Question

what are possiblr events or situation that might hurt a country’s development?

Answer 1

1) Political Instability: The government which is ruling the country if it is politically unstable to rule or if they take any bad decision than it will hurt the growth in the economy.

2) Technological advancement: If there is no technological advances in the economy than also the economy growth will get hurt as it will effect the productivity of firms. If the technology used is not appropriate for production than the cost of production will increase.

3) Capital formation : If there is inadequate Capital for worker than the productivity of labour also decreases as the capital/ labour ratio decrease. Thus growth in the economy will get hurt.

4) Natural resources: If there is a depletion of natural resources more than required amount than also factors of production will get hurt.

5) Human resources: If the Human resource is in short hand or if they don't have skills also will effect the growth in the economy in a negative way.