4.9 Barriers to economic growth and/or economic development

• Poverty traps are self-reinforcing conditions that keep people or economies poor

• Diagram: poverty cycle showing linked factors perpetuating poverty

• Barriers include rising inequality, weak infrastructure, inappropriate technology, low human capital, and dependence on primary production

• Other barriers include lack of market access, informal economy, capital flight, indebtedness, landlocked geography, tropical climates, and endemic diseases

• Weak institutions include legal system weaknesses, ineffective taxation, weak banking systems, and insecure property rights

• Other barriers include gender inequality, corruption, lack of good governance, and unequal political power and status

• Different barriers have different importance depending on country context

• Evaluation should consider how barriers interact and reinforce one another