Third world countries are mostly faced with economic development barriers. These
factors are broad and cut across the social political and economic factors. Economic
development refers merely to the growth of the living standards of people in a country with a low income to a high-income economy. The economic development reflects the progress of a nation by social and economic aspects. The most significant factors that affect the economic
development are natural resources, corruption and resource mismanagement, lack of market for surplus agriculture, poor infrastructure, and human resource constraints.
Natural resources- this is a primary factor affecting economic development in developing
countries. Natural resources refer to land, minerals forests and many others. There are many
countries in the developing nations that have inadequate natural resources, and for those
countries who are rich in natural resources, they are either mismanaged, underutilized or remain unutilized, and this contributes to lack of or poor economic development.
Lack of market for surplus agriculture- for sufficient development of an economy, there
should be increased agricultural production. Majority of the countries in the third world do not
produce adequate surplus let alone enough for the economy. Shortage of rain and lack of
alternative methods of food production contribute to this factor. If a country cannot produce
enough it will be forced to import food and may eventually result to problems of balance of
payments which hinder economic development.
Poor infrastructure- well established infrastructure is essential for economic development.
Most of the developing countries however have poor infrastructure in terms of transport
networks and other public utilities. Poor infrastructure hinders trade and development where transport networks are poor, production and coordination of economic activity is also barred
where power supplies and communication channels are poor respectively.
Constraints in skilled labor- In developing countries, the majority of the people lack important
skills necessary for economic development. The lack of skilled human resource leads to low
productivity and thus reduced economic development.
Corruption and resource mismanagement- this has constituted to interference with
development since funds allocated to development are diverted to private use and foreign aid given is often mismanaged hence lagged economic development.