Problems of Development Today

Today the problems facing developing countries revolve around what are generally called "structural constraints" to development. First among these is geography—not just in the historical sense described above—but also in the more contemporary sense that a modern economy cannot function without a division and diversification of labor. Thus, small countries with small populations have trouble developing, gaining access to markets; while, landlocked countries have trouble integrating with global markets and developing their economies.

Other common constraints on development are high economic poverty, hunger, high mortality rates, unsafe water supplies, poor education systems, corrupt governments, war, and poor sanitation. These factors all combine to create what the World Bank calls "poverty traps"—cycles that must be broken for countries to develop.

Countries can avoid poverty traps, however, with sound policies. The World Bank says, for example, "While geography can pose challenges, it does not define a country's destiny."¹ Countries with few geographic advantages can become highly developed with good government policies, while countries with valuable geographic resources can squander them. The World Bank therefore recommends that countries focus on six areas of policy:

• Investment in education and health
• Increasing productivity of small farms
• Improving infrastructure (for example, roads)
• Developing an industrial policy to promote manufacturing
• Promoting democracy and human rights
• Ensuring environmental protection

The following sections of this Issue Brief describe how the international community tries to help poor countries implement these policies.

For more information on problems of development today, check out these links:

- Water Scarcity: Real and Virtual Implications

- Water Forum Discusses "Greatest Challenge of the Twenty-First Century"

- Chronic Disease and the Developing World

- Failed States: Insight into Two of the World’s Most Broken States 

- Maritime Piracy: The Phenomenon, its Implications and Responses