What are the main problems associated with economic development?



Answer:
The main obstacles are psychological. When a country is underdeveloped, there is an unwillingness of investors to be the first to jump in. This is especially true if the government is unstable, if there is a lack of reliable infrastructure, or if there is a lack of transparency (legal, economic, and financial).

If the country can get over that hurdle, it often has the opposite problem -- overconfidence. Foreign investment will come pouring in, and possibly overwhelming the banking system, which has to distribute the money to firms and households. Also, there will not be a lack of skilled worker, which will also migrate in if there are good economic opportunities.

Economists refer to this problem as the "stop-start" phenomenon.
Lack of skilled workers.
1) foreign investments-(its the only one i could think of).

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