Course review

4.9 Barriers to economic growth and/or economic development

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Learning objective

4.9.1—Poverty traps and poverty cycles

New

• Poverty traps are self-reinforcing conditions that keep people or economies poor • Diagram: poverty cycle showing linked factors perpetuating poverty

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Learning objective

4.9.2—Economic barriers to growth and development

New

• 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

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Learning objective

4.9.3—Political and social barriers

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• 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

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Learning objective

4.9.4—Significance of barriers

New

• Different barriers have different importance depending on country context • Evaluation should consider how barriers interact and reinforce one another

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