The Crisis of Developing Countries Results from Two Sets of Factors. Clearly Identify and Critically Discuss Both Sets of Factors. in Your View, Which Sets of Factors Weigh More for the Development Crisis and Why?

Topics: World Bank, Economy, Economic development Pages: 8 (3018 words) Published: October 31, 2012
The word ‘development’ has been an issue of great discussion in the media both in developing countries both in Africa and the world at large. The leaders of LDCs have for years been trying to change their countries for the better so as to bring them up to par with the developed countries of the world but can most developing countries can show, much of this effort has proved to be in vain as these countries are still struggling. These countries are in what is termed as the crisis of development which can be seen to be a result of two sets of factors; Internal and external factors. This paper is clearly going to identify and critically discuss both sets of factors of the crisis of development. Once this is done, the essay will move on to deciding on which set of factors weighs more for the development crisis as well as give convincing reasons based on provided evidence as to why this stand has been taken. A conclusion shall finally be drawn on the matter. Development is defined by Sapru (1994:5) as “involving the improvement of the people’s well-being as well as raising their standards and opening to them new and equal opportunities for a richer and more varied life.” It is a multidimensional process that is dynamic rather than static which means that at any stage in a country, development is present. In Africa however, this has proved otherwise as there is what is described as a crisis of development. This is described as a point in time when the general development of a country comes to a stand-still and makes it impossible for a country’s development process to move forward. As described by an online dictionary ( it involves the sudden change in the course of something to the extent that certain factors must be resolved before anything can change.

This crisis of development is as a result of two distinct sets of factors which are classified as internal or external factor. Internal factors of the crisis of development basically are those factors originating or located within the country’s borders. These include things such as corruption levels, poor or unfavorable policies implemented by government, excessive government intervention in economic issues, the rate of indebtedness of the country as well as the value or attitude system of the local people. The other set of factors responsible for this crisis are those referred to as the external factors. These are factors that are located or those that come as an effect of dealing with foreign nations. They are a set of factors upon which a country has no control over as they take place outside the nation’s reach and are controlled by external forces. External factors include external market forces, international terms of agreement, oil price increases and the IMF and World Bank policies. Among the internal factors, one that is clearly visible is that of the effects brought about by government’s agreement and implementation of the privatization and liberalization policies. Some policies like that of privatization have proved to be disastrous to most African economies as they have directly resulted in making tens of thousands unemployed and increased poverty. According to the World Development Movement (2009), the policy of liberalization in Zambia has had negative impact on the local industries and investors as liberalization opens up the market to foreign investors and the much needed financial muscle needed to survive in a capitalist economy like that in Zambia. This has made it very hard for the locals to invest in the economy hence making it very hard for the economy to grow to a point where it benefits the locals but rather benefits the foreign investors.

In addition to this, the issue of corruption has contributed to the situation being faced by ln most developing countries today. The place of corruption as being among the factors of the crisis of development draws attention because as Umez (2000:4) has rightly pointed out, “Africa presents a...
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