Question

1. What is an example of an asset that, in developed countries but not in developing countries, also functions as capital?

2. What is an example of a service or opportunity that people in developing countries cannot access because they lack access to capital?

Answer 1

Dear Student,

Please find below answer to your question

Abstract

A) If comparaed between developed contries and developing countries there is onc asset that is Human Capital and because of it there is variation in Economic progress of countries

The skills, knowledge, and innovation that people accumulate are the greatest assets of economies on the rise. Recent evidence shows that human capital explains up to two thirds of income differences across the world.

Smart and timely investments in human capital will play the central role in shaping the Economy of any country.

Without a greater supply of homegrown talent in areas such as agriculture, energy, extractive industries, construction, manufacturing, and information and communication technology, it will be hard to build prosperous, inclusive, and resilient economies that can compete and succeed globally.

If we look at the developed countries we can found that there is much more progress in term of high per capita income or average income per citizen,high standards of living (the quality and quantity of goods and services available in a society), long life expectancy (the average expected life span of a nation's citizens)

In contrast - Developing countries are still struggling for the high per capita income and High standards of Living due not having the human capital assets and latest technological advancement and skill developement i.e. Innovation and reasearch.

Countries with deep development are facing challenges-Including China, India, and Korea-have gained enormously from building science and technology capacity.

For Example, In Africa, a rebalancing in higher education towards the applied sciences, engineering and technology has been long overdue.

B) In general we can found that in developing countries still there are problems like Corruption, poverty, war, hunger, healthcare, education, safety. These are only a few of the problems faced by people in developing countries.

Many of these problems are caused by exclusion, fear, intimidation, broken infrastructure, and lack of money, resources, access to information, and tools.

Economic problems in the developing world include corruption, poor infrastructure, lack of skilled labor, political instability, weak protection of intellectual rights, and the possibility of contacts being canceled on a whim.

Below Type of services in Developing countries can not acess due to the lack of access to capital and These include

1. High levels of Quality education
2. Good Water quality
3. Best Health Care Services and Speciliest doctors.
4. Good Infrastructure facilities like - Express Highways, Bullet Trains, Railways and State of the Art Technogy services in Airport and Sea Port

Political factors also impact on the development of countries, For Example -  some countries are at war like Israel or Iran or the government may be corrupt. Therefore money does not reach the people who need it most and spending on areas such as education and infrastructure may be insufficient.

If you like the answer, Kindly up vote

Thank You!!