2006-11-19 01:01:41 · 3 answers · asked by joseph n 1 in Social Science ➔ Economics
The major causes are greed, corruption, socialist ideology, and incompetence.
Well-run poor countries invest what they borrow into productive activity and keep the government out of the commercial economy. So the debt never gets out of hand. They charge realistic prices for use of paved roads, schools, clinics and so on; keep the exchange rate competitive so that their producers of coffee, cut flowers or whatever have good export markets and access to the import inputs they need; and avoid prestige projects and dam nonsense that cost $$$ and deliver little or no economic reward.
2006-11-22 11:44:57 · answer #1 · answered by MBK 7 · 0⤊ 0⤋
High budget deficits and insufficient domestic capital
2006-11-19 10:06:58 · answer #2 · answered by daniel_cohadier 3 · 0⤊ 0⤋
im just guessing but maybe imports>exports
2006-11-19 09:09:32 · answer #3 · answered by blah 3 · 0⤊ 0⤋