SHORTAGE OF CAPITAL - DEVELOPMENT ECONOMICS

The supply of capital in the country is far from being adequate. The general poverty really leads to low level of capital formation . It  is a vicious circle.  In many cases the execution of the national   plans have been positively hindered by the shortage of capital. Money  is a strongman that must not be  taken   for granted if any country must  develop. It is the key to many problems.  definitely its influence is being strongly felt in the  different countries of west Africa . 


Because of the shortage many of these countries are forced into canvassing for loans that are often obtained on very unfavourable terms. Earlier it has been pointed  out that the total wealth of  any country to a great extent l  depends on the amount of capital equipment that is available and  being utilized. Poverty makes it difficult for  a country to build  up  a   large stock of capital equipment . This is the case with west Africa I order to  break though  this vicious, circle, the cooperation  of   all and sundry is needed. People should be prepared to forgo immediate  enjoyment for a bigger  one in the future . A country  that  must develop must be prepared to make sacrifices . This is  the main lesson one can lean from  Russian experience 
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