Economic Development Example
Economic development is about working with others for the mutual benefit. Countries that are less economically developed are more likely than those that are more advanced to adopt labor-saving technologies. This can impact the level of economic growth. In addition, traditional economic systems do not have the potential to generate surplus.
Traditional economic systems are unable to generate surplus.
The governing structures that oversee production and distribution are called economic systems. They often include many agencies and essential entities. They follow a pattern for use and consumption. Traditional economic systems rely on simple processes and physical connections to produce, distribute, and consume goods and services.
Economic progress is hindered by gender inequalities
The World Bank, IMF and others have proposed a policy called “Structural Adjustment programs” (SAPs), which can be used to help many countries. These programs are designed to help countries with economic difficulties. However, the impact of SAPs must be viewed not only from a macroeconomic perspective but also from a gender perspective.
SAPs can have many negative impacts on women and children. Numerous studies have shown that SAPs negatively impact the well being of children and women. The United Nations and the Commonwealth Secretariat have also noted that women and children are more vulnerable to the effects of these SAPs.
Economic progress is hindered by gender inequality. In some countries, it costs as much as $23,620 in lost global wealth per person. This number varies by country and region, but the highest rates of gender inequality are seen in OECD countries.
Large firms favor the adoption of labor-saving technologies
According to an International Monetary Fund report, large companies favor the adoption labor-saving technologies to boost economic development. To accommodate the rapid growth in these technologies, countries with large working-age populations need to create a lot of jobs. Many of these technologies were created in high-income countries and can now be easily deployed elsewhere.
Developing countries are less technologically advanced than developed counterparts
Consider economic development. Developing countries are less technologically advanced in comparison to their counterparts from the developed world. Many factors can explain this. However, certain factors can help countries develop economically. These include improving trade conditions, lowering interest rates and increasing funds flow.
The S&T capabilities of developing countries are often not recognized in their economic, research, or educational policies. In particular, little attention is paid to policies that promote the use of suitable technologies, support training programs for local users, and ensure product quality standards. Therefore, governments and private institutions often purchase foreign technology based upon the recommendations of international sales representatives and partners.
Enterprise funds are a key to economic growth
In the early 1990s, the United States along with other foreign governments established enterprise funds in countries of Central and Eastern Europe and former Soviet Union. These funds proved to be both programmatically and financially successful. Some countries received $1.2 billion in aid from the U.S. government. Others received the money as profits. This model was also used to introduce new technologies to these countries as well as to promote corporate social responsibility.
These funds can be used to stimulate economic growth in economically underdeveloped areas. These funds are similar to venture capital funds and leverage capital markets. They can be used to improve economic conditions in these areas. Because these funds invest large amounts of money at the start, they are able to invest in projects that may otherwise not be feasible or even profitable. Enterprise funds also continue the longstanding tradition of foreign private investment aid programs like the Overseas Private Investment Corporation and the Millennium Challenge Corporation.