Factors of economic development
The developing country is a country with low income per capita income in developed countries. In humanitarian terms, developing countries tend to have poor populations in health care, low literacy skills, inadequate housing, and low-cost diets. Four key factors are the key to economic development, namely human resources, natural resources, the establishment of physical capital and technology.
Human resources:
Many poor countries are struggling to stay permanently. Even with the GDP growth of developing countries, the population is increasing. Therefore, it is a great task for these countries to overcome poverty at these high birth rates. The equitable distribution of wealth can not happen in the economy until it becomes sufficient for itself. The strategy will be to reduce the population. Even such acts are contrary to existing religious standards.
Natural Resources:
Some developing countries with scarce natural resources, such as land and minerals, need to divide available resources into a large population. Perhaps the most valuable land is arable land, where most people in developing countries work in agriculture, which is the basic economic activity.natural resources.
Rate. Note: – Nothing should be offered for free since free grants make them inactive and unpaid.increase populations can make a big difference in agriculture because the nation is unable to generate white collar for all especially jobs for the youth, and certainly increases the ability of young people to be regular employees as owners. Organic agriculture has found its place in the international market, and human capital in developing countries can be used to search for new strains that will facilitate the acquisition and development of the global market.
Capital formation:
Indicators of low product capital creation in developing countries, because income is so low that little can be saved in the future. Growth financing and physical capital in poor countries have always been an unstable cycle in the production mechanism. States must certainly apply a balanced and cautious approach when they intend to fund ambitious development programs because they will have to borrow from other developed countries or the World Bank.
Technological change and innovations:
This is often associated with new investments and new machinery. It provides many hopes for developing countries, where it can adopt more productive technologies for developed countries. This requires entrepreneurship. Let’s say that countries need to encourage rapid capital growth, technology does not respond to how to deploy these key components. The desire for rapid economic growth may be strong, but developing countries face many obstacles, such as political opposition, lack of technology, intensive capital markets, and so forth. Thus, the appropriate approach is to liberalize economic policy and allow foreign investors to enter the national environment, which will increase employment opportunities for local unemployed, jobs for the youth, and expose the domestic market to global competition.