this is a ppt on benefits of developing country

1. WHY GROWTH MAY
NOT BENEFIT
DEVELOPING
COUNTRY

2. OUTLINES
• GROWTH
• WHY ECONOMIC GROWTH DOES NOT ALWAYS BENEFIT DEVELOPING
COUNTRIES
• FACTORS THAT CAN PREVENT DEVELOPING COUNTRIES
EXPERIENCING ECONOMIC GROWTH
• SUGGESTIONS
• CONCLUSION

3. GROWTH
Economic growth is an increase in the capacity of an
economy to produce goods and services, compared from
one period of time to another.

4. How is economic growth measured?
Economic growth in country is measured by the countries gross
domestic product (GDP) in one year.
GDP = the total amount of final goods and services produced in one
year within a country

5. WHY ECONOMIC GROWTH DOES NOT ALWAYS
BENEFIT DEVELOPING COUNTRIES
Many countries unable benefit from global economic
growth.
This means that the economy expands at a slower rate, in
fact output may fall causing contraction in the economy

6. FACTORS THAT CAN PREVENT DEVELOPING
COUNTRIES EXPERIENCING ECONOMIC GROWTH
1. Specialization in one Commodity
• focus on production of one primary product,
• the prices of commodities can easily fall due to excess global supply,
• rely on this product see a fall in revenue, this is important because
demand is very inelastic for these goods

7. 2. Structural weakness
• Not having sufficient transport and infrastructure,
• low levels of human capital,
• the cheap labor costs.
3. Agricultural based economy
Countries who rely on agricultural output may suffer from
adverse weather conditions. E.g., a prolonged drought , can
lead to loss of farming income and therefore lower growth.

8. 4.Internal Conflict
Internal conflict or mismanagement can lead to declining living
standards for many.
5. Corruption and Mismanagement
Government in many of the poorest developing countries misuse Aid
and the proceeds of growth.

9. 6. Social Barriers
Whether or not a society has a sufficient number of entrepreneurs
to foster modern economic growth may depend on the society's
values and structure.

10. 7. Political and Governmental Barriers
• Play an important role
• If a government is unable or unwilling to play an active
role , then the government itself is considered an
obstacle.

11. 8.Unequal Distribution of Wealth
• between the rich and the poor,
• become rich due to increased manufacturing at lower costs due to
new technologies,
• the wage rates didn't grow much.
9. Population Growth
• Robs us of most of the gains in national income made from
higher investment,
• nullifies our investment efforts to raise the living standards of our
people,
• per capita income or living standards of the people do not rise
much.

12. SUGGESTIONS
1. Removal of Inequality:
• by imposing progressive rates of taxation
• by redistribution of wealth
• Imposing higher rates of taxation on the richer sections

13. 2. Containing the Growth of Population:
• by adopting a rational population policy,
• by popularizing the family planning programmers
3. Structural adjustment policies (SAPS)
Encourage developing economies to put greater emphasis on :
• market forces
• market reforms
• closely associated with free market economics

14. 4. Economic stabilization
• Cope with globalization and external shocks
• Liberalizing trade by removing barriers
• Sound fiscal policies
• Improvement in education
• An export orientation
5. Commodity Agreements
Commodity agreements are arrangements between producing and
consuming countries to stabilize markets

15. CONCLUSION
As the benefit of economic growth are increased consumption,
improve public services reduce unemployment and poverty. The
development of infrastructure ,better governance, public health
improvement, trade reform, and financial market development –
these and others will be needed as well.