Explain the factors which hinder industrial development in the third world countries.
Answer:
- Lack of capital or adequate funds to invest in industrial sector.
- Lack of skills manpower.
- Poor infrastructure.
- Stiff competition faced from developed countries.
- High poverty levels making their purchasing power low.
- Poor economic politics that do not offer a conducive and enabling environment to
attract foreign investors.
- Political instability occasioned by power struggles among leaders.
- Colonial and neo-economic resources are still controlled and exploited by development nations through multinational compositions and international trade.
- High population growth which has called for massive expenditure on food
importation.
- Nature calamities these countries are subjected to epidemic catastrophes that
are aggregated by effects of A.I.DS making huge resources to be spent on
controlling diseases.
- Inappropriate spending – They spend a lot on military hardware for defense and
security.