4.9 Barriers to economic growth and/or economic development

• Wicked problems

  Complex social issues with no clear solution and high levels of uncertainty.
• Poverty trap/cycle

  A self-reinforcing mechanism where poor individuals remain trapped in poverty.
• Randomised control trials

  A study design where participants are randomly assigned to different groups to test the effectiveness of interventions.
• Infrastructure

  Basic physical and organizational structures and facilities needed for the operation of a society.
• Appropriate technology

  Technologies suited to the environmental, cultural, and economic conditions of the area where they are intended to be used.
• Human capital

  The knowledge, skills, and abilities of individuals that contribute to their economic productivity.
• Dutch disease

  An economic phenomenon where a resource boom leads to a decline in other sectors of the economy.
• Governance

  The way in which a country or organization is managed at the highest level.
• Tariff escalation

  The increase in tariffs on processed products compared to raw materials.
• Formal sector

  The part of the economy that is regulated, taxed, and monitored by the government.
• Informal sector

  The part of the economy that is not regulated or taxed by the government.
• Capital flight

  The movement of funds from one country to another for the purpose of investment, profit, or security.
• Indebtedness


  The state of owing money or being in debt.
• Debt default

  The failure to meet the legal obligations or conditions of a loan agreement.
• Hot money

  Short-term capital flows that are quickly moved between financial markets for profit.
• Tax havens

  Countries or territories with very low or no taxes, used by individuals and businesses to avoid paying higher taxes.
• Capital controls

  Measures taken by a government to regulate the flow of foreign capital in and out of the country.
• Tax base

  The total amount of income, property, assets, consumption, transactions, or other economic activities subject to taxation.
• Debt servicing

  The payment of interest and principal on a debt.
• Debt restructuring

  The renegotiation of terms on existing debt to make it more manageable for the debtor.
• Debt trap diplomacy

  A strategy used by powerful countries to lend money to poorer countries, creating debt dependency and leverage.
• Natural capital

  The world's stocks of natural assets which include geology, soil, air, water, and all living things.
• Endemic disease

  Diseases that are constantly present in a population or geographic area.
• Neglected tropical disease (NTD)

  A diverse group of communicable diseases that prevail in tropical and subtropical conditions.
• Power asymmetry

  A situation in which one group has more power than another, leading to an imbalance in decision-making and influence.
• State capture / regulatory capture

  The situation where powerful individuals, institutions, or companies manipulate the state's decision-making processes to their advantage.
• Rent-seeking

  The process where individuals or entities seek to increase their wealth without creating new wealth, often by manipulating the economic or political environment.
• Political system

  The system of government in a nation, including how laws are made and enforced.
• Corruption

  Dishonest or fraudulent conduct by those in power, typically involving bribery.
• Civil law system

  A legal system based on written laws or codes.
• Common law system

  A legal system based on precedent and court decisions.
• Religious law system

  A legal system based on religious beliefs and texts.
• Rule of law

  The principle that all people and institutions are subject to and accountable under the law.
• Property right

  The legal right to possess, use, and dispose of property or assets.
• Expropriation risk

  The potential that a government may seize private assets without adequate compensation.
• Collateral

  An asset pledged as security for a loan.
• Natural income

  Income derived from the use of natural resources.
• Tax structure

  The way in which taxes are levied and collected in an economy.
• Financial exclusion

  The lack of access to financial services and products within a population.
• Mental models

  Beliefs and frameworks through which individuals interpret information and make decisions.