Question

“It can be argued that much of the economic backwardness in the world can be explained by the lack of mutual confidence”.

Answer 1

“It can be argued that much of the economic backwardness in the world can be explained by the lack of mutual confidence”.

The above sentence is absolutely true as it can be seen from the examples of the real world that what is happening in the international trade. As we know all the countries are different from one another in one since or the other. In terms of resources, population, size, cultures etc. There are some more resources of one kind in one country but there is also extra resources of some other kind in other country. So it is important for the development of all the countries that they believe on one another and work mutually and also trust one another.

Some poor economies are still backward while some economies have developed much. There may be many reasons for the backwardness of these poor and underdeveloped economies but also one if the most important reasons is that there is lack of mutual confidence. This means that they don't have confidence or trust upon one another. This lack of confidence stops them from trading among themselves and also sharing the reasources among themselves. The poor countries usually have a large numbers of labour force which are unemployed and the developed countries are in need of them. Also there is advanced technology available in the developed countries which are needed by the poor countries. So these countries should trust and believe on each other and should exchange these resources which will be helpful for both the economies. There is lack of confidence among the rich countries about the poor countries and hence they don't invest there, but if they invest in these countries they can get a huge benefit because there are a lot of opportunities available there. This will also help the poor countries by providing employment and income to the people.

So it can be said that if there is mutual confidence among the economies than there will not be any economic backwardness in any economy.