Comparing different approaches to effectively promote growth in the least developed countries
E-Book, Englisch, 38 Seiten
ISBN: 978-3-656-27568-8
Verlag: GRIN Publishing
Format: PDF
Kopierschutz: Kein
Through the absence of substantial savings, poverty prevents the accumulation of capital and the needed investment for productivity growth. By failing to attract investment, Participation is found to do little to break this vicious circle and lift the least developed countries out of the poverty trap. SAPs embodied the right idea but were to rigorous and paying to little attention to the local conditions present. PRSPs seem a well-working successor to the SAPs by involving the recipient. Cash transfers are economically and ethically promising, but entail the risk of inflation and have no effects on under-investment in infrastructure necessary for supporting large-scale growth. Only a combination of bottom-up and top-down measures presents effective development assistance.