Category: Economics
Economic absorptive capacity
This refers to the ability of a country to effectively and efficiently utilize the foreign aid (resources) given to it for development purposes. Read More
10 Causes of low absorptive capacity in developing countries
Inadequate domestic financial resources. Developing countries have limited capital to supplement the foreign resources given to them. This limits the expansion of investment opportunities in ... Read More
11. Arguments against (Demerits for) import substitution industrialization strategy
It leads to rural-urban migration. Most import substituting industries are urban based and this encourages people to move from rural areas to urban centers. ... Read More
10 Limitations to import substitution industrialization strategy in developing countries
Inadequate capital. There is shortage of capital to set up and maintain the import substituting industries. Credit from financial institutions is only available at very ... Read More
11 Arguments against (demerits/disadvantages) for export promotion industrialization strategy
It leads to rural-urban migration., Most export substituting industries are urban based and this encourages people to move from rural areas to urban centers. This ... Read More
Export promotion (out ward looking) industrialization strategy
This refers to the development strategy which aims at setting up domestic industries to produce manufactured goods and services mainly for the foreign market. This ... Read More
11 Arguments against (Demerits for) import substitution industrialization strategy
It leads to rural-urban migration. Most import substituting industries are urban based and this encourages people to move from rural areas to urban centers. This ... Read More
11 Limitations to import substitution industrialization strategy in developing countries·
Inadequate capital. There is shortage of capital to set up and maintain the import substituting industries. Credit from financial institutions is only available at very ... Read More
13 Arguments (Merits) for import substitution industrialization strategy
It facilitates the exploitation and utilization of the idle local resources. This is because import substituting industries mainly use local raw materials. This helps to ... Read More
Import substitution (in ward looking) industrialization strategy
This refers to the establishment of domestic industries to produce commodities that were formerly imported. Read More
10 Limitations to technology transfer in developing countries
High costs of importing foreign technology. That is it is expensive to import foreign technology and adopting it to the local conditions. The poor education ... Read More
Economically efficient technology
Economically efficient technology. This is the method of production that produces goods at minimum costs possible and helps to solve social economic problems like unemployment ... Read More
10 Merits (positive implications) of Technology transfer
It helps to bridge the technological gap in developing countries. The local people learn and adopt the imported modem production techniques hence improving on ... Read More
9 Demerits (negative implications) of Technology transfer
It leads to technological unemployment. This is because it usually tends to be capital intensive yet developing countries are labour abundant. The machines replace ... Read More
Technically efficient technology.
Technically efficient technology. This is the method of productions which produces the best quality products in shortest time possible Read More
Technological development
Technological development refers to the process of upgrading the existing indigenous production techniques through continuous inventions and innovations, Read More
Technology transfer
Technology transfer refers to the movement of new and efficient production techniques from one country to another usually from developed countries to developing countries. Read More
Appropriate technology
Appropriate technology is the 'production' technique that is desirable and suits the prevailing social economic conditions of the country in terms of available resource, market, ... Read More
12 Arguments (Merits) for intermediate technology
It uses locally available resources hence reducing on dependence of the imported raw materials which enables the country to sale the scare foreign exchange. It ... Read More
Intermediate technology
Intermediate technology is the type of technology that is mid-way between the developed capital intensive technologies and backward labour intensive technology. It is neither too ... Read More
14 Advantages/Merits/reasons for adoption of capital intensive technology
It leads to the production of better quality goods and services in the economy. Such products are internationally competitive and fetch high prices on the ... Read More
12 Disadvantages (Demerits) of capital intensive technology
It accelerates rural -urban migration. Most of the industries using capital intensive technology are usually urban based. This encourages people to move from rural areas ... Read More
13Disadvantages (Demerits) of labour intensive technology
It is associated with the production of poor quality products. Such products are not internationally competitive and they fetch low prices on the world ... Read More
Capital Intensive technology (One thousand pound/Labour saving technology)
Capital Intensive technology is a production technique that employs more capital relative to other factors of production especially labour. It is also called 1000 pound ... Read More
14Advantages (Merits) of labour intensive technology
It is appropriate in developing countries where capital is scarce and labour is abundant and cheap. This helps to reduce the production costs and ... Read More
Labour intensive technology (One pound/Capital saving technology)
This is a production technique that employs more labour relative to other factors of production especially capital. It is called one pound technology because it ... Read More
13 Policies (measures) to promote the small scale industries in developing countries
Providing credit facilities by the government. There is need for the government to provide credit facilities to the small scale industrialists at subsidized interest rates. ... Read More
10 Problems facing the small scale industries in developing countries
Inadequate capital. This is due to low incomes and limited access to credit facilities from financial institutions due to lack of collateral securities. This limits ... Read More
9 Negative role (implications) of small scale industries
This leads to misallocation of resources in the economy They lead to low government revenue. This is because they are associated with a small tax ... Read More
13 Positive Role (Implications) of small scale industries
They facilitate the exploitation and utilization of the idle local resources. This leads to the production of more goods and services hence economic growth and ... Read More
12 Advantages (merits) of balanced growth strategy
It increases employment opportunities. This is because the strategy emphasizes massive investment in all sectors of the economy which increase production and other economic activities ... Read More
Infant industry meaning
An infant industry is a newly established industry producing low quantity and quality goods and services at high average costs of production. Read More
Small scale industry
A small scale industry is one which employs low levels of technology and limited capital in the production process to produce low output levels in ... Read More
12 Measures (Strategies) to promote the Industrial sector in developing countries(Uganda)
Providing credit facilities by the government. There is need for the government to provide credit facilities to the industrialists at subsidized interest rates. This promotes ... Read More
10 Limitations to industrial development in developing countries
Inadequate capital. This is due to limited access to credit facilities from financial institutions due to lack of collateral securities. This limits industrial development in ... Read More
7 Arguments against Industrial development strategy for developing countries
These are negative externalities or side effects that arise as industrialization takes place. They include the following. It leads to rural-urban migration. People shift ... Read More
14 Arguments for industrial development strategy
Industrial products fetch high and stable prices. Industrial products are free from the adverse effects of natural factors like climate and they command high prices ... Read More
Industrial development strategy
Industrialization is the process of manufacturing consumer and capital goods and creating social overhead capital necessary for economic growth and development. It involves, but is ... Read More
12 Limitations of the big push (development) theory in developing countries
1. Inadequate There is limited capital necessary to massively invest in industrial development and infrastructure. This limits the implementation of the big push growth ... Read More
13Advantages (Merits) of big push growth strategy
It increases employment opportunities. The strategy emphasizes the creation of labour intensive industries. This promotes employment and raises effective aggregate demand for goods and services ... Read More
The big push development theory
The big push development theory states that for a backward economy to take off into self-sustained growth, it requires a massive investment program designed to ... Read More
Disadvantages (Demerits) of unbalanced growth strategy in developing country
It worsens the unemployment problem. This is because the strategy ignores some sectors of the economy which limits production and other economic activities hence low ... Read More
Advantages (Merits) of unbalanced growth strategy
It encourages specialization in the economy. This results into economies of large scale, low prices in the domestic market, and competitiveness of commodities on the ... Read More
Unbalanced growth strategy (Pole growth strategy)
This is where all economic resources are mobilized and channeled towards the growth and development of priority (leading) sectors which then induce growth and development ... Read More
Limitations of the balanced growth strategy in developing countries
Inadequate capital. There is limited capital necessary to massively invest in all sectors of the economy. This limits the implementation of the balanced growth strategy. ... Read More
Disadvantages (demerits) of balanced growth strategy
It leads to over exploitation and quick depletion of nonrenewable resources. Such resources include minerals like copper, coal, etc. This lead to lack of long ... Read More
The critical minimum effort
The critical minimum effort refers to a certain minimum level of investment capital required to ensure simultaneous and harmonious development of all sectors and sub-sectors ... Read More
Balanced growth strategy/theory
A balanced development strategy involves the simultaneous allocation of resources in all sectors of the economy so that all sectors grow at the same ... Read More
Development goals
Development goals refer to targets or objectives which have to be met in a given time in order to achieve economic development. They are divided-into ... Read More
Development goals for developing countries (Uganda)
To increase the availability and widen the distribution of basic needs of life such as shelter (Housing), food, water; healthcare, clothing, education and protection (security). ... Read More
Uganda’s development strategy
On the choice of objectives, Uganda emphasizes achieving economic growth, price stability, fair income distribution, high employment levels, infrastructural development etc. On the choice of ... Read More
Components (Elements) of an economic development strategy
Choice of broad objectives. That is economic growth, price stability, infrastructural development etc. Choice f technology. That is either capital intensive, labour intensive or intermediate ... Read More
Economic development strategy
This is the broad policy guidelines initiated and followed by the country in formulating and implementing long term social and economic policies for national development. Read More
Economic development process
This refers to the accumulative improvement in the living standards of people characterized by the increase in the real income per capita of the country ... Read More
Economic Chapter 6: Economic growth, development and underdevelopment
Economic growth Economic growth is the sustained persistent quantitative increase in the country’s volume of goods and services as measured by an increase in Gross ... Read More
Costs (demerits) of economic growth
It leads to rural-urban migration. As the economy grows, people tend to shift from rural areas to urban centers where there are better opportunities as ... Read More
Benefits (advantages) of economic growth
It facilitates the exploitation and utilization of the idle local resources. This increases the level of national income in the economy. It increases government revenue ... Read More
Economic Chapter 5: The structure of Uganda’s economy
The economy is the process or system by which goods and services are produced, sold, and ... Read More
Problems being faced in the process of privatization
High levels of corruption within the privatization unit. This leads to misallocation of resources realized from the privatization drive. Opposition from the public. This is ... Read More
Disadvantages (Demerits/ Costs) of privatization
It encourages wasteful competition through duplication of goods and services. This leads to misallocation of resources in the economy. It leads to emergence of private ... Read More