Question

Seven problems facing developing countries that make their path to development difficult are: (a) Political instability, (b) Corruption, (c) Lack of appropriate institutions, (d) Lack of investment, (e) Inappropriate education, (f) Overpopulation, (g) Poor health and diseases. Explain three of these problems, indicating how they make development difficult.

Answer 1

1. Corruption- In general, corruption is a form of dishonesty or criminal activity undertaken by a person or organization entrusted with a position of authority, often to acquire illicit benefit. Corruption may include many activities including bribery and embezzlement, though it may also involve practices that are legal in many countries. Political corruption occurs when an office-holder or other governmental employee acts in an official capacity for personal gain. Corruption is most commonplace in kleptocracies, oligarchies, narco-states and mafia states. In a system with corruption, there is no quality of service. To demand quality one might need to pay for it. This is seen in many areas like municipality, electricity, distribution of relief funds etc. Corruption in the judiciary system, leads to improper justice. And the victims of offense might suffer. A crime may be proved as a benefit of the doubt due to lack of evidence or even the evidence erased. Due to corruption in the police system, the investigation process goes on for decades.

There are many incidents wherein foreign investments which were willing to come to developing countries have gone back owing to heavy corruption in the government bodies. : Due to a desire to mint money and other unlawful benefits, the official who needs to pass the clearances for projects or industries delay the process. A work which can be done in a few days may be done in a months time. This leads to delay in investments, starting of industries and also growth. Even if started, company growth hinders as every work linked to officials get delayed due to need to provide bribes or other benefits

2. Overpopulation- Overpopulation is an undesirable condition where the number of existing human population exceeds the carrying capacity of Earth. Overpopulation is caused by number of factors. Reduced mortality rate, better medical facilities, depletion of precious resources are few of the causes which results in overpopulation. It is possible for a sparsely populated area to become densely populated if it is not able to sustain life.The effects of overpopulation are quite severe. The first of these is the depletion of resources. The Earth can only produce a limited amount of water and food, which is falling short of the current needs. Most of the environmental damage being seen in the last fifty odd years is because of the growing number of people on the planet. When a country becomes overpopulated, it gives rise to unemployment as there fewer jobs to support large number of people. Rise in unemployment gives rise to crime as people will steal various items to feed their family and provide them basic amenities of life.

As difference between demand and supply continues to expand due to overpopulation, it raises the prices of various commodities including food, shelter and healthcare. This means that people have to pay more to survive and feed their families.

3. Political Instability- Political instability can be defined in at least three ways. A first approach is to define it as the propensity for regime or government change. A second is to focus on the incidence of political upheaval or violence in a society, such as assassinations, demonstrations, and so forth. A third approach focuses on instability in policies rather than instability in regimes Political instability affects the foreign direct investment, the GDP and the growth and development of the nation as a whole. Governments in politically fragmented countries with high degrees of political instability need to address its root causes and try to mitigate its effects on the design and implementation of economic policies. Only then, countries could have durable economic policies that may engender higher economic grow