Poverty Trap II

Poverty Trap II - Gaith Kalai Poverty Cycle Part II Page...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Gaith Kalai Poverty Cycle Part II –Page 438 3. a) importance of infrastructure to growth and development. Infrastructure provides services that support economic growth by increasing the productivity of labor and capital thereby reducing the costs of production and raising profits, production, income and employment. b) Contributions of infrastructure fallen short of expectations in developing countries. Expectations in developing countries follow that fast progress needs to be made in a short amount of time. Because of the time lags that are associated with building and establishing infrastructure, it is often not perceived as something that will not offer short term benefits to the people it is servicing while overlooking the fact that in the long term, it would greatly facilitate economic activity. 4. Some factors that make taxation systems relatively ineffective in developing countries In developed countries governments finance their expenditures through taxation, borrowing, grants and the creation of new money. In developed countries, the bulk of government revenues are raised through taxation. In some developing countries however, the taxation system is not well developed, therefore non- tax revenue may be the primary source of government finance. Non-tax revenue comprises fees levied by
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern