Economic Factors

Growth

iceblueprincess answered 7 years ago
A) Land factors
Natural resource endowments – if a country has diamonds or oil etc, it helps! But the land factor is not enough to give growth on its own, and it is the least important of the growth factors.

B) Labour factors
*Labour skills and abilities = education and training. The more of these, the better for growth but it should be of the right kind. India, for example, has been accused of training far too many lawyers and not enough agricultural specialists.

*Labour enthusiasm or motivation – the more of this, the better for growth. However, it is not easy to know how to stimulate motivation.

Rule of Law

Several high-level government officials and law enforcement bodies figured in corruption scandals in the past year, and the government has taken steps to address the problem. Judicial independence is undermined by extensive executive influence, and arbitrary or politically motivated verdicts can occur. Private property is protected effectively. Corporate lawsuits face lengthy delays.