Institutional Factors Affecting Development

1. Education

Improve well-being of the population and society

Better communication and greater potential for social change.

Improvement in the role of women.

Empowerment through education.

Child survival rates improve.
2. Health

Greater economic development with a higher quality of healthcare

Higher HDI and life expectancy

Some governments subsidies healthcare substantially e.g. UK and Australia

while other countries have far less welfare programs to assist people in
paying for medical bills e.g Syrian Arab Republic

While developing countries recognize the need for better hospitals and more
trained medical professionals they often are not able to afford them.

Often more economically developed countries offer financial assistance to

developing countries to improve their healthcare schemes

2. Health

Greater economic development with a higher quality of healthcare

Higher HDI and life expectancy

Some governments subsidies healthcare substantially e.g. UK and Australia while other
countries have far less welfare programs to assist people in paying for medical bills e.g Syrian
Arab Republic

While developing countries recognize the need for better hospitals and more trained medical
professionals they often are not able to afford them.

Often more economically developed countries offer financial assistance to developing

countries to improve their healthcare schemes

3. Infrastructure

Infrastructure needed for economic activity and development

Factors of Infrastructure:

Transport

Roads

 Railways
Seaports
Airports
Public Transport

4. Political Stability and a lack of corruption

- Countries that have political stability are more likely to attract Foreign Direct
Investment (FDI)
- Increased FDI can lead to higher growth
- Political stability can also lead to higher standards of living.
- Political instability causes uncertainty and may cause economic breakdown.
- It gets harder for a country with political instability to attract foreign investment or
even aid.
- Corruption is dishonest exploitation of power for personal gain. It poses a huge
challenge to both growth and development.
5. Legal system:

A fully functioning legal system is almost essential if development is to be

achieved.

In many developing countries the legal system does not function well.

If the legal system does not function well there is no way to create and
enforce contracts and there is no way to uphold property rights.

bibliography
http://hubpages.com/education/Domestic-Factors-and-Economic-Development
https://www.google.rw/url? resentation%2Fjuliapeters-1608264-domestic-factorseconomic-