Question

Explain five factors that have contributed to the economic successes and failures of national economies over time.

Answer 1

The following are five facts that have contributed to economic success:

1.) Infrastructure development of the economy. Land, water and air infrastructure logistics are important for tranpsort of goods, people.

2.) Provision of education facilities to the citizen. Through provision of education participation of people in the economic growth is assured.

3.) Robust banking and financial sector. This sector helpd in credit provision, giving out loans, lending and borrowing, hence, this is important for the economy. A strong industrial sector and manufacturing sector is also important.

4.)Strong and decisive leadership in the economy. This is a factor which is neglected but is very important. Economies can doom if they do not have good leaders.

5.) Provision of health facilities ensures that less people fall ill and they are more productive.

The following are five facts that have contributed to economic failure:

1.)Corruption and scams prevalent in the economy can divert the resources from productive to unproductive routes.

2.) Prevalence of black money and parallel economy

3.) Prevalence of poverty and inequality can prevent full participation of people in the eocnomy. It also leades to greater non transfer expenditure on subsidies, freebies

4.) Production and export of primary goods can be harmful for the economy as their demand is highly elastic

5.) Prevalence of illiteracy is another evil