ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Differences in the economic growth rate of nations often come down to differences in inputs (factors of production) and differences in TFP-the productivity of labor and capital resources. Higher productivity promotes faster economic growth, and faster growth allows a nation to escape poverty.

Detailed explanation-2: -Wealthy nations can also take positive steps to directly benefit developing countries-specifically, by taking action against corrupt leaders, assisting research and development, and enhancing global labor mobility. The deepest challenge for countries in the poorest parts of the world, especially Africa, is governance.

Detailed explanation-3: -There are several nations which are poor and so impoverished in the economy that they largely depend upon other countries for the resources such as food and raw materials etc.

Detailed explanation-4: -Experience shows that poor management of natural resources, substandard governance, and under-investment in education and human resources are associated with slow growth rates and low real per capita income.