Study Notes
Barriers to economic development include weak institutional frameworks, gender inequality, inappropriate governance, and corruption. These barriers hinder economic growth by affecting tax systems, banking, property rights, and political stability.
- Weak Institutional Frameworks — Institutions are rules and norms that coordinate human action. Example: Ineffective tax systems and inefficient banking systems.
- Gender Inequality — Discrimination against women and girls limits their access to opportunities. Example: Inequality in health, labor market, and property rights.
- Inappropriate Governance — Poor governance leads to unstable economic environments. Example: Inefficient policy-making and political instability.
- Corruption — Abuse of public office for private gain. Example: Bribery and embezzlement reduce investment and growth.
Exam Tips
Key Definitions to Remember
- Weak Institutional Frameworks
- Gender Inequality
- Inappropriate Governance
- Corruption
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 support economic growth effectively.
- How does gender inequality affect economic development? It limits access to opportunities for women, affecting overall 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 political instability on economic development
- Examples of how corruption hinders economic progress