence of our work, I firmly believe that one key element for the OECD is stronger partnerships with parliamentarians like yourselves. Thus with the increase in capital accumulation in such countries, the supply of other co-operant factors should be increased so as to enhance the capital absorption capacity of such countries.
Or immediate social objectives may be seen to conflict with long-term economic priorities. Because this will generate adequate enthusiasm among, the general masses toward economic development of the country as well as for the successful working of the economic plan.
In some countries where housing prices have increased considerably, the effect of higher interest rates and slower economic growth could have indirect consequences on consumption patterns, and on housing demand itself, which has been one of the drivers of growth.
But the economy of underdeveloped countries is now facing serious threat from large scale disorder, terrorism, disturbances in the international border etc. As OECD research shows, there is room for large gains from further liberalisation in terms of poverty reduction and longer term economic growth world wide.
OECD shows how this occurs in Chilean copper mining: In order to meet such requirement, there should be sufficient transformation in the agricultural sector in the form of introduction of land reform measures, raising the supply of productive inputs or factors in agriculture, promoting new credit institutions, introducing dynamic market structure, providing additional incentives, arranging changes in socio-economic relationships, introducing intensive cultivation process.
Volkswagen has been selling more cars in China than in Germany for a long time, and the company plans to open five new plants there in this year alone.
Economic development of a country also demands existence of a strong, honest, efficient and competent administrative machinery for the successful implementation of government policies and programmes for development.
As social marginal productivity of investment differs thus investment should be made in those directions where its social marginal productivity is the highest.
Therefore, in order to attain structural change in the economy, there is the necessity of change in the social structure of its society. Foreign capitalists mostly invested their capital on mining, oil drilling and plantation industries where they exploited the domestic workers to the maximum extent and remitted their profit to their parent country.
This paper summarises the major consequences of these theoretical developments to the ideas about economic development and the proper strategies to its promotion. Therefore, at certain levels, availability of foreign resources broadly determines the level of economic development in a country.
Forty years ago, Brazil was still a bankrupt military dictatorship, India was a backward agricultural country and China was groaning under the harsh dictates of the Cultural Revolution, with no private automobiles in the streets. If now rapid economic development is to become the main objective of these societies, their attitudes and habits of mind must change correspondingly.
Naturally there is absence of modern enterprise and proper managerial talent, Due to poor socio-cultural climate and weak environment, the managerial talent in these countries fails to reach its desirable level.
To determine suitable investment criteria is also another major pre-requisite for economic development of underdeveloped countries. These countries suffer from surplus labour force but shortage of critical skills.
These modes of living in most under-developed countries have had in the past little direct connection with economic development. The paper concluded by concurring with the view that redistribution of the growth increment of income is more likely to be effective in reducing poverty than growth in GDP alone.
The attainment of such higher social marginal productivity of investment requires—minimising the capital-output ratio, promoting greater external economies, investment in labour-intensive projects, use of domestic raw materials, reducing pressure on balance of payments and improving the pattern of distribution of income and wealth so as to reduce the gap between the rich and poor.
Population ageing is perhaps the biggest challenge for many OECD countries. Inefficient and underdeveloped human resources are also considered another major obstacle towards economic development of underdeveloped countries.
Thus this dearth of critical skills and knowledge in these countries has resulted under-utilisation and mis-utilisation of physical capital leading to lower productivity and higher cost structure of the production system. Important promises have been made to increase aid.
Diminishing returns occur when one factor of production is limited by nature, which means that it occurs in agriculture, mining, and fisheries. Vicious circle in the underdeveloped countries represented by low productivity is resulted from capital deficiency, market imperfections, economic backwardness and poor development.
Modern economic growth has resulted a fall in the domination of sole trading small farms. Though, on a less positive note, India spends more on arms imports than any other country.
The recent drop in prices is quite welcome. On the other hand, the share of total labour force engaged in the services sector remained almost constant and relatively poor in the countries like Australia, Great Britain, Sweden and Belgium. The process of growth is connected with both fuller use of existing resources and expanding resources.
People are increasingly noticing societal injustice, the nepotism that enriches officials and the sharp divide between rich and poor.This paper focused on the Challenges facing Sub-Saharan African countries in achieving the Millennium Development Goals (MDGs).
This was discussed after revealing growth in GDP and inequality trends in Sub-Saharan Africa. In this essay we will discuss about the Economic Development of a Country. After reading this essay you will learn about: billsimas.comic Growth and Economic Development billsimas.cominants of Economic Development 3.
L LEARNING OBJECTIVES 1 Describe the extent of world income inequality. 2 Explain some of the main challenges facing developing countries. 3 Define the view of development known as the “Washington Consensus.” 4 Outline the current debates about development policies.
CHAPTER 36W Challenges Facing the Developing Countries In. Late Development And The Challenges Facing Late Developers Economics Essay. Print Reference this. Published: 23rd March, This essay will briefly explain the problem of late development before outlining the challenges faced by late developers.
THE CHALLENGES FACING LATE DEVELOPERS. What are the challenges, wants and desires of the top professionals in the economic development industry? That is the question that DCI sought to answer through a recent survey of a large group of senior economic developers in North America.
The documentary “Poverty, Inc.” has become so influential that it is now part of many courses at the university level. The good news is that at universities we apply critical thinking to the information we receive (or we are supposed to).Download