Malthus said that the rate of population growth was much higher than the increase in food capacity needed for human nutrition, which inevitably creates a crisis. Malthus, who exemplifies the population growth in the United States, in particular, has suggested that if the population is released, the population will increase one time every twenty-five years. According to this, the balance between the population and the foodstuffs is deteriorating and the difference between population growth and sources must be
At the savings constraint stage, low wages make it difficult for people to meet their basic needs let alone to save. Foreign aid is therefore needed to boost savings and investment activities. The final stage is the trade constraint. Developing countries are fragile and have worsened terms of trade with high trade deficit. Foreign aid is needed at this stage to fill this
Illiteracy rates are mostly high in rural areas because the government can’t afford to improve school facilities. Without education, people won’t be able to find jobs and will never escape from poverty. Another effect of lack of education is lack of family planning. Uneducated people will have so many children (that they can’t support), and this will result in overpopulation- which is one of the main causes of poverty. It’s a massive problem because these kind of families only earn a small amount of money.
The Weimar constitution highlights their need to support the citizens through welfare reforms. However the welfare state “failed in the end to live up to the grandiose promises” (Evans, 2004) because it was over-strained stated Richard Evans. The welfare reforms economically weakened the regime and caused a social divide in opinions. This investigation will explore the political,
Upland ethnic people are marginalized and socially isolated because of their customs, beliefs, and their languages. The geographic location of their villages also makes them more isolated. Poor, rural communities in remote areas have limited access to facilities and services, such as electricity, roads, markets, schools, health services, and financial aid. During rainy seasons, they become unreachable, isolating them geographically and institutionally. One-third of the population live below the national poverty line, lacking the resources to lead healthy lives.
But in underdeveloped economies, it is not possible to raise production due to scarcity, which just raises inflation instead of level of employment. Keynes also stated that the key determinant of investment is the marginal efficiency of capital (MEC). Investment and MEC has an inverse relationship where rise in investment would decrease MEC and vise-versa. (Catalan 2012) This relationship is not applicable to such underdeveloped countries due to low investment level and low MEC. Such irony is from lack of capital resources, small market size, high cost, uncertainty and inefficient money markets.
By devaluating a currency, it would result in an anti-inflationary measure negatively affecting real interest rates, exchange rates and more importantly impacting the flow of foreign capital coming into the country which inevitably cripples the country’s economy (E-Tom 1994, 9). Due to these external discrepancies, it is highly unlikely for a country to be fully integrated into the global economic system. Although the devaluation of a country’s currency has proved to obstruct developing countries integration into the global economic system, another factor that should be addressed is the monetary policies established by the World Bank and the International Monetary Fund. These policies have rather hindered development rather than encouraged or promoted development (E-Tom 1994, 9). These policies tend to “drastically reduce access to basic infrastructural essentials including education, training, health and food” (E-Tom 1994, 9).
As with diversification success, there are many reasons that could explain why diversification strategies are often unsuccessful. • Market volatility and entering into a new venture within such turbulence could be one potential reason why diversification strategies that are undertaken can refuse to yield success. • Another reason would be focusing on the potential upside and failing to understand difficult conditions. If "rewards for managers are usually greater when a firm is pursuing a growth strategy," focusing on these rewards as opposed to conditions that surround the diversification strategy might be where the failure lies. Additionally, some diversification strategies such as mergers might not succeed because of lack of institutional support.
On one hand, great importance was attached to physical infrastructure in the poverty reduction efforts of developing countries and on the other hand, many in the international development community viewed assistance for infrastructure with considerable skepticism on three grounds (DFID 2002). First, though it was important for economic growth, infrastructure investment had little relevance to poverty reduction. The second one is actual benefits from infrastructure were significantly less than anticipated. And the third one, weak governance and institutions gave way to corruption, distorted public investment choices, and neglected maintenance, thereby lowering infrastructure’s contribution to economic growth and diverting benefits intended for the poor. Presently, almost 70% of infrastructure investment in developing countries is financed by governments or public utilities from their own resources or from nonconcessional borrowings, 3% from aid, and the balance from the private sector (DFID 2002).
Weaknesses: Lending methodology is too much vulnerable because of no collateral provided by the customers. Too much difficult to recover the loan losses could be another weakness. Opportunities: Low GDP per capita, endless unbankable population, less opportunities for female entrepreneurs and long range of cottage industry are the main opportunities for expansion of Kashf Foundation’s business. Threats: Kashf Foundation may prone to threats like political instability, Islamic Radicalism and inconsistence Govt policies. 6.