Poverty trap (poverty cycles): any linked combination of barriers to growth and development that forms a circle, thus self-perpetuating unless the circle can be broken
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How does low human capital affect economic progress?
Lack of access to education
Improve role of women in society
Improve levels of health
Lack of access to healthcare
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Dependence of primary sector in relation to economic progress:
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Capital fight: is the movement of large sums of money out of a country as a reaction to political or economic instability
a. Debt repayments cause a major drawbacks to money borrowed previously
b. Landlocked countries trade less and have slower growth rate than countries that have coasts
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How does debt influence economic progress?
Debt repayments cause a major drawbacks to money borrowed previously
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Political and social barriers to development:
Legal systems and property rights
Right to own assets
Right to establish use of assets, benefit from assets, selling of assets
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Lack of governance and corruption:
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