Flashcards in 4.8 The Balance Between Markets And Intervention Deck (36)
What is the weakness of excessive bureaucracy?
Refers to administrative systems, structure and regulations. There is over regulation in many LEDCs which leads to ioncmic inefficiencies rather than economic growth and development.
What is the weakness of poor planning?
Political instability and conflict, common in many LEDCs can cause major delays in production thus limiting opportunities for economic development. Th lack of market signals means that the planning is often unrealistic.
What is the weakness of corruption ?
Dishonest governments that misuse sources of finance reduce the effectiveness of policies intended to promote economic development. Corruption reduces trust between individuals, firms and governments the acting as a deterrent to FDI.
What is good governance?
Refers to the moral conduct of public affairs and the management of public resources. It can be seen as the opposite of corruption, so is important for the development process of an economy. Good governance applies to anyone in a position of responsibility with decision making power including government officials, lawmakers, the military, scientific researchers and religious leaders.
What does good governance require?
Transparency in government policies and government affairs.
Determined effort to limit corrupt practices such as enforced fines and sanctions.
Provision os a welfare safety net for citizens who suffer from ill health and/or unemployment.
Accountable and law abiding policies.