What are Major Obstacles to Economic Development?

There are many obstacles and barriers to economic growth and development.  These economic
obstacles limit the progress of societies and nations.

These obstacles are: high population growth rates, high illiteracy rates, poor infrastructure, human
capital inadequacies, foreign currency gap, and capital flight, unsafe water supplies, inadequate
housing facilities, ethnic and religious conflict, corruption, poor governance, poor health services,
primary product dependency, declining terms of trade, etc.
Economic growth

Measured as an increase of people's real income – means that the ratio between people's
income and the prices of what they can buy is increasing: goods and services become more
affordable, people become less poor.
Why economic growth is important?
INTERACTIVE DEVELOPMENT
INTERNATIONAL DEVELOPMENT PATTERNS
What are some of the main barriers to economic growth and development?
 Savings gap;
inadequate
capital
accumulation

Primary product Declining terms

dependency of trade

Human capital
inadequacies

Poor Foreign currency

infrastructure gap and capital
flight

Corruption, poor
governance,
impact of civil Population issues
war
Thank You!
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