What Economic Factors Influence

Economic Growth in Developing Nations?

Rapid Population
Growth
What is it?

An increase of people that reside in a country, state, county, or city

at a very quick pace.
There are more births than there are deaths.

Examples of Rapid Population Growth

The baby boomer era

China had a rapid population growth, now theres a limit on how many
kids you can have.

What Role Does it Play on Developing Countries?

In developing countries, rapid population growth affects the country

negatively. Countries that are developing with more births makes it

hard on the economy. Adding more the population makes the country

Growth
Does it Help/Hurt the Nation?

o Positives: Having more people means more jobs needed

o Negatives: Forces nation to create higher per capita GDP meaning
the economy has to grow faster than the population

What Can the Nation do About this to Help their

Economy?

o A nation has to create a higher per capita GDP

o Economic output must grow faster than the population grows

Limited Resources
and Capital

What is it?
Limited resources - The lack or scarcity of
natural resources and capital to supply a nation
with the goods needed to create a stable
economy. Examples of limited resources are
lumber, metals, oil and food.
Capital- Any human-made resource that is
used to produce other goods and services.

What role does it play in a developing nation?

Capital determines the productivity and

efficiency of the nation.
Limited Resources affect efficiency.

Does it help/hurt the nation?

Without capital and resources, industry cant
grow
Poor education leads to a lack of human
capital

Checkpoint Question
How does the education and training contribute to
development?

Political Obstacles
POLITICS

What are Political Obstacles?

Political Factors that limit or even reverse a
nations development
such as:
protectionism,
globalization, limited
resources, GDP, job
availability

Political Obstacles include:

-

Corruption
Central planning slows economic growth
Civil unrest
Focus country

What role does it play in a developing nation?

- Slows development
Does it help/hurt the nation?
- Hurts the nation
TO HELP YOUR COUNTRY, ELIMINATE
OBSTACLES

Financing Development

What is it?
Involves the establishment and expansion of institutions,
instruments and markets that support this investment and
growth process. A developing country can acquire funds
through internal financing, foreign investment, borrowing,
and foreign aid.

The Role
The role it plays in developing nations is building an
infrastructure, providing services, and creating
technology/industry.

Does it help/hurt the nation?

Financing development helps the nation because it loans
money to firms and they then invest in physical and human
captial to expand.

Checkpoint question:
Internal financing is difficult for less-developed countries
because internal financing is capital taken from the savings
of a countrys citizens and if the citizens arent working or
dont have much of an income, there are no savings to take
capital from.

International Institutions

What Is It?
International institutions are a central focus of international relations scholarship
as well as of policymaking efforts around the world. A group having members
from more than one country, government or non-governmental, profit or nonprofit.
The role that international organizations can play depends on the interests of
their member States. States establish and develop international organizations
to achieve objectives that they cannot achieve on their own. By the same token,
States will not permit international organizations to do things that constitute, in
the eyes of these States, interference in their internal affairs.