Internal Barriers To Economic Growth And Development Essay

778 Words2 Pages

Two internal barriers to economic growth and development are International trade and Political barriers. Barriers prevent and restrict development in some countries. While some things are barriers to economic growth some are barriers to economic development. In this case being international and having a political sense is a barrier to both thoughts. Change and the process of development is a multi-generational process. Political instability and corruption is a major impact on growth. The rule of law and appropriate enforcement is needed to create an established system of honesty and loyalty in society. Corruption is people acting in an official capacity of trust and responsibility misusing their position for private gain. When there is this sense of corruption many things are affected. Corruption discourages investment due to lack of business ethics. There is an increase in tax evasion as well as an increase in more “tax burdens” for the poor which is inherently wrong. Corruption leads to an unfair allocation of resources. If contracts go to the highest bidder, as opposed to the most efficient producer, then there is market failure and resources are being misallocated. If often sustains inefficient producers by shielding …show more content…

Take Sudan in Africa this is one of the most famous relevant cases. Civil Wars from 1955 to 1972 and from 1983 to 2005, together with ongoing conflict in the western region of Darfur and caused significant loss of life and displacement of the population. Such extreme political instability is likely to lead to very poor economic performance, high levels of poverty and low standards of living. The likelihood of attracting foreign investment or even aid becomes much smaller. Also, the loss of life, damage to infrastructure, loss of investment and sometimes aid, has undoubtedly affected economic growth and development in these

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