Question

5. What are the main obstacles to a country's economic transformation program?

Answer 1

In a developing country, there could be various obstacles on the way to country’s economic transformation program such as:

• The basic structure of the economy. For example, China underwent economic transformation from being a Socialist economy to that of now a Democratic one and later to a socialist market economy. The various imbalances that are evident in the social structures, could be a reason for obstacle in the transformation program.
• Various psychological factors incidental to the Government and that of the country’s people.
• Lack of sustenance with sudden accelerated development.
• Lack of robust infrastructure and regional integration.
• Growth or declination in the population.
• Insufficient financial capital.
• Over abusing of environmental resources.
• The micro-economy itself not being efficient enough to support the transformation.
• Various trade barriers or restrictions.
• Corruption in the system.