Impact of Social Factors on the Economy Economic growth and development in a country is basically described as the qualitative measure of advancement in an economy. The progress is normally evaluated on the basis of technological improvements, change from an agrarian to modern economy, and improved living conditions for the population across the entire socio-economic stratifications. In addition, economic development and growth is measured on the premise of the ability of progress to contribute to improved productivity and comfort. Therefore, an economy is usually influenced by several factors associated with the population’s living conditions, industrialization, and technological advancements. One of the major factors affecting a country’s economic growth is social and cultural forces within the economic community. Social factors have continued to have significant impacts on the economy because of the role they play in shaping the population’s attitude towards the achievement of progress. For instance, while societies that value individual gain and achievement experience significant economic development, those that discourage such measures achieve little to no progress (Williams, n.d.). The impact of social factors on the economy is demonstrated through socio-economic theory of regulatory compliance. This theory …show more content…
The increased incidences of corruption in the country have been brought by inefficient and ineffective public services that usually favor influential politicians. Corruption affects the economy by promoting political and economic failures through repelling investment, hindering market development, increasing the costs of running businesses, and grinding down the authenticity of formal
Corruption is something that is motivated by greed and fraud. It’s a very threatening personality that controls and destroys people’s lives and makes them the kind of person other people don’t want to associate with.
“Political corruption is the use of power by government officials for illegitimate private gain.” This can lead to the downfall of societies because when citizens find out, they won’t have any respect for their government/leaders because of the bad things they do. Lack of respect can cause riots/outbreaks in cities.
The development of a country depends generally on the work and values of its society. The image of a country can be severely damaged by certain actions and behavior of their citizens, like bribery. When a country is known as a corrupt nation, not only will the facade of the country be affected, but also the economy. Establishing measures to eradicate corruption are urgently necessary. Corruption has been around since the begging of time, but currently is more common in business, more specifically, international business. Although some organizations have been formed, and conventions have been signed in order to end it, corruption is still one of the mayor problems around the world. An ethical view might bring more insight to why bribery and corruption is not a moral act and why more severe measures should be taken into consideration.
Chetwynd, Eric, Frances Chetwynd, and Bertram Spector. "Corruption and Poverty: A Review of Recent Literature." Management Systems International (2003): n. pag. Print.
Corruption has always been a problem built into institutions that hold power. Corruption is unavoidable in institutions that delegate the power. It would come with no surprise that every country has an institution which distributes or delegates the decisions that the country takes which in other words gives them power. One institution that could be used as an example of corruption would be the Dominican Government. Dominican Republics is known for being a third world country, for its poverty, culture, and for its corrupt government. Dominican Republic government is known for making back door deals, stealing money from the people, and neglecting the countries problems. It is believed that Leonel Fernandez is at the center of all of the corruption. It is believe that he has stolen and embezzled millions of dollars, made contracts with other countries selling away the countries resources for personal gain. According to the people none of the money being paid by foreign countries has been invested into the countries progression.
Corruption is commonly defined as “being dishonest or illegal behavior, especially by powerful people (such as government officials or police officers)” according to Merriam-Webster.com. However, although defined, corruption cannot be measured. Without measurement of this ten letter word, it becomes troubling within jurisdiction’s law abiding citizens live in. As a result, hysteria, panic and doubts arise which are only a few out many reactions the public makes. With the press only stirring greater chaos, corruption is never completely solved, which is why it must be confronted and measured before it’s too late. If not it’ll only continue to linger throughout media headlines and forums, but also the society, it conclusively affected and left a mark on for example, Pageland, SC.
The runaway corruption in the country harms the business environment and causes collapse of various established institutions and industries.
There are at least four different research perspectives about the relationship between development and economic growth. Firstly, economic growth is the basis for social development. Secondly, economic growth and social development are not necessarily linked. Thirdly, both economic growth and social development are not basic causes by each other, but they depend on interaction. Fourthly, social development is the prerequisite for economic growth (Mazumdar. 1...
In order for any country to survive in comparison to another developed country they must be able to grow and sustain a healthy and flourishing economy. This paper is designed to give a detailed insight of economic growth and the sectors that influence economic growth. Economic growth in a country is essential to the reduction of poverty, without such reduction; poverty would continue to increase therefore economic growth is inevitable. Through economic growth, it is also an aid in the reduction of the unemployment rate and it also helps to reduce the budget deficit of the government. Economic growth can also encourage better living standards for all it is citizens because with economic growth there are improvements in the public sectors, educational and healthcare facilities. Through economic growth social spending can also be increased without an increase of taxes.
When looking through the topic of development, two drastically different ways to assess it arise. The majority of the western world looks at development in terms of per capita GNP. This means each country is evaluated on a level playing field, comparing the production of each country in economic value. Opposite this style of evaluation is that of the alternative view, which measures a country’s development on its ability to fulfill basic material and non-material needs. Cultural ties are strong in this case as most of the population does not produce for wealth but merely survival and tradition.
This essay will attempt to explore the relationship between the two from the definitions, causes, consequences and the solutions. Corruption can be defined as the abuse of public power for private gain. (World Bank, 2004) Corruption is attracting a lot of attention around the world, and is a growing international and regional concern. According to Corruption Around the world (Tanzi, 1998), in its end-of-year editorial on December 31, 1995, The Financial Times characterized 1995 as the year of corruption.
Rostow's five stages of economic growth begin with the traditional society. As described by Rostow, the underdevelopment is naturalised in this structure with the evidence of constrained production means such as technology. In this part, the society applies subsistence economy that technically results in small margins of productivity such as hunter-gatherer society (Sahlins 1972:1) Undesired to do nature exploitation, Rostow viewed society at this stage as restrained from progress. The second phase following the previous stage is preconditions of take-off. Economic growth starting to take place and is essential to justify the means within good definition. The society begins to implement the manufacturing of products while at the same time foreign intervention by advanced societies such as through colonialism is needed to bring about change in one's society. The next step towards moder...
Economic growth is one of the most important fields in economics. In current generation economic is developing well. Economic growth is really important to country and for the world as well. Economic are one of the identity for country because it shows a country development and attraction for other countries (F, Peter. 2014). For example well economic develop such as Singapore, Dubai, New York, and Japan. These countries are well develop and maintaining their economic growths. Economic growths are really important because higher average incomes enables consumers to enjoy more goods and services. Then, lower unemployment with higher output and positive economic growth firms tend to utilize more workers creating more employment. Enhanced public
In this essay,we have seen evidence that corruption leads to instability in the economy,increases the transactional cost,decreases efficiency, hinders the growth of a healthy marketplace and harms the social and economic development.Therefore,it’s fair to say that Corruption has had a serious effect on the Indian Economy.If left unchecked,India is bound to lose FDI investments as investors will lose trust in the economy. “Lost opportunities caused by corruption in regards to growth,jobs and investment; India has lost up to $45-50 billion a year”(Singh 2010).
Economic development is fundamentally about enhancing the factors of productive capacity, such as land, labor, capital, and technology, of a national, state, or local economy, as stated by the U.S. Economic Development Administration. Economic development influences growth and restructuring of an economy to enhance economic well-being. We experience economic growth when our standard of living is rising. Rather than being a simplistic process, economic development typically is a range of influences aimed at achieving objectives like creating jobs and wealth and improving the quality of life. It incorporates coordinated initiatives targeted at expanding infrastructure and increasing the volume and/or quality of goods and services produced by a community. A common measure of economic development is a country’s gross national ...