Topic: What brings economy of a country down. - page 5. (Read 1685 times)

Corruption makes the country's to fall, even countries with less resources becomes well rich when they got good leadership in their government and most of the African governments were corrupted so they become most poor countries in the past few decades.

Of course this covid-19 makes the economy of almost all countries in the world go down. Because some countries are forced to quarantine.
So some companies, offices, factories, shops, malls, etc. must be closed. So many people suddenly have no income, this also causes the
country's tax revenue to decrease. After that the government must provide stimulus to the poor, all this factors makes the country's economy
fall. Therefore, now some countries force to open quarantine when it is spreading corona virus is still happening, to make the country's economy
rise again.

If all people has an emergency fund then government will not suffer too much damage about this crisis. And also if China closed there borders immediately then the spread will not be this huge. Anyway, Recovering from this pandemic is still easy since there is no structural damage which will give a country a huge debt to recover. This pandemic actually stop the world war 3, Before this pandemic hits, There are a lot of tension in middle east and the south China Sea.

This is definitely true. Lots of huge businesses here have no choice but to stop their operation because of the pandemic. Our country is now having a huge debt because we have nothing to sustain the treatment of covid patients because of the economic situation and the government also needs to sustain the necessities of the people. Some unexpected situations could bring the economy of a country down.

The number 1 reason that the economy of a country will go down it's because of corruption.

If you are really interested in this, you can check out the case of my country, Venezuela. The problem is that depending on where do you get the info, It will be very biased, mostly because the left like to use this as an example of how evil is the world and US bullying a shitty country.

To get to the point, one of the biggest flaws of this economy its that always has been based in a single product economy (oil), its has been like that for decades, but we one of the best and more profitable oil companies in the world, but for the last 20 years this have been milked for the dictatorship of Chavez and Maduro, to the point that when the took this the daily oil production in 2000-2003 was about 3m daily barrels, and now is around 500k (in 2019 was 800k so it's not because of the covid19).

https://www.eia.gov/todayinenergy/detail.php?id=39532#:~:text=In%20April%202019%2C%20Venezuela's%20crude,2019%20Short%2DTerm%20Energy%20Outlook.

https://www.ceicdata.com/en/indicator/venezuela/crude-oil-production

Why is this? Because of the corruption going rampant in the country, many people that used to work for this company have flee from the country, there is 0 investment on improvements, maintenance or hire of capable personal to keep it running, beside a horrid leak of capital on contracts that are unnecessary or do not ever get done, the refinement from oil to gas stopped completely and we now need to import the gas from other countries.

Countries with single production economy are really vulnerable to falls like this under bad management, but still something like this can dent the economy of anywhere if you give it enough time, the thing is that here they didn't need to hurry, they knew the could to it slowly and put the blame on others with their never-ending victim complex.

Indeed! Corruption can disrupt the development of the country if the said leader is taking the money straight to their pocket. It will take some patriotic president to not to actually fall for the money but instead he's down ready to develop his/her country. One of the best example is the country of Japan and we all know how sincere and respectful to each other and is not likely to make any scandal publicly, that's why Japan is evolving fast after the WW2/Hiroshima bombing.

If you know the story about this you will know how they managed to rise up from the bottom after the war.

Corruption is the worst enemy for a country's economy to go down and not allow them to prosper.
The ability to govern the nation's leaders also plays an important role for nations to achieve the desired progress of those development plans implemented so that citizens achieve a good quality of life.

Good comment! At least you started good, but let's talk about those "good leaders" and where they can be found, in which county? Maybe Island? Or some other small country, where people live in peace, without interfering with global wars.
When you have a leader it's like gravitating to centralized system where one man is in charge, I am for decentralized system, where people have to learn how to be good and how to respect everyone, and of course to be respected by everyone. We need a society where people will do good things not for reward, they will do good because it's the good way, and they will not do bad things because of the punishment, they will not do bad things because they know it's not good to do it.

This is one of factor why we have problems to economic growth. Even if you diverse the nation's economy if there is corruption it will just digest by the negative things happening in the government. Look at some countries now, even we are having a pandemic there are still government official who is trying to steal from the fund. I wonder why the governor of Tokyo in Japan resigned after a funds scandal, if he has nothing to do with it then he should stand strong.

Just a good leader is not enough, we have a lot of them but sometimes the real problem is with the people who he is leading to.

I believe that in this situation, when the world is faced with new challenges, including the coronavirus pandemic, to save the global economy, as well as the economy of each country individually, all governments must resort to non-standard solutions to solve the problems associated with a balanced the work of the state system and business. in my opinion, a very good step by the government will be an amnesty of capital and certain benefits for a particular business sector. the fact that today they are trying to solve the problem by reducing people and not paying salaries to these people, with these methods you can only achieve the opposite result and can not solve the problem.

Have you invented the Bicycle again? I congratulate you on such a discovery!
And now let's answer the question - which of the sectors of the economy is profitable to support the other or even competitors rather than develop and grow itself? The answer is no one except the sectors with state participation. Or do you think that the grocery sector (hypermarkets) will support the automotive industry simply because they are so kind and do not want to run out of cars? Lol

A country's economy that only focuses on one thing will be easier than a country whose economy is more diversified. Not all of countries are able to change their economy to be more diversified sector because it must be supported by the country's natural resources and large budget. The most obvious today, to make more diversified sector will require large costs and maximum sector management.

The government can stop this war if it wants. But they call for such a war for their own benefit, which harms the country's economy as well as the common people Inflation is caused by war and they also lack adequate social policies so the economy suffers more.

Failures in the business are government responsibility. Small business is bad because of their erroneous actions. New firms cannot open, old ones close.
My opinion is that failures in the economy are the responsibility of the government.
But I do not know what remains to do to citizens in such a situation.

Economic diversification is indeed important for a country's economic growth and development because it makes them flexible over the products they produce and export but for poor countries, they often struggle with diversification. Poor countries or other developing countries find it hard to diversify since they often depend on a single or primary commodity that they have. Instead of trying to give opportunities to other sectors, since they lack resources and other things, they tend to only focus on what product they are rich at.

But if I'm not mistaken, other countries we are able to diversify on the main mineral product they export by innovating and developing the quality of their products which allows them to improve their trade sectors. So I think even with lesser commodities, countries can still diversify and improve their economic growth, it's just a matter of managing and maximizing the resources they have. They can't just depend on a single sector when they can develop or improve other sectors as well, for long-term and stable economic growth.

I believe that the main reasons that caused recession in the country is the simultaneous failures of businesses and investment plans. Financial, psychological and health problems and real economic factors are at play in the causes and effects of recessions. The very reason that brought the economy more vulnerable to economic shocks this year is the impact of Covid19 and the preceding decade of extreme monetary stimulus..but, somehow, with the right management of the government and country's business leaders, I believe that the economy will rise.

Actually the market tensions also play a major role in determining the Countries economy to  certain extent. Take the example of India vs China border tension going on now, there will be a lot of spending if both the countries go to war and then the government would have to pump more money by printing more of it thus inflation will also be there and then there won't be much business due to the increasing number of COVID cases, thus bringing the economy down even more.

I think the reason for the country's economy going down is the government's unawareness Everything interferes in the hands of political leaders in which case the leaders manage everything as they wish. In addition, if inflation occurs in a country and resources are not used properly the country's economy continues to decline If the government itself takes the right steps it is possible to reduce these to some extent The government is responsible for this.

Of course government policies have an important role in a country's economy. So if the government is good at managing assets countries,
it is unlikely that the country's economy could down. Another thing that made the country's economy down was the lack of entrepreneurs
who opened up business, so jobs can be created. If there are many jobs, the income of the population increases, this is what makes the
economy strong.

It's good that government should learn to diversify their economy through their different sources of revenue like tourism, export goods and even oil production in some countries so that economy won't continue to fall particularly in this pandemic days. But we can't expect nowadays that everything will be back to normal as this pandemic case still continue to grow knowing there's no vaccine yet to stop the virus.