The document discusses several key obstacles to development including: 1) Poor governance in countries can hinder development through issues like corruption, bureaucracy, and lack of accountability. Zimbabwe is provided as an example. 2) Lack of access to capital makes it difficult for businesses in developing countries to grow without means to invest and expand. 3) High disease burdens reduce productivity by making populations too sick to work. 4) Natural hazards like droughts and floods can damage economies and set back development. 5) Protectionism and unfair trade practices in developed countries present obstacles to exports from developing nations.

1. Obstacles to developmentObstacles to development

2. Governance
Certainly there is a great deal of evidence to suggest that disparities
in the level of development between countries are related to
governance and that poor governance is an obstacle to
development.
•The decisions governments make
particularly in terms of public spending
•The economic / political ideology
•The level of corruption
•The amount of bureaucracy and
hindrance to private enterprise
•The accountability of government to its
people
•Security and the rule of law
Robert Mugabe’s Zimbabwe is a tragic
example of this.

3. Access to Capital
The growth of the economies of most of the richer countries in the world has
been based on the right to own property and access to capital.
Without access to capital businesses cannot grow.
No property rights and no legal status for your business = no access to
credit = no capital to invest in the growth of your business = no possibility for
growth and expansion = low revenue = low profit
This is the main problem for people
operating in the informal sector.
Hernando de Soto – The Mystery of Capital.
Watch his youtube film.

4. Disease
Diseases such as Malaria and HIV/Aids reduce the productivity of a
country because death rates among economically active population
are increased, people are too sick to work or caring for the sick.
High levels of disease, infant mortality rates and fertility rates can be
related to poor provision of health care
Nagle page 438/9

5. Natural Hazards
Back to the idea of environmental determinism.
Natural hazards can be an obstacle to development.
Drought (Ethiopia mid 1980s), 2004 Indian Ocean Tsunami impact on
Indonesia, regular flooding in Bangladesh, tropical storm damage in
Caribbean.

6. Unfair trade and protectionism
Subsidies paid to producers in MEDCs and trade barriers
and protectionism limiting access to MEDC markets for
LEDC producers are seen as major obstacles to
development.
Levels of protectionism are high in the global economy
and many analysts argue that the rules of the Global
Economy were made by MEDCs for the benefit of
MEDCs.

7. Trade – Benefits for all?
In theory trade should benefit all countries.
International trade has been going on for a long
time, so why are not all countries rich?
http://www.maketradefair.com/en/index.php?file=
issues_dumping.htm&cat=2&subcat=3&select=1

8. TNCs act in their shareholders interests.
Nation states act in their citizens interests.
International organisations and trade regulations have been developed to
favour the nation states which designed them.
Rich countries protect their primary, secondary and tertiary industries.
Primary – EU Common Agricultural Policy
http://news.bbc.co.uk/2/hi/business/4466388.stm
Secondary – EU Anti dumping rules on shoes made in China
http://news.bbc.co.uk/2/hi/business/4747186.stm
http://news.bbc.co.uk/2/hi/business/4886008.stm
Tertiary – Novartis (Swiss Pharmacuetical company attempts to stop generic
versions of their drugs being produced in India (they lost the case)
http://www.maketradefair.com/en/index.php?file=a2m_main.html&cat=2&subcat=4&select=1

9. There is no easy answer
The theories attempting to explain disparities in development
between countries are complex and offer sometimes opposing
ideas.
The obstacles to development are in some cases environmental
but in all cases a combination of internal and external economic,
social and political factors are involved.
The debate on the different approaches to development is fiercely
fought…

10. There is no easy answer
The theories attempting to explain disparities in development
between countries are complex and offer sometimes opposing
ideas.
The obstacles to development are in some cases environmental
but in all cases a combination of internal and external economic,
social and political factors are involved.
The debate on the different approaches to development is fiercely
fought…