Ways of reducing Economic dependence in Developing countries
- Adopting the inward looking development strategy. This is achieved by setting up import substituting industries to reduce heavy dependence on imports.
- Economic integration. This is aimed at widening markets for the locally produced goods and promoting economic inter dependence among the integrated countries.
- Export promotion policies. These are aimed at increasing the quantity and quality of exports through value addition. This helps to increase on the foreign exchange earnings which is used to import capital and consumer goods. ,
- Constructing and rehabilitating the social and economic infrastructure. This is aimed at facilitating the production, distribution and marketing of goods and services in the country.
- Use of appropriate technology. This helps to create more employment opportunities and increase production in the country.
- Changing the education system. This is aimed at equipping man power with the required skills so as to reduce over dependence on foreign skilled man power,
- Economic diversification. This is geared towards reducing over dependence on the agricultural sector and widening the scope of exports.
- Adopting favourable government policies. For example subsidizing local investors and setting up institutions like Uganda Investment Authority (UIA) to stream line the requirements from and the needs of the investors.
- Increasing the exploitation of natural resources. This is aimed at reducing on the importation of raw materials from other countries required for production.
- Political stability. This is aimed at promoting investments and production of goods and services in the country and reducing on the expenditure incurred in importing fire’ arms from foreign countries.
CATEGORIES Economics
TAGS Dr. Bbosa Science
