Factors Affecting Economic Growth and Development
- Human Resources: Investment in human capital is considered as an important factor for economic growth. This is done by increasing the quality of a nation’s labour force through education and training in advanced technology. It has also been proved that literacy not only improves productivity but also makes an individual more adaptable to new challenges.
- Natural Resources: Availability of natural resources (land and mineral) to a nation is also a vital source of growth. It is not only the availability of these resources, but the extent to which they are exploited. It should be noted that for the exploitation of these resources, care should be taken not to sacrifice the environment. This means that growth through exploitation of these resources should be sustainable while maintaining good environmental quality.
- Capital Formation: Growth Economists believe that accumulation of capital is one main source of the growth of an economy. Emphasis is given to the accumulation of more capital per head (machines, factories, roads, etc.). It should, however, be noted that mere accumulation of capital will not fuel growth. Unless there are areas of investment unexploited, productive capacity cannot be increased merely by increasing the stock of capital. Capital is also only one of the many productive factors of production. If it is increased relative to other factors of production its marginal efficiency falls.
- Technology: Expansion of knowledge through science and engineering that leads to new inventions and innovations in production techniques play an important role in growth. Technology can either be developed internally or can be imported from other countries.
Problems of Development in Nigeria
Some problems of development in Nigeria are:
- Crime and Terrorism
- Educational Insufficiency and Inefficiency
- Lack of Planning