What Causes High Unemployment Rates In Developing Countries?


2 Answers

Deborah Mann Profile
Deborah Mann answered
Labor markets are not as efficient in the developing countries as with those in the developed countries this is down to many factors;

- Defining what it is to be unemployed
- Not everyone is actively looking for a job
- Formal job sector more recognized than the rural job sector
- Urban migration
- War and the displacement of workers
- Agriculture and a changing environment

A world recession can also be major cause for unemployment. As there is less call for raw materials, cash, crops and manufactured materials, which in the developed countries have come to be known as sweat shops. Not only can under-developed countries be affected by natural causes but it is also common for governments to become corrupt.

The International Monetary Fund (IMF) or Department for International Development (DFID) regularly give money to countries in order for them to put them towards projects such as HIV vaccinations or water projects. The money is given directly to the governments, but unfortunately some governments think it will be better spent on its members' personal wealth rather than that of the good of the country. This adds to the lack of employment opportunities created as well as decreasing economic development. Also technology helps keep employment high. The more advanced the ability to produce products without people, the less there is any need for them. Unfortunately progress isn't always good.
Anonymous Profile
Anonymous answered
Governmental corruption
red tape accompanied by lawlessness
lack of property rights
poor educational systems

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