DEVELOPING COUNTRIES: ECONOMIC GROWTH, CRISIS

Abstract

The paper discusses macro-economic problems of the developing countries, the influence of the developed world, determinants of the economic growth in the developing countries and the specific problems faced by the economics of the developing countries. The poverty is the main problem faced by the developing countries and the main challenge of their economics and politics is to overcome such a dilemma. Unlike industrial developed countries, the majority of the developing countries has lack of industrial factors, assets and qualified labor. The lack of the mentioned factors leads to the low level of the income per capita hindering economic growth of the developing countries. Political instability, absence of the warranties and improper economic politics often are the preventive factors for investments. One of the greatest problems of the country is the difference between incomes of the countries, why the some countries become rich and others experience stagnation.