Economic Barriers

There are various economic barriers to economic growth/development. 

• Rising economic inequality: Higher inequality prevents development for all

• Lack of access to infrastructure and appropriate technology (highways, railroads, internet, etc.)

• Low levels of human capital - lack of access to healthcare and education: Less education or healthy people = less knowledge and productivity

• Dependence on primary sector production (fishing, mining, farming, etc.): One bad yield one year and the economy suffers greatly.

• Lack of access to international markets: Less trade = less efficiency

• Informal economy: Economic activity not officially recorded, regulated, or taxed. More of this prevents government revenue, and hence development.

• Capital flight: When households/firms take their money/resources out of a country due to low confidence. This hampers consumption and investment, preventing growth and development.

• Indebtedness: When countries owe money. Debt servicing costs mean the country will have to focus on repaying loans over investing in its economy, hampering economic growth and development.

• Geography: Landlocked countries have no access to ports (trade), dry countries have little access to agriculture

• Tropical climates and endemic diseases: Many diseases such as malaria are most common in tropical climates, which may hinder economic development