Study Notes
Barriers to economic development include weak institutional frameworks, gender inequality, inappropriate governance, political instability, corruption, and unequal political power. These barriers hinder economic growth by affecting tax systems, banking efficiency, property rights, and governance.
- Weak Institutional Frameworks — Institutions that fail to provide effective legal, economic, and social support. Example: Ineffective tax systems and inefficient banking systems.
- Gender Inequality — Discrimination against women and girls limiting access to opportunities. Example: Limited access to credit and labor markets.
- Inappropriate Governance & Political Instability — Poor policy-making and unstable political environments. Example: Capital flight and increased debt.
- Corruption — Abuse of public office for private gain. Example: Bribery and embezzlement reducing investment.
- Unequal Political Power and Status — Elite groups influencing government for personal gain. Example: Social stratification and caste systems.
Exam Tips
Key Definitions to Remember
- Weak Institutional Frameworks
- Gender Inequality
- Inappropriate Governance
- Corruption
- Unequal Political Power
Common Confusions
- Confusing property rights with land rights
- Misunderstanding the impact of gender inequality on economic growth
Typical Exam Questions
- What are weak institutional frameworks? Institutions that fail to provide effective legal, economic, and social support.
- How does gender inequality affect economic development? It limits access to opportunities for women and girls, affecting growth.
- What role does corruption play in economic development? It reduces investment and growth by increasing costs and misallocating resources.
What Examiners Usually Test
- Understanding of how weak institutions affect economic growth
- The impact of gender inequality on development
- Examples of corruption and its effects on the economy