Date Posted: 11/5/2012 2:30:08 AM
Posted By: vann Membership Level: Gold Total Points: 1015
Economic development is concerned with the process of improving the quality of the lives of human beings. It is aimed at increasing the per capita income of households. Kenya being a developing country as characterized by low per capita income, a heavy dependency on agricultural sector, a considerable dependency on a narrow range of products, low capital borrowing rates, inadequate infrastructure and social services among others.There exist certain obstacles that can explain how achieving these goals of economic development may be hard. These among others include;1. Poverty. There exists a vicious circle of poverty, a self- reinforcing situation, whereby certain factors exist that tends to perpetuate an undesirable phenomenon. For example, low savings, low income, low productivity and lack of capital.2. Human resource constraints.Human resource constraints constitute a fundamental obstacle to economic development. Individuals lack skills in knowledge required for economic development.3. Per capita formation.There is a low level of per capita formation. Poverty is a cause and a consequence of a country’s low level of capital formation.4. Socio-cultural constraints.Such issues like attitudes influenced by ethnic distinctions are some huddles to economic development. There seems to be a distracting factor that tries to eliminate the required objective to economic development.5. Foreign exchange constraints.Developing countries gain relatively limited from trade compared to developed countries.Other obstacles to economic development in a country may include; 6. Lack of entrepreneurial skills since access to education is a problem.7. Corruption that involves misuse of the available resources.8. Inappropriate policies which are mostly not implemented in the right way.
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