Inhibition of investment by risk Fear of capital investment Investment blocked by high risks High business risk Speculation risks Unfavourable capital risk Reluctance towards corporate investment Lack of investment capital Disincentives for financial investment
The risk involved in new economic development at any level, particularly in small rural communities, has grown to overwhelming proportions. Extensive capital is required for land, building, equipment and essential services such as water and sewage, before any production begins. As the readily available resources which brought business to these communities in the past become exhausted they are not replaced by the development of new resources, since the lack of sewage disposal and water systems means no outside development group would seriously consider working in such conditions. Local residents tend to lack the resources or the ability to initiate even small scale enterprises. Industry cannot afford to take risks in ventures that have low market values or low potential rates of return.
[Developing countries] The absence of significant net investment by people in traditional societies is due to a lack of any notion of productive accumulation, or even of progress; and to the acceptance of values and institutions which are inimical to innovation. In addition, farmers need some of guarantee that prices will not fall below a minimum remunerative level if they are to be induced to introduce innovations and increase investment on their land. As a result, economic life continues in a repetitive pattern with no underlying tendency for appreciable increase in output.
The Encyclopedia of World Problems and Human Potential is a collaboration between UIA and Mankind 2000, started in 1972. It is the result of an ambitious effort to collect and present information on the problems with which humanity is confronted, as well as the challenges such problems pose to concept formation, values and development strategies. Problems included are those identified in international periodicals but especially in the documents of some 60,000 international non-profit organizations, profiled in the Yearbook of International Organizations.
The Encyclopedia includes problems which such groups choose to perceive and act upon, whether or not their existence is denied by others claiming greater expertise. Indeed such claims and counter-claims figure in many of the problem descriptions in order to reflect the often paralyzing dynamics of international debate. In the light of the interdependence demonstrated among world problems in every sector, emphasis is placed on the need for approaches which are sufficiently complex to encompass the factions, conflicts and rival worldviews that undermine collective initiative towards a promising future.
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