Problem
Structural rigidity in national economies
Experimental visualization of narrower problems
Other Names:
Rigidities in national production structures Nature:
Mobility of the factors of production, important in enabling appropriate responses to be made to changes in world market conditions, is absent in the case of many developing countries. Evidence of structural rigidity may be provided in a general way by persistently adverse movements in the terms of trade, but it may also manifest itself specifically in over-production or under-production of particular commodities and in excessive dependence on slow-growing export commodities. The process of development is seen as generally involving a shift in the structure of production towards manufacturing activities, producing intermediate and capital goods, and the provision of different kinds of services.
Broader Problems:
RigidityFailure of centrally planned economies Narrower Problems:
Obsolete industriesOver-production of commoditiesUndiversified national economiesUnderproduction of primary commoditiesUnderemphasis on local economic development Aggravates:
External debt crisisEconomic underdevelopmentInadequate production capacityInadequate production capacitySocial hardships of economic reformInstability of the commodities tradeLow complementarity of national economiesUncoordinated global restructuring of productionInstability of production of food and live animalsFaltering structural adjustment in the world economy Strategies:
Diversifying national economies Subject(s):
Economics → EconomyIndustry → Construction
Industry → Production
Related UN Sustainable Development Goals:
Problem Type:
D: Detailed problems Date of last update
30.05.2019 – 18:41 CEST