Quick Answer: What Are The Obstacles Of Economic Development?

What are the basic issues of economic development?

critical domestic issues:Industrialisation.Agriculture.Income distribution and poverty.Population growth and demographic change..

What are the types of obstacles?

An obstacle (also called a barrier, impediment, or stumbling block) is an object, thing, action or situation that causes an obstruction. Different types of obstacles include physical, economic, biopsychosocial, cultural, political, technological and military.

What are the basis of measuring economic development of a country?

Two bases of measuring development of a country are : (i) Average or per capita income. (ii) National income and public facilities.

What are the two important issues in development?

Other common constraints on development are high economic poverty, hunger, high mortality rates, unsafe water supplies, poor education systems, corrupt governments, war, and poor sanitation.

What are the 3 main determinants of economic growth?

The economic growth concept There are four major determinants of economic growth: human resources, natural resources, capital formation and technology, but the importance that researchers had given each determinant was always different.

What are the 5 stages of economic development?

Explanation: There are five stages in Rostow’s Stages of Development: traditional society, preconditions to takeoff, takeoff, drive to maturity, and age of high mas consumption. In the 1960s, American economist called W.W. Rostow developed this theory. It is based off of the models of economic activities.

What are the 5 key economic indicators?

Top Economic Indicators and How They’re UsedGross Domestic Product (GDP) GDP is a lagging indicator. … The Stock Market. The stock market is a leading indicator. … Unemployment. Unemployment is a lagging indicator. … Consumer Price Index (CPI) … Producer Price Index (PPI) … Balance of Trade. … Housing Starts. … Interest Rates.More items…•

What’s a social obstacle?

Social barriers: lack of community support, social norms and group conformity. Cultural barriers: tradition, culture, customs, religion. Economic barriers: lack of property rights, corruption, fiscal infrastructure.

What are the obstacles of development?

Obstacles to DevelopmentColonial legacy;Sociocultural heritage;Economic structure;Sociopolitical structure and organization;The political context; and.Conceptions of time.

What is the best measure of economic development?

Economists and statisticians use several methods to track economic growth. The most well-known and frequently tracked is the gross domestic product (GDP). Over time, however, some economists have highlighted limitations and biases in the GDP calculation.

What are the main indicators of economic development?

The indicators of economic development are:Growth rate of National Income:Per Capita Income (PCI):Per Capita Consumption (PCC):Physical Quality Life Index (PQLI) and Human Development Index (HDI):Industrial progress: … Capital formation:

What is an economic obstacle?

A country’s poverty is itself a major obstacle to growth and development. … It is in tune with the prevailing post-war mood of pessimism and desperation in which ‘vicious circles’ (of poverty and low wages leading to low investment, and low productivity of labour leading to poverty) loom large in the economists’ vision.

What is the serious obstacle for economic improvement?

Market imperfections in the form of immobility of lache production, ignorance of market conditions, price rigidity etc, are serious obstacles in the of economic development of the backward countries. Vicious Circle of Poverty. Income is low, therefore, saving is low. Saving is low, therefore, investment is low.

Is GDP a good measure of economic development?

Economic growth, measured popularly via GDP, is a complementary indicator to development, but not an adequate indicator when considered on its own. … The measurement of GDP could also be made more robust if it captured, not only physical capital, but also natural and human capital.

How is unemployment an obstacle to economic growth?

In the developed country, the economy is good even though the rate of unemployment is high since citizens are self-employed. … Due to the unemployment, government suffers the borrowing effect that means lower consumption rate and productivity.

How does rapid population growth affect economic development?

In under developed countries, rapid growth of population diminishes the availability of capital per head which reduces the productivity of its labour force. Their income, as a consequence, is reduced and their capacity to save is diminished which, in turn, adversely affects capital formation.

What are the economic and non economic factors of development?

B) Non-Economic Factors in Economic Development: Human Resources: Human resources are an important factor in economic development. … Technical Know-How and General Education: … Political Freedom: … Social Organisation: … Corruption: … Desire to Develop: