The economies of many African countries are not developed in spite of having huge deposits of natural resources. Give reason.
Answers
Answer:
Natural resource revenues have also been linked to slow economic growth rates, inequality, and poverty. One culprit may be the so-called "Dutch disease," whereby resource revenues raise a country's exchange rate, hurting competitiveness in non-resource sectors. Other factors may include the volatility associated with commodity prices, which can have especially negative impacts on weak-state economies; and the underdevelopment of agricultural and manufacturing sectors during boom periods in resource-based economies. And even when oil abundance produces high growth, it often benefits only a few corrupt elites rather than translating into higher living standards for most of the population. Oil-rich Angola is a case in point. Despite having one of the world's highest growth rates from 2005 to 2010, averaging some 17 percent annually, its score on the human development index remained a miserable 0.49, and its infant mortality rate was lower than the sub-Saharan African average.
Explanation:
The economies of many African countries are not developed due to poor planning and selfish bureaucrats.
Explanation:
- Although the African continent is blessed with the abundance of natural resources like the gold, the diamonds, oil, and bauxite, and the uranium and other resources but still most of the nations live in poverty.
- Mostly due to the wars, corruption, human rights violation and failed democratic institutions, selfish multinationals, and most of the time the continent has been drained for ts resources which beings little contribution to the economy of the country.
- Poverty, illiteracy and malnutrition, inadequate water supply and sanitation have affected large amounts of people.
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- brainly.in/question/16611461 answered by Gnanaselvanmuthu1.