Economic Development Essay Samples
There are several problems that face the people in some of the poorest countries in the world. One of these is the lack of employment. Employment levels in these countries are very low, and a large proportion of the people are unemployed. This is not just because there are few firms in the countries that can hire people but also because the existing firms are unwilling to hire people. It is shown that many businesses in poor countries such as those in Africa are very reluctant when it comes hiring and, in fact, many businesses have 24% fewer employs than equivalent businesses elsewhere. Another major problem faced by these nations is that the wages are extremely poor. As shown in the “Why poverty videos”, low wages characterize almost every job category in poor countries, and people cannot be expected to overcome poverty as long as their wages remain low.
The Macro theory that we have learnt in class this quarter can significantly help the people in these countries. The theory lays put some very good strategies that when applied can raise the standards of living of the people in these countries and boost the economy.
Improving the welfare of the people in the poor countries is no easy task. First of all, many might view financial handouts as the easy way out but in real sense, this strategy does not work in the long term. The welfare these people can be improved through formal and informal education. The people should be introduced to sustainable methods of economic activity. Whether it is simple activities such as farming, the people should be introduced to new technologies that can boost yields and output and that can reduce the costs of production. The same should also happen in the industrial sector in these countries where the workers and the management should be educated about more efficient means of production and the money saved on production then be used to pay workers better and even hire others. Governments and aid organizations should also set up financial programs that can be used to fund various entrepreneurial projects by individual citizens that will inadvertently boost their welfare.