Topic: What brings economy of a country down. - page 4. (Read 1685 times)

There are lots of things to consider to track down why the economy of a country is falling or going down. This pandemic for example is one of those that affects the economy of a country because even with this single reason, all the sectors concern to the growth and development of the country's economy is seriously affected that is why we have seen many countries have experience a serious dip down on their economic status all because of this pandemic.

Natural disasters can also be the one because it not just affect the natural resources of the country where raw materials use for products are being destroyed, but the lives of the people are also being affected because most of the time it costs life and destruction of properties which affects the capacity of the people to be productive.

Bad Governance can also be stated to be a contributing factor because with this, corruption is associated that instead of making the economy grow, it drags down the economy for the reason that only the government is benefiting on what success and fruitfulness must the country acquire.

Failure to resolve those problems can track down why the economy of a certain country do experience downfall and if not acted or responded accordingly can still branch out more problems to arise.

I think the primary reason why economy going down because of corruption. Next is because of unexpected pandemic like Covid19 virus that caused a worst effect to our economy and to the life of everyone.

I believe that many factors affect the economy, and especially its development, but the most important factor that harms the economy is corruption. corruption in state echelons of power reduces the effectiveness of all government decisions by 50%, as well as all state programs aimed at developing and supporting small and medium-sized businesses. it should be borne in mind that it is big business that lies in the plane of the interests of all corrupt officials, thanks to which they earn dirty money and the budget loses most of its funding.

I think the worst thing that could happen is lack of manufacturing and selling. Look at all the big nations in the world, all of them sells something to other nations, chain manufactures basically everything and sells it to other nations, USA gives out oil and other stuff and has a ton of big corporations that sells stuff to other nations and make money and German has cars and so forth that they sell to other nations and make a ton of money.

Overall, if you could just sell stuff to other nations you could live and survive, if you do not sell to other nations you will be debt because you will no matter what will end up buying stuff from them so if you buy but not sell that means debt and debt will cause you to drop in value and drop in economical sense. That is why every nation should produce and sell something.

The main thing is that the second wave would not be even more destructive than the first-and it will definitely be and it has already begun. I personally intend to stay at home as much as possible until an effective and official vaccine is ready. It will be even worse you will see!

among the list corruption is popular reason why a country can collapse  . regulation and productions , etc all of them will be useless because in the end government are still the one that will controll them .  i think curroption happens on every country , same on mine . no wonder the economy is verry poor but people are already get used to this poorness . another one is covid .  covid is not small and different from the past pandemic , its effects can be feel not only on our country but on almost all the countries . now this is the main reason people blame for the collapse of economy

We have similar problem in Croatia (lack of diversification) as we rely too much on tourism, and now with Covid19, that's one of the things that was most affected.
Tourism generates approximately 20% of our BDP, and this year's revenue from tourism will go down more than 50%, so it's pretty much obvious that we are screwed, and not just this year, as I have feeling this situation might be continue in the next year as well. We are not alone in this though, all Mediterranean countries have similar issues.

COVID-19 is the main reason why the economy of a country has fallen. Every important event has postponed, and a lot of businesses and employees have temporarily lost their source of income or jobs that stopped every productivity due to lockdown. It is why if someone has already made a vaccine for the COVID-19, It will be easy for everyone to recover their economy, and everything will be back to normal the way it was.

If economy has a problems like: bad regulations, corruption, low quantity of own production it will collapse somedays for sure

That's exactly how it is in my country. Depending too much on oil and now that oil price has plummeted, things ain't going too well. Diversity is the key to a more resilient and strong economy. It's like having various sources of income, so when one source isn't delivering as it should, the others can help keep you going.

Those stated above are the main elements concern on the economic state dependency of a country. Those were the factors affecting how a country's economy experience ups and downs.

Work force- this includes the man power coming from the people all working together on different field of works to provide goods and services which brings the economic growth of a country. Lacking on work force, let us say even the population of a country is large but only few are working, still they can be cannot have a good economic status because not all are being productive.

Availability of Natural Resources - this concerns on the natural wealth of a country because mostly raw materials use for the local products being manufactured and being imported or exported are coming from the natural resources. Not taking good care of it will lead to shortage and lacking of natural resources will affect the economic progress because production will be limited.

Skill and Education - for man power to be able to become essential and useful, people must obtain proper and quality education to build up necessary skills that can be use for the progress of the country. Lacking this could really have a bad effect because people will know nothing making them less productive.

Management and Government Relations - this all relies on how good governance on a certain country works. If the government has no effective leadership and composed of corrupt officials, it would negatively reflect on the economic state of the country.

If all of those elements will be provided accordingly with good foundation, expect that a good economy will arise. But still there would be cases that external factors can inhibit to affect those elements which can face some serious circumstances that can affect the economic state of the country.

I overall agreed with your position - bad govs' decisions could lead to a huge economical problems, we all human and government is just a group of people.
However, you should know that govs are not allowed to have businesses for a reason:
Governments regulate business market and laws, so it would be very unfair for them to be a part of the game where they do decide what the rules are.
And politicians as I already mentioned have power in their hands, so it would be again kinda unfair to allow them to have even more power

There are many things or factors affecting why the economy of a certain country is experiencing a down fall. Some common things are:

1. Governance - the type of government usually dictates on how it will manage the governing power it have to create useful plans and projects that can create opportunities that will rise up the economy and how it will manage the budget allotment on certain sectors to make the economy improving and alive.

2. Natural Resources - each and every country have different natural resources that are only unique and that can be found on their country which varies on the season it have making unique natural resources live. Lack or shortage on the natural resources which are commonly used as raw material for products that are made for import and export totally affects the economic status of a country.

3. Man Power - humans or its citizens are the living wealth of a country because they are the ones working forward to keep the economy alive since they stand on different professions and purposes in a country.

4. Educational Status - it is a very important factor that is needed to be considered. Productive people must have attained a good education to be able to become more useful to the country and lacking of good education can lead to serious problem such as lack of discipline and coordination.

Those were some of the key points why the economy of the country is falling down. Those were the important elements that a country must improve to be able to have a progress on its economic state and development.

I think bad investments are not just stuff we do, countries could do that very well too. If you are a government and you are getting a ton of taxes there is two things you should use that for, one of them is to make your people happy and their life easier, the second one should be to find stuff that would make profit for the government as well.

I do not understand all of this "capitalist" BS that forbids governments to have companies, many governments actually do have business' but they do not look like business, like DMV type of places exists or postal office type of places exist, not just in one nation but in all nations and they do make a profit time to time, or at least they should.

So, at the end of the day governments should get our taxes, build jobs and business and after a while they will be making their own profits and taxes will not have to go up, or it could even go down.

The resources are what a country need the most to flourish and the African countries are having tremendous amount of resources with them but the problem is that they are exporting those resources to other countries and buying the goods that are made from that same resource for a marked up price. What they should do is refine those resources and make those goods in their own country, that will increase the employment rate in their country by creating new jobs and will surely boost up the economy. Tourism is only an option for the popular African countries and not for every African country as most people fear going to African countries due to higher crime indexes.

For me, this pandemic really affected our economy and it can lasts upto 3 to 5 years to full recover. This quarantine makes those small and large businesses to be closed, they aren't allowed to operate that's why they can't earn profits that they are expecting. They only spend their money to their necessities as this quarantine is still active.

Business owners is having a hard time to retrieve the budget that are allocated to all of their expenses. If this Covid-19 is active until next year 2021, some countries will really have a hard time to control their budget for its community due to huge damage in economy.

Governments should think of a feasible and effective solution that they can use to help their economy grow.

Having a diversified economy helps a lot, but it is not the perfect solution. There are countries such as India which have diversified economy. But the GDP per capita is much lower when compared to countries such as Maldives and Gabon, where the economy is overdependent on a single sector. Effective management of the economy, eradication of corruption and a low population growth may do the trick.

It depends on the situation if the government is able to diversified in different sectors to avoid economic breakdown. In this circumstances that every country are affected with pandemic and all government sectors as well as the economic sector is too much affected,all are cripple,tourism,agriculture,fisheries,business sector everything is now facing difficulties.And this matter will be the huge cause of economic downfall for every country. If pandemic continuous,government and community will continue to suffer and time will com government economic problem can't go back to normal easily. Another reason why economy go gown ,it's because of corruption which is continues to exist even in the middle of pandemic.

A country is said to be not sovereign if conditions abroad affect domestic stability. The country has no resilience. Venezuela is lulled by the title as a big oil producer, even though its production is large, Venezuela is only a price taker, not a price maker. Saudi Arabia alone is known as the king of oil only a price taker. The price maker is of course the US, which has so far supported the security of oil production in many regions.

In my opinion, the fall of Venezuela was not only due to corruption. Systemic corruption committed by almost all leaders of a country has become common knowledge. The mistake is in the governance of the state carried out by the government. lead but do not have knowledge about the right state and create national resilience that can block or minimize the national threat. When Venezuela easily gets dollars from oil exports, Venezuela also opens the door to imports for the basic needs of the Venezuelan people so that dependence on imports is very high.

When oil prices fall, only a few dollars can be used to import and to pay off debt. When the total embargo was carried out by the Americans, Venezuela was increasingly cornered. As a statesman, a leader should make many simulations starting with the question "what if" or the role of the National Security Agency in a country must be active and proactive so that a country can dominate with its resources. When Venezuela was cornered, as usual China and Russia came as helpers, of course, there was no free lunch. Finally, Venezuela is only in the vortex of the competition of the world's big players.

Its really hard to build 100% devirsificated economy especially for 3rd world countries. They usually dont have anyother other than tourism and/or raw resources