Obstacles to Economic Development

The term "economic development" refers to the process of making a nation's economy more advanced and developed through the application of numerous development plans and a successful set of economic strategies that have a positive impact on society. It is possible that the economic development process will encounter some difficulties and obstacles, and that all of the plans that are developed will undergo some modifications. Although many things have a negative impact on the economy as a whole, they are either unforeseeable or even minimized. The following are the kinds of financial risks and obstacles to economic growth that the economy currently faces

1. High rates of population growth - Depending on the circumstances, population growth can have a positive or negative effect. One of the most significant challenges facing any nation's economy is the random increase in population. One of the most significant obstacles that could impede economic growth and development is the increase in the population. Since, economic resources are frequently insufficient and do not cover the existing population, the large population is regarded as putting a significant strain on the resources and services provided. For instance, investment projects that, in turn, promote economic growth may not result in an adequate number of employees.

2. Low level of the human factor - When there are more people than there are obstacles to economic growth, people leave the country to find work elsewhere, and immigration from other countries grows. One of the most crucial aspects of any economic plan is the ability to build human factors, which necessitates improving all kinds of educational outcomes. One of the most crucial economic components and factors is the human factor, which in turn increases project production, boosts economic growth, and shifts the economic cycle. As a result, the state must work to prioritize all human resources, including university students, institutes, colleges, and other institutions.as well as every item that is required for their training.

3. Lack of economic resources and infrastructure - The primary driver of economic growth is an increase in the number of investments, which in turn results in an increase in the number of employees, their employment, and the amount of work that is done to move the economic wheel as a whole. Economic development processes are slowed down and the number of unemployed people rises as a result of weak economic projects. One of the most important ways to achieve economic development and provide a variety of job opportunities for unemployed people is to encourage investment and take care of its infrastructure. Investment can also use the resources available for production to make profits that help support the economy.

4. Poor transportation infrastructure - Transportation is regarded as one of the most important factors in economic growth, which in turn helps to activate, develop, and improve all aspects of life. By increasing the cost of freight per unit, poor transportation systems hurt the competitiveness of industries and the economy. Additionally, it raises ordering and overhead costs, damages to total inventories, and costs incurred in transit. Moving people and goods costs less when there is good transportation infrastructure. Productivity in the economy rises as a result.

5. Inability to come up with creative solutions - In some societies that rely on traditional means of conducting business, this issue manifests itself in a significant and glaring manner. The total reliance that many societies and nations have on oil provides perhaps the most prominent illustration of this. The cost of oil can be reduced by looking for and using alternative methods more diligently. Due to the severe harm it causes to humans on all levels, developed nations have become alienated from and reduced their use of oil, although some nations continue to use it. The improvement and growth of nations' economies are greatly aided by novel solutions.