Problem

Restrictive effects of external capital on development


Experimental visualization of narrower problems
Incidence:
The former centrally planned economies of Central and Eastern European have found foreign capital inflows in their various forms to be a mixed blessing, threatening the macroeconomic balance that they have recent achieved. These countries have learned that it is not easy to continue to attract foreign capital and simultaneously to reduce its adverse effects on inflation, the exchange rate and the current account, and to contain disturbances resulting from reversals of the flows.
Claim:
A consistent system of money flow from sources outside a country or community creates the attitude that development can only begin to take place at the administrative level. When government funded improvements stop short of completion, a community may simply stand still, the people generally assuming that they can do nothing. Convinced that delay is inevitable, due to constantly shifting priorities which are largely beyond their control, they prefer to wait for the government to continue improvements rather than seeing the viability of alternative routes and pursuing them.
Problem Type:
F: Fuzzy exceptional problems
Related UN Sustainable Development Goals:
GOAL 1: No PovertyGOAL 2: Zero HungerGOAL 3: Good Health and Well-beingGOAL 4: Quality EducationGOAL 5: Gender EqualityGOAL 6: Clean Water and SanitationGOAL 7: Affordable and Clean EnergyGOAL 8: Decent Work and Economic GrowthGOAL 9: Industry, Innovation and InfrastructureGOAL 10: Reduced InequalityGOAL 11: Sustainable Cities and CommunitiesGOAL 12: Responsible Consumption and ProductionGOAL 13: Climate ActionGOAL 14: Life Below WaterGOAL 15: Life on LandGOAL 16: Peace and Justice Strong InstitutionsGOAL 17: Partnerships to achieve the Goal
Date of last update
01.05.2000 – 00:00 CEST