How would you transform a developing country into developed one?

Answer 1

There are many factors believed to be required for developing as a country and becoming an advanced economy. This list, in no particular order, is not exhaustive but helps to explain how some countries have advanced, and why others are still lagging:

1. Political stability - unstable governments, military coups, overthrows all create instability and a lack of continuous policy. This creates enormous challenges and risks for the business and investment community to plan for growth
2. Increased savings rate - studies have shown that a common theme of countries that grow is an increase in the national savings rate. Higher savings leads to higher investment, which can raise productivity and output and therefore growth
3. In the absence of increased savings (if people start with so little, how can they be expected to save more?), attracting inward overseas investment is important, provided it is correctly invested and the profits do not all leave the country and flow back
4. Robust institutions - having an independent central bank, independent judiciary and a strong cultural ethos around the rule of law
5. Minimized corruption - developing countries stumble upon or discover wealth that simply gets 'stolen' by the political and elite classes, leaving little for the remainder of the country
6. Educated workforce - ensuring more children enroll and complete their education
7. Food security - improving the resilience of the agricultural sector to ensure the population can provided enough food