Dispersion of local capital resources
Other Names: Outflow of community capital
Excessive capital outflow from rural areas
Nature: Any community, from the local to the national level, which wishes to enhance its economic development must retain its capital resources as long as possible. In most small rural villages the resources for commercial ventures are severely restricted, yet local resources are spent outside the community for goods and services not available in the village, usually being paid to peddlers who sell within the village, but carry the money received out to their home and business communities. Such dispersion of resources compounds the effect of tax and employment laws, fostering the belief that economic activity is necessarily 'hand to mouth' and making it unattractively risky to borrow development capital even if it were available. This occasions paralysis in thinking and planning for the future.
Problem Type: F: Fuzzy exceptional problems
Date of last update 01.01.2000 – 00:00 CET