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Section 5.3 Barriers to economic growth and/or development - notes

We have already seen that a high quality institutional framework is an essential pre-requisite for development. This means that institutional weaknesses will be a significant factor restraining growth and development.

In this section, we consider these issues in more detail and also look at the poverty cycle - a trap that prevents many economies from developing and growing. We also consider the following topics in detail:

  • Poverty cycle
  • Institutional and political factors
  • International trade barriers
  • International financial barriers - indebtedness
  • Social and cultural factors