Problem
Ineffective economic structures in industrial nations
Nature:
The economic structures of industrial nations are failing to close the gap between their economic potential and their actual performance. Protectionism, including agricultural, industrial and other subsidies reduce competition in national and international markets for goods and services. High marginal taxes, currency restrictions, financial market regulations, discriminatory tax rates applied to similar transactions, and excessively steep progressive income tax rates restrict capital flows. Centralized collective bargaining, employment regulation, social security restrictions, and government control of training and education have created rigid labour markets.
Broader Problems:
Economic inefficiencyEconomic underdevelopment Narrower Problems:
Distortionary tax systems Aggravates:
Segmented labour marketsProhibitive labour costsLabour hoarding by employersDeclining economic productivityUnderutilization of labour forceStructural rigidities in labour marketsArrested development of labour potentialLack of time flexibility in the labour marketDiminishing capital investment in small communities Reduced By:
Unorganized labour potentialStrategies:
Increasing international economic cooperation Subject(s):
Economics → EconomicGovernment → Nation state
Industry → Industry
Societal Problems → Ineffectiveness
Related UN Sustainable Development Goals:
Problem Type:
D: Detailed problems Date of last update
03.02.2021 – 18:26 CET